Australia Backs Away From Trade Restrictions on Israeli Settlements

European diplomats expressed disappointment and surprise after Australia withdrew at the last minute from a British-led initiative to restrict trade with businesses in Israeli settlements in the West Bank. The Australian Broadcasting Corporation (ABC) reported on Saturday that 12 countries, including the UK, France, and Canada, had previously issued a joint statement committing to impose or consider trade restrictions on settlements. Australia had participated in discussions and initially signaled openness to the measures, with one early draft of the statement including Canberra among the signatories. However, Australia ultimately did not join the initiative, a decision that sources say became clear only on the day the statement was released.

According to ABC, European Union officials had aimed to build a broad international coalition to pressure Israel. Four diplomatic sources indicated that Australia was involved in the talks until shortly before the statement's finalization. One European source claimed to have seen an early draft listing Australia, though it remains unclear if Canberra had formally agreed or was included in anticipation of its participation. Two sources involved in the negotiations confirmed that Australia's non-participation was only realized on the day the statement was published.

Some sources suggested that internal political considerations influenced Australia's decision. These may include pressure on Prime Minister Anthony Albanese following recent terror attacks and criticism from Jewish organizations regarding the government's response to antisemitism. Internal divisions within the Labor Party were also cited as a potential factor preventing a unified government stance.

An Australian Department of Foreign Affairs and Trade spokesperson stated that Canberra and its international partners "are working together and in close coordination towards the same goal, even if not all are taking exactly the same steps at the same time." The spokesperson expressed concern that broad import bans could inadvertently harm Palestinian and Australian businesses and livelihoods. Instead, Australia intends to pursue "further targeted measures, in coordination with international partners, to deter illegal settlement activity and settler violence."

Earlier in the week, British Foreign Secretary David Miliband declared in Parliament that "ethnic cleansing of Palestinians by settler terrorists" was occurring in parts of the West Bank, with the Israeli government turning a blind eye. He also reiterated Britain's official stance that the Israeli occupation of the West Bank is illegal, aligning with a 2024 International Court of Justice advisory opinion. Miliband's strong statements reportedly surprised some signatory nations, as they deviated from the more moderate language agreed upon in the joint declaration. Israel rejects the claims of ethnic cleansing and the assertion that settlements and Israeli control in the West Bank are illegal.