Netherlands Enforces Settlement Goods Ban, Citing International Law

The Netherlands will implement restrictions on trade with Israeli settlements starting September 22, after a court rejected a bid to suspend the ban. The Israeli Center for Production (IPC) and the European Jewish Association had sought to halt the measures, which affect the import, purchase, and sale of settlement products. The court ruled on September 16 that the IPC's claims lacked sufficient legal basis, referencing conclusions from the International Court of Justice and the Dutch government's stance that trade restrictions can serve political aims.

Dutch authorities state the restrictions are based on international law, arguing against economic support for what they consider the illegality of Israeli settlements. The government also explicitly aims to increase pressure on Israel's government. Previous attempts to enact similar measures at the European Union level failed, prompting the Netherlands to act unilaterally as part of a "pressure and dialogue" policy.

The new rules go beyond a simple import ban, prohibiting direct or indirect purchase and sale of settlement goods, as well as related intermediary services. The restrictions apply to goods produced or sourced from settlements listed by the EU, but not to Israeli goods in general. Importers of Israeli products will need to declare that their goods are not from restricted settlements.

Violations could lead to severe penalties, including up to six years imprisonment, community service, or substantial fines. The IPC, which has imported Israeli products since 1981, warned of disruptions to trade ties and potential impacts on Palestinian workers in the West Bank, citing a halva and tahini producer employing around 140 Palestinians.

Paradoxically, the impending ban has spurred increased demand for some settlement products, with consumers buying in advance. The IPC has created a special section on its website for West Bank goods, noting that wines from the region sold out over the summer. Some Dutch citizens, including Pastor Oscar Loheis, have encouraged purchasing these goods as a protest against government policy.

The IPC expressed disappointment with the court's decision, anticipating significant and disproportionate consequences. The organization plans to review the ruling and determine its next steps, while continuing to sell non-restricted Israeli products. The measure is set to last for three years unless extended or terminated earlier.