On 8 September 2026, the UK government designated five settlers under the existing Global Human Rights Sanctions Regulations 2020 and announced that it will introduce a new sanctions regime targeting settlements in the occupied West Bank over the next six to nine months, under the powers conferred to it by the Sanctions and Anti-Money Laundering Act 2018.
The announcement formed part of a coordinated cross-jurisdictional effort and was made alongside a joint statement by the UK and 11 other countries, including France, Canada, Denmark, Spain, Finland, Ireland, Iceland, Norway, Poland, Portugal, and Sweden. These countries committed to introduce national restrictions, or support European restrictions, on trade in goods with settlements that are illegal under international law.
What activities will be prohibited?
Based on the government’s announcement, the UK’s proposed regime will introduce:
- a ban on imports of goods from illegal settlements in the occupied territories;
- a prohibition on providing, or facilitating the provision of, services relating to construction, infrastructure, financing or real estate where those services are provided for the purposes of settlement expansion; and
- a ban on the advertising of illegal settlements in the UK.
The government also stated that it will refuse licence applications for arms and other exports that materially contribute to settlement or occupation. This follows its previous suspension of more than 30 arms export licences relating to items used by the Israeli Defence Forces in Gaza. According to the announcement, the new licensing restriction will remain in place until the occupation ends.
Existing UK measures concerning illegal settlements
Goods produced in Israeli settlements are already ineligible for preferential tariff treatment under the UK’s trade agreements with the Palestinian Authority and Israel. To claim preferential treatment, documentation must identify where the goods were produced and confirm that they were not produced in a location within the territories brought under Israeli administration since June 1967.
The proposed import ban will therefore go further than the existing position by prohibiting the import of such goods, rather than merely excluding them from preferential tariff treatment.
Wider international action
The UK’s announcement forms part of a broader international response. Other countries, including the Netherlands and Spain have already prohibited the import of such goods, whilst others (including Sweden, France, and Poland), have pledged to support further action. For example:
- The Netherlands has adopted restrictions against certain territories occupied by Israel, which will be implemented through the Temporary Decision on Sanctions Against Illegal Settlements in the Israeli-occupied territories (Tijdelijk sanctiebesluit onrechtmatige nederzettingen in de door Israël bezette gebieden, the “Decision”). The Decision is set to enter into force on 22 September 2026, and targets the import, purchase and sale of goods that have been wholly or partly obtained from, produced in, or contain raw materials or semi-finished producing originating in illegal settlements as listed in the EU postcode list, as well as related brokering services. The restrictions do not apply to goods eligible for preferential treatment. Importers of goods of Israeli origin must use a specified customs code to declare that the goods do not originate from an illegal settlement, or are eligible for preferential treatment.
- Spain had already taken several measures in relation to Israel, including a prohibition on the import and advertising of products and services originating from Israeli settlements and an a prohibition on exports to and imports from Israel of defence equipment, dual-use products and related technologies. The transit of such material through Spanish territory is also prohibited and applications for transit authorisation are denied. In addition, Spain has restricted access to its ports and airspace for ships and aircraft transporting fuel products intended for possible military use in Israel.
- Canada has implemented unilateral sanctions regulations under the Special Economic Measures Act targeting 19 individuals and 12 entities allegedly involved in activities that undermine the peace and security of the State of Israel and the occupied Palestinian territories. Canada recently announced a commitment to restrict trade with Israeli settlements, but has not yet implemented legislation.
- Sweden has not adopted any national measures targeting Israeli settlements. Sweden joined the joint statement of 8 September 2026, signalling support for further action, but the Swedish government has maintained that such measures should be pursued through the EU.
- In France and Poland, the relevant measures remain under preparation and no further official measures have been published ahead of the joint statement.
Implications for businesses
The full scope of the new UK regime will depend on the legislation that is ultimately introduced. However, given developments across jurisdictions, businesses should review their supply chains, operations and financial arrangements to consider whether their activities involve:
- goods originating from the occupied territories;
- construction, infrastructure, financing or real estate connected with settlement expansion;
- the advertising of illegal settlements in the UK; or
- arms and other exports that may materially contribute to settlement or occupation.
In addition, US companies and their subsidiaries should also consider the potential impact of US antiboycott laws if faced with requests or business decisions related to these new measures.
Businesses should also continue to monitor developments as further details of the proposed measures become available.
This article was prepared with contributions from Paul Amberg (Spain), Kerry Contini (US), Julia Webster (Canada), Sylvain Guelton (France), Irene Esteve (Spain), Paul Gielen (Netherlands), Christos Papadopoulos (Sweden), and Ewa Marcisz (Poland).
