UK PM poised to ban trade with Israeli settlements

New British Prime Minister Andy Burnham is reportedly preparing to announce a ban on trade with Israeli settlements in the West Bank in the coming weeks, according to reports in The Times and The Telegraph.

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measures are being prepared to "target sanctions at those who participate in illegal settlement expansion,"

Government officials cited in the reports suggest the new sanctions regime would likely halt the exchange of both goods and services. This follows Foreign Secretary Ed Miliband's August 19 announcement that measures were being prepared to "target sanctions at those who participate in illegal settlement expansion," specifically after Israel announced a tender for the E1 settlement project.

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A boycott of all trade with settlements is practically and politically impossible

However, the potential sanctions could create a significant rift within the Labour Party. Approximately 140 Labour Members of Parliament, representing about a third of the party's representation in the House of Commons, have signed a letter to the prime minister urging strong measures against Israeli settlements.

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It would affect all Israeli businesses operating in the settlement blocs, as well as East Jerusalem and the Old City, where major Israeli businesses like Bank Hapoalim and Teva operate, and where the tourism sector is critical for Israeli and Palestinian workers.

Conversely, Labour Friends of Israel (LFI) has cautioned that distinguishing between settlement trade and all Israeli trade would be practically impossible, potentially leading to a "de facto boycott of all of Israel." LFI argues that sanctions should be narrowly focused on violent extremist settlers and organizations, warning that broader measures could negatively impact Israeli businesses and the tourism sector, disproportionately affecting Israeli and Palestinian workers. They also expressed concern that such a broad boycott would be perceived by the UK Jewish community as the government unfairly targeting Israel.

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A settlement boycott would thus become a de facto boycott of all of Israel, which would rightly be perceived within the UK Jewish community as a further example of the government singling out and targeting Israel for punitive action and harsh rhetoric