British Prime Minister Andy Burnham is expected to introduce new trade restrictions targeting Israeli settlements in the West Bank despite warnings within his Labour Party that the measures could affect businesses across Israel, The Times reported Wednesday.
The proposed restrictions come as about 140 Labour members of Parliament, representing roughly one-third of the party’s delegation in the House of Commons, have signed a letter calling on Burnham to take stronger action against settlements.
Labour Friends of Israel has opposed the proposed trade measures, citing difficulties in establishing whether individual products originated in the territories or elsewhere in Israel.
The group said it supports “calibrated steps against extremist settlers” but cautioned that broader restrictions could effectively amount to a boycott of Israel.
Such a ban “would be deeply damaging to the UK national interest, the British Jewish community and Palestinian workers,” the group said.
Government officials have also questioned whether the restrictions could be implemented without broader consequences, The Times reported. They warned of a “significant risk that ‘legitimate’ Israeli businesses would be hit by the ban, and it risked undermining trade with Israel more broadly.”
Palestinian businesses operating in the territories could also be affected by the measures.
Israel exports $2 billion in goods to the UK annually. Services are not expected to be included in the planned restrictions.
Burnham is separately considering sanctions against individual settlement movement leaders and is expected to unveil “robust” measures before Labour’s annual conference in September, when the issue is scheduled for debate.
The plans follow Israel’s approval of expanded construction in the E1 area northeast of Jerusalem. Foreign Secretary Ed Miliband joined other European governments last week in condemning the move.
Spain and the Netherlands have already imposed measures targeting settlement trade. A Dutch ban on importing, purchasing or selling settlement goods takes effect September 22, with violations potentially carrying prison sentences of up to six years.
