The European Commission is preparing to bring options to the table aimed at limiting the import of goods from Israeli settlements in the occupied Palestinian territories ahead of the EU foreign ministers' meeting in July.
The search for a decision in Brussels has entered a new phase after months of deadlock, as the majority of member states increased pressure on the Commission to present concrete proposals.
Preparing options before July
Dubravka Šuica, the EU Commissioner responsible for the Mediterranean, said at the foreign ministers' meeting in Luxembourg that due to strong demand from member states, the Commission will prepare some options before the next ministers' meeting on July 13.
EU foreign policy chief Kaja Kallas also stated after the meeting that many member states requested proposals regarding trade with illegal settlements, and she will convey this demand to the Commission.
However, it is not yet clear what types of options will be presented. The Commission has been cautious on the issue for a long time and recalls that the EU Council has not found the qualified majority needed to suspend the Partnership Agreement with Israel.
Suspending this agreement is seen as a more severe step on the table, while there are reportedly internal disagreements within the Commission about whether trade restrictions would be considered sanctions.
Legal debate over settlements continues
Last week, a report by the advocacy group Global Echo Litigation Centre suggested that agricultural products produced in Palestinian territories might have been labeled as legal Israeli goods and entered the EU market. The Commission has indicated that corrective measures could be considered if this claim is verified.
Within the EU, some member states including France and Sweden argue that such measures should be treated as trade policy decisions. This approach would allow tariff decisions to be made by qualified majority voting.
France's Minister of Foreign Trade Nicolas Forissier said that limiting trade with Israeli settlements is "not aggressive, but normal."
So far, the Commission has been cautious, arguing that such tariffs would be considered sanctions under EU law and require unanimous approval from all members. However, the Council Legal Service, the Commission's effective legal advisory body, reportedly disagrees with this view and has strengthened the push for restrictions.
The Israeli government rejects the definition that settlements are illegal and describes these areas as "temporary places."
In May, the EU also adopted restrictive measures against extremist settlers and supporting organizations after Hungary lifted its previous veto. Kallas said there is a shared understanding that the options must be clear and that the matter will be referred back to the College of Commissioners.
