UK Government Moves to Ban Trade with Israeli Settlements in West Bank

The United Kingdom is taking steps to draft legislation aimed at banning trade linked to Israeli settlements in the occupied West Bank. This initiative positions the UK among the leading Western economies to formally cut commercial ties with these contested territories.

This move follows a coordinated sanctions effort in June 2026, where the UK, alongside Australia, Canada, France, New Zealand, and Norway, targeted six entities and one individual connected to violence related to settlements. The UK trade minister has confirmed that preparations for a comprehensive import and export ban are underway.

During a Westminster debate on July 9, the government indicated it would “seriously consider” the trade ban, and by July 15, the trade minister confirmed that work was already in progress. The push for legislative action has gained momentum, with over 140 Labour MPs advocating for the ban.

In 2025, total UK trade with Israel, excluding settlement activities, was estimated at around £6 billion, while trade with the Occupied Palestinian Territories was approximately £38 million. Settlement goods currently exist in a commercial gray area and do not receive preferential tariff treatment under existing trade agreements.

This proposed ban reflects a growing international coalition against settlement trade, particularly following the coordinated sanctions in June. The UK's independent sanctions policy allows it to act more decisively outside the EU's framework, highlighting its assertiveness in this matter.