Netherlands Enacts Strict Ban on Trade with Israeli Settlements, Excludes Booking.com

The Netherlands recently passed a stringent law banning trade with Israeli settlements, including the Golan Heights, marking a tougher stance than similar European measures. The law, effective from September 22, prohibits Dutch individuals and food chains from buying or selling products originating wholly or partly from these areas, aiming to prevent circumvention of sanctions through third-country imports. Violators face penalties of up to six years in prison, with distinctions made between intentional and unintentional breaches. Notably, the law exempts services, allowing platforms like Booking.com, headquartered in the Netherlands, to continue listing accommodations in the settlements.

This legislation follows a broader shift in Dutch policy toward Israel, influenced by public opinion after the Gaza conflict and a critical stance from The Hague, which has also pushed for EU-wide sanctions on settlement products. While only four EU countries have imposed such bans so far, the Netherlands is a significant Israeli trade partner, accounting for 5% of Israeli exports. Although direct economic impact is estimated at around $200 million annually, concerns in Israel focus on the law's potential to deter Dutch companies from engaging with Israeli businesses and inspire similar laws elsewhere.

Experts highlight the law's political roots and its alignment with the International Court of Justice's July 2024 advisory opinion. Israeli officials worry about enforcement rigor and cumulative effects alongside academic boycotts and efforts to exclude Israel from EU scientific programs. The Dutch law was passed swiftly without parliamentary debate, reflecting a coalition consensus, and signals a notable shift in European-Israeli relations.