Arab workers to bear the brunt of new anti-Israel trade restrictions

European boycotts and trade restrictions targeting Israel threaten the jobs of thousands of Palestinian employed at Israeli factories in Judea and Samaria.

By World Israel News Staff

Approximately 4,000 Palestinians could lose their jobs as Western governments impose new restrictions on products manufactured in Israeli communities in Judea and Samaria, according to estimates by Israeli industry officials and economists.

The threatened layoffs would affect more than one-fifth of the approximately 18,000 Palestinians legally employed in Israeli factories and industrial zones across the territory, many of whom depend on the jobs to support their families.

Israeli manufacturers are already reporting declining orders from foreign customers and the cancellation of long-term contracts, raising concerns that some businesses may be forced to shut down or relocate production inside Israel’s pre-1967 borders.

Avraham (Novo) Novogrotcki, president of the Manufacturers Association of Israel, denounced the trade restrictions as a “cynical measure,” warning that their economic consequences would fall heavily on Palestinian workers.

“Instead of building economic bridges between Israelis and Palestinians, some are choosing to tear them down,” Novogrotcki told Yedioth Ahronoth.

The growing economic pressure follows a series of measures adopted by European governments to restrict imports from Israeli communities beyond the Green Line.

Spain introduced its prohibition in September 2025, while Ireland’s ban took effect on September 15, 2026. The Netherlands followed on September 22, banning the import, purchase and sale of products originating in Israeli communities in the disputed territories.

Britain announced similar restrictions in September, with legislation expected to be implemented within six to nine months. France and Canada have also committed to introducing national measures, while several other European countries are considering additional restrictions.

A September 8 joint declaration by the foreign ministers of 12 countries accused Israel of undermining the prospects for Palestinian statehood through construction in Judea and Samaria and violence involving extremist settlers.

“The Government of Israel’s actions in the West Bank are undermining the possibility of a two-State solution,” the ministers declared.

British Foreign Secretary Ed Miliband defended his government’s decision during a parliamentary debate, arguing that international trade should not contribute to Israeli control of territory captured in 1967.

He emphasized that the measures would “target illegal settlements and settlement expansion, not Israel,” and said Britain would continue its commercial relationship with Israel within the Green Line.

The governments pursuing the restrictions have generally distinguished between Israeli businesses operating within the country’s pre-1967 borders and those operating in Judea and Samaria.

For Palestinian employees, however, that distinction could mean losing their livelihoods if Israeli companies respond to the restrictions by transferring production to other locations.

Industrial centers particularly exposed to the measures include Barkan near Ariel and Mishor Adumim near Ma’ale Adumim, where Israeli-owned factories employ large numbers of Palestinians in manufacturing, food production, metalworking and other industries.

The potential consequences recall SodaStream’s 2015 decision to close its Mishor Adumim factory and move production to southern Israel.

Hundreds of Palestinian workers lost their positions following the relocation, although the company maintained that the decision was motivated by commercial considerations rather than pressure from the Boycott, Divestment and Sanctions movement.

Additional Palestinian employees who initially continued working at the company’s new facility were subsequently dismissed after Israeli authorities declined to renew their permits to enter Israel. Those workers were eventually permitted to return.

Israeli officials are now seeking to prevent similar disruptions on a wider scale.

The Foreign Ministry and Economy and Industry Ministry are pursuing diplomatic discussions with European governments, while Israel’s Foreign Trade Administration is working to identify alternative export markets in Asia, Latin America and countries that have not adopted the restrictions.

Authorities are also examining possible assistance for affected manufacturers, including compensation for lost contracts and regulatory changes intended to facilitate the continued employment of Palestinian workers.

Anti-Israel boycottBDSJudea and Samaria