As Israel’s unrelenting slaughter of the population of Gaza continues, calls are increasing in Europe for stronger sanctions against Israel. This includes trade sanctions, to block exports from occupied territories and illegal settlements, and possibly wider penalties – of the kind imposed on Russia – to bleed the Tel Aviv regime of income and send a strong message that Israel’s invasion is unacceptable.
EU member states’ position on Israel
The European Commission’s proposal of tougher trade sanctions fell on deaf ears in the European Council last month. EU member states could not even agree to suspend Israel from the Horizon Europe Research Programme, let alone suspend the bilateral association agreement which gives Israel duty-free market access for most of its exports to Europe.
This is no doubt because EU member states remain divided in their position on the war. Several such as Germany support Israel; others are agnostic on the situation in Gaza; and there is a growing pro-Palestine minority, led by Ireland (which knows about colonial occupation), Spain, Slovenia, and Belgium – all of whom believe that defending human rights and the UN Charter is more important than short-term trade shocks.
The European Commission itself has sent mixed signals. Vice President Teresa Ribera has bluntly condemned the extreme policies of the Israeli government. But she is an outlier. On the other hand, President Ursula von der Leyen – who led Europe so effectively through the Covid-19 pandemic and the invasion of Ukraine – has stumbled on this one and is seen as in hock to the Country She Knows Best.
Even in the Commission, then, leadership and moral purpose are lacking. Indeed, warnings were sent last week to staff proposing a walk-out to protest the EU’s acceptance of Israel’s actions.
EU trade relations
A lot can be done though. It is technically easy to suspend the association agreement with Israel, since it includes commitments by the parties to uphold the UN Charter and protect human rights. The EU has suspended trade relations with other countries for less: Thailand, following a fairly benign military coup; Cambodia and Myanmar, over human rights abuses far less severe than what the IDF is doing in Gaza; recognition of Western Sahara origin products following an ECJ ruling; and, of course, sanctions on Russia as a result of the invasion of Ukraine.
In 2019, the European Court ruled that goods from the Occupied Palestinian Territories should clearly be labelled as such, not labelled as Israeli origin. That ruling has been largely ignored by Israeli-occupying producers of wine, etc – but also by member states’ customs officials. When I was an EU official, I was told, “don’t rock the boat on this… we just send an annual reminder to member states”.
As a minimum, this ECJ ruling now needs to be strictly enforced so that European consumers know the bloodstained origin of what they are being invited to buy.
Potential EU sanctions on Israel
The EU should not only suspend trade in goods but also suspend trade in services and investment, as it’s done with other countries in similar grave situations. Israeli investment continues to flow into the EU, and vice versa: EU-based data centres continue to store and manage data obtained by the IDF in Gaza, with Microsoft Ireland now under scrutiny for apparently harbouring such data.
And the Israeli government continues to raise revenue through selling what it explicitly refers to in its prospectuses as “War Bonds”’, which are approved by EU central banks. Despite claims that restricting services trade (financial services is a big part) is not feasible, it is – with political will. Europe should not facilitate the sale of Israeli war bonds. This may need a modified EU Regulation – though it is claimed this ties the hands of the EU central banks.
Some 105 former EU ambassadors and top officials have called on EU member states to introduce these measures.
Stop trade with the Occupied Palestinian Territories
Trade with the Occupied Palestinian Territories or with Israel itself can be stopped, either through emergency EU legislation – which will take three to four weeks to pass – or via individual member states’ restrictions. This would be justified under international law through any member’s right, as granted by the World Trade Organization (WTO), to take trade restrictive measures for public morality reasons – or in support of the UN Charter – and to respond to an emergency in international relations.
So, the WTO legal basis is there, although unilateral member state measures would need to be portrayed as a temporary measure pending a broader EU ruling. If not, the European Commission could, in theory, take infringement proceedings against a member state which unilaterally bans goods from the Occupied Territories.
But would it? Unimaginable. When Poland and others blocked Ukrainian imports two years ago, the EU did not take them to court.
EU and US double standards
Double standards apply, however. At a recent conference on trade and security in Hong Kong, I questioned why China was helping Russia. The question was thrown back at me: as long as the US, the EU and its member states continue to turn a blind eye to Gaza, and continue to supply arms or train the IDF, please do not lecture us on human rights, or whom we support or do not support.
They have a point. A stronger point than they perhaps realise. There is a pattern here which I am still trying to work out. There seems to be a continuum with the Trump administration’s disregard for the rule of law within the US, its attack on international law and the rules-based order created after the Second World War, and its unqualified support for this rogue state.
In blatant defiance of international law, the US and – to some extent – the EU have both turned their back on the plight of the Palestinians, barely paying lip service to a two-state solution. All their handwringing is seen as hypocritical.
It is almost as if some EU right-wing populist leaders are wishing for a fait accompli in Gaza (while public and media eyes remain fixed on Russia and Ukraine), in order to have at least one Middle Eastern problem off their hands. The EU is trying to keep the US on its side with the Russia–Ukraine conflict (see the Turnberry deal on trade last month), and it fears it cannot therefore break with Trump over Israel relations. Already, the US is piling pressure on those member states, like Ireland, considering trade restrictions on Israel.
Never again
Several European leaders are also complicit in continuing to sell arms to Israel – or otherwise aiding and abetting the regime. For them, there is now no turning back on Gaza – nor is there any motivation to admit that what is happening may be genocide; to do so risks exposing them to future ICC prosecution.
These leaders are, in the words of Shakespeare’s Macbeth:
…in blood,
Stepped in so far, that should I wade no more
Returning were as tedious as to go o’er…
I do not pretend to understand global politics, but I do know something about international trade and the scope of the EU’s ability to take trade measures in defence of human rights and the UN Charter.
I do hope against hope that, in the days ahead, the EU will agree to impose serious trade sanctions on Israel – or that more individual member states will unilaterally suspend trade with the occupied territories, should the EU refrain from acting.
Only in doing so will they continue to give some meaning to “never again”.
