UK To Ban Israeli Settlement Goods From West Bank Over E1 Plans, Backing Two-State Solution

Britain will announce a trade ban on goods originating from Israeli settlements in the occupied West Bank on Tuesday, a senior minister said, in a move aimed at strengthening its support for a two-state solution.

The measure, which Foreign Minister Ed Miliband is expected to announce later in the day, will target goods produced in West Bank settlements rather than Israeli products as a whole. According to Reuters, the impact on Britain's £6 billion ($8.12 billion) in annual bilateral trade with Israel is likely to be minimal, although it remains unclear how the UK will distinguish goods originating in settlements from those made elsewhere in Israel.

The United States is likely to strongly oppose the move, while Israel has already reacted angrily. Finance Minister Bezalel Smotrich has called for the British ambassador to be expelled.

Miliband, six weeks into his new role, said last week that he wanted to reset Britain's policy towards Israel and is due to announce the trade ban later on Tuesday.

E1 Settlement Plans Behind UK Move

At the centre of Britain's concerns is Israel's E1 settlement project in the West Bank. Miliband and other Western politicians have said the planned development would cut across land that Palestinians seek for their own state.

Britain and other European countries criticised Israel's E1 settlement plans in August. Work and Pensions Minister Pat McFadden said the developments were behind the government's decision to impose the measures.

"The reason that danger has become more urgent is because of expanded settlement activity in recent weeks and months," he said on Times Radio on Tuesday.

According to Reuters, United Nations bodies and most governments, including Britain, consider Israeli settlements in the West Bank illegal and regard the territory as being under military occupation. Israel disputes that position, saying the territory is disputed rather than occupied and asserting that Jews have a historical claim to the land.

The Israeli prime minister's office and foreign ministry did not immediately respond to requests for comment.

Limited Effect on UK-Israel Trade

McFadden said Israel would remain an important trading partner for Britain and that the government was not imposing a boycott on all Israeli goods.

Goods originating from West Bank settlements are mainly agricultural products, including fresh produce and wine, and account for only a tiny fraction of Israel's total trade flows.

Reuters reported that the overall impact of the ban on the £6 billion annual bilateral trade is likely to be minimal. However, foreign diplomats have said enforcing an import ban could be difficult because some goods from Israel may use products from settlements without identifying their origin.

Details of how the UK will differentiate goods originating in West Bank settlements from products made in Israel remain unclear.

Britain Reaffirms Two-State Position

The move comes after Britain criticised Israel's conduct in Gaza, the expansion of settlements in the West Bank and rising settler attacks on Palestinians.

British Prime Minister Andy Burnham, who has been in office since July, discussed the Middle East with US President Donald Trump in a call on Monday. According to Burnham's office, he stressed "the importance of the two-state solution".

Spain, Ireland and the Netherlands have each moved to ban imports of goods originating in Israeli settlements in the West Bank, although not all of those bans have come into effect.

The move also comes ahead of an Israeli election on October 27. Prime Minister Benjamin Netanyahu's ruling coalition is likely to lose several seats, according to polls, and could fall short of a majority.