The United Kingdom on Tuesday (September 8) announced that it would ban imports of all goods originating from illegal Israeli settlements in the occupied West Bank.

Addressing the House of Commons, Foreign Secretary Ed Miliband said the British government believed there was “ethnic cleansing” of Palestinians in areas of the West Bank, perpetrated by “settler terrorists”, and declared Israel’s occupation unlawful.

According to Miliband, the decision will bar British firms from providing services—including construction, infrastructure, real estate, advertising and financing—that facilitate settlement expansion. The UK will refuse licence applications for arms and other exports that “materially contribute to the occupation.”

Together we are resolute.

My joint statement with the Foreign Ministers of Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain and Sweden.


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— Ed Miliband (@Ed_Miliband) September 8, 2026

He said the new measures come in light of what the UK government believes is a clear attempt by Israel to bury the two-state solution. His speech was followed by a joint statement by 12 countries, including Canada and France, supporting the two-state solution, and backing restrictions on trade with illegal Israeli settlements. Some countries said they were still considering measures, while the UK, Canada and France committed to introducing national restrictions.

What has the UK banned from Israel and why now?

The decision will prohibit the entry into the UK market of all agricultural, processed, and manufactured goods produced within Israeli settlements across the occupied West Bank, including East Jerusalem. Moreover, the UK government is introducing statutory bans on corporate services, including financing, infrastructure, and real estate marketing, and expanding sanctions against settler organisations and individuals implicated in violence and settlement expansion.

The decision is being considered a response to Israel’s approval of new construction projects in sensitive zones, notably the “E1 corridor” between East Jerusalem and the Ma’ale Adumim settlement. Construction in E1 would sever the territorial link between the northern and southern West Bank, and further isolate East Jerusalem from the rest of the West Bank. These measures would physically impact the territories claimed for a Palestinian state.

The decision also comes against the backdrop of the International Court of Justice (ICJ) Advisory Opinion of July 19, 2024, which held that Israel’s continued presence in the Occupied Palestinian Territory is unlawful. The court separately held that Israel’s transfer of settlers to the West Bank and East Jerusalem, and the maintenance of their presence there, violate Article 49(6) of the Fourth Geneva Convention.

Crucially, paragraph 278 of the ruling held that third-party states are under an obligation to refrain from recognising as legal the situation arising from Israel’s unlawful presence, and to avoid rendering aid or assistance in maintaining it.

Territorial breakdown post Oslo II

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The West Bank was partitioned under the 1995 Oslo II Accord into Areas A, B, and C. Area C—comprising roughly 60% of the West Bank—remains under full Israeli civil and military control and houses virtually all Israeli settlements in the West Bank outside Jerusalem.

Further into the territory, Israeli agricultural settlements heavily dominate the Jordan Valley and Dead Sea Basin, which cover nearly 30% of the West Bank.

Over the years, Israel has allowed the conversion of Palestinian land into industrial date plantations and commercial farms.

The E1 Corridor and Ma’ale Adumim, located east of Jerusalem, link Jerusalem to the Jordan Valley. Settlement expansion here would physically disconnect East Jerusalem from its Palestinian hinterland (Ramallah and Bethlehem).

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The Ariel Salient and Barkan Industrial Zone, located in the northern West Bank (Salfit Governorate), cut across major Palestinian agricultural communities and sit atop the Western Aquifer Basin, one of the region’s main water resources. Also, Gush Etzion and the South Hebron Hills (Masafer Yatta) in south Jerusalem disrupt Palestinian pastoral livelihoods through military firing zones, outpost proliferation, and land confiscation.

Products, value, and impact

Settlement production relies heavily on commercial agriculture and light manufacturing in designated industrial zones. Among the agricultural goods produced are Medjool dates (the Jordan Valley accounts for a significant share of global Medjool date exports), table grapes, herbs, citrus fruits, avocados, and wine (produced in wineries across the West Bank and Golan Heights).

In the manufactured goods segment, cosmetics utilising Dead Sea minerals, plastics, textile products, construction materials, and packaging are manufactured within settlement industrial parks such as Barkan, Mishor Adumim, and Atarot. Miliband said there would be “appropriate religious exemptions”, although their scope is not yet clear. For example, a large amount of kosher wine imported to the UK is made in settlement wineries. It is unclear whether such wine would be exempted.

A 2022 report from the United Nations Conference on Trade and Development (UNCTAD) estimated that settlements in Area C and occupied East Jerusalem contributed about $30 billion annually (in constant 2015 dollars) to Israel’s economy between 2000 and 2020.

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Direct physical exports to international markets made up a small fraction, estimated at 1% to 2%, of Israel’s overall national export portfolio. Israel’s overall Gross Domestic Product (GDP) exceeds $500 billion annually.

The ban will not destabilise Israel’s broader macroeconomy, which is driven by high-technology exports, advanced defence hardware, and pharmaceutical products manufactured within Israel’s pre-1967 lines. However, it may result in direct financial distress for specialised settlement businesses, particularly date growers in the Jordan Valley and industrial manufacturers operating in Barkan.

Since Israeli exporters label settlement products under generic “Made in Israel” certificates to benefit from preferential tariff regimes, the ban will require granular supply-chain auditing. This could raise operational costs and liability for Israeli firms that source components or raw materials from across the Green Line.

Settlement goods exported to the UK represent a niche segment of total UK-Israel bilateral trade, worth about £6.2 billion annually. While the value of direct settlement exports is unavailable, estimates suggest its value ranges between £20 million and £50 million annually.

What could the ban mean for Palestinian workers?

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The relationship between Palestinian labourers and the settlement economy represents one of the most complex economic dynamics of the occupation. According to the International Labour Organisation, prior to the October 7, 2023 attacks, around 40,000 Palestinians worked in Israeli settlements in Area C and their associated industrial zones. They were primarily employed in construction, commercial agriculture, and manual factory labour.

Following the attacks, Paris-based Noria Research reported in 2024 that while Palestinian labour inside Israel was largely suspended, around 10,000 workers were permitted to continue working in Israeli industrial zones in the West Bank subject to localised military security clearances.

Those who oppose import bans suggest that trade restrictions may harm Palestinian labourers by eliminating higher-paying employment options. In the short term, if settlement factories downsize or close due to lost export markets, Palestinian workers could face immediate income loss in an environment with high local unemployment.

However, Palestinian civil society organisations and trade unions argue that settlement employment is a form of captive labour stemming from structural economic dependency. Meanwhile, Palestinian activists say that ending the economic viability of settlements will help in reclaiming occupied Palestinian land, which may bring long-term and sustainable economic sovereignty.