EU Proposes Suspension of Free-Trade Agreement with Israel Amid Gaza Conflict
In a significant shift in EU-Israel relations, the European Commission has proposed suspending parts of its free-trade agreement with Israel, impacting approximately €5.8 billion ($6.87 billion) in Israeli exports. This move responds to the ongoing humanitarian crisis in Gaza, where over 65,000 Palestinians have died since October 2023.
Key Aspects of the Proposal
- Reinstatement of Tariffs: The suspension would reimpose standard EU import duties on Israeli goods, potentially generating €227 million annually.
- Sanctions on Israeli Officials: Proposed sanctions include asset freezes and travel bans on two Israeli ministers—Itamar Ben-Gvir and Bezalel Smotrich—and ten senior Hamas members.
- Continued Civil Society Support: Despite the suspension, the EU plans to maintain funding for civil society initiatives and the Yad Vashem Holocaust memorial center.
EU's Internal Debate
The proposal requires approval from a qualified majority of EU member states. However, key countries like Germany and Italy have expressed hesitation, and unanimity is needed for sanctions, making their passage uncertain.
Context and Implications
The EU remains Israel's largest trading partner, with total goods trade exceeding €42 billion in the previous year. The proposed measures reflect growing public pressure over the humanitarian crisis in Gaza and aim to exert diplomatic pressure on the Israeli government.