Exclusive: EU review finds Israel violated trade agreement, but sanctions not expected

A major upcoming review of the EU-Israel trade agreement has found that Israel has violated the agreement due to its conduct in Gaza, Middle East Eye understands.
EU foreign policy chief Kaja Kallas commissioned the review last month in response to a request by the Dutch government.
Now MEE understands from diplomatic sources in Brussels that the review finds that Israel has violated the trade agreement's human rights and international law clauses. The EU is Israel's biggest trading partner.
Sources told MEE the review contains evidence that Israel has breached international humanitarian law during its war on Gaza.
They said that Kallas will present the review to EU foreign ministers in Brussels on Monday.
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Diplomats expect a "difficult" debate and believe there will be no agreement reached on whether to "suspend political dialogue" or impose sanctions on Israel.
Those issues will be addressed again at the 15 July meeting of EU foreign ministers, diplomats believe.
MEE also understands that Kallas has a mandate from EU foreign ministers to push for de-escalation in the conflict between Israel and Iran - and that she is set to visit the Middle East next week.
MEE has contacted Kallas' team for comment.
Israel has gone 'beyond self-defence'
Foreign ministers from Britain, France and Germany are reportedly scheduled to join Kallas on Friday in a meeting with the Iranian foreign minister to promote de-escalation.
EUObserver and RTE have also reported the review is expected to find Israel violated the trade agreement.
EU Commission and states indirectly fund Israeli military industry, report says Read More »
On Wednesday Kallas told members of the European parliament that Israel's "blocking food... goes beyond self-defence".
She said Israel was responsible for "disproportionate use of force" against civilians - and that "if it was up to me, personally", the EU would impose sanctions on Israel.
Last week it emerged that Israel's largest state-owned defence company, which is directly involved in the war on Gaza, has received millions of euros in EU defence funding.
According to a report published last Wednesday by Investigate Europe, the French newsroom Disclose and the Greek outlet Reporters United, Intracom Defense is currently involved in 15 European Defence Fund projects worth at least €15m (around $17.5m).
Seven of them were awarded after Israel launched its war on Gaza in October 2023. The company was acquired by Israel Aerospace Industries in May 2023.

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