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EU lays out new tariffs and sanctions on Israel over war in Gaza

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EU proposes sanctions targeting Israeli ministers, settlers, Hamas membersSuspension of free-trade arrangements lacks sufficient support, Germany’s stance crucialIsrael’s foreign minister criticizes EU proposals as distortedTánaiste Simon Harris says move ‘long past due’

Kaja Kallas, the EU’s foreign policy chief, urged the 27 member nations to increase tariffs on some Israeli goods and impose sanctions on Israeli settlers, and two members of Prime Minister Benjamin Netanyahu’s Cabinet — National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich. She also proposed sanctioning 10 Hamas leaders.

“We are proposing these measures not to punish Israel or Israel people, but to really try to pressure (the) Israeli government to change course and to end the human suffering in Gaza,” Kallas said at a press conference in Brussels. “The war needs to end, the suffering must stop, and all hostages must be released.”

The sanctions would freeze any of the individuals’ European assets and ban travel within the EU.

The EU is Israel’s largest trading partner, so the tariffs could have far-reaching effects on Israel’s economy, which is already rattled by the cost of a long war. Roughly 32 million euros ($37.5 million) in bilateral funds controlled by the European Commission would be immediately suspended. The commission also gives support to the Palestinian Authority.

Israel denies there is starvation in Gaza and says it allows in enough humanitarian aid.

The proposed sanctions reflect worsening relations between Europe and Israel. Last week, European Commission President Ursula Von der Leyen broke with her strong pro-Israel stance to call for European pressure on Israel over its military campaign in Gaza.

Israeli Foreign Minister Gideon Saar sent a strongly worded letter to Von der Leyen accusing her of empowering a terrorist organization and vowing that Israel will buck the European campaign.

“Pressure through sanctions will not work. The State of Israel is a proud sovereign nation, and we will not be bent through threats while Israel’s security is at stake,” he wrote in the letter.

The 27-nation EU has been split over the past 23 months of war in the Gaza Strip. It’s unclear whether a majority will agree to endorse the sanctions and trade measures.

The bloodshed in Gaza has prompted protests in multiple European cities, from Amsterdam to Barcelona, and fueled criticism of Brussels’ bureaucracy and its perceived inability to meaningfully pressure Israel to halt military operations and let in more humanitarian aid.

The death count in Gaza on Wednesday surpassed 65,000 Palestinians since the war began Oct. 7, 2023, with a Hamas-led attack on Israel, according to health officials in the enclave.

“The proposed partial suspension is a carefully considered response to an increasingly urgent situation,” said Maroš Šef?ovi?, the European Commission trade representative.

If enough EU nations agree, tariffs amounting to about €230 million ($166 million) will be slapped on the 37pc of the €15.9 billion total of Israeli goods imported to the EU, Šef?ovi? said. The EU currently levies no tariffs on that set of Israeli goods due to an Association Agreement.

A review by the EU diplomatic corps found in June that Israel had violated the human rights component of that agreement, called Article 2. European critics of Israel have called on the entire trade deal to be suspected over the war in Gaza.

But for now, the commission is proposing to revoke the zero-tariff preference for a select amount of imported Israeli goods and instead fall back on World Trade Organization tariffs, which vary from 8pc to 40pc on individual goods.

“We’re not proposing to suspend trade with Israel, we are proposing to suspend trade preferences,” said a senior European official tasked with communicating for the European Commission but not authorized to be publicly named according to commission policy.

The proposal followed the announcement last week by von der Leyen that she will seek sanctions and a partial trade suspension against Israel over its military campaign in Gaza.

Other European officials speaking on background said that Israel’s military campaign in Gaza and also increasingly violent settlement activity in the West Bank spearheaded by Ben-Gvir and Smotrich had given “new momentum” to the sanctions. But they said that Israeli arms exports to the EU will remain unaffected under the proposal.

Tánaiste and Foreign Affairs Minister Simon Harris said today’s publication by the European Commission of a proposal to suspend the core trade-related parts of the EU’s Association Agreement with Israel was hugely significant.

“There is a genocide taking place in Gaza and the findings of the UN Commission of Inquiry earlier this week make clear that this is the case,” Mr Harris said.

“The need for action has never been more urgent. In fact, it is long past due.

“The Commission has finally tabled concrete proposals for trade measures against Israel. Today marks a critical turning point. What we now need to see is the Council convened as a matter of urgency to consider these proposals, which Ireland will fully support.

“The package also proposes sanctions on extremist Israeli ministers and violent settlers, as well as on Hamas. Ireland supports these proposals.

“Ireland has long called for concrete measures. A qualified majority will be required for the trade measures while the sanctions will require unanimity. I will be urging our fellow Member States to support both sets of proposals.

“In addition to the implementation of these measures, we need an urgent ceasefire, the release of all hostages, for humanitarian aid to flow and for a concerted effort to bring about a two-state solution.”

Hamas militants attacked Israel in October 2023, killing about 1,200 people and taking 251 hostages, Israeli tallies show. Israel’s military assault against Hamas has killed over 64,000 Palestinians, Gaza’s health ministry says.

#lays #tariffs #sanctions #Israel #war #Gaza

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