Norway Proposes Strict Ban on Trade with Israeli Settlements

Norway is advancing a new bill that would prohibit Norwegian citizens and companies from engaging in economic activities with Israeli settlements in the West Bank and East Jerusalem. The proposed legislation, which includes criminal penalties of up to three years in prison for intentional violations, aims to transition from advisory warnings to a legally binding prohibition on trade.

The Norwegian Foreign Ministry announced in June that the draft law was open for public consultation until September 19, 2026, before being presented to parliament. The ban would cover the import and export of goods produced in settlements, the purchase of settlement real estate, and the provision of related services like construction, engineering, architecture, and real estate brokerage. It would also apply to acquiring companies based or operating within settlements.

Norwegian Foreign Minister Espen Barth Eide stated that the government views Israeli settlements as contrary to international law and believes they undermine the prospects for a two-state solution. He emphasized that Norwegian entities should not profit from or support activities that perpetuate settlement expansion. This move follows Norway's participation in EU sanctions against Israeli individuals and organizations and its imposition of entry bans on over 20 settlers accused of violence in the West Bank.

Norway's initiative aligns with a broader trend among Western nations. In early September, a coalition including Canada, France, Spain, Sweden, and the UK announced intentions to impose or support restrictions on trade with settlements. This suggests a growing inclination in Western countries to utilize economic and legal tools to pressure Israel on settlement policy, moving beyond non-binding political statements.

While the direct economic impact of Norway's proposed sanctions may be limited initially due to the relatively small volume of trade, the move carries significant symbolic, political, and legal weight. It could also set a precedent for wider measures against Israeli companies involved in settlement activities in the future.