EU 'bending' rules to continue trade with Israeli settlements

Just as the Irish government seeks to introduce a bill to restrict trade with Israeli settlements in the occupied Palestinian territories, the chief legal office of the European Union’s foreign service is advising the department that the Hague does not mandate EU states to ban imports from Israeli settlements.

According to The Intercept, a leaked analysis by Frank Hoffmeister, director of the EU’s foreign service’s legal department, stated that while European law requires the labelling of products from Israeli settlements, the question of imposing a complete ban on their import and sale remains open to debate.

Legal experts suggest that this analysis contradicts a ruling by the International Court of Justice (ICJ), which has urged the EU to cease all support for Israel's illegal occupation of Palestine, including the West Bank and Gaza.

In the seven-page memo, Hoffmeister stated: “EU law requires labelling indicating that foodstuffs originate in the West Bank and settlements. It is a matter of further political appreciation whether to revisit the EU’s policy vis-à-vis the import of goods from the settlements.”

Hoffmeister’s analysis was sent to the EU’s foreign policy chief Josep Borrell on July 22, just three days after the ICJ ruled that states must not “render aid or assistance in maintaining” Israel’s illegal occupation.

According to The Intercept, the UN’s special rapporteur on the situation of human rights in the Palestinian territories occupied since 1967, Francesca Albanese, criticised the EU’s stance as “legally flawed, politically damaging, and morally compromised.”

“The EU is neglecting its responsibility to uphold international law,” she argued, adding that “this bending of rules for political convenience erodes the credibility of EU foreign policy and betrays the trust of people beyond Palestine.”

She further warned that the EU’s selective approach also sets a dangerous precedent by treating its obligations under the ICJ advisory opinion as optional, particularly amid ongoing atrocities.

Why is this ruling so significant? The Hague, also known as the International Court of Justice, is the world’s highest legal authority for hearing and resolving disputes between states. Although its rulings are non-binding, they carry significant legal weight and moral authority.

In response to the ICJ’s July ruling, the United Nations General Assembly last month called on Israel to end its occupation of Palestine within a year.

In addition to being EU’s foreign service’s legal department director, Hoffmeister, is also the director of a Brussels-based foreign and security policy working group within Germany’s liberal Free Democratic Party (FDP), a strong supporter of Israel’s war in Gaza. Hoffmeister previously served as the Vice Chair of the FDP in Brussels.

Earlier, the FDP advocated for freezing EU and German payments to Palestinian institutions and programs until a special audit confirmed that no funds were being used “to finance Islamist terror.”

Ireland’s Occupied Territories Bill

The Irish government has been advancing its Occupied Territories Bill following a UN court decision that allows Dublin to make trade decisions independently of the EU, according to a Reuters report.

On Tuesday, Irish Foreign Minister Michael Martin said that the advisory opinion from the UN’s highest court in July, declaring Israel’s occupation of the Palestinian territories as illegal, has changed the context in which the Irish government is moving forward on the issue.

“Trade is an exclusive EU competence and so the government’s focus has been on achieving action at the EU level,” Martin said in a statement.

“The Attorney General has clarified that if this is not possible, there are grounds in EU law allowing states to take action at a national level. It is in that context that the government will now look again at the Occupied Territories Bill.”

He said the bill would be reviewed and amended to ensure alignment with both EU law and Ireland's constitution. He noted, however, that a range of complex policy and legal issues still need to be addresed.

Earlier this year, Ireland officially recognised the State of Palestine and announced plans to establish diplomatic relations.

Trade ties

According to the EU’s website, Israel ranks as the EU’s 25th largest trade partner, accounting for 0.8 percent of the bloc’s total trade in goods in 2022. It is also among the EU’s primary trading partners in the Mediterranean area.

In 2022, the total trade in goods between the EU and Israel was valued at approximately €46.8 billion ($50.5 billion). The EU’s imports from Israel totaled €17.5 billion ($18.9 billion), while its exports to Israel amounted to €12.2 billion ($13.2 billion), primarily consisting of machinery and transport equipment ($13.3 billion, 41.9 percent), chemicals ($5.5 billion, 17.6 percent), and other manufactured goods ($3.8 billion, 12.1 percent).