Israel Pushes Back as EU Considers Suspending Trade Ties

Tuesday, 20 May 2025 | Foreign Minister Gideon Sa’ar has been holding talks in recent days with his European counterparts in an effort to thwart a Dutch-led initiative to reconsider the EU’s trade relationship with Israel and suspend existing agreements. 

The proposal, spearheaded by Dutch Foreign Minister Caspar Veldkamp, is based on Article 2 of the EU-Israel Association Agreement, which allows for suspension if the EU determines that Israel is committing grave violations of human rights. 

Veldkamp is pushing for a formal assessment of Israel’s compliance with the agreement’s human rights clause, with the aim of suspending the deal. The matter is expected to be discussed on Tuesday during the EU Foreign Affairs Council meeting in Brussels. 

Sa’ar and other Israeli officials are working behind the scenes to block the move, which requires unanimous consent from all 27 EU member states in order to pass. Over the past three days, Sa’ar has spoken with the foreign ministers of Latvia, Germany, Italy, Croatia, Bulgaria, Hungary, Lithuania and the Czech Republic, as well as with the EU’s High Representative for Foreign Affairs, Kaja Kallas. 

Israeli officials believe allies within the EU will oppose the Dutch initiative, which is backed primarily by what one Israeli official called the “usual suspects”: Spain, Ireland, Slovenia and France. Several friendly governments have already pledged to vote against Veldkamp’s proposal, increasing the likelihood that it will fail due to lack of consensus. 

Officials also assess that Veldkamp is pursuing an anti-Israel agenda driven by domestic political considerations. They note that the Dutch government does not fully support his position and is in fact seen as generally more pro-Israel. Geert Wilders, the far-right Dutch politician whose party won the most seats in the country’s last election, criticized Veldkamp's stance, calling it a capitulation to human rights groups and describing him as a “weak minister.” 

The European Union is Israel’s largest trading partner, making any disruption a potential economic blow. As of 2022, 31.9% of Israel’s imports came from EU countries, and 25.6% of its exports went to the EU. Total trade volume between Israel and the EU that year amounted to €46.8 billion [US $52.7 billion]. The trade relationship is based in part on shared understandings around respect for human rights and preservation of democratic values and principles.