UK to Ban Trade With Israeli Settlements, Sparking Israeli Outrage

British Foreign Secretary Ed Miliband is expected to announce a significant shift in UK policy towards Israel, including a ban on trade with Israeli settlements in the West Bank. The move, described by Miliband as a "broad reset" of UK-Israel relations, aims to strengthen British support for a two-state solution. The construction in the E1 area, between Ma'ale Adumim and Jerusalem, is a focal point of the policy change, with Britain and other European nations arguing that its realization could sever the territorial contiguity of a future Palestinian state.

British Minister for Pensions Pat McFadden stated that the pace of settlement expansion has made the new measures urgent. The ban is anticipated to primarily affect agricultural products and wine produced in the settlements, as well as certain services. However, its impact on overall trade is expected to be limited, as settlement goods constitute a small fraction of the approximately £6 billion annual trade between the UK and Israel.

Diplomatic sources have warned that enforcing the ban could be complex, as some Israeli products may contain components from settlements without explicit labeling. Israeli President Isaac Herzog condemned the British move as a "grave mistake that will place Britain on the wrong side of history" and accused London of interfering in upcoming Israeli elections. Finance Minister Bezalel Smotrich called for the expulsion of the British ambassador to Israel.

U.S. Ambassador to Israel Mike Harkavy also criticized the decision, calling it "discrimination against the Jewish people." He suggested the move could hinder Britain's ability to conduct business in U.S. states with laws prohibiting dealings with entities boycotting Israel. Despite the heightened measures, the British government emphasized that Israel remains an important trading partner. The UK Prime Minister's office stated that in a conversation with U.S. President Donald Trump, the importance of a two-state solution was stressed.