EU’s Top Body Presents Proposal to Suspend Free Trade Agreement with Israel

The European Commission unveiled a proposal to suspend parts of the EU-Israel Association Agreement, a cornerstone of trade ties that has granted Israeli goods preferential access to the European market. The move, which will now be weighed by EU member states, cited alleged breaches of human rights and democratic principles tied to the war in Gaza and policies in Judea and Samaria. If adopted, Israeli exports could face standard tariff rates similar to countries without a free trade pact, potentially reshaping a relationship that totaled tens of billions of euros in recent years.

The Commission’s package also recommended halting certain bilateral supports, with carve-outs for civil society and Yad Vashem, while separately seeking sanctions on specific Israeli ministers and violent settlers, alongside Hamas figures. Israel’s foreign minister vowed measures “in kind” if Europe proceeds, warning that punitive steps would harm shared interests. The proposal’s trade component requires a qualified majority among member states, a threshold that may test intra-European divisions over how to approach the war and its fallout.

Jerusalem pushed back against depictions of systematic humanitarian obstruction, stressing facilitation of aid deliveries and denying deliberate targeting of civilians at distribution points. Still, the Commission framed its plan as leverage to influence Israel’s course in Gaza, as fighting remains active and diplomacy struggles to gain traction. The political and economic stakes are high: Europe is Israel’s largest trading partner, and altering the rules of commerce would ripple across industries from tech and medical devices to agriculture and logistics.

(TOI/VFI News)

“The Lord gives strength to his people; the Lord blesses his people with peace.” – Psalm 29:11