Israeli Settlements: Trade Ban Debate

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Department: Department for Business and Trade

Israeli Settlements: Trade Ban

Patricia Ferguson Excerpts
Thursday 9th July 2026

(1 month ago)

Commons Chamber
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Patricia Ferguson Portrait Patricia Ferguson (Glasgow West) (Lab)
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I thank my hon. Friend the Member for Sheffield Central (Abtisam Mohamed) for securing the debate and speaking with so much passion about an issue that concerns us all.

The ever-increasing number of Israeli settlements in the Occupied Palestinian Territories are illegal—each and every one of them. Their purpose is clear: they are a means by which the Israeli Government can encourage land grabs, separate one Palestinian village from another, prevent the villagers accessing water and other utilities, and make it more difficult to map out a contiguous Palestinian state. They are also a way of intimidating Palestinians who find themselves surrounded by these fast growing and well-defended settlements.

The level of violence instigated by the settlers has increased; more than 1,700 settler attacks causing causalities or property damage have been recorded across 270 Palestinian communities in the west bank in 2025 alone. On a recent visit to Israel and Palestine, our delegation saw the scale of the encroachment, the plans for further, larger settlements, and heard about examples of violence and intimidation for ourselves.

We visited the village of Umm al-Khair, where Awdah Hathaleen was shot and killed last summer. Eyewitnesses and bodycam footage suggests that the perpetrator, who has never been charged, was a settler already sanctioned by the UK Government. While we sat in the open, speaking with villagers and playing football with the children, an IDF vehicle stopped outside our meeting and two, fully armed soldiers got out, had a casual look as they passed and slowly walked on, before returning the way they came. That was a minor incident, but let us imagine that it was our life, and we knew that the people living at the end of the street wanted our house and our land, and would do whatever it took to get it, with the full backing of their Government.

Vikki Slade Portrait Vikki Slade (Mid Dorset and North Poole) (LD)
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Having been to the west bank many years ago, I know that that is not a new thing. Does the hon. Lady agree that the use by the IDF of artificial intelligence machine guns, which are trained on people using sponge-tipped bullets and tear gas, is a way of dehumanising Palestinian people as an attempt to make people abandon their homes? We should be working with international colleagues to stop these new technologies being used in civilian spaces.

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Patricia Ferguson Portrait Patricia Ferguson
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I absolutely agree with the hon. Member. I know that there have been such examples in Gaza, too. I raised that in a Westminster Hall debate almost two years ago, and I was reassured by the Minister that none of those drones are being produced in this country, which is at least a start.

It is also clear that sexual violence is being used as a method of intimidating and humiliating women and girls in Palestinian villages. Some 70% of displaced families cite sexualised violence as the decisive reason for leaving their homes. Some 41 new settlements in the west bank were approved in 2025, and smaller unauthorised outposts are becoming an increasing feature on the landscape. Let us be clear: the settlements we are talking about are an integral part of the Israeli economic system. European imports of settlement products outweigh imports from Palestine, and we cannot as a country allow that situation to continue.

Julie Minns Portrait Ms Julie Minns (Carlisle) (Lab)
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My hon. Friend is setting out very clearly the illegality of the settlements on the west bank, and the Geneva convention is very clear on this point. There are reports that properties on the west bank are now being advertised for sale, which is absolutely despicable. Does she share my outrage that the Advertising Standards Authority has been silent on this point until now?

Patricia Ferguson Portrait Patricia Ferguson
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I absolutely share that outrage, and I will mention it later in my contribution.

We cannot as a country allow this situation to continue. We are out of step with so many of our European partners. We have declared Palestinian statehood, which is great, but we owe it to the people of that state to ensure, in whatever ways we can, that it can function as a state. Increasingly, we are seeing the economy of these settlements moving from agriculture into tourism, real estate, financial services, construction, transport, digital platforms and logistics. Any action we take must be applicable across the entire range of goods and services, and must cover any goods and services that facilitate, support or benefit economically these illegal settlements. A ban that simply covered agricultural products, for example, would just encourage the movement of activity into those other areas.

We know that existing restrictions on trade have been neutralised, in effect. The Israeli Government operate a reimbursement scheme in respect of EU customs duties, and settlement goods are often being routed through Israel for repacking. As colleagues have said, what we need is an outright ban on the importation of settlement goods and on advertising such goods, too. If we cannot do that, we should ban Israeli goods until they can prove that they do not come from settlements. As my hon. Friend the Member for Sheffield Central said, if not now, when?