The European Commission has proposed suspending the trade-related provisions of the Association Agreement between the European Union and Israel, removing Israel’s preferential access to the EU market.
Imports from Israel would be subject to the same duties as those applied to any third country without a free trade agreement.
In 2024, trade in goods between the EU and Israel reached €42.6 billion.
EU imports from Israel totaled €15.9 billion, led by machinery and transport equipment (€7 billion, 43.9%), chemicals (€2.9 billion, 18%), and other manufactured goods (€1.9 billion, 12.1%).
EU exports to Israel amounted to €26.7 billion, dominated by machinery and transport equipment (€11.5 billion, 43%), chemicals (€4.8 billion, 18%), and other manufactured goods (€3.1 billion, 11.7%).
Trade in services between the EU and Israel was valued at €25.6 billion in 2023, with EU imports of €10.5 billion and exports of €15.1 billion.
The Commission’s proposal requires a qualified majority decision in the Council. If adopted, the suspension will take effect 30 days after notification to the EU-Israel Association Council.
The European Commission is the executive body of the European Union, mandated to propose legislation, enforce EU treaties, and manage policies including common commercial policy and trade agreements.