The United Kingdom is preparing to prohibit the import of goods produced in Israeli settlements in the occupied West Bank, in what would mark a significant change in its approach to Israel.

British Foreign Secretary Ed Miliband is expected to announce the restriction in the House of Commons on Tuesday as part of a wider review of Britain’s relationship with Israel.

The proposed measure is intended to pressure Israel over the continued expansion of settlements in the West Bank, which the UK considers illegal under international law and incompatible with the creation of an independent Palestinian state.

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Miliband had previously warned that Britain would take action against developments threatening the prospects of a two-state solution.

“We will not acquiesce in the destruction of the two-state solution. We will act,” he said.

He has also criticised Israel’s planned E1 settlement development, warning that the project could have serious implications for the territorial viability of a future Palestinian state.

“It cuts through the heart of the West Bank and risks making a Palestinian state unviable,” Miliband said.

The UK had previously resisted calls for a direct trade ban, opting instead to advise British companies against conducting economic or financial activities linked to Israeli settlements.

The proposed restrictions come amid renewed international criticism of Israel’s settlement policy, with particular concern surrounding the E1 development. Critics argue that its implementation could effectively divide the West Bank and further weaken prospects for a negotiated two-state settlement.

However, the planned measure would not constitute a comprehensive trade embargo against Israel.

Britain is expected to maintain its wider commercial relationship with the country, with bilateral trade in goods and services estimated at about £6 billion in 2025.

The announcement is likely to face opposition from the Israeli government and some political figures in the United States, potentially deepening existing tensions between London and Tel Aviv over Israeli settlement expansion and the continuing war in Gaza.

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