UK Announces Trade Ban on Goods From Israeli Settlements in West Bank
The United Kingdom has announced a ban on imports of goods produced in Israeli settlements in the occupied West Bank, marking a major shift in its policy toward Israel and the Israeli settlement programme. Foreign Secretary Ed Miliband made the announcement in the House of Commons on September 8, 2026.
The new measures will target goods originating from Israeli settlements that the UK considers illegal under international law. London said the restrictions are aimed at settlement expansion and will not apply to trade with Israel itself.
Britain also plans sanctions against companies and individuals involved in construction, infrastructure, financing and real-estate activities supporting settlement expansion. Advertising the sale of property in illegal settlements in the UK will also be prohibited.
Miliband said the UK government now formally considers the Israeli occupation of the Palestinian territories to be unlawful, citing the International Court of Justice’s 2024 findings and the continued expansion of settlements. He argued that economic relations should reflect Britain’s position on the occupation.
The legislation implementing the trade ban is expected to take effect within six to nine months. Britain will meanwhile impose additional sanctions on extremist settlers accused of supporting or inciting violence against Palestinian communities.
The announcement comes amid growing concern over settlement expansion in the West Bank, particularly the proposed E1 development near Jerusalem. Britain says the project could divide the West Bank and make the creation of a viable Palestinian state considerably more difficult.
The UK is not acting alone. France and Canada have announced similar measures, while a group of 12 countries—including Spain, Ireland, Norway, Sweden and Denmark—said they intend to introduce or support restrictions on trade in settlement goods.
The economic impact on overall UK-Israel trade is expected to be limited. Bilateral trade was around £6 billion in 2025, while goods originating from the occupied territories represent only a small fraction of that total.
Israel has strongly condemned the British decision. Israeli officials have called for retaliatory measures, while Israel has announced the closure of Britain’s consulate in East Jerusalem in response to the sanctions announced by Britain, France and Canada.
The United States has also criticized the move. The latest developments deepen an already significant diplomatic rift between London and Jerusalem, following Britain’s recognition of a Palestinian state in 2025 and previous restrictions on certain arms exports to Israel.
Britain says the objective is not to boycott Israel but to pressure the Israeli government over settlement expansion and protect the possibility of a two-state solution, while maintaining trade and security relations with Israel itself.
