Committee publication · Correspondence · 24 February 2026
Letter to the Minister of State for Trade, Foreign Office and HM Revenue and Customs relating to trade with Israeli settlements, 12 February 2026
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: The UK's trade sanctions regime
Summary
The Business and Trade Committee requests information from trade and foreign ministers about UK trade with Israeli settlements in the Occupied Palestinian Territories. The letter asks whether the government has implemented measures following a July 2024 ICJ advisory opinion recommending states prevent trade that assists Israeli occupation, noting the UK's inconsistent approach compared to Russia sanctions and EU member states' positions.
Key findings
- The committee notes UK recognises Israeli settlements as illegal and ineligible for tariff preferences, yet OPT-made products still enter the UK market
- The letter contrasts UK trade policy on Israeli settlements with strict Russian import bans on goods from occupied Ukrainian territory, questioning the inconsistency
- EU member states Spain and Ireland have imposed or sought restrictions on settlement trade; the European Commission is exploring suspension of trade concessions with Israel
- NGOs including Oxfam International have called for states including the UK to end all trade with Israeli settlements
- Committee seeks clarification on enforcement mechanisms for identifying OPT-origin goods and whether similar Russian-style import bans could apply
Tone
CriticalTopics
Key actors
Liam Byrne MP, Chris Bryant MP, Hamish Falconer MP, John-Paul Marks CB, International Court of Justice, European Commission, Oxfam International
Notable line
“This approach stands in stark contrast to the UK's position on Russia, which prohibits UK imports of certain goods originating from certain areas of Russian-occupied Ukraine.”
Key Quotes
“Having now recognised the State of Palestine, the government will wish to ensure it now helps build not undermine the Palestinian economy.”
“… take steps to prevent trade or investment relations that assist in the maintenance of the illegal situation created by Israel in the Occupied Palestinian Territory”
“This approach stands in stark contrast to the UK's position on Russia, which prohibits UK imports of certain goods originating from certain areas of Russian-occupied Ukraine.”
Source · parliament.uk record ↗