EU proposes suspending Israel trade perks over human rights

Jorge Valero, Bloomberg News on Sep 17, 2025

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The European Union proposed suspending Israel’s preferential trade benefits as part of a new package of sanctions in response to the deteriorating humanitarian situation in Gaza.

The European Commission, the E.U. executive’s arm, proposed on Wednesday to suspend part of its association agreement with Israel, which means the country will be charged the same tariff rate as other nations that don’t have a trade accord with the bloc, according to a commission statement.

Israeli exporters will pay additional tariffs of around €227 million ($269 million) annually, according to a senior European Commission official, who spoke under the condition of anonymity. The E.U. is Israel’s largest trading partner.

The move comes amid a global outcry at the war’s toll on Palestinian civilians, especially after Israel launched its offensive against Gaza City in recent days, forcing the displacement of thousands of families.

Suspension of the trade benefits will require a qualified majority among the 27 member states. Countries including Germany have opposed punishing Israel.

“I am aware it will be difficult to find majorities,” Ursula von der Leyen told lawmakers last week. “But we must all take our own responsibilities.”

The commission also proposed sanctions on two extremist Israeli ministers, the suspension of around €20 million of financial support for technical cooperation with Israel and sanctions on 10 members of Hamas.