UKLFI challenges UK government’s proposed settlement trade ban

The UK government is actively considering a ban on the import and export of goods and services involving Israeli businesses operating in East Jerusalem and the West Bank (Judea and Samaria). Former trade minister Chris Bryant has argued that the United Kingdom has a legal duty not to “aid or assist” Israeli settlements, prompting the proposal. The ban would apply to private-sector trade and would be the first such restriction since the UK-Israel Trade and Partnership Agreement (TPA) entered into force.

The Jerusalem PostUKLFI warns over proposed settlement trade ban

UK Lawyers for Israel submitted a briefing paper to Foreign Secretary Ed Miliband and legal adviser Sally Langrish contesting the government’s legal basis. UKLFI asserts that no international law obliges the UK to impose a blanket ban and that the measure would directly conflict with several binding agreements:

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• The UK-Israel TPA, which prohibits quantitative restrictions on imports and exports.

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• The General Agreement on Tariffs and Trade (GATT).

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• The General Agreement on Trade in Services (GATS).

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• The Protocol on Ireland/Northern Ireland within the Brexit withdrawal agreement, should the ban extend to Northern Ireland.

UKLFI warns over proposed settlement trade ban

UKLFI also notes that the TPA requires any dispute to be referred to the UK-Israel Joint Council for a mutually acceptable solution; a unilateral ban would breach that procedure.

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UKLFI warns that many Palestinians are employed by Israeli firms in settlement areas, often earning twice the wages offered by Palestinian employers.

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The organization further cautions that UK companies complying with the ban could run afoul of U.S. federal and state anti-boycott statutes, exposing them to sanctions and potentially deterring U.S. investment in the United Kingdom. UKLFI also suggests the policy could exacerbate antisemitic sentiment domestically.

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The UK government, while maintaining that it is reviewing its obligations under international law, has not provided a detailed public response to UKLFI’s specific legal arguments.

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• “A unilateral ban introduced without following that procedure would breach the TPA irrespective of the underlying merits of the policy,” — Israel. UKLFI, CEO

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• “Statements made on behalf of the UK government appear to be the opposite of the correct position,” — Jonathan Turner, CEO of UKLFI

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