UK set to sanction Israeli settlements in the West Bank in major reset of relations

The United Kingdom is expected to unveil sanctions targeting Israel on Tuesday over the massive expansion of Israeli settlements in the occupied West Bank under the government of Prime Minister Benjamin Netanyahu, marking a significant “reset” of the UK’s relations with the country. Previewing the expected measures, Foreign Secretary Ed Miliband said the sanctions were an effort to prevent the destruction of the two-state solution. The decision marks a significant clash between Israel and what had been one of its top Western allies and comes amid mounting international criticism over Israel’s policies in the West Bank, where settler violence against Palestinians has surged in areas the international community views as part of a future Palestinian state. Sanctions on settlement products will likely have little impact on the approximately $8 billion in annual trade between the two countries, only a tiny fraction of which comes from the West Bank. The top UK export to Israel is medicinal and pharmaceutical products, according to its Department for Business and Trade, while the top imports are fruits and vegetables. Israeli President Isaac Herzog said sanctions would be a “serious error in judgment and choosing the wrong side of history.” At an event marking three decades of relations with the European Union on research and innovation, Herzog said, “Sanctions are not a solution. Dialogue is.” The UK sanctions could also trigger a response from the Trump administration. US Ambassador Mike Huckabee, who has defended Israeli settlements in the West Bank, told BBC News on Tuesday, “I think without a doubt there will be (a reaction),” warning it could have a “huge impact on British businesses.” The sanctions come amid Israel’s push to advance the internationally-condemned E1 settlement project, which critics say divides the West Bank into north and south, making a contiguous Palestinian state virtually impossible. It also splits East Jerusalem – the envisioned capital of a Palestinian state – from the rest of the territory. In late-August, Israel’s Housing Ministry invited bids for the construction of more than 1,200 housing units in E1. The plan aims to create a continuous bloc of Jewish settlements from East Jerusalem to the West Bank. Israel’s far-right Finance Minister, Bezalel Smotrich, has explicitly championed the expansion of settlement as a way to “bury” the idea of a Palestinian state. “The Palestinian state is being erased from the table not with slogans but with actions,” Smotrich said when E1 received its final approval. Last year, the UK and others sanctioned Smotrich and far-right Minister of National Security Itamar Ben-Gvir for “repeatedly inciting violence against Palestinians.” Israel captured East Jerusalem and the West Bank in the 1967 war. Both are considered occupied territories under international law, and Israeli settlements there are widely regarded as illegal. Miliband condemned the plan earlier this month, calling it an “unacceptable and destructive act” and one that crosses a “red line.” He demanded its “immediate reversal” summoning the Israeli Chargé d’Affaires in London in August. “The impact of settler violence and terrorism has been catastrophic for Palestinian communities,” Miliband said. The expansion of settlements, he warned, “threaten(s) peace, security and the prospects for a viable Palestinian state.” In May, the UK was one of several European countries who warned international companies against participating in the construction of E1 because of legal and reputational risks and consequences. The statement, which also had the backing of Canada, Australia and New Zealand, said the situation in the West Bank has “deteriorated significantly” as settler violence has reached “unprecedented levels.” “Britain will not stand back and accept the destruction of the Two-State Solution,” he said, referring to a peace plan that calls for an independent Palestinian state alongside Israel. Miliband told British lawmakers on Monday that he would be setting out a “comprehensive set of measure in the coming weeks.” Last week, Israeli Foreign Minister Gideon Sa’ar told local media that his government would retaliate against the UK if sanctions were imposed. “If Britain acts against the State of Israel, the State of Israel will act against Britain. We have the tools,” he told Ynet News. “The period is over when people act against the State of Israel and the State of Israel doesn’t respond.” Israel gave final approval for the E1 plan last year, greenlighting more than 3,400 housing units. “Every settlement, every neighborhood, every housing unit is another nail in the coffin of this dangerous idea,” he added. The E1 plan has been accelerated under Netanyahu’s hardline government, which has made settlement expansion a priority. While most Israeli settlements are state-run projects, many settler groups have also established dozens of unauthorized outposts in recent years – often through violence and physical force – that eventual secure Israeli government approvals. Human rights and monitoring groups, including Amnesty International, have said that Netanyahu’s government turns a blind eye to violence, calling it part of a broader ecosystem of “state-supported settler violence.”