A US congressman has warned British companies they could face economic penalties in Florida if they comply with the UK’s planned ban on trade with illegal Israeli settlements in the occupied West Bank, escalating a growing dispute between London, Washington and Israel.
Republican Representative Randy Fine said on Monday that Florida’s anti-boycott laws could be used against British firms that refuse to conduct business involving illegal Israeli settlements.
He argued that companies complying with the UK measures could be barred from doing business with Florida state or local governments.
“Any company — or nation — that boycotts Israel is boycotted by Florida,” Fine said, warning that the measures could cost British businesses billions of dollars because of the economic relationship between Florida and the UK.
Fine points to Airbnb as precedent
Fine cited Airbnb’s 2019 decision involving listings in illegal Israeli settlements as an example of the potential impact of Florida’s anti-boycott legislation.
He claimed the company changed its policy after facing the prospect of penalties under Florida’s rules, arguing that multinational companies could be vulnerable to state-level restrictions even when complying with policies adopted by foreign governments.
Fine also described the UK’s planned measures as a “vanity project,” using inflammatory language to attack London’s policy.
UK prepares settlement trade restrictions
The British government is preparing to announce restrictions on trade involving illegal Israeli settlements in the occupied West Bank, with the measures expected to include a ban on settlement-produced goods and targeted sanctions.
Foreign Secretary Ed Miliband has said the UK needs a “comprehensive reset” of its policy towards the occupied West Bank.
London has argued that illegal settlement expansion threatens the prospects for a two-state solution and has pledged further action in response to Israel’s settlement policies.
The UK government had previously advised businesses against economic activity in illegal Israeli settlements but had stopped short of imposing a formal trade ban.
The planned move has drawn criticism from Israel, with National Security Minister Itamar Ben-Gvir calling for a retaliatory stance over Britain’s policy, while Finance Minister Bezalel Smotrich has called for the British ambassador to be expelled.
The dispute adds another layer to increasingly strained UK-Israel relations, while Fine’s warning raises the possibility of British companies facing pressure from both London and US state authorities over their dealings with illegal Israeli settlements.
