Australia Backs Away From Sanctions on Israeli Settlements, Angering Allies

European diplomats expressed disappointment and surprise after Australia unexpectedly withdrew from a British-led initiative to restrict trade with businesses in Israeli settlements in the West Bank. The move, reported by Australia's ABC network, saw 12 countries, including the UK, France, and Canada, commit to imposing or considering trade restrictions on settlements.

Australia had participated in discussions and initially signaled openness to the measures, with one early draft of the joint statement including Canberra. However, by the time the statement was released, Australia had opted out, leaving some EU officials surprised and others noting that Australia had never definitively committed to joining. One source suggested Australia "missed an opportunity" to exert significant pressure on Israel.

Sources cited potential political considerations within Australia, including pressure on Prime Minister Anthony Albanese following recent terror attacks and criticism regarding his government's stance on antisemitism. Internal divisions within the Labor party may have also contributed to the decision.

The Australian Department of Foreign Affairs and Trade stated that while not all nations take the exact same steps simultaneously, they are working towards the same goal. The department expressed concern that broad import bans could inadvertently harm Palestinian and Australian businesses and workers. Instead, Australia plans to pursue "targeted measures" in coordination with international partners to deter illegal settlements and settler violence.

This development follows strong statements by British Foreign Secretary David Miliband, who accused Israeli settlers of ethnic cleansing of Palestinians in the West Bank and declared the UK's position that the Israeli occupation is illegal, aligning with a 2024 International Court of Justice advisory opinion. Australia had previously joined coordinated sanctions with the UK, Canada, France, and Norway in June against Israeli individuals accused of facilitating violence against Palestinians in the West Bank.