The EU-Israel trade relationship in numbers
Israel launched a military campaign in Gaza in response to Hamas' attacks on its soil on October 7, 2023. The bloc's foreign ministers are set to meet in July to discuss the review's outcome.
The Netherlands, together with 16 other EU member states, put in a formal review request with European External Action Service (the diplomatic service of the European Union), citing "Israel's blockade of humanitarian aid deliveries to the Gaza Strip and the proposed new system for aid distribution as seemingly being incompatible with international humanitarian law and principles."
Israel has rejected the EU-Israel Association Agreement (EUSR) review, stating the review "should not be taken seriously or used as a basis for any future actions or conversations".
The trade relationship between the two parties, which now finds itself under increased scrutiny, is significant. The European Union is Israel's largest trading partner, accounting for approximately 32% of its total trade of goods in 2024, according to Eurostat.
34.2% of Israel's imports came from the EU for that year, while 28.8% of the country's exports went to the other way.
Total trade in goods between the EU and Israel in 2024 amounted to €42.6 billion, with the EU exporting €26.7 billion worth of goods to Israel.
The EU's exports to Israel were dominated by machinery and transport equipment at 43%, followed by chemicals at 18% and other manufactured goods at 11.7%.
On the other hand, Israel is the EU's 31st largest trading partner, representing almost 0.8% of the EU's total trade in goods in 2024.
EU imports from Israel were worth €15.9 billion in the same year.
43.9% of it was machinery and transport equipment, while 18% were chemicals, and 12.1% were other manufactured goods.
Israel is the EU's third-biggest trading partner in the Mediterranean, after Morocco and Algeria.
Can trade be affected by the EU review's findings?
The bloc's foreign policy chief, Kaja Kallas, has stated that the EU will "discuss further measures and come back in July" if Israel doesn't "improve the situation" in Gaza, after reuniting with the EU's 27 foreign affairs ministers on 23 June.
However, a complete suspension of the agreement appears out of the question due to a lack of unanimity among member states.
Plausible options include the partial suspension of certain provisions related to free trade, research, technology, culture and political dialogue.
Some options will require the unanimous support of all 27 member states, while others will require a qualified majority, meaning at least 55% of countries representing at least 65% of the bloc's population.
Human-rights defenders have also pushed for the suspension of the EU's trade relations with Israel.
'Member states in favour of suspending the agreement must use all their diplomatic weight to ensure that opponents of the suspension, including Germany, fully understand the risk of complicity and the cruel toll on Palestinian lives of continued EU inaction," Amnesty International stated in an open letter on 23 June.
"If the EU fails to live up to these obligations as a bloc, and seeks to shield itself from its clear legal obligations, its member states must unilaterally suspend all forms of cooperation that may contribute to violations of international law.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
6 hours ago
- Euronews
EU diplomats confirm they won't yet sanction Israel on Gaza
EU diplomats on Monday failed to agree once again on a partial suspension of Israel from the Horizon Europe fund in response to the war in Gaza, several diplomats said. Gathered online for their regular Mashreq/Maghreb Working Party and despite mounting pressure on Israel over the hunger crisis in Gaza, the 27 EU diplomats still couldn't reach any qualified majority on a European Commission proposal to cut Israel from partial access to the EU's €95 billion Horizon Europe research fund. 'The situation has not changed,' one EU diplomat said, referring to a formal meeting of EU ambassadors last week which also failed to agree to the Commission's proposal. The diplomat said the issue was now in the hands of the EU's foreign affairs ministers, who will meet informally on 29 August. With Israel facing global criticism over allowing starvation in the besieged strip and talks between Hamas and Israel at an impasse, the proposal itself would be a largely symbolic gesture. Israel would lose access to €200 millions' worth of future grants and investments in Horizon's European Investment Council (EIC) which specialises in so-called disruptive technologies. Commission officials say it would not affect support for fundamental or collaborative research. But even for a minimal sanction, there was no agreement among Europeans on Monday. Some EU countries have preferred to condemn Israel through individual initiatives like France's recognition of Palestine. The diplomat said support from the big countries like Germany or Italy, which is essential for a qualified majority vote to pass, was still lacking on Monday. Germany and Italy are part of those who 'prefer that dialogue with Israel continues', he said, while France, Spain and Ireland support the Commission proposal. Others including Romania and Finland 'are still examining' the text, he said. 'The refusal of certain member states to take even this smallest possible step to pressure Israel, while civilians continue to be killed and starved in Gaza, is absolutely incriminating,' said Martin Konecny, who heads the European Middle East Project in Brussels. Monday's meeting also took place a day after videos showing two Israeli hostages in Gaza appearing emaciated and distressed were released, sparking outrage among western leaders.
Euronews
7 hours ago
- Euronews
Tariffs: EU Commission to suspend retaliation by another six months
The European Commission will suspend on Tuesday a package of trade countermeasures targeting €93 billions' worth of American goods which was scheduled to take effect on 7 August, as it continues to negotiate a joint statement formalising the agreement struck by Commission President Ursula von der Leyen and US President Donald Trump on 27 July. 'The EU continues to work with the US to finalise a joint statement, as agreed on 27 July,' EU spokesperson Olof Gill said, adding: 'With these objectives in mind, the Commission will take the necessary steps to suspend by six months the EU's countermeasures against the US, which were due to enter into force on 7 August.' In line with the agreement reached, the US reduced its tariff rate to 15% last Thursday. Gill said the step gained the EU immediate tariff relief, 'a first important foundation is laid for restoring clarity to EU companies exporting to the US". The trade dispute is not over However the trade dispute between the EU and the US is not over, as both sides still need to negotiate certain points of the agreement that have led to differing interpretations. Furthermore, the US Executive Order of July 31 does not provide relief to the EU automotive industry as expected (it remains subject to 25% tariffs), nor does it exempt strategic sectors such as aircraft. As negotiations continue, the Commission should postpone through urgency procedure the retaliation package it adopted against the US tariffs. It consists in two lists of products that were worth respectively €21 billion and €72 billion and were merged on 24 July after EU member states adopted them, targeting US products such as soyabean, cars, aircraft and Bourbon Whiskey.
Euronews
7 hours ago
- Euronews
Romania to activate EU funds to help areas affected by flooding
Romania's government said on Monday that it will use an EU support package to help people affected by flash floods that left at least three people dead in the country's northeast. The aid consists of amounts between €3,000-6,000 per case, which will be granted after damage assessments have been carried out in the hard-hit counties of Neamt and Suceava, Prime Minister Ilie Bolojan said on Monday. Bucharest will also activate the EU Solidarity Fund, through which Romania can access hundreds of millions of euros for the reconstruction of the area, but this money will only arrive in a few months, Bolojan said. In Suceava alone, approximately €78 million is needed for the reconstruction of the city of Brosteni and other affected localities, according to the County Council. Romania's announcement was confirmed by Dragoș Pîslaru, Minister of Investments and European projects, who wrote on Facebook that the measure will put the European Regional Emergency Support to Reconstruction (RESTORE) mechanism to use for the first time. According to Pîslaru, RESTORE, which was created for cases of major natural disasters, will allow for the rapid allocation of millions of euros from European funds to the affected areas. At least three people were killed when torrential rainstorms hit Romania in late July, triggering flash floods in the northeast. Hundreds were forced to leave their homes as rescue services deployed in Neamt and Suceava. Some 680 homes were affected by the flash floods, which destroyed 41 houses, as well as the water and sewage network, according to local media reports. Residents, some trapped in their homes by flooding, were rescued by firefighters and helicopters. Authorities reported they evacuated about 890 people in the city of Neamt alone. Last September, at least 24 people were killed by Storm Boris after a massive wave of flooding hit Central Europe, causing widespread destruction in around five countries. The north-eastern Galați and Vaslui counties were the most affected by the flooding.
