The European Union is moving to suspend the trade agreement with Israel due to the Gaza war.
The European Commission is moving to suspend parts of its trade agreement with Israel in response to the ongoing war in Gaza and the continuing violations in the West Bank, according to Euronews. The plan includes reimposing tariffs on Israeli goods and canceling the preferential treatment that Israel currently receives under the EU-Israel partnership agreement.
The EU's foreign policy chief, Josep Borrell, confirmed that the proposal targets the preferential trade system, which accounts for about 37 percent of the trade volume between the EU and Israel. In 2024, trade between the two sides reached 42.6 billion euros, meaning the impact on Israel could be significant. Borrell told Euronews: "This step will undoubtedly cost Israel a heavy price."
European Commission President Ursula von der Leyen announced this step last week, and it is expected that the Commission will officially adopt it on Wednesday. However, before the measures can take effect, they must receive the support of a qualified majority of EU member states, which requires the backing of at least one of the major countries such as Germany or Italy.
So far, both Berlin and Rome have opposed all attempts by the European Union to pressure Israel to change its approach in the war. Kallas urged these countries to propose alternatives if they believe the situation in Gaza is unbearable but reject the proposed trade measures. She said, "If you agree that the situation is catastrophic and cannot continue, then the question is: what do we do about it?".
The issue has indeed sparked intense discussions in the European Union's Foreign Affairs Council. While divisions remain, pressure is mounting on member states as the humanitarian crisis in Gaza worsens and calls for the EU to take stronger action increase.