The European Commission has proposed to suspend key aspects of EU-Israel trade over the humanitarian crisis in Gaza.
As part of the announcement, which was first made during last week's State of the European Union speech, the EU would suspend the trade-related provisions of the Association Agreement with Israel, as well as slap more sanctions on extremist Israeli ministers, violent settlers and Hamas.
Importantly, the European Commission is "putting on hold" its bilateral support to Israel, with the exception of civil society and its official Holocaust museum institution, Yad Vashem.
The EU is Israel's biggest trade partner, accounting for 33.5% of Israel’s imports, which came from the EU, and 28% of the country’s exports went to the EU.
Under these new proposals, all yearly allocations between 2025 and 2027 will be suspended. Under this instrument, Israel was set to receive an average of €6 million per year.
There will also be a suspension of the ongoing institutional cooperation projects with Israel. This includes all projects under the regional EU-Israel cooperation facility.
These trade suspensions would mean import tariffs would apply to certain Israeli products entering the EU.
"In practice, this means that imports from Israel to the EU will lose the preferential access to the EU market, and that these goods will be charged duties at the level applied to any other third countries with whom the EU has no free trade agreement," EU trade commissioner Maroš Šefčovič said on Wednesday.
Finally, new sanctions are being prepared against Israeli ministers and violent settlers, as well as a reinforced package against 10 members of the Hamas politburo.
"The aim is not to punish Israel but to alleviate the suffering in Gaza," added EU foreign policy commissioner, Kaja Kallas. "We are trying to pressure the Israeli government to change course."
Palestinians facing deadly shortages in Gaza gather to recover food from aid convoys. Credit: Bashar Taleb / AFP / Belga
"The horrific events taking place in Gaza on a daily basis must stop," said von der Leyen. "There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas."
Reacting to the news, Israeli Foreign Minister Gideon Saar warned that the EU's "morally, politically distorted" sanctions will get "appropriate response."
Divided majority
The proposals follow an EU review of Israel’s compliance with Article 2 of the Association Agreement, which found that the Israeli government's actions had violated human rights and democratic principles in its war on Gaza.
Under this agreement, the EU can unilaterally suspend any cooperation with Israel in instances where it has been found to have committed human rights abuses.
Now, the European Commission will put the proposal before EU Member States at the European Council, who will need to find a qualified majority – but remain heavily divided.
Von der Leyen had been under intense pressure for not having taken firmer action against Israel. This escalated after Israeli Prime Minister Netanyahu's government began blocking the access of humanitarian aid to Gaza.
The humanitarian situation has since deteriorated to an unprecedented and unsustainable level, driven by ongoing bombardments, military operations, mass displacement, and the collapse of basic services.
It also comes a day after the United Nations independent international commission of inquiry (COI), found that "genocide is occurring in Gaza and is continuing to occur". The expert commission is staffed by three independent experts and does not speak for the UN.
Israel's war on Gaza was triggered after Hamas launched a terror attack into Israel, killing 1,200 people, and taking 251 hostage, in October 2023. The ensuing Israeli offensive has so far killed nearly 65,000 Palestinians and injured more than 160,000.
This week, Israel has intensified its bombardment of Gaza while it mounts a ground invasion, hoping to seize Gaza City, further displacing thousands. Earlier this month, Belgium also agreed on its own set of bilateral sanctions due to the EU's inaction.
