UK freezes Israel trade talks, EU announces ‘formal review’ of trade agreement over Gaza offensive
Foreign Ministry rejects attempts to alter Israel’s strategy, calls for pressure on Hamas
The United Kingdom announced on Tuesday evening that it is suspending talks with Israel regarding a free trade agreement over the IDF’s “Operation Gideon’s Chariots” and the “prospect of starvation” in Gaza, calling the situation “intolerable.”
The British government also announced new sanctions on Israeli settlers in Judea and Samaria and summoned Israel’s Ambassador to the UK, Tzipi Hotovely, to the Foreign Office to discuss “the wholly disproportionate” military operation in Gaza.
British Foreign Secretary David Lammy called Israel’s plan to evacuate Gazans from the Gaza Strip “morally unjustifiable, wholly disproportionate and utterly counter-productive.”
He also claimed that the IDF’s renewed operation will not “eliminate Hamas or make Israel secure.”
British Prime Minister Keir Starmer echoed Lammy’s comments: “I want to put on record today that we’re horrified by the escalation from Israel.”
At the same time, the European Union announced a formal review of its trade agreement with Israel over the “catastrophic” situation in Gaza.
“The aid that Israel has allowed in is, of course, welcomed, but it's a drop in the ocean. Aid must flow immediately, without obstruction and at scale, because this is what is needed,” the European Union's top diplomat, Kaja Kallas, told reporters on Tuesday.
The EU also prepared sanctions on Israeli settlers in the territories of Judea and Samaria, however, the application of those sanctions, which would require a unanimous vote was blocked by a member state, reportedly Hungary.
The actions by the UK and the EU come just hours after the UK, France, and Canada vowed “concrete actions” if Israel does not stop the IDF operation.
“We will not stand by while the Netanyahu Government pursues these egregious actions,” that statement said. “If Israel does not cease the renewed military offensive and lift its restrictions on humanitarian aid, we will take further concrete actions in response.”
That statement was panned by Prime Minister Benjamin Netanyahu, said demanding an end to the war is a reward to Hamas.
“By asking Israel to end a defensive war for our survival before Hamas terrorists on our border are destroyed and by demanding a Palestinian state, the leaders in London, Ottawa and Paris are offering a huge prize for the genocidal attack on Israel on October 7 while inviting more such atrocities,” Netanyahu said in his own statement.
For its part, Hamas welcomed the statement by the UK, France, and Canada, calling it “a step in the right direction.”
While some analysts described the suspension of talks as “an economic blow to Israel,” citing previous statements by Economy Minister Nir Barkat, who called it “the largest, most comprehensive of the State of Israel,” the actual economic impact is not clear.
The Ministry of Foreign Affairs said that the talks have not progressed in some time.
“Even prior to today’s announcement, the free trade agreement negotiations were not being advanced at all by the current UK government,” it said in a statement.
Following the UK’s announcement that it will suspend free trade agreement negotiations with Israel and impose sanctions on settlers:
— Israel Foreign Ministry (@IsraelMFA) May 20, 2025
Even prior to today’s announcement, the free trade agreement negotiations were not being advanced at all by the current UK government. More than…
The Foreign Ministry also suggested that “the British government is willing to harm the British economy” over its refusal to proceed with talks.
The ministry also hit back at the British attempt to tell it how to manage the war situation.
״The British Mandate ended exactly 77 years ago," it stated. "External pressure will not divert Israel from its path in defending its existence and security against enemies who seek its destruction."
The ministry also hit back at claims that Israel is not doing enough to ensure aid reaches Gaza civilians, stating, “A U.S.-led aid plan, fully supported by Israel, is now underway in Gaza.”
“It ensures aid reaches civilians – through secure centers in safe zones – without Hamas stealing it,” the ministry continued. “Until it’s fully active, Israel is bridging the gap with daily deliveries of essentials. Aid for people. Not for Hamas.”
Meanwhile, Jewish Insider Senior Political Correspondent Lahav Harkov noted that even the EU’s announcement is more about diplomatic pressure than economic steps, as a review of the EU-Israel Association agreement would require a unanimous vote to overturn.
The Foreign Ministry also slammed Kallas’ remarks, saying that Israel has pursued diplomatic efforts to achieve a ceasefire and the release of hostages, but Hamas has refused.
Per today’s statement by EU High Representative @KajaKallas regarding Israel:
— Israel Foreign Ministry (@IsraelMFA) May 20, 2025
We completely reject the direction taken in the statement, which reflects a total misunderstanding of the complex reality Israel is facing.
This war was forced upon Israel by Hamas, and Hamas is the…
“This war was forced upon Israel by Hamas, and Hamas is the one responsible for its continuation. Israel agreed time and again to the American proposals to a ceasefire and to the release of the hostages. Hamas refused each and every one of these proposals.”
“We call on the EU to exert pressure where it belongs – on Hamas,” the statement ended.
Notably, Hamas is reported to have rejected the latest American proposal for a ceasefire, demanding a comprehensive deal which would leave the terror group in power in Gaza.
The All Israel News Staff is a team of journalists in Israel.
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