Canada joins European ban on Israeli settlement goods in response to rising violence

OTTAWA – Ottawa joined European nations on Tuesday with a pledge to ban imports of goods produced in Israeli settlements in the occupied West Bank.

Israel’s foreign minister promised unspecified “counter measures” Tuesday against “countries that act, or will act, against Israel” but did not single out Canada.

Canada, the United Kingdom, France and other countries are accusing Israel of enabling settler violence and working to expand settlements that are widely understood to be illegal under international law.

In a joint statement issued Tuesday, those countries said they “will bring forward national measures to ban trade in settlement goods” and are joining others condemning the Israeli government over the “rapidly deteriorating” situation for Palestinians.

Twelve countries, including Canada, used the statement to describe Israeli actions as “tantamount to the annexation of Palestinian land and forcible displacement of the Palestinian population.”

The statement focuses on preserving the possibility of a two-state solution — a possibility it says has been undermined by the Israeli government.

The two-state solution refers to the creation of a Palestinian country existing in peace alongside Israel, and an end to the occupation of the West Bank, Gaza Strip and East Jerusalem.

“The situation is rapidly deteriorating amid unprecedented levels of settler violence and settlement expansion,” Tuesday’s statement reads.

It cites Israel’s recent “unacceptable decision” to seek public tenders for a settlement project called E1. Western countries argue the project would expand illegal settlements and hinder access routes between Palestinian territories that should eventually make up an independent state.

“The Government of Israel must immediately halt the expansion of settlements and civilian administrative powers, ensure accountability for settler violence, and investigate allegations against Israeli forces,” says the statement.

The statement was endorsed by Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the U.K. The statement also takes note of actions already taken by Belgium, the Netherlands and Norway.

In a post on social media, Foreign Affairs Minister Anita Anand said Tuesday that Ottawa will “introduce restrictions on trade in goods with settlements in the West Bank that are illegal under international law” in “the coming months.”

“For more than 70 years, successive Canadian governments have held the position that a two-state solution is the way forward for long-term peace that also addresses Israel’s legitimate security concerns. Illegal settlements in the West Bank significantly undermine these objectives,” Anand wrote.

Prime Minister Mark Carney issued another statement Tuesday afternoon with British Prime Minister Andy Burnham and French President Emmanuel Macron. In it, he said the new measures build on his government’s recognition of Palestinian statehood a year ago.

The leaders’ statement said a two-state solution “is a fundamental national interest” of all three countries, which still want “a close and productive partnership with Israel.” The leaders said they will co-chair a meeting later this month at the United Nations General Assembly “to advance our efforts and pursue peace.” 

A group advocating for Palestinian rights said Canada’s upcoming measures must target not just goods but also services, investment and property.

Canadians for Justice and Peace in the Middle East has been issuing warnings about charities and groups it says support the expansion of illegal settlements.

“This announcement marks the first time that Israel will face material, economic consequences for its blatant violations of international law,” wrote group head Yara Shoufani.

The Centre for Israel and Jewish Affairs warned the move will hurt Canada’s economy. It said the ban shows Carney has a pattern of publicly criticizing Israel but not countries such as China and Saudi Arabia.

“The government’s announcement reinforces a troubling double standard toward Israel that not only impacts the Middle East but has real consequences here at home,” wrote the group’s head Noah Shack.

He noted the British government linked its Tuesday announcement with extra funding to protect Jewish spaces and said Ottawa should not be “imposing punitive measures in the midst of a democratic election that will achieve the opposite.”

Also Tuesday, Israeli Foreign Minister Gideon Sa’ar delivered a lengthy statement that overwhelmingly focused on the U.K. while briefly mentioning France.

“Britain initiated and led the current move, but we will also take counter measures at our discretion against other countries that act, or will act, against Israel,” he said at a news conference.

“The message to every government that harms us is clear. Whoever acts against Israel, Israel will act against them — and they will lose their influence and relevance in this region.”

Sa’ar ordered the closure of the U.K. consulate overseeing the Palestinian territories that Israel occupies. This leaves the embassy in Tel Aviv operating but effectively bars U.K. diplomats from the West Bank.

He also ordered the removal of British officials from a Gaza monitoring centre in Israel supported in part by Canada, and sanctions on some British nationals.

It remains unclear what measures Israel might take against Canada, which operates a diplomatic delegation in Ramallah and is a lead country in efforts to train Palestinian security forces under Operation Proteus.

Israeli President Isaac Herzog said the move amounts to interference in his country’s ongoing national election.

“I believe it will prove to be a grave miscalculation, a decision that will fall on the wrong side of history,” he said in a Tuesday speech ahead of the announcement of the new measures.

“It will harm, unfortunately, Palestinians, robbing them of business and employment.”

The Palestinian Authority has said that Israeli economic policies — particularly the withholding of tax revenue collected on consumption and imports — are causing an unemployment crisis.

Since the October 2023 attacks by Hamas, Israel has cancelled thousands of permits for Palestinian workers, blocked roads used to export goods, and capped financial transfers.

The Palestinian Authority’s foreign ministry commended Canada in a statement, adding that “banning settlement products must be only the first step toward broader action to dismantle the settlement system and end the occupation.”

U.S. Ambassador to Israel Mike Huckabee told media some American states such as Florida have laws that could bar trade with countries that sanction Israel.

Canada last month issued an advisory to businesses warning them of “legal, financial, and reputational risks associated with commercial activities linked to Israeli settlements in occupied Palestinian territories,” particularly the West Bank and East Jerusalem.

Tuesday’s joint statement condemns the October 2023 attacks by Hamas and recognizes “Israel’s legitimate security interests” as well as growing antisemitism.

This report by The Canadian Press was first published Sept. 8, 2026.