BRUSSELS, September 17, 2025 (WAFA) – The European Commission announced on Monday a proposal to suspend free trade with Israel and sanctions on two Israeli ministers.
“Following the announcement of President Ursula von der Leyen in her State of the Union address, the European Commission presented today its proposal to the Council to suspend certain trade-related provisions of the Association Agreement between the EU and Israel (“the Agreement”)” the Commission said in a press statement.
In her address before the EU Council, von der Leyen said: “What is happening in Gaza has shaken the conscience of the world,” as she denounced “the actions and statements by the most extremist ministers of the Israeli government which incite violence,” and she condemned Israel’s “clear attempt to undermine the two-state solution.”
Separate from the proposal, the Commission announced that it was also freezing its bilateral support to Israel, a step that “affects future yearly allocations between 2025 and 2027, as well as ongoing institutional cooperation projects with Israel and projects funded under the Regional EU-Israel cooperation facility.”
The Commission noted that it made these proposals following “a review of Israel's compliance with Article 2 of the Agreement, which found that actions taken by the Israeli government represent a breach of essential elements relating to respect for human rights and democratic principles.”
“This breach refers to the rapidly deteriorating humanitarian situation in Gaza following the military intervention of Israel, the blockade of humanitarian aid, the intensifying of military operations and the decision of the Israeli authorities to advance the settlement plan in the so-called E1 area of the West Bank, which further undermines the two-state solution,” it elaborated.
“The horrific events taking place in Gaza on a daily basis must stop. There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas,” Von der Leyen said.
“The European Union remains the biggest donor of humanitarian aid and an unwavering champion of the two-state solution. Reflecting these principled commitments, and taking into account serious recent developments in the West Bank, we propose to suspend trade concessions with Israel, sanction extremist ministers and violent settlers, and put bilateral support to Israel on hold,” she added.
The Commission explained that the suspension “concerns the core trade-related provisions of the Agreement, and in practice means that imports from Israel will lose their preferential access to the EU market. These goods will therefore be charged duties at the level applied to any other third country with whom the EU has no free trade agreement.”
The suspension of the free trade provisions would require the approval of a qualified majority of the 27 EU members, which is also known as a “double majority rule” of at least 55 percent of member states (15/27) and 65 percent of the EU population.
The EU is Israel's biggest trading partner, accounting for 32% of Israel's total trade in goods with the world in 2024. Israel is the EU's 31st largest trading partner.
Total trade in goods between the EU and Israel in 2024: €42.6 billion. The EU's exports to Israel amounted to €26.7 billion.
K.F.
