The European Commission is preparing a list of options to restrict trade with Israeli communities in Judea, Samaria, eastern Jerusalem, and the Golan, according to reports from Euronews on Tuesday, June 17, 2026. This move follows a deadlock among the 27 European Union member states over formal sanctions against Israel, prompting the Commission to seek alternative, indirect trade measures.
Why the European Union is targeting trade
The push for trade restrictions stems from a divide within the European Union. According to Euronews, Spain, Ireland, and France are actively advocating for anti-Israel actions. Conversely, countries including the Czech Republic and Germany have blocked repeated attempts to pass formal sanctions, which require unanimous consent from all member states to move forward.
Kaja Kallas, the E.U. High Representative for Foreign Affairs and Security Policy, has been tasked with presenting a list of options to the Foreign Affairs Council. Kallas explicitly stated her intent to prepare measures aimed at preventing the import of goods originating from what she termed “illegal settlements.” A spokesperson for the Commission clarified to Euronews that under the current EU-Israel Association Agreement, only products from “Israel proper” are granted trade preferences, while goods from the “Occupied Palestinian Territory” are already denied such treatment.
What happens next
The European Commission is expected to finalize its list of options before the next ministerial meeting, scheduled for July 13. Dubravka Šuica, the E.U. Commissioner for the Mediterranean, confirmed during a meeting in Luxembourg on Monday that the Commission is working to prepare these proposals in response to pressure from member states.
While the specific nature of these trade restrictions remains unknown, they may represent a shift toward bypassing the requirement for total consensus among E.U. members. By framing the move as a trade policy adjustment rather than a formal political sanction, the Commission could potentially implement restrictions that avoid the vetoes previously used by member states like Germany and the Czech Republic.
Context of the trade dispute
This initiative follows a pattern of stalled efforts to penalize Israel for its presence in the disputed territories. Kallas has previously promoted several plans to punish Israel, all of which have failed due to ongoing disagreements within the bloc. The upcoming July 13 meeting serves as the next critical deadline for the Commission to demonstrate whether it can successfully navigate the internal friction between member states to implement new trade-based constraints.
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