World

Norway moves to ban trade with Israeli settlements

The draft law would bar Norwegian commerce tied to settlements in Gaza, the West Bank and East Jerusalem, according to Oslo.

Sofia Marchetti

By Sofia Marchetti · World Affairs Correspondent

3 min read

Norway moves to ban trade with Israeli settlements
Photo: Al Jazeera

Norway’s government said it plans to prohibit trade connected to Israeli settlements in occupied Palestinian territory, a step that would restrict Norwegian companies and citizens from doing business tied to those areas. The Foreign Ministry said Friday that a draft bill has been sent out for consultation, opening a three-month review period that runs until September 19.

The proposal would ban trade in goods produced in Israeli settlements on occupied Palestinian land, including Gaza, the West Bank and East Jerusalem, according to Norway’s Ministry of Foreign Affairs. Oslo also wants to block certain property-related transactions linked to settlements.

Foreign Minister Espen Barth Eide said in a ministry statement that the settlements violate international law. He said they fuel displacement and violence and make a negotiated peace harder to achieve.

“We intend to prohibit trade with the unlawful settlements,” Eide said.

Property and business activity covered

The ministry said the bill would cover more than imports of settlement goods. It would also prohibit buying property in settlements, providing services tied to building, renovating, buying or selling property there, and acquiring businesses whose headquarters and production sites are in settlements.

Eide said Norwegian citizens and companies should not support activity that sustains settlement expansion. He said the proposal sets firm boundaries for Norwegian trade and business activity connected to the settlements.

The Norwegian government’s move follows other steps it has taken over Israel’s occupation of Palestinian territory. Al Jazeera reported that Norway recognized the state of Palestine in 2024, at the same time as Ireland and Spain. Israel responded by withdrawing its ambassadors from Oslo, Dublin and Madrid and summoning the Norwegian, Irish and Spanish representatives in Tel Aviv, according to the report.

Norway is not a member of the European Union. Its policy has drawn attention because it has paired diplomatic recognition of Palestine with restrictions aimed at settlement-linked activity.

Sanctions and criticism

Last week, Norway joined the United Kingdom, Australia, Canada, France and New Zealand in coordinated sanctions against networks accused of financing, enabling and carrying out settler violence against Palestinians in the occupied West Bank, Al Jazeera reported.

Eide said violent settlers and settlement growth are worsening conditions in the West Bank. He said civilians are being killed, local economies are under pressure and communities are being destroyed.

Francesca Albanese, the United Nations special rapporteur for the occupied Palestinian territory, called Norway’s bill “a small step” and “a beginning,” according to Al Jazeera. She also questioned Norway’s sovereign wealth fund investments, asking how a country that promotes human rights can allow the fund to invest in entities linked to an occupation the International Court of Justice has found illegal.

Al Jazeera reported that Norway’s sovereign wealth fund is worth about $2 trillion and owns stakes in 8,700 companies worldwide, including several Israeli companies. Norway said last year that it was divesting from 11 Israeli companies and continuing to review possible divestment from more, according to the report.

The draft trade ban still must pass through Norway’s consultation process before the government can advance it further. The ministry said the consultation period will close on September 19.

This story draws on original reporting from Al Jazeera.