Despite US economic warning, UK announces sanctions on Israeli settlements

The British government is moving forward with plans for sanctions targeting Israeli settlements in the occupied West Bank, despite warnings from US officials and lawmakers of the economic impact.

British Foreign Secretary Ed Miliband told parliament on Tuesday that Britain would ban imports from Israeli settlements built on land internationally recognized as Palestinian territory. He added that the measures are expected to take six to nine months to take effect.

Mr Miliband told British MPs: “Today I announce that the official position of the British Government is that the occupation[of the West Bank]is unlawful.” “The government believes that the illegality of the occupation should be reflected in the economic relationship we have chosen with the occupied territories.”

Mr Miliband said the UK government agreed that ethnic cleansing of Palestinians was taking place in the West Bank “by settler terrorists”.

“Too often the Israeli government turns a blind eye to this, and what’s worse is that government officials are issuing statements and taking action to support the evacuation of Palestinians.” “It’s supposed to be a prelude to justice.”

Shortly after the sanctions were announced, the Israeli government announced that it would close the British consulate in Jerusalem.

Foreign Secretary Gideon Saar said the British government was “systematically working against the state of Israel”. Twelve British politicians were also banned from entering Israel.

Mr Miliband said that alongside the rollout of a “comprehensive sanctions regime”, the UK government would take action against specific companies and individuals who provide services such as construction, infrastructure development and financing for settlers to expand their properties. Britain will also ban advertising related to settlements.

“To those who fund or facilitate illegal settlements, let me say this: you will face the full weight of the UK’s sanctions,” he said, adding that Britain would continue to trade with Israel “because we support a two-state solution that includes security and prosperity for Israel”.

But Mr Miliband said the UK would extend the arms embargo to include refusing all license applications for weapons and other goods and services that “substantially contribute to the occupation”.

He called this an effective “double lock on arms sales” after Britain suspended more than 30 weapons licenses used by the Israel Defense Forces in the Gaza Strip.

“This means that the ban on such exports will continue as long as the occupation exists,” he told MPs.

Mr Miliband told MPs last week that Israel’s recent publication of a tender for the E1 settlement in the occupied West Bank “crosses a red line that should not be crossed”.

“Israeli settlements are illegal under international law,” he said at the time. “This Government will not stand by and destroy the two-state solution. We will act. We will set out a comprehensive set of measures in the coming weeks.”

Secretary of State Marco Rubio said: “It’s clear we’re not going to do what Britain did.”

“We think this will also impact our ability to move forward on the Gaza issue, the 20-point plan, and the Peace Council, which we are very passionate about,” he added.

US Ambassador to Israel Mike Huckabee said in a BBC interview on Tuesday that if London were to impose sanctions, there would be “no doubt there would be a reaction” from the US government.

He said doing something like this with Israel could have “huge economic implications for British companies” and warned that they could be banned from operating in “many” US states.

US Congressman Randy Fine has already warned that British companies face repercussions in Florida if the UK goes ahead with sanctions.

“As the British government considers forcing British companies to boycott parts of Israel, it should be aware that the Florida law I passed as a member of Congress prohibits British companies forced into compliance from doing business with Florida or local governments,” he said in a post Monday night, referring to the state’s scrutinized law against contracting with companies.

The law prohibits state institutions from doing business with or investing in companies that boycott Israel. In 2019, Airbnb was placed on Florida’s list of companies under scrutiny after announcing it would delist about 200 companies in the West Bank. Airbnb later reversed course and removed the listing.

“Florida is one of the UK’s largest trading partners,” Fine added. “Florida has made it clear: Any company or nation that boycotts Israel will be boycotted by Florida.”

Several US states, including Texas, New Jersey, and Alabama, have introduced so-called anti-BDS regulations.

The Trump administration has criticized European governments and investors in recent years for their stance on trade with Israel.

Last year, the U.S. State Department told CNBC it was “deeply troubled” by the $2 trillion Norwegian wealth fund’s withdrawal from U.S. company Caterpillar and five Israeli banks, citing concerns about corporate rights violations amid a regional conflict.

A State Department spokesperson said the action was “based on unwarranted allegations against Caterpillar and the Israeli government.”

Over the summer, Ireland passed legislation banning the import of goods originating from certain Israeli settlements. The US Embassy in Ireland later issued a statement warning that the move “risks having real unintended consequences” for around 1,000 US companies.

“If the goal is to bring about meaningful change for the Palestinian people, the focus should be on concerted international efforts that have a real impact, rather than symbolic measures that negatively impact the Irish economy and do not advance peace,” the statement said.

“We urge Ireland to avoid promoting similarly useless initiatives at EU level.”