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Overseas Trade: Israeli Settlements

Asked by Chris LawScottish National PartyDepartment for Business and TradeTabled Answered 13 October 2025UIN 77552

The question

To ask the Secretary of State for Business and Trade, whether his Department will suspend (a) trade preferences and (b) procurement contracts with entities (i) operating in or (ii) profiting from settlements in (A) East Jerusalem and (B) the West Bank.

Answered by Chris Bryant

The UK Government has a clear position that Israeli settlements in the Occupied Palestinian Territories are illegal under international law. Goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Government of Israel.

There are clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity. UK citizens and businesses should be aware of the potential reputational implications of involvement in economic and financial activities in settlements, as well as possible abuses of the rights of individuals that such activity may entail. Those contemplating any economic or financial involvement in settlements should seek appropriate legal advice.

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