EU proposes restrictions on Israeli exports, Gaza war proceeds

The European Commission has proposed suspending a trade deal with Israel—impacting around €5.8 billion of Israeli exports—amid mounting concern over the Gaza conflict, as reported by Arab Weekly plus agencies on September 18th.

Alongside this, the EU plans to freeze around €20 million in bilateral support to Israel and impose sanctions targeting far-right ministers and settlers accused of committing violent acts.

If the trade deal is suspended, Israel would face standard tariffs on goods that previously benefitted from reduced duties, including agricultural goods like dates and nuts. The suspension would mean there will be roughly €227 million in duties annually for Israeli exports.

The key Israeli figures Itamar Ben-Gvir and Bezalel Smotrich are also in the crosshairs, with both having been the target of proposed visa bans and asset freezes.

But the proposals face significant obstacles: Germany and Italy have expressed reservations, signalling that the measures may not garner enough consensus to pass as currently drafted.

Earlier in 2025, reports found that Israel had violated the EU-Israel trade agreement, through its conduct in Gaza, including alleged breaches of humanitarian law and obligations under international law. That review has fuelled calls inside the EU for stronger measures.

Another example can be seen in Spain – a country which has imposed its own sanctions. Spain has banned imports from Israeli settlements in the occupied West Bank and Gaza, reduced consular services to Spanish citizens residing in those settlements, and is developing its list of sanctioned Israeli officials. These national moves reflect how EU member states may act unilaterally if bloc‐level decisions stall.

A leaked EU document surfaced earlier this year indicating that Israel is breaching human rights obligations under Article 2 of the EU-Israel association agreement—triggering legal, diplomatic, and moral debates.

Meanwhile, former ambassadors and senior officials have urged the EU to suspend its Association Agreement with Israel entirely, and impose rigorous targeted sanctions.

If the EU’s proposals are implemented, Israel could face both economic losses and a reputational blowback. But even proposed sanctions alone have a symbolic force—signalling that continued warfare with high civilian death tolls may erode long-standing trade relationships. But Brussels’ ability to act decisively depends on how far public opinion and allied pressure pushes governments to overcome diplomatic caution.

Arab Weekly plus agencies (Reuters), Maghrebi.org, The Guardian, Al Jazeera