What the UK’s trade ban on goods from Israeli West Bank settlements really means

Burnham told MPs that Britain ‘must stand for something’

Burnham said that “leadership is about taking action”, adding: “Where there is injustice, where we need to correct unfairness, people being driven out of their homes, losing their homes, being intimidated in their daily lives”.

“I credit the father of the house who yesterday applauded the action that this government is taking in this difficult and dangerous world”, Burnham said as he was taking questions in Parliament.

“Britain has to stand for something. Britain has to show leadership. Britain has to stand for fairness against injustice, where people are being bullied out of their homes, intimidated”.

Meanwhile, in a lengthy post on X (formerly Twitter), Burnham on Tuesday evening wrote: “Today we are announcing carefully judged, targeted steps that are not aimed at the Israeli people, but at the unacceptable policies of the current Israeli government.”

“I will not stand by as the horrific suffering continues to grow and the prospect of a two-state solution - the best hope for peace and stability in the region - comes under attack.”

Israel to close UK consulate in East Jerusalem in response

In reaction to the UK sanctioning goods produced in the occupied West Bank, Israel’s foreign minister announced that the Israeli government will close the UK's consulate in Jerusalem.

Gideon Saar said that “a united Jerusalem is the capital of the state of Israel, and it is under the full sovereignty of Israel”.

“Any foreign activity in the region must be made in the conventional and agreed-upon ways, without any intervention in Israeli sovereignty,” he added.

What makes the closure significant is the fact that the consulate represents the UK government in the West Bank and Gaza, working on “political, commercial, security and economic interests between the UK and Palestine”.

Therefore, the move is likely to damage the UK's ability to work in Palestine, as it does not have an outpost in either the West Bank or Gaza.

Meanwhile, the Israeli foreign minister also announced that 12 publicly elected British officials will also be banned from entry into Israel, whom Saar accuses of being “involved in anti-Israeli and antisemitic activities”.

He also says he will “expel British representatives in from the International Centre for Assistance” in Gaza and Kiryat Gat in Israel, while UK “activities for training PA [Palestinian Authority] forces” in Ramat HaSharon in Israel will also be banned.

Here's what you need to know about the trade ban

According to Foreign Secretary Ed Miliband, both imports of goods and some services to and from Israeli settlements would come under the ban.

As settler expansion and violence ramp up in the West Bank, along with major allies such as France and Canada, Britain has followed the path of some European neighbours.

Advertising illegal settlements for sale will be prohibited, even if trade in services between the UK and settlements is not outlawed entirely.

Secretary Miliband promised “action” against specific companies and individuals which provide construction, infrastructure financing, or real estate services, but no specific person or entity were named.

“So to those who finance or facilitate illegal settlements, let me say this. You will face the full force of UK sanctions,” Miliband said in the Commons.

According to the foreign secretary, the UK would also impose new sanctions on “extremist settlers” and refuse applications for arms sales and other exports that “materially contribute to the occupation”.

However, what that phrase encompasses is not entirely clear.

What is not included in the ban

A blanket ban on trade in services as had been endorsed by Secretary of State for Northern Ireland Chris Bryant in July was notable for its absence.

There was also no mention of a universal ban on exports to settlements, just on imports.

Instead of using the existing sanctions rules, Miliband said the government would create a “new comprehensive sanctions regime” to give effect to the embargo.

While Miliband said the regime would be in place within six to nine months, he did not reveal how the measures would be enforced.

On the UK government, pressure has been mounting to take action as Israeli settlements grow and Palestinians face increased violence and intimidation.

In recent years, Israeli settlements in occupied Palestinian territory have rapidly expanded while the Israeli government is planning more.

Miliband described as an “unacceptable and destructive act” the latest plans by the Israelis to build about 1,200 homes, as part of the E1 programme of expansion in the West Bank.

The UK government has long opposed such outposts, as it finds them a breach of international law and a threat to a two-state solution.