Cooper faces Labour revolt as UK settles for guidance over West Bank trade ban

The UK government has imposed sanctions on six firms and one individual for enabling and financing settler violence in the West Bank, a move announced alongside allies France, Norway, Australia, and Canada. However, Foreign Secretary Yvette Cooper’s decision to issue updated trade guidance rather than implement a complete trade ban has triggered significant discontent within her own party. More than 130 Labour MPs, including all of the party’s select committee chairs, had called for a full ban to align with International Court of Justice orders issued in 2024 regarding the illegality of the occupation.

Cooper told Parliament that constructing an enforceable trade ban was difficult in practice, though she stated the government would continue to examine the issue with international partners. The new guidance explicitly advises British businesses against engaging in economic and financial activities in illegal settlements, warning of reputational damage and disputed land titles. However, it does not impose penalties for non-compliance, nor does it harden existing advice on product labelling. Since 2005, products produced in Israeli settlements have been denied preferential tariff treatment upon entry to the UK.

The backlash from Labour backbenchers was swift and severe. Emily Thornberry, chair of the foreign affairs select committee, criticised the government’s approach, stating that British firms were effectively bankrolling annexations. She warned that the government risked doing too little too late, arguing that the current measures failed to meet the obligations set by the ICJ. Cooper acknowledged the scale of settler violence, which has proliferated in recent months, and highlighted the E1 development plan for approximately 3,500 homes as a threat to the viability of a two-state solution.

The sanctioned entities, which include the Farms Association, Ahavat Gilad, Ari Yshag, Artzenu, and Eyal Hari Yahuda, are primarily involved in fundraising for settlers. Cooper described the measures as part of a coordinated effort to target those fuelling violence, noting that settler expansion occurs with the support of the Israeli government and, in some cases, under the protection of security forces. The UK has previously sanctioned Israeli ministers Bezalel Smotrich and Itamar Ben-Gvir, a step the European Union has not yet taken due to internal divisions.

Despite the sanctions, the UK’s broader trade stance remains nuanced. The government’s advice continues to laud trade with Israel within the 1967 lines, citing strong economic performance, low inflation, and low unemployment as attractive features for UK companies. Meanwhile, humanitarian concerns persist as all crossings into Gaza have been closed by Israel, with the Tel Aviv government asserting there is no nutritional shortfall inside the territory. Cooper called on Israel to open crossings and remove restrictions on aid delivery to ensure UK assistance reaches those in need.

Non-governmental organisations offered a stark assessment of the government’s strategy. Christian Aid described the approach as pathetic, arguing that merely advising businesses without real consequences is insufficient and calling for a total ban on trade and investment. Human Rights Watch similarly characterised the sanction package as the bare minimum, reflecting broader concerns that the measures lack the teeth necessary to alter the status quo on the ground.