Norway moves to ban trade with israeli settlements

The Norwegian government has announced plans to prohibit all trade and commercial activity involving Israeli settlements in the occupied Palestinian territories.

The Norwegian government has announced plans to prohibit all trade and commercial activity involving Israeli settlements in the occupied Palestinian territories, in a move it says is aimed at reinforcing international law and supporting a two state solution. The proposed legislation would restrict business dealings connected to settlements in both the West Bank and East Jerusalem, which Norway considers illegally occupied.

According to the foreign ministry in Oslo, the planned measures are intended to ensure that Norwegian individuals and companies do not contribute to activities that sustain settlement expansion. Officials said the policy is based on the view that continued settlement development undermines efforts to reach a lasting peace agreement between Israelis and Palestinians and weakens the possibility of establishing an independent Palestinian state.

The draft bill goes beyond restrictions on goods produced in the settlements. It also proposes a ban on the purchase of property located in these areas, along with limits on services related to construction, renovation and real estate transactions. In addition, the proposal seeks to block the acquisition of businesses whose headquarters or production facilities are based in the settlements.

Foreign Minister Espen Barth Eide said Norway’s objective is to prevent any form of commercial involvement that could support what he described as illegal settlements. At the same time, he stressed that the country would continue to maintain trade relations with legitimate Palestinian economic activity and continue providing humanitarian assistance to the Palestinian population.

The legislation has been submitted for consultation and will remain under review until mid September before any final decision is made. If approved, it would mark one of the strongest national level restrictions in Europe on economic engagement with Israeli settlements.

Norway, which is not a member of the European Union, formally recognised the state of Palestine in 2024, alongside Ireland and Spain. The move placed it among a small group of Western countries taking a more direct diplomatic stance on the issue. Ireland has also been advocating within the European Union for a broader ban on trade with goods originating from Israeli settlements, although no bloc wide agreement has yet been reached.

At the European level, discussions continue over possible measures targeting settlement related trade, but divisions among member states have so far prevented any unified action such as ending preferential trade arrangements with Israel.

The issue remains closely tied to ongoing violence and instability in the region. Palestinians in both Gaza and the West Bank continue to report frequent incidents involving military operations and settler related attacks. In rural areas of the West Bank in particular, communities have faced repeated reports of property damage, livestock theft and arson, contributing to rising tensions on the ground.

Israel has maintained control over the West Bank and East Jerusalem since 1967, and its settlements there are considered illegal under international law by most of the international community. Norway’s proposed legislation adds to growing international debate over how governments should respond to settlement expansion and its impact on prospects for peace in the region.