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EU reviews Israel trade deal as UK suspends talks over Gaza blockade

European foreign ministers back review of association agreement while Britain imposes settler sanctions and halts free-trade negotiations, marking the sharpest Western diplomatic pressure on Israel since the war resumed in March.

By , Security and Defence Editor

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7 min read

European nations moved in coordinated fashion on Tuesday to impose the most significant diplomatic and economic pressure on Israel since the war in Gaza resumed in March. The European Union's 27 foreign ministers agreed to review the EU-Israel Association Agreement, the legal framework governing trade and political cooperation, while Britain suspended free-trade negotiations, summoned the Israeli ambassador and announced sanctions on Israeli settlers in the occupied West Bank.

EU activates association agreement review mechanism

The EU-Israel Association Agreement, in force since 2000, contains a human rights clause that allows either party to take measures if the other breaches fundamental rights principles. Kaja Kallas, the bloc's high representative for foreign affairs, told reporters after the Luxembourg meeting that a "strong majority" of member states backed launching the review. She added that ministers "see that the situation in Gaza is untenable... and what we want is to unblock the humanitarian aid".

The review does not automatically suspend the agreement. It triggers a formal assessment process that could lead to targeted measures, including suspension of specific provisions. Several member states, including Ireland, Spain and Belgium, have pushed for stronger action for months. Sweden's foreign minister, Maria Malmer Stenergard, said Stockholm would now press for sanctions against individual Israeli ministers, arguing that "since we do not see a clear improvement for the civilians in Gaza, we need to raise the tone further".

Britain breaks with cautious approach

London's moves went further than the collective EU position. David Lammy, the foreign secretary, used an urgent question in the House of Commons to deliver the sharpest public condemnation of Israel by a British minister since the war began. "Blocking aid, expanding the war, dismissing the concerns of your friends and partners. This is indefensible and it must stop," he said. The UK government confirmed it would suspend the UK-Israel free trade agreement negotiations launched in 2023, impose asset freezes and travel bans on extremist settlers in the West Bank, and summon the Israeli ambassador for a formal diplomatic protest.

The British measures reflect a shift in Labour's positioning since taking office in July 2024. While the previous Conservative government resisted calls for sanctions, Lammy argued that the total blockade imposed on March 2, which halted all food, fuel and medical supplies for over seven weeks, had crossed a threshold. The UK-Israel trade relationship was worth £6.2 billion in 2023, though negotiations on a new agreement had progressed slowly even before Tuesday's suspension.

Israel rejects pressure as security misunderstanding

Israeli officials dismissed both the EU and UK actions. Oren Marmorstein, foreign ministry spokesman, posted on X that "external pressure will not divert Israel from its path in defending its existence and security". In a separate statement, the ministry said it "completely reject[s] the direction taken in the statement, which reflects a total misunderstanding of the complex reality Israel is facing". Prime Minister Benjamin Netanyahu went further on Monday, declaring that Israel would "take control of all the territory of the Strip" under its renewed offensive.

The Israeli government frames the military campaign as a response to Hamas's October 7, 2023 attack, which killed 1,218 people in Israel, mostly civilians, and saw 251 hostages taken. Fifty-seven hostages remain in Gaza, of whom the military says 34 are dead. Israel resumed large-scale operations on March 18 after a two-month ceasefire collapsed over disagreements on the next phase of hostage releases and withdrawal terms.

Aid trickles in but UN warns of catastrophic shortfall

Against the diplomatic escalation, the humanitarian situation on the ground remains dire. COGAT, the Israeli defence ministry body overseeing civil affairs in Palestinian territories, said 93 UN trucks carrying flour, baby food, medical equipment and pharmaceuticals entered Gaza through the Kerem Shalom crossing on Tuesday. This followed Monday's first delivery since the March 2 blockade, nine trucks the UN described as "a drop in the ocean".

Tom Fletcher, the UN's humanitarian chief, told the BBC that 14,000 babies could die within 48 hours if nutrition supplies did not reach them. Stephane Dujarric, spokesman for Secretary-General Antonio Guterres, confirmed that UN teams waited hours for Israeli clearance to collect supplies on Tuesday, only to be turned away. The UN estimates Gaza requires at least 500 truckloads daily to meet basic needs; pre-war commercial traffic averaged 500 to 600 trucks per day.

Military escalation drives civilian casualties

The Israeli military said it struck more than 100 targets in Gaza over the past day, including what it described as a Hamas command and control centre inside a school compound in Gaza City. Palestinian civil defence spokesman Mahmud Bassal reported 44 dead overnight, mostly women and children. Fifteen people were killed when a petrol station near Nuseirat refugee camp was hit, and eight more in the school strike. Resident Mahmoud al-Louh, carrying body parts at the petrol station site, told AFP: "They are civilians, children who were sleeping. What was their fault?"

The Gaza health ministry says 3,427 Palestinians have been killed since March 18, bringing the total since October 2023 to 53,573. The ministry does not distinguish between combatants and civilians. Israel says it takes precautions to avoid civilian harm and accuses Hamas of operating from civilian infrastructure. Independent verification remains impossible with foreign journalists barred from entering Gaza independently.

Ceasefire talks falter amid mutual accusations

Indirect negotiations mediated by Qatar, Egypt and the United States resumed in Doha over the weekend, even as the Israeli offensive intensified. Qatar's foreign ministry said Tuesday that Israel's "irresponsible, aggressive behaviour" had undermined ceasefire prospects. Hours later, Netanyahu's office accused Hamas of refusing a deal and announced Israel was recalling its senior negotiators while leaving working-level staff in Doha. A source close to Hamas countered that Israel's delegation "has not held any real negotiations since last Sunday", blaming "Netanyahu's systematic policy of obstruction".

Sources

  1. France 24

    france24.com · 2025-05-20

People mentioned

  • Kaja Kallas

    High Representative of the Union for Foreign Affairs and Security Policy, European Union

  • David Lammy

    Foreign Secretary, United Kingdom

  • Maria Malmer Stenergard

    Foreign Minister, Sweden

  • Benjamin Netanyahu

    Prime Minister, Israel

  • Tom Fletcher

    Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, United Nations

Organisations

European Union · European Commission · Council of the European Union · United Kingdom Foreign Commonwealth and Development Office · Government of Israel · United Nations Office for the Coordination of Humanitarian Affairs

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