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Home » Politics » 12 Countries Target Settlement Trade in Push to Protect Two-State Solution

12 Countries Target Settlement Trade in Push to Protect Two-State Solution

Israeli Foreign Minister Gideon Saar accused the UK of spreading an “outrageous lie” and announced the closure of the British Consulate in East Jerusalem.

Sara ZouitenbySara Zouiten
Sep, 09, 2026
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israel settlment trade restriction

An Israeli bulldozer works near the Israeli settlement of Migdalim, close to the Palestinian village of Qusra, south of the city of Nablus in the Israeli-occupied West Bank, on September 6, 2026. [Jaafar Ashtiyeh/AFP]

Rabat – Twelve countries have announced plans to restrict trade with Israeli settlements in the occupied West Bank, warning that settlement expansion and rising settler violence are threatening the possibility of a two-state solution.

Foreign ministers from Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the UK issued a joint statement Tuesday saying they would introduce national measures or support European restrictions on goods from settlements they consider illegal under international law.

The statement followed Israel’s decision to publish tenders for the construction of around 1,200 settlement homes in the E1 area east of Jerusalem. The countries described the development as unacceptable, warning that it could further damage prospects for a viable Palestinian state.

“The Government of Israel’s actions in the West Bank are undermining the possibility of a two-State solution,” the ministers said, pointing to what they called unprecedented levels of settler violence and settlement expansion.

The UK, France, and Canada said they would introduce national measures to ban trade in settlement goods. The three countries further said they would take targeted action against settlements and those who facilitate or profit from their expansion.

This coordinated announcement marks a significant escalation in pressure from several Western governments, although the countries differ in how they will implement the measures. Ireland, Spain, the Netherlands, Norway, and Belgium have already taken action or announced restrictions targeting settlement trade.

UK measures build on months of action

The UK’s decision follows a series of steps by London this year.

On June 9, the government imposed sanctions on individuals and organizations accused of financing or enabling settler violence. It also strengthened its business guidance, advising British companies against economic and financial activity in illegal Israeli settlements. At the time, London stressed that trade with Israel itself remained permitted.

On August 21, the UK joined other countries in condemning Israel’s plans to advance construction in the E1 area.

On September 1, Foreign Secretary Ed Miliband told Parliament that London was preparing targeted legal and financial measures against settlement infrastructure.

On September 8, Miliband announced a broader sanctions regime, including a ban on imports from illegal settlements and measures targeting companies and individuals involved in settlement expansion. The UK also said it would ban advertising for illegal West Bank settlements.

Miliband said the measures represented a “new approach” that targeted settlements and settlement expansion rather than Israel itself. He also accused the Israeli government of turning a blind eye to what he described as the “ethnic cleansing” of Palestinians in parts of the West Bank.

Israel announces retaliation

Israel strongly rejected the measures. Foreign Minister Gideon Saar accused the UK of spreading an “outrageous lie” and announced the closure of the British Consulate in East Jerusalem.

Israel also said it would bar several British MPs from entering the country, remove British representatives from an international Gaza support center, and terminate UK activities supporting the training of Palestinian Authority forces in the West Bank.

The United States has also indicated that it will not follow the UK-led measures. Secretary of State Marco Rubio said Washington would not take the same action, while US Ambassador to Israel Mike Huckabee warned that American retaliation could have a significant economic impact on British businesses.

The 12 countries reaffirmed their commitment to a two-state solution and called on Israel to halt settlement expansion, ensure accountability for settler violence and investigate allegations involving Israeli forces.

They also said they opposed actions amounting to the annexation of Palestinian land and the forced displacement of Palestinians.

Tags: illegal Israeli settlementsIsraeli settlements in the West BankTwo States solution Israel PalestineUnited Kingdom
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