EU moves to end complicity in Gaza genocide, proposes trade freeze with Israel

EU Commission calls for freezing of free trade with Israel over Gaza genocide. The move targets Israeli ministers, €68bn ($72.5bn) trade agreement, amid mounting calls to end complicity Israel’s war of annihilation.

The European Commission has called for the suspension of Israel’s preferential trade status with the EU, citing the unfolding genocide in Gaza and mounting evidence of war crimes. The proposal, if adopted, would represent the most serious breach in EU-Israel relations since the signing of the Association Agreement in 2000.

“The horrific events taking place in Gaza on a daily basis must stop,” said European Commission President Ursula von der Leyen yesterday. “There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas.”

The announcement follows a landmark report from a United Nations independent commission concluding that Israel’s actions in Gaza amount to genocide under international law, stating there is clear intent to “destroy the Palestinian people in whole or in part.”

Under the proposed measures, the EU would suspend the trade-related pillars of the EU-Israel Association Agreement, effectively ending Israel’s preferential access to the European single market. This includes the reintroduction of tariffs on approximately €5.8 billion ($6.2 billion) of Israeli exports—resulting in €227 million ($241 million) in duties—as well as halting mutual benefits in areas such as public procurement and intellectual property protections.

EU Trade Commissioner Maroš Šefčovič said: “We regret having to take this step. However, we believe it is both appropriate and proportionate given the ongoing humanitarian crisis in Gaza.”

In addition to trade measures, the Commission is proposing targeted sanctions against Israel’s far-right Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir, two figures closely associated with incitement and ethnic cleansing policies, as well as ten senior members of Hamas.

READ: A ‘review’ of Article 2 of the EU’s Association Agreement with Israel? Meddling with the EU’s own legal obligations

The measures, however, face major procedural obstacles. Trade-related decisions require a “double majority” of 15 out of 27 EU member states representing at least 65 per cent of the EU population. Germany and Italy, both influential allies of Israel, have yet to indicate support. A spokesperson for the German government said Berlin had “not yet formed a final opinion.”

Sanctions on individuals require unanimous backing from all member states, a threshold Hungary and the Czech Republic are expected to block. EU foreign policy chief Kaja Kallas acknowledged the political divisions but urged hesitant states to propose alternative actions. “If you don’t support these measures, then what measures can you support? Bring alternatives,” she said.

The EU is Israel’s largest trading partner, accounting for 32 per cent of its total goods trade. In 2024, EU-Israel trade reached a record €42.6 billion ($45.4 billion), of which €15.9 billion ($16.9 billion) benefitted from preferential treatment. If passed, the new tariffs would affect 37 per cent of those preferential imports.

The Commission’s proposal follows months of mounting pressure from civil society, rights organisations, and several EU member states. Spain recently announced its own measures against Israel, including an arms embargo and travel bans on Israeli officials involved in the Gaza assault. Slovenia and Germany have also suspended certain arms exports, while Sweden and the Netherlands have called for a freeze to the trade agreement.

READ: EU commissioner urges action after UN inquiry declares Israel is committing genocide in Gaza