UK minister grilled over trade with illegal Israeli settlements in West Bank

A UK minister has defended the government’s refusal to take concrete steps to ban trade with illegal Israeli settlements in Palestine, citing what he described as "technical difficulties" in identifying settlement goods entering the UK market.

The justification was given by Sir Chris Bryant, Minister of State for Trade at the UK Department for Business and Trade, during a heated meeting with a delegation representing several humanitarian organisations opposed to settlement activity in the occupied West Bank.

The New Arab has learned that the delegation expressed "frustration" during the meeting, held last Wednesday at the department’s headquarters, over the British government’s stance. Sources familiar with the discussions said the exchange was "frank" and "heated".

According to the sources, the delegation, which included representatives from the charity Oxfam, as well as Red Line and ActionAid, said it was unconvinced by the minister’s explanation.

Bryant, whose responsibilities include import and export controls, trade sanctions and free trade agreements, argued that it is "technically difficult to distinguish between products imported from settlements and those coming from Israel" when they enter the British market.

One member of the delegation responded that the British government, like other European governments, "fully understands the difference" between the products.

A member of the delegation also expressed confidence that Britain "has the means" to track settlement goods, pointing out that some European countries have already succeeded in distinguishing between exports originating in settlements and those coming from producers inside Israel.

According to the sources, Bryant hinted that banning trade with settlements would require new legislation. In an indirect reference to what activists describe as double standards, another delegation member said the government could simply apply the same legal procedures used in relation to Ukraine’s Crimean Peninsula following Russia’s occupation.

The member was referring to legal tools available under the UK Sanctions and Anti-Money Laundering Act of 2018.

Another member of the delegation warned that Britain’s obligations under international law require it to prevent settlement goods from entering its markets in the first place. He suggested that the UK "appears to lack the political will" to take action against illegal settlement trade in a way that aligns with its stated position that settlements are unlawful.

The Department for Business and Trade did not respond to a request from The New Arab for comment on what was discussed during the meeting.

However, a government spokesperson, who declined to be named, said in response to questions from The New Arab that goods produced in settlements "are not entitled to benefit from tariffs or trade preferences" under existing agreements between Britain and Israel.

The spokesperson added that the government “encourages accurate labelling” of goods, including those produced in illegal settlements in Palestine, "to avoid misleading consumers and enhance transparency".

Where there are doubts about the declared origin of goods, HM Revenue and Customs carries out "checks" to verify origin and ensure compliance with tax rules, the spokesperson said, while noting that details of such checks are not made public “for fear that doing so could undermine compliance efforts”.

The delegation also held meetings throughout last week with the House of Commons’ International Development Committee and the Business and Trade Committee, as well as with Liberal Democrat MPs and a parliamentary group advocating sanctions on Israel.

Oxfam organised the visit as part of a wider European tour aimed at pressuring governments, parliaments and political figures to raise awareness about the impact of Israeli settlement expansion in the occupied West Bank.

The delegation included three Palestinian figures from the West Bank with experience in economic, trade, business and humanitarian fields, who sought to explain the effects of settlements on Palestinian livelihoods and the wider economy.

At a public event hosted by the Palestinian House in London on Friday evening, the three declined to disclose details of their discussions with British officials “to preserve confidentiality”. However, Wissam Ahmad, an expert in development and humanitarian work in the West Bank, said the delegation "heard nothing but rhetorical talk" from officials.

“At the parliamentary level, we felt there was positive enthusiasm among MPs to obtain information” on how to act against settlement expansion and criminalise trade with settlements, Ahmad said. He added that European governments, including Britain, are "more responsive to domestic popular and parliamentary pressure than to pressure from us".

Jamil Sawalmeh, director of ActionAid in Palestine, said: "We have faith in the ability of people in the West to exert pressure" on their governments to dismantle settlements.

The meetings come amid growing calls from international organisations for stronger action against settlement-linked trade and investment. Five international groups have recently urged the UK to ban trade with companies and projects based in settlements and to halt engagement with sectors of the Israeli economy that support the occupation.

Britain imposed sanctions on four settlers and seven settlement-linked entities in 2024, but campaigners say the measures have failed to curb settlement expansion.

International organisations and UN bodies have repeatedly warned that settlement activity causes severe economic damage to Palestinians and deepens the humanitarian crisis in the occupied territories.

In comments to The New Arab, a British government spokesperson denied accusations that Britain encourages or supports any economic activity in settlements, adding, "We advise those considering such activity to seek appropriate legal advice."