Brussels has already activated its sanctions against Israel for the war in Gaza, and among the proposed actions is the partial suspension of the trade agreement between the two territories. Specifically, the EU wants to raise tariffs on a portion of Israeli exports. On 37% of these, which is the percentage that still does not pay any tariffs.
And according to EU sources, the result of this is that"when Israel sells products to the EU, there will be a higher bill in terms of tariffs to pay: around €227 million per year based on 2024 trade."
This measure, however, will now need the approval of the countries. A qualified majority will be required, which will not be easy to achieve given the obvious reluctance of Germany, Austria, and even Italy. For it to be approved, the measure will need to be supported by 55% of the countries representing at least 65% of the EU population.
"We're not going to speculate today about whether or not there will be a qualified majority. I think the president has been very clear on that. We will assume our responsibility. She assumes her responsibility, and the Commission and the College assume their responsibility today. And, of course, we hope other institutions will do the same," the EU Executive notes.
The Commission emphasizes that the EU is Israel's main trading partner, that the measure has significant political significance, and that the proposed suspension is, ultimately, highly relevant. However, considering that Israeli imports into the EU total 15.9 billion euros and that the total volume on which tariffs will be imposed is almost 5.9 billion euros, the 227 million euro increase may prove limited. And if we add to this the aforementioned difficulty of its implementation, the measure does not seem the most powerful possible.
Even more difficult will be the approval of the other pillars of action against Israel: the sanctioning of two extremist Israeli ministers and violent settlers. The members of the government targeted by the Commission are Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben Gvir. For this proposal to pass, the highly unlikely unanimity of the member states will be necessary. What will be directly implemented is the suspension of direct EU aid to Israel, amounting to €14 million.
"Unsustainable situation"
Presenting the package of actions proposed by the Commission today, the High Representative of the Union for Foreign Affairs, Kaja Kallas, stated that"the objective is not to punish Israel." "The objective is to improve the humanitarian situation in Gaza. All Member States maintain that the situation is unsustainable," she explained.
She was joined by Trade Commissioner Maros Sefcovic, who was directly questioned about the limited nature of the measures, and specifically the trade sanctions."We regret having to take this measure. However, we believe it is appropriate and proportionate given the humanitarian crisis in Gaza," he said, while trying to make it clear that the set of actions goes beyond specific figures.
"They will be answered"
And shortly after these actions were announced, Israel announced that it hopes the measures will not be approved, but that if they ultimately go ahead, Benjamin Netanyahu's government will respond.
"Israel will continue to fight, with the help of its friends in Europe, against attempts to harm it while it is engaged in an existential war. Measures against Israel will be met accordingly, and we hope we will not have to resort to them," said Israeli Foreign Minister Gideon Saar, who also described them as"morally and politically distorted."