EU Commission Proposes Suspension Of Trade Concessions With The Israeli Occupation

(MENAFN- Kuwait News Agency (KUNA)) BRUSSELS, Sept 17 (KUNA) -- The European Commission announced on Wednesday that it has submitted to the Council of the European Union a proposal to suspend certain trade concessions granted to the Israeli occupation under the Association Agreement, in addition to imposing sanctions on extremist ministers in the occupation government and violent settlers.
In a press release, the Commission explained that the proposal also includes freezing bilateral support to the occupation government, covering annual allocations for the period 2025-2027, as well as suspending ongoing institutional cooperation projects funded under the EU-Israel regional cooperation facility.
It noted that this step follows a review of the occupation government's compliance with Article 2 of the Agreement, which concluded that "the actions taken by the occupation government constitute a breach of essential elements relating to respect for human rights and democratic principles," entitling the EU to suspend the agreement unilaterally.
According to the statement, the breach relates to the deteriorating humanitarian situation in Gaza due to the occupation's military intervention, the obstruction of humanitarian aid, the intensification of military operations, as well as the decision of the occupation authorities to advance the settlement plan in the so-called E1 area of the West Bank, which undermines the two-state solution.
European Commission President Ursula von der Leyen said that "the horrific events taking place in Gaza on a daily basis must stop. There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held. The European Union remains the biggest donor of humanitarian aid and an unwavering champion of the two-state solution. Reflecting these principled commitments, we propose to suspend trade concessions with the occupation, sanction extremist ministers and violent settlers, and put bilateral support on hold".
The statement added that the suspension covers the core trade-related provisions of the agreement, which in practice means that imports from the occupation will lose their preferential access to the EU market and will instead be subject to the duties applied to any other third country with no free trade agreement with the Union.
The Commission explained that the proposal includes a Council decision to suspend certain trade provisions of the Agreement under the EU's common commercial policy, noting that the decision will enter into force once adopted and will be notified to the EU-Occupation Association Council, with the suspension taking effect 30 days after notification.
As for sanctions, the Commission stated that the package includes four draft legal acts and nine listing proposals targeting extremist ministers and violent settlers under the EU Global Human Rights Sanctions Regime. It added that the adoption of these sanctions requires unanimous approval by the European Council.
EU High Representative for Foreign Affairs and Security Policy Kaja Kallas presented to the Foreign Affairs Council on June 23, 2025, a review which concluded that there are indications that the occupation is in breach of Article 2 of the Euro-Mediterranean Agreement, which establishes respect for human rights and democratic principles as an essential element of the agreement, stressing that violation of this article amounts to "a material breach of the agreement."
The statement also pointed out that the European Union is the largest trading partner of the occupation, accounting for 32 percent of its total trade in goods with the world in 2024, while the occupation ranks 31st among the EU's trading partners. (end)
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