Britain Backs Palestine, Trade with Israeli Settlements to Be Banned
The British government plans to reset its relationship with Israel whilst taking a more active position in supporting the rights of Palestinian citizens.
Foreign Secretary Ed Miliband is scheduled to announce the policy on Tuesday (8/9). One of the measures to be announced is a plan to ban trade in a number of goods and services originating from Israeli settlements in the occupied Palestinian territories.
The ban could extend beyond physical products. A number of services linked to settlement activity, including financing and advertising, are also likely to fall under the new policy.
Miliband is also expected to reaffirm Britain’s commitment to a two-state solution as the path to resolving the Israeli-Palestinian conflict. He will call for the protection of Palestinian rights whilst emphasising the importance of respect for international law.
In his statement before members of parliament, Miliband is expected to use firmer language to criticise the humanitarian conditions endured by Palestinians in Gaza.
The British government considers the expansion of Israeli settlements in the West Bank to be an increasing threat to the prospects of establishing a Palestinian state. Britain officially regards Israeli civilian settlements built in territories captured in the 1967 war as illegal under international law.
The planned trade restrictions also align with the advisory opinion of the International Court of Justice (ICJ) in 2024, which found that states must not provide aid or assistance to maintaining Israel’s occupation of Palestinian territory.
Previously, the British government considered a ban on trade in settlement products difficult to implement because of the challenge of distinguishing goods produced in settlements from products originating elsewhere in Israel. However, the new policy will make certain trade and investment activities related to settlements illegal.
The economic relationship between Britain and Israel is considerable. Total trade in goods and services between the two countries reached approximately £6 billion in 2025. The extent of the new policy’s impact on the British-Israeli economic relationship will depend on the Israeli government’s response.
Miliband has previously highlighted restrictions on humanitarian aid entering Gaza. According to him, Israel imposed these restrictions on security grounds.
The Israeli government strongly denies the allegations. Israeli Finance Minister Bezalel Smotrich even responded to reports of the British policy by calling for the expulsion of the British ambassador.
“Expel the British ambassador tonight,” Smotrich said.
Criticism also came from the United States Ambassador to Israel, Mike Huckabee. He condemned the British Labour government and accused it of being consumed by hatred towards Jews.
On the other hand, the US government has previously exerted pressure on Israeli Prime Minister Benjamin Netanyahu over settlement construction. Washington has even demanded that Israel dismantle a number of settlements built without the required permits.
The British government considers the situation in the West Bank increasingly urgent after Israel resumed the E1 settlement project east of Jerusalem. The project is feared could split the West Bank into two parts and further diminish the prospects of a viable Palestinian state.
The steps being prepared by Miliband also follow polling results published by the Guardian showing strong public support in Britain for a ban on trade with Israeli settlements.
The survey showed support for a trade ban on settlement products was more than double the level of opposition, with a similar trend across various political groups.
An Opinium poll published by the European Council found 46% of Britons support a ban on trade in goods originating from Israeli settlements, whilst only 18% of respondents said they opposed the policy.
The plan marks a shift in Britain’s approach to its relationship with Israel, particularly regarding settlement activity in Palestinian territory and the humanitarian situation in Gaza.