Israel to Lose Billions if EU Blocks Trade Deal

Thursday, 22 May 2025 | Israel stands to suffer billions of dollars in losses if the EU cancels trade agreements, Professor Dan Ben-David, a leading economist from Tel Aviv University, said on Wednesday. On Tuesday, the EU began discussing the possibility of suspending agreements over the war in Gaza. 

This will impact so many levels," he told Ynet in an interview. "Countries cannot fulfil all of their needs by themselves and that is especially true in a small country like Israel." Ben-David pointed out that the EU is Israel's largest trading partner. "If they begin to impose restrictions, it will have a considerable effect on our ability to obtain what we need and will limit our ability to sell to others. This will massively complicate things," he said, adding that Israel's living standard will drop.  

He said that although Israelis may survive on basic foods, but asked how Israel will be able to buy fighter jets and armaments, or all the things that are not locally produced? 

"This Pandora's box that we do not yet know what it will reveal," he said. "We are a small country and there are limits to force, which this crazy government simply does not understand. It will impact our ability to belong to the 1st world and we will not be able to hold on to our most talented people. It is a slippery slope," he said. 

"It took decades to bring Israel to the position that it is seen as a part of Europe, although we are in the Middle East and that includes agreements such as our free trade deal with the EU. We are about to destroy what we spent decades building."