Canada joins European ban on Israeli settlement goods in response to rising violence

The statement focuses on preserving the possibility of a two-state solution — a possibility it says has been undermined by the Israeli government.

The two-state solution refers to the creation of a Palestinian country existing in peace alongside Israel, and an end to the occupation of the West Bank, Gaza Strip and East Jerusalem.

“The situation is rapidly deteriorating amid unprecedented levels of settler violence and settlement expansion,” Tuesday’s statement reads.

It cites Israel’s recent “unacceptable decision” to seek public tenders for a settlement project called E1. Western countries argue the project would expand illegal settlements and hinder access routes between Palestinian territories that should eventually make up an independent state.

The statement was endorsed by Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the United Kingdom. The statement also takes note of actions already taken by Belgium, the Netherlands and Norway.

In a post on social media Tuesday, Foreign Affairs Minister Anita Anand said Ottawa will “introduce restrictions on trade in goods with settlements in the West Bank that are illegal under international law” in “the coming months.”

“For more than 70 years, successive Canadian governments have held the position that a two-state solution is the way forward for long-term peace that also addresses Israel’s legitimate security concerns. Illegal settlements in the West Bank significantly undermine these objectives,” Anand wrote.

Prime Minister Mark Carney issued another statement Tuesday afternoon with British Prime Minister Andy Burnham and French President Emmanuel Macron. In it, he said the new measures build on his government’s recognition of Palestinian statehood a year ago.

The leaders’ statement said a two-state solution “is a fundamental national interest” of all three countries, which still want “a close and productive partnership with Israel.” The leaders said they will co-chair a meeting later this month at the United Nations General Assembly “to advance our efforts and pursue peace.”

A group advocating for Palestinian rights said Canada’s upcoming measures must target not just goods but also services, investment and property.

Canadians for Justice and Peace in the Middle East has been issuing warnings about charities and groups it says support the expansion of illegal settlements.

“This announcement marks the first time that Israel will face material, economic consequences for its blatant violations of international law,” wrote group head Yara Shoufani.

The Centre for Israel and Jewish Affairs warned the move will hurt Canada’s economy. It said the ban shows Carney has a pattern of publicly criticizing Israel but not countries such as China and Saudi Arabia.

“The government’s announcement reinforces a troubling double standard toward Israel that not only impacts the Middle East but has real consequences here at home,” wrote the group’s head Noah Shack.

He noted the British government linked its Tuesday announcement with extra funding to protect Jewish spaces and said Ottawa should not be “imposing punitive measures in the midst of a democratic election that will achieve the opposite.”

Israeli Foreign Minister Gideon Sa’ar ordered the closure of the British consulate overseeing the Palestinian territories that Israel occupies. This leaves the embassy in Tel Aviv operating but effectively bars U.K. diplomats from the West Bank.

He also ordered the removal of British officials from a Gaza monitoring centre in Israel supported in part by Canada, and sanctions on some British nationals. While it remains unclear what measures Israel might take against Canada, Sa’ar did say at a news conference there would be “counter measures at our discretion against other countries that act, or will act, against Israel.”

“The message to every government that harms us is clear. Whoever acts against Israel, Israel will act against them — and they will lose their influence and relevance in this region.”

Canada operates a diplomatic delegation in Ramallah and is a lead country in efforts to train Palestinian security forces under Operation Proteus.

Anand’s spokesperson said the minister spoke with Sa’ar on Monday. Sa’ar said he had a call Tuesday with Canadian Conservative deputy leader Melissa Lantsman but didn’t mention talking with Anand.

Lantsman wrote in a post on the platform X that Canada chose to “cave again to the loudest, most fringe voices” and argued Ottawa had dropped any pressure on the Palestinian Authority to reform itself in the context of statehood recognition.

“A stronger economy, eradicating hatred in our own neighbourhoods, and real progress toward peace is the leadership Canada should offer, not the careless, one-sided moves that set back all three at once,” Lantsman said.

The NDP welcomed Tuesday’s news, noting it has called for suspending settler trade since 2021. The NDP also urged Ottawa to suspend its trade deal with Israel and issue visas to Palestinian students.

Israel’s Ambassador to Canada Iddo Moed said Ottawa had signed a “hostile joint statement” and has “repeatedly undermined our bilateral relationship,” in a statement.

“Moralizing from afar might offer cheap satisfaction, but it is not a strategy,” Moed wrote, echoing Israeli President Isaac Herzog’s claim that the statement amounted to interference in his country’s ongoing national election.

The Palestinian Authority has said Israeli economic policies — particularly the withholding of tax revenue collected on consumption and imports — are causing an unemployment crisis.

The Palestinian Authority’s delegation in Ottawa said Tuesday’s move was “a significant and essential step, giving practical expression to Canada’s commitment to uphold international law.”

It urged Ottawa to cut off all means of supporting Israel’s occupation and the settler movement.

This report by The Canadian Press was first published Sept. 8, 2026.

Dylan Robertson, The Canadian Press

by The Canadian Press

Canada joins European ban on Israeli settlement goods in response to rising violence

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