EU Proposes Trade Suspension and Sanctions Against Israel Amid Gaza Crisis

The European Union's executive branch has urged for a suspension of free trade with Israel and called for sanctions against two far-right Israeli ministers in light of the ongoing humanitarian crisis in Gaza. European Commission President Ursula von der Leyen presented this proposal last week amid increasing pressure on the Commission to act decisively and utilize its economic leverage to influence the Israeli government. However, achieving a majority among EU member states for the outlined proposals remains uncertain, primarily due to Germany's longstanding reluctance to support such measures. Germany is considered one of Israel's key allies within the bloc. The proposed measures would include the suspension of Israel's preferential access to the European market by reintroducing tariffs on select goods and freezing mutual benefits concerning public contract bidding and intellectual property protections. Additionally, the Commission's proposal includes sanctions targeting Itamar Ben-Gvir and Bezalel Smotrich, both known for their extremist views and actions in the West Bank, alongside ten Hamas leaders. This announcement comes as Israeli military operations intensify in Gaza City, amidst a conflict that has resulted in a staggering death toll of nearly 65,000 Palestinians since hostilities escalated following a Hamas attack on Israel on October 7, 2023, which claimed over 1,200 lives and led to the taking of 250 hostages. EU Trade Commissioner Maroš Šefčovič emphasized that the proposed tariffs would align Israeli goods with duties applied to countries without a free trade agreement with the EU. "We regret having to take this step; however, we believe it is both appropriate and proportionate given the ongoing humanitarian crisis in Gaza," he stated. In response, Israeli Foreign Minister Gideon Saar criticized the European proposals as morally and politically distorted, expressing hope that these measures would not be adopted as they have not been so far. The European Commission has struggled to obtain the necessary support for more moderate proposals, such as halting EU research grants to Israeli organizations. EU Foreign Policy Chief Kaja Kallas remarked that while public sentiment within member states has shifted considerably due to the crisis in Gaza, political divisions remain entrenched, hindering the potential for change in policy. To proceed with the proposed trade suspensions or research grant cancellations, support from countries such as Germany or Italy would be crucial. These measures require a weighted majority of 15 out of 27 member states, representing at least 65% of the EU's population. A German government spokesperson indicated that Berlin had not yet reached a definitive stance on the new proposals. The sanctions targeting Israeli ministers and Hamas figures demand unanimous agreement from all member states, a challenge complicated by Hungary's history of blocking EU sanctions against Israeli settlers. The European Commission had previously avoided targeting Ben-Gvir and Smotrich, anticipating a potential veto from Hungary, which aligns closely with the nationalist government of Benjamin Netanyahu. As Israel's largest trading partner, the EU accounts for 32% of the nation's total trade in goods. The EU-Israel association agreement, established in 2000, governs the $68 billion trading relationship and fosters collaboration in areas like research, environment, and energy. Reimposing tariffs would potentially affect $58 billion of Israeli exports, leading to approximately $227 million in additional duties. In a related context, Kallas dismissed calls to exclude Israel from participating in the Eurovision Song Contest, asserting that efforts should focus on pressuring the Israeli government to alter its stance on Gaza rather than punishing the Israeli populace. "All these steps that go to the direction of punishing Israeli people, I think are wrong, and we are not really proposing them," she stated. Related Sources: • Source 1 • Source 2 • Source 3