The Netherlands said they will not allow any goods from settlements in the West Bank to be traded. This decision was made on Friday. The Israeli settlements are in areas that are occupied by Israel. The United Kingdom and other countries like France and Germany and Italy are also telling businesses to be careful. They are warning these businesses not to get involved in building projects, in the settlements. The moves mark a coordinated escalation of European pressure on the Israeli government over its settlement policies. The announcements came on May 22, 2026.
Dutch Prime Minister Rob Jetten said the trade ban was intended to increase pressure on Prime Minister Benjamin Netanyahu’s government and to ensure the Netherlands does not contribute financially to settlement activity.
In a joint statement, the four European powers said the situation in the West Bank had “deteriorated significantly” in recent months, describing settler violence against Palestinians as being at “unprecedented levels.”
“The policies and practices of the Israeli government, including a further entrenchment of Israeli control, are undermining stability and prospects for a two-state solution,” the joint statement said.
The four governments urged Israel to halt settlement expansion, ensure accountability for settler violence, investigate allegations against Israeli forces, and respect Jordan’s Hashemite custodianship over Jerusalem’s holy sites. They also called on Israel to lift financial restrictions imposed on the Palestinian Authority and the Palestinian economy.
The joint statement singled out one project in particular. The four European powers specifically condemned Israel’s E1 settlement plan, which would see around 3,400 housing units built across 12 square kilometers in the West Bank, describing the project as a “serious breach of international law.”
“Businesses should not bid for construction tenders for E1 or other settlement developments,” the statement said, warning companies of the “legal and reputational consequences” of involvement in settlement projects.
The four countries also said they “strongly oppose” calls by some Israeli officials for annexation and the forcible displacement of Palestinians.
The Dutch government went further than its European partners. Beyond the goods ban, the Dutch government is also examining whether bans on services and investments linked to settlements can be implemented legally. In a letter to parliament, Dutch ministers acknowledged that enforcing such measures could prove difficult, but argued that taking action was preferable to remaining passive.
The cabinet has requested urgent legal advice from the Council of State to expedite implementation.
The Dutch announcement comes as Spain’s own trade ban with Israeli settlements has already gone into effect, making the Netherlands the latest European Union member state to take such a step. The coordinated tone of Friday’s actions — a unilateral Dutch trade measure alongside a four-nation corporate warning — suggests growing alignment within Europe on how to respond to settlement growth.
According to Israeli anti-settlement watchdog Peace Now, 2025 marked a record year for settlement expansion in the West Bank, with unprecedented numbers of settlement approvals, illegal outposts, and housing tenders recorded. The group accused the Israeli government of prioritizing settlement growth while failing to adequately support Israelis displaced by conflicts following the October 7, 2023 events.
Violence in the West Bank has surged since the outbreak of the Gaza war in October 2023, with near-daily clashes and attacks reported across the territory.
Friday’s European statements also followed a separate flashpoint in Israel-Europe relations. Footage circulated showing European activists from a Gaza-bound flotilla allegedly subjected to harsh treatment while in Israeli custody. The video, published by Israeli National Security Minister Itamar Ben-Gvir, appeared to show detainees kneeling with their hands restrained. The flotilla incident has added further strain to an already tense relationship between Israel and several European governments.
Background
Israeli settlements in the West Bank are considered illegal under international law by the United Nations and most Western governments, though Israel disputes this. Settlement construction has continued and accelerated under successive Israeli governments. The E1 corridor, located east of Jerusalem, has long been contested territory; construction there would geographically separate the northern and southern West Bank. The October 7, 2023 Hamas attack on Israel triggered the Gaza war and a sharp rise in West Bank violence involving both Israeli settlers and Palestinian residents. Spain became one of the first EU members to implement a formal settlement goods ban earlier in 2026.
What Happens Next
The Dutch government wants to know what the Council of State thinks about the rules for limiting services and investments, not goods and they asked for an opinion on this. The Netherlands will use that legal advice to determine the scope and timeline of any expanded measures. The four-nation joint statement — from the UK, France, Germany, and Italy — is addressed to European businesses, and firms operating in or linked to Israeli settlement construction projects have been formally put on notice of potential legal and reputational consequences. No date has been set for a formal EU-wide policy response, though Friday’s coordinated moves are likely to increase pressure on Brussels to take a collective position.
