On Tuesday, Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden, and the United Kingdom jointly confirmed their intention to impose national restrictions on trade in goods from Israeli settlements.

The 12 nations jointly said that the Israeli government's actions in the West Bank "damage the possibility of realizing the two-state solution."

"The situation is deteriorating rapidly against the backdrop of unprecedented levels of settler violence and settlement expansion, including the unacceptable decision to publish tenders for the E1 settlement project," they said.

While the countries recognized Israel's legitimate security interests and reiterated their condemnation of the Hamas terrorist attack on October 7, they called on the Israeli government to immediately halt settlement expansion and the expansion of administrative authorities in the West Bank, "ensure accountability for settler violence, and investigate allegations against the Israeli security forces."

This joint announcement came as something of a surprise; all eyes were on the UK, which was expected to announce its measures on Tuesday; however, the involvement of the other 11 countries was not previewed, and the Israeli government was preparing its response for British measures specifically.

Israeli Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the E1 settlement project between Jerusalem and Ma’aleh Adumim, August 14, 2025.
Israeli Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the E1 settlement project between Jerusalem and Ma’aleh Adumim, August 14, 2025. (credit: YONATAN SINDEL/FLASH90)

The exact details of the trade bans are not yet clear. For example, countries will need to differentiate between goods originating in West Bank settlements and products made in Israel.

There is also set to be a religious exemption to the goods ban, but what this entails is again unclear.

Countries involved in coordinated trade restrictions host some of Diaspora Jewry's largest communities

The 13 countries backing the settlement trade restrictions are home to roughly 1.2 million Jews, including some of the world's largest Jewish communities in France, Canada and Britain.  

The new restrictions are unlikely to have a major economic impact on these roughly 1.2 million Jews, since they target a relatively small category of settlement-produced goods.

However, Jewish communities could feel their effects through reduced access to some Israeli products, particularly settlement-produced wine and agricultural goods; implications for businesses and organizations with ties to settlements; and, more broadly, concerns about the impact of increasingly confrontational government policy towards Israel on Jewish communal life and antisemitism.

France launches to ban Israeli settlement products

France will also launch a process to ban products from Israeli settlements in the West Bank, Foreign Minister Jean-Noël Barrot said on Tuesday, amid rising settler violence that has further undermined prospects for a two-state solution with the Palestinians.

"France is going to put an end to its commerce with Israeli settlements in Palestine, along with 11 other countries which have also undertaken similar engagements," Barrot wrote on X.

"Why are we doing this? Because the West Bank is close to exploding - there is frenzied expansion of the settlements, a flare up of violence against Palestinians by extremist settlers, and acts of terror which have been attacked by Israeli authorities themselves," added Barrot.

The move comes as frustration has grown among some European Union states, which have sought for the bloc to take a decision, but failed to gain a qualified majority with the notable opposition from Germany.

"Given the situation on the ground we can't wait, so we are taking this national decision," a French diplomatic source told reporters in a briefing ahead of the announcement.

The modalities of the ban have yet to be finalized and it was not immediately clear when it would be implemented.

"This announcement is part of the joint initiative between the President of the Republic and the Prime Minister of the United Kingdom, which was discussed in particular during their meeting in London and to which several of our partners in the European Union and beyond have signed up," the source said, adding as many as a dozen countries would follow suit.

The source said it was not a boycott of Israel.

The foreign ministers of 12 countries also said on Tuesday they would back or consider restrictions on trade in goods with Israeli settlements in the West Bank that are illegal under international law.

"The Government of Israel's actions in the West Bank are undermining the possibility of a two-State solution," the statement said.

"Today, Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the UK confirm their intention to introduce national and/or support European restrictions on trade in goods with settlements which are illegal under international law, or that they are actively considering these and other measures, in accordance with their national procedures," it added.

While British Prime Minister Andy Burnham has not spoken to his Israeli counterpart since entering the role 50 days ago, Burnham did speak to US President Donald Trump on Monday to inform him of the impending pan.

It is understood that the US government is preparing to release a condemnation of the sanctions later on Tuesday. It could also contain implied or actual threats of retaliation against the UK over the decision.

Reuters contributed to this report.