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Australia Considers New Israel Sanctions, Stops Short of UK Trade Ban

Created at 9 Sep · 1:45 AM1 source↑ Market-relevant
IN SHORT

Australia is preparing further targeted sanctions against Israel concerning illegal settlements and settler violence in the West Bank. However, it will not implement a broad ban on goods from settlements, unlike the UK, citing concerns about unintended consequences.

Key Numbers

7 OctoberHamas terror attacks date

Who's Involved

Penny Wong
Australia's Foreign Minister
Ed Miliband
UK Foreign Secretary
Andy Burnham
UK Prime Minister
Emmanuel Macron
French President
Mark Carney
Canada's Prime Minister
Benjamin Netanyahu
Israeli Prime Minister
Itamar Ben-Gvir
Israeli government minister
Bezalel Smotrich
Israeli government minister
Zomi Frankcom
Killed Australian aid worker
Ed Husic
Labor backbencher
Julian Leeser
Coalition frontbencher
Colin Rubenstein
Executive Director of the Australia/Israel and Jewish Affairs Council
Winston Peters
New Zealand's Foreign Affairs Minister

↳ Why This Matters

Australia's decision on sanctions reflects a complex balancing act between international pressure to address the Israeli-Palestinian conflict and domestic economic considerations, highlighting differing approaches among allies on how to influence policy in the region.

Key facts

  • Australia is preparing new targeted sanctions against Israel regarding West Bank settlements and settler violence.
  • The UK has banned goods from Israeli settlements and introduced new export restrictions.
  • Australia will not join the UK in a broad ban on goods from Israeli settlements.
  • Australian Foreign Minister Penny Wong cited concerns about unintended consequences for businesses and populations.
  • Wong stated that Israeli actions are extinguishing the possibility of a two-state solution.

Australia is preparing to implement additional sanctions against Israel, focusing on illegal settlements and settler violence in the West Bank. However, the government has stated it will not follow the UK's lead in imposing a broad ban on trade with these settlements. Foreign Minister Penny Wong indicated that such a blanket ban could have unintended consequences for Australian businesses, as well as for Palestinians and Israelis. Wong also criticized the Israeli government's actions, stating they are undermining the prospects for a two-state solution.

The UK has taken a stronger stance, with Foreign Secretary Ed Miliband condemning the occupation and announcing a ban on goods from illegal settlements, along with new export restrictions and planned sanctions against individuals. This move was part of a joint statement with French President Emmanuel Macron and Canadian Prime Minister Mark Carney, emphasizing a push for a two-state solution.

Australia has previously enacted financial sanctions and travel bans against some Israelis in response to violence in the West Bank, including targeting ministers Itamar Ben-Gvir and Bezalel Smotrich. Labor backbencher Ed Husic has urged the government to adopt stronger measures, arguing that sanctions are impactful and necessary to address the undermining of a future Palestinian state by illegal settlements.

Conversely, Coalition frontbencher Julian Leeser criticized the government's approach, suggesting it often targets Australia's "democratic ally." The Australia/Israel and Jewish Affairs Council's executive director, Colin Rubenstein, rejected the notion that Israel or its settlements are preventing peace, instead blaming the Palestinian Authority and warning that sanctioning Israel would be counterproductive. New Zealand's Foreign Affairs Minister Winston Peters also expressed deep concern over the West Bank situation but indicated New Zealand does not typically use trade measures for foreign policy issues.

Frequently asked questions

The UK will ban goods from illegal settlements in the occupied territories, introduce new bans on arms licenses and other exports, and plans sanctions against individuals.

Australia has concerns about the potential unintended consequences of a blanket ban on Australian businesses, Palestinians, and Israelis.

Australia has called on the Israeli government to stop violence including property destruction, displacement of families, torture, sexual assault, and killings.

What Happens Next

01Australia will coordinate with international partners on further targeted measures.
02The Australian government will continue to assess the impact of potential broad bans.
03Further sanctions against individuals are planned by the UK.

How It Developed

The UK announced a ban on goods from Israeli settlements and new export bans.
UK Foreign Secretary Ed Miliband condemned Israeli occupation and settler violence.
UK, France, and Canada issued a joint statement supporting a two-state solution.
Australia's Foreign Minister Penny Wong stated Australia is not pursuing a blanket ban on settlement goods.
Wong cited concerns about unintended consequences for Australian businesses and Palestinians/Israelis.
Wong accused the Israeli government of extinguishing the possibility of a two-state solution.
Wong called for an end to settler violence, including property destruction and killings.
Australia has previously imposed financial sanctions and travel bans on some Israelis.

Sources

T1
Australia considers new Israel sanctions but won’t join UK in banning trade with ‘settler terrorists’The Guardian

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