Sweden urges EU to freeze trade component of Israel agreement over Gaza crisis

Swedish Prime Minister Ulf Kristersson has called on the European Union to suspend the trade section of its association agreement with Israel, citing the worsening humanitarian situation in Gaza.

In a post on X (formerly Twitter), Kristersson stated: “The situation in Gaza is utterly deplorable, and Israel is failing to uphold its most fundamental responsibilities and previously agreed commitments concerning humanitarian assistance. Sweden, therefore, demands that the EU urgently freeze the trade component of the association agreement. Economic pressure on Israel must intensify. The Israeli government must allow unimpeded humanitarian aid into Gaza.”

The EU is Israel’s largest trading partner, and such a move would carry significant economic weight.

Kristersson’s remarks follow similar warnings from other European leaders. Earlier this week, Dutch Foreign Minister Caspar Veldkamp suggested that the Netherlands would also advocate for suspending the trade-related aspects of the EU-Israel Association Agreement if Israel does not fulfil its humanitarian obligations.

The EU-Israel Association Agreement, in force since 2000, provides a framework for political dialogue and economic cooperation between the two parties. However, a European Commission report presented to EU member states at the end of June concluded that Israel was violating a key clause of the agreement related to the respect for human rights.

In response, the European Commission has been weighing a range of policy options. These include restricting certain exports and reviewing visa policies. One of the narrower proposals under consideration would partially suspend Israel’s participation in the Horizon Europe research program — an EU funding mechanism that supports innovation and research. The suspension would primarily affect Israeli start-ups engaged in areas such as cybersecurity, drone technology, and artificial intelligence.

The EU remains divided over how to approach Israel diplomatically since the outbreak of its military campaign in Gaza, which followed the unprecedented Hamas attack on October 7, 2023.

Sweden has long taken a proactive stance on Palestinian statehood, becoming the first major Western European nation to officially recognise Palestine as a state in 2014. On July 30, France and 14 other Western countries issued a joint letter calling for the recognition of Palestine at the upcoming United Nations General Assembly session in September.

Alongside his criticism of Israel, Kristersson also called for greater international pressure on Hamas, demanding the militant group immediately and unconditionally release all remaining Israeli hostages still held in Gaza.

“Sweden welcomes the growing number of Middle Eastern nations now calling for Hamas to be disarmed and excluded from any future governance arrangement in Gaza,” he added.

By Tamilla Hasanova