European Commission proposes suspension of trade provisions with Israel

Imports from Israel would lose preferential access to EU market

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September 17, 2025

The European Commission (EC) has presented a proposal to the Council to suspend certain trade-related provisions of the Association Agreement between the EU and Israel. This proposal follows a review that found Israel in breach of Article 2 of the Association Agreement, which entitles the EU to suspend the agreement unilaterally.

The proposal also includes sanctions on Hamas, extremist ministers, and violent settlers. The EC plans to halt bilateral support to Israel, except for civil society and Yad Vashem, impacting allocations from 2025 to 2027 and ongoing projects.

The suspension means that imports from Israel would lose their preferential access to the EU market. 

Read the EC release (September 16, 2025)

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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