The British government is mulling imposing a ban on the import of goods from illegal Israeli settlements, Middle East Eye has learnt.
Sources close to the government said Middle East Minister Hamish Falconer has told Labour MPs a ban is desirable. The ultimate decision, however, lies with Downing Street, and Prime Minister Keir Starmer is understood to be reluctant to impose a ban right now.
A ban is nevertheless considered likely if there is another significant expansion of settlements in the occupied West Bank or large-scale settler violence.
Two years ago, Labour’s position was that there could be no sanctions or boycotts against Israel. This view has now fundamentally changed.
Ministers accept that a ban on settlement goods would be consistent with the British position on the occupied territories, sources said.
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Meanwhile, senior Labour MP Emily Thornberry, who is the chair of parliament’s Foreign Affairs Select Committee (FASC), told MEE: “I have long argued that the government must immediately ban the import of goods from Israel’s illegal settlements.
“It is right to sanction settlers and the organisations which support them, but those sanctions are undermined if we permit settlement goods to be sold in the UK.”
A recent report by the FASC released over the summer recommended a ban “on the import of goods from the illegal settlements in the West Bank”.
Labour MP Andy McDonald told MEE that he has “put questions to multiple ministers, seeking to expose the gaps in our current approach and press the government to take far tougher action on the trade of goods from illegal Israeli settlements”.
“Ministers have repeatedly confirmed that these settlements are unlawful under international law,” he said, “yet their responses make clear that existing checks and labelling requirements still fall short of what is needed.”
McDonald said the government should “act decisively to enforce a complete and effective ban on settlement goods”.
In tandem with other countries
In May, the Labour government sanctioned several prominent Israeli settlers in the West Bank, including veteran settler activist and head of the Nachala movement Daniella Weiss.
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The sanctions also targeted two illegal settler outposts and two organisations “supporting violence against Palestinian communities in the West Bank”.
In June, the UK – alongside several allies – then sanctioned two far-right Israeli ministers, National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich, over “their repeated incitement of violence against Palestinian communities” in Gaza and the West Bank.
“If there is something next it will be a ban on settlement goods,” a Foreign Office source said.
The prime minister will also be keen not to lose the support of MPs who currently back him, particularly since it is rumoured that he could be ousted within months.
Britain would be unlikely to impose a ban on settlement goods alone, sources told MEE, but could do so in tandem with other countries like France or the Netherlands.
The UK was joined by Australia, Canada, New Zealand and Norway in imposing sanctions on Ben Gvir and Smotrich. It also recognised a Palestinian state in September alongside France, Canada and Australia.
It is also likely that a ban would only be imposed if the British government received a tacit go-ahead from the United States.
Increased calls for a ban
Pressure continues to mount on the government from within Labour.
Abtisam Mohamed, who sits on the FASC, told MEE: “Every other day, Palestinians face being killed by violent settlers, thrown out of their homes, or witness entire communities demolished.”
“Meanwhile, this year alone, the construction of thousands of new homes in occupied East Jerusalem have been approved, and illegal outposts are rapidly being made legal under Israeli law.”
Mohamed added that Britain and European countries consider Israeli settlements illegal.
“That’s why I’ve secured parliamentary time so that we can debate a ban on Israeli settlement goods, a proposal that dozens of MPs have supported,” Mohamed said.
“For too long, our approach has been individual sanctions, but the government can and should go further, and put in place a ban on settlement goods.
“This would signal that the UK is serious about its international obligations, and serious about a two-state solution.”
Meanwhile, Labour MP Bell Ribiero-Addy told MEE that a “ban on trade with illegal settlements is a low bar but an absolute baseline requirement to comply with our obligations under international law”.
She added: “It should have been in place long before the start of Israel’s genocidal campaign in Gaza. With settler violence only getting worse, the government cannot delay implementation any longer.”
Britain-Israel trade increase
A parliamentary bill sponsored by Labour MP Richard Burgon, now going through its second reading, proposes “comprehensive sanctions” on Israel.
It cites the International Court of Justice’s 2024 judgement that legally requires states to take action to end Israel’s occupation of Palestinian territory, which it said was illegal.
Burgon told MEE that there is growing pressure in parliament for the government to apply sanctions on Israel, starting with settlement goods.
“MPs are also adamant that the government must uphold the International Court of Justice ruling that all governments have a legal responsibility to take meaningful steps, including trade sanctions, to end Israel’s illegal occupation,” Burgon said.
“That pressure was clear in the cross-party letter I organised in the summer, signed by more than 80 MPs and Lords from nine political parties, calling on the government to impose comprehensive sanctions on Israel – including a ban on settlement goods – for its repeated breaches of international law.”
Middle East Eye contacted the Foreign Office for comment but did not receive a response by time of publication.
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Between June 2024 and June 2025, trade in goods and services between the two countries reached £6.2bn ($8.15bn), up £218m (3.7 percent), according to data published by the Department for Business and Trade.
Labour entered government in July 2024, just after the period covered in the data began.
Although Britain halted talks on a new free trade agreement with Israel earlier this year, overall UK exports to Israel rose by £342m (10.5 percent) to £3.6bn, while imports increased by £124m (4.6 percent) to £2.6bn.
Israel was Britain’s 42nd largest trading partner during the period covered by the latest government data.
Britain provided arms and intelligence from surveillance flights over Gaza to Israel throughout its genocide, despite a deterioration in diplomatic relations over the last year.
Last September, the newly elected Labour government suspended around 30 export licences for UK-made arms, although UK-made F-35 components sent to a global F-35 pool, which could end up in Israel, were exempted.
UK-made F-35 components make up 15 percent of each aircraft, one of the world’s most sophisticated fighter jets, which Israel has used extensively in its campaign in Gaza, as well as in Lebanon and more recently in Iran.
