Israeli Settlements: Trade Ban

Iqbal Mohamed Excerpts

Thursday 9th July 2026 Commons Chamber

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

I thank my Yorkshire colleague the hon. Member for Sheffield Central (Abtisam Mohamed) for securing this debate, and for introducing it with the passion and power she did.

Every single pound that goes from Britain to Israel is in one way or another helping Israel perpetuate its illegal occupation and apartheid system against the Palestinian people. Just this week, Haaretz reported that Israeli nationalist crime in the west bank is up by 560% since 2019, according to official police data. We know that the vast majority of the crimes by these terrorist settlers go unreported and unpunished, so if the percentage increase is officially 500-plus, it will actually be in the thousands given the crimes that will have gone unreported.

These settlements are illegal colonies. For years, Ministers have stood at the Dispatch Box and rightly described these “settlements” as illegal under international law—this Government have done so more times than I can count—yet the condemnation rings hollow. If settlements are illegal, why are we still treating their products as legitimate? Every shipment from a settlement carries a human cost in the displacement, deprivation of income and death that it constitutes. It is the economic bedrock of a system of apartheid.

Up to 110,000 Palestinian families rely on the olive harvest as their source of income. For generations, olive trees have sustained communities economically and culturally. There has been settler violence for many decades, but during last year’s harvest it reached unprecedented levels, all against the backdrop of a genocide in Gaza. A Palestinian farmer named Jamal Daraghmeh was beaten alongside his sons as Israeli settlers tried to harvest olives from the land his family had cultivated for generations. That is how settlements expand: families are terrorised, livelihoods are destroyed and communities are driven from their land, creating the single greatest obstacle to Palestinian economic development and self-determination.

These injustices are accelerating before our eyes. As we have heard, since the genocide in Gaza began, settlement expansion has surged, with 165 new settlement outposts established. That is an average of 47 every year, up from just over five between 1996 and 2022. The consequences are also measured in the number of lives taken. According to B’Tselem, Israeli forces or civilians have killed 4,000 Palestinians since 2000. In the past year and a half, 70 Palestinian children have been murdered in the west bank, at an average of almost one every week.

Just last week, Smotrich celebrated what he called the “revolution” in settlement expansion. That a sanctioned Minister is publicly boasting about accelerating annexation while settlements continue to grow unabated shows that this Government’s approach is having zero meaningful impact.

[Mr Adnan Hussain (Blackburn) (Ind)]

Does my hon. Friend agree that any debate on Palestine is incomplete if it fails to confront the elephant in the room, which is the allegation of genocide? I wonder whether he can help with this question; I suspect he will not be able to. What threshold of civilian suffering or alleged violence would cause the Government to reconsider their policy of maintaining normal economic and diplomatic relations with a state accused of genocide?

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[Iqbal Mohamed]

I thank my hon. Friend for his intervention. As a barrister, he knows, as do many across the House who are not in that profession, that it is incumbent—an obligation—on the UK Government to take any and all practical steps to prevent and stop a genocide happening anywhere to any people, and that includes the Palestinians.

To conclude, history will not remember how many times this Government have condemned illegal settlements. It will remember that Britain, for decades, has chosen to keep trading with Israel and the settlements anyway. Condemnation without consequence is nothing less than complicity. Israeli settlers, aided and abetted by the IDF and the Israeli Government, have taken away the rights of the Palestinians to live. Instead of sanctioning the settlers, successive British Governments have actively facilitated and allowed goods and services from the settlements to be sold in the UK. Why do the British Government despise Palestinian life so much?

[Jeff Smith (Manchester Withington) (Lab)]

It is not often that I agree with both the hon. Member for Dewsbury and Batley (Iqbal Mohamed) and the Father of the House, the right hon. Member for Gainsborough (Sir Edward Leigh). The Father of the House said that the whole House should cry out against the situation in the west bank. He is right and, as I look around, I think that is what is happening in the Chamber. I am not sure that anybody, apart from possibly the Front Benchers, is going to disagree with the motion, so brilliantly moved by my hon. Friend the Member for Sheffield Central (Abtisam Mohamed).

I support a two-state solution, but every day, as the result of illegal settlement expansion, driven by violence and supported by the Netanyahu Government, that only real hope for a sustainable peace in the middle east gets less likely. Every day there are violent attacks on Palestinians in the west bank: homes demolished, farmland seized and roads blocked. Every day Palestinians are blocked from accessing healthcare, water, employment and education—the basics of life—as a result of their inability to move freely across their land. The settlements make the situation more intolerable and intractable every day.

Of course the settlements are a breach of the fourth Geneva convention. They are condemned as illegal by the ICJ, the UN Security Council and the vast majority of member states, including the UK. If we accept that settlements are illegal, we cannot just stop there. Many of my constituents in Manchester Withington have contacted me, calling for the UK to do what international law requires of us: to ensure that our trade policy reflects both our values and our legal obligations, and to do everything we can to stop the Israeli Government’s actions in supporting settler violence. That means, as a bare minimum, a ban on trade with illegal Israeli settlements in the Occupied Palestinian Territories.

I am not naive enough to think that what the UK does alone will change the Netanyahu Government’s policy, but the international community, working together, has to use every lever we have in this situation. Last year, the ICJ set out its advisory opinion on the situation in the OPT. Governments who are committed to the rule of law should take its conclusions seriously. The court said that states should take steps to prevent trade and investment relations that assist in maintaining the illegal situation created by the occupation and by the settlement enterprise.

[Iqbal Mohamed]

Does the hon. Gentleman agree that this issue is not just about products coming from settlements to the UK, but companies in the UK trading in goods and services in the settlements? Airbnb, Booking.com and Expedia are all selling tourism services in the occupied territories.

[Jeff Smith]

The hon. Gentleman makes an important point and we should not overlook the role of services—it is not just about goods.

The Government will say, and have said, that it is difficult to enact in practice, but just because something is difficult does not mean we should not attempt to fulfil our obligations. Yes, there will be practical complications about enforcement, but complications are no reason to do nothing. They do not stop us committing to the principle. Then we can work out how we make it work. We have heard a number of examples of how we can make the situation work.

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[Naushabah Khan (Gillingham and Rainham) (Lab)]

For over half a century, successive Governments of every political persuasion have affirmed to this House that Israeli settlements in the Occupied Palestinian Territories are unlawful. This is not a matter of personal interpretation, but a consistent and well-established legal consensus—consensus that is shared by the Foreign Office, codified in resolutions of the United Nations Security Council and, since July 2024, articulated with exceptional clarity by the International Court of Justice. Yet the stain on our moral fabric is that despite recognition of that, those same settlement goods are sold in British shops, and just last month, settler properties were marketed at a fair in London.

When settlement expansion threatens to extinguish the very two-state solution that this Government are committed to, we must ask ourselves what purpose is served by delaying the upholding of moral and legal obligations that some of our European allies have already begun to uphold. Put simply, when Spain has banned all settlement trade, why cannot we?

Across the House, there is consensus among Members on our position that this expansion is illegal under international law, yet through our continued delay in banning trade with these settlements, we risk in practice, if not in principle, giving legitimacy to Israel’s claim to sovereignty over occupied territory. If we are not prepared to match our rhetoric with action, our condemnation of settlement expansion amounts to lip service.

In January, many of us took to these Benches to stress the importance of the rules-based order when the President of the United States threatened to take Greenland. We have time and again championed that same order in condemning Putin and rightly standing with Ukraine. We risk losing credibility for having made those correct calls the moment we permit commerce with what we, and everyone around us, deem an illegal enterprise.

[Iqbal Mohamed]

Will the hon. Member give way?

[Naushabah Khan]

I will not, in the interests of time, thank you.

Nor is it only Israel’s sovereignty over occupied land that we risk legitimising; it is also the violent means by which these territories are being occupied. The United Nations Office for the Co-ordination of Humanitarian Affairs documented over 1,700 settler attacks on Palestinian communities across the west bank just last year. Not taking action now is to underwrite, however indirectly, the conditions in which violence is inflicted on Palestinian men, women and children by Israeli settlers, and the military force that stands behind it. I therefore urge the Minister not to delay any further, and to take action today.