British companies that comply with the United Kingdom's new ban on trading with Israeli settlements in the occupied West Bank could face boycotts and sanctions in the United States. The UK government announced the trade ban on Tuesday, with Foreign Secretary Ed Miliband stating that settlers in the territory are carrying out "ethnic cleansing" of Palestinians.
Miliband said the UK will prohibit imports of all goods from the settlements and will bar companies from providing services to them, including financing, construction, and real estate.
"I do not believe the British people want us supporting the occupation by accepting products from settlements in our shops and supermarkets," Miliband stated.
In response, activists in the United States have established a whistleblower hotline to report British companies that refuse to work with Israelis or Israel. They have warned that companies adhering to the UK ban could face reciprocal sanctions under American anti-boycott, divestment, and sanctions (BDS) laws. This could lead to US states prohibiting business with any company found to be boycotting Israel or its controlled territories.
Several US congressmen have also indicated that British firms complying with the UK's sanctions could face similar penalties. Arkansas Governor Sarah Huckabee Sanders posted on X that "boycotting the world's only Jewish state is anti-Semitism," and stated that Arkansas law prevents doing business with companies engaged in BDS activities.
Republican Representative Randy Fine of Florida noted that a Florida law he helped pass would ban any British company forced to comply with the UK ban from doing business with any state or local government in Florida. "Florida is one of Britain's largest trading partners. They should understand that their vanity project in support of Muslim terror could cost them billions of dollars," Fine said, recalling that the same law was instrumental in challenging Airbnb's boycott of parts of Israel in 2019.
Mark Goldfeder, director of the National Jewish Advocacy Centre in the US, commented that "Britain has ordered its companies into a trap it never mapped." He added that numerous American states, including Texas and Florida, prohibit public contracts with and force pension divestment from companies limiting commercial relations with Israelis or Israel.
The economic impact of the UK ban is expected to be limited, as settlements produce a small volume of exports, primarily agricultural. However, the move is viewed as a symbolic expression of disapproval towards Israel by allies and a sign of the Israeli government's increasing isolation following the Gaza war.
Miliband expressed "a deep sense of shame about what has unfolded in Palestine under the eyes of the international community" and stated, "We will not acquiesce in the destruction of the two-state solution."
Israeli Foreign Minister Gideon Sa'ar condemned the ban as "despicable." In response, Israel announced it would expel UK representatives from a joint military center monitoring the Gaza ceasefire and cease UK training of the Palestinian Authority's security forces in the West Bank. Additionally, Israel barred entry to a dozen British lawmakers and citizens accused of "antisemitic and anti-Israel activity."
Under Prime Minister Benjamin Netanyahu's government, settlement construction in the West Bank, which Israel occupied in the 1967 Middle East war, has escalated. The international community largely considers such construction illegal. Britain has previously raised concerns about Israel's approval of the E1 settlement project, which critics argue would bisect the West Bank.
Miliband stated that "The British government agrees that there is ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists." He detailed the destruction of homes, infrastructure, and displacement of families.
The trade ban is scheduled to take effect in six to nine months. Denmark, Finland, Iceland, Poland, Portugal, and Sweden have pledged to support further action. The Netherlands, Ireland, Belgium, Spain, and Norway have already banned or are in the process of banning goods from settlements.
Miliband also expanded Britain's arms embargo on Israel to include weapons that "materially contribute to the occupation" of Palestinian territories for use in Gaza.