Report: Australia backed off plans to join anti-settlement sanctions

Australia had reportedly planned to join a British-led initiative to sanction Israel over the E1 housing project but dropped out at the last minute.

By World Israel News Staff

Australia withdrew from a Western-led initiative to impose trade restrictions on Israeli communities in Judea and Samaria shortly before its announcement earlier this month, surprising European diplomats who had expected Canberra to join the measures, according to a new report.

The report, published by the Australian Broadcasting Corporation, cited eight diplomatic officials who detailed Australia’s plans to join Britain and 11 other countries in sanctioning Israel over its decision to promote a housing project in the E-1 corridor east of Jerusalem.

Shortly before the sanctions were formally announced earlier this month, however, Canberra backed off the planned measures.

The decision left Australia outside a 12-nation coalition led by Britain that announced plans on September 8 to introduce or consider restrictions on trade with Israeli towns in Judea and Samaria.

Canada was the only country outside Europe to join the initiative, which also included France, Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain and Sweden.

European diplomats had sought to build a broad international coalition to increase economic pressure on Israel over construction in Judea and Samaria.

According to the ABC report, Australia participated in the discussions and signaled that it was open to additional measures, but ultimately declined to join the initiative shortly before the joint statement was finalized.

Four diplomatic officials familiar with the negotiations said Australia remained involved until the final stages of the discussions.

Two European officials described themselves as “surprised” by Canberra’s absence from the final announcement.

One official from a country said Australia had been expected to participate, while another expressed disappointment that the government had decided against joining the initiative.

An earlier draft of the joint statement reportedly included Australia among the participating countries.

One official involved in the negotiations disputed the suggestion that Australia had reversed a firm commitment, saying the government had expressed openness to the proposal but never finalized a decision to participate.

The Australian government defended its decision, citing concerns about the practical consequences of a comprehensive import ban and the possibility that such restrictions could inadvertently harm Palestinian workers and businesses.

A spokesperson for Australia’s Department of Foreign Affairs and Trade said the government and its international partners were “working closely together towards the same objective” despite pursuing different measures.

“We are concerned blanket import bans present practical challenges,” the spokesperson said, warning that restrictions could affect Palestinian businesses, workers and livelihoods.

The government also noted that Britain had acknowledged difficulties associated with implementing the proposed restrictions and was developing legislation to address them.

Australian Foreign Minister Penny Wong confirmed that Canberra was not pursuing a comprehensive ban on goods originating in Israeli settlements, but emphasized that the government remained committed to taking action against settlement expansion.

Australia is instead developing additional targeted sanctions in coordination with its international partners.

The decision represents a departure from Canberra’s recent cooperation with several Western governments on measures concerning Israel.

In June, Australia joined Britain, Canada, France and Norway in announcing coordinated sanctions against individuals and organizations accused of supporting violence against Palestinians in Judea and Samaria.

The Australian government also imposed financial sanctions and travel restrictions on additional Israeli individuals and entities earlier that month, building on previous measures targeting Israeli officials and organizations.

At the time, Australia and its partners warned that they stood “ready to take more action” if Israel did not address the situation.

Several officials familiar with the negotiations suggested that domestic political considerations may have influenced the government’s decision.

They pointed to growing pressure on Prime Minister Anthony Albanese following the Bondi Beach terrorist attacks and criticism from Australian Jewish organizations over the government’s response to rising antisemitism.

Other officials suggested that disagreements within the governing Labor Party may have complicated efforts to reach a common position before the international announcement.

The September 8 document did not require all 12 countries to immediately impose identical trade restrictions.

Instead, the participating governments committed to introducing national measures, supporting European restrictions or actively considering additional action in accordance with their respective domestic procedures.

Britain, France and Canada announced plans to introduce national restrictions on imports from Israeli settlements, while other signatories expressed varying degrees of support for further measures.