With the important gathering of EU foreign ministers approaching on Monday, July 13, the European Commission has distributed an options document that examines methods to limit trade between the EU and unlawful Israeli settlements located in the West Bank.

This document comes after requests from various member states seeking actions that align with international law.

Among the primary choices for discussion are an import licensing system, increased tariffs, and a complete prohibition on imports from Israeli settlements, according to sources familiar with the talks.

The foundation in law for these trade limits is central to discussions, since it might enable an accord without needing full agreement, which has proven unattainable previously.

Pressure on the EU has grown following the International Court of Justice advisory opinion from July 2024, which indicated that nations must avoid economic or trade dealings with Israel related to settlements in occupied areas and must prevent relations that support the unlawful situation.

Six settler attacks daily

Two years later, conditions around Israeli settlements in the West Bank have deteriorated. In 2026 alone, the UN documented 680 attacks across over 200 communities, averaging six incidents involving settlers each day.

Yet the EU remains split on its stance toward Israel.

Nations including France, Sweden, Spain, Belgium, and Ireland have advocated for a ban on settler imports for some time, whereas allies of Israel such as Germany, Austria, the Czech Republic, Hungary, and the recent administration in Slovenia oppose such steps.

Claudio Francavilla of Human Rights Watch stated there exists no lawful method to engage in trade with illegal settlements without contributing to Israel's occupation and apartheid practices.

He further noted that discussion of options should cease, as only a ban meets the standards of international law.

The legal basis for a trade ban?

The confidential options paper examines two potential legal foundations for handling trade with Israeli settlements: one tied to foreign policy requiring unanimous member state approval, and another under trade policy that would need a qualified majority vote.

Qualified majority voting allows passage with backing from 55 percent of member states representing 65 percent of the EU population, potentially circumventing objections from nations like Germany, Austria, and the Czech Republic.

However, the commission maintains that actions intended to alter Israel's conduct belong to foreign policy and thus demand unanimity.

Alberto Alemanno, a professor of EU law, remarked that these represent options rather than formal proposals, which avoids specifying the legal basis and voting procedures. Since all options involve trade restrictions, qualified majority voting would apply, and vagueness helps sidestep this issue.

Employing the trade approach for a ban would also face challenges, likely necessitating a shift in Italy's established pro-Israel stance.

Diplomats assessed that between 10 and 12 member states support banning settlement imports, with a few others willing to consider it.