Europe's Settlement Boycotts Crush the Palestinians
The governments said their objective [with the boycotts] is to protect the "two-state solution" and respond to -- presumably meaning prevent -- "settlement expansion." To many Palestinians, of course, all of Israel is one big settlement to be dismantled.
As European governments increase economic pressure on Israel, Palestinians working in businesses in the settlements lose their jobs.
"Instead of building economic bridges between Israelis and Palestinians, some are choosing to tear them down. Industry creates jobs, stability and hope, while the boycott creates exactly the opposite." — Avraham Novogrotcki, president of the Manufacturers Association of Israel, Ynet, October 18, 2026.
For many Palestinians, employment in Israel or Israeli businesses in the West Bank is an important source of income in the Palestinian Authority economy, where opportunities are limited.
Do the Canadian and European governments imposing restrictions on Israeli settlements intend to offer these Palestinian workers comparable jobs? Have they established programs to help Palestinian businesses absorb thousands of displaced employees? Have they pledged funds to replace the incomes that may disappear as a result of their policies? Not a bit.
There is a precedent for what can happen when an Israeli factory employing Palestinians closes due to a boycott... In 2016, Reuters reported that approximately 500 Palestinian workers had lost their jobs after the [SodaStream] factory's relocation. Nabil Basharat, a father of seven, said he had worked for SodaStream for six years and become a department manager. "I used to make $2,000 a month or more and today I have nothing," he said at the time.
Terrorist organizations exploit such grievances by portraying economic hardship as further proof that coexistence and cooperation have failed. The result is greater instability, not progress toward peace.
The Europeans at the moment have their own problems with hostile minorities. To garner the votes of these "mostly peaceful protesters," many European leaders are apparently content to trample the Palestinians so long as the Jews can be punished for refusing to accept an openly genocidal bloc into their midst, as the Europeans so foolishly have done.
If European leaders genuinely want to improve Palestinian lives, they should... ask whether their restrictions will create new Palestinian jobs, expand Palestinian access to markets, strengthen independent businesses, or improve workers' rights. They should also explain what assistance will be available if factories close and employees are dismissed. Palestinians should not have to pay for Europe's anti-Israel campaigns and policies with their livelihoods.
On September 8, 2026, Canada, Britain, France, Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain and Sweden announced their intention to introduce national restrictions on trade with Israeli settlements in the West Bank, support European-level measures, or consider similar action. The governments said their objective is to protect the "two-state solution" and respond to -- presumably meaning prevent -- "settlement expansion." To many Palestinians, of course, all of Israel is one big settlement to be dismantled.
Some restrictions are already in force. Ireland's prohibition on importing designated settlement goods took effect on September 15, followed by a Dutch banon the import, purchase and sale of such goods on September 20. Other countries have announced plans or are considering additional restrictions.
These are not all components of one uniform import ban. The measures differ from country to country, and some remain proposals. The restrictions, in addition, do not generally prohibit all Israeli products: they target only goods originating in West Bank settlements where Jews live.
Nevertheless, the direction is clear. As European governments increase economic pressure on Israel, Palestinians working in businesses in the settlements lose their jobs.
According to a report by Israel's Ynet news website, Israeli industry representatives have already reported declining overseas orders and the cancellation of long-term distribution contracts. Industrial zones such as Barkan, Mishor Adumim, and Ariel, where Israeli-owned factories employ Palestinians from surrounding West Bank communities, are particularly vulnerable.
Avraham Novogrotcki, president of the Manufacturers Association of Israel, described the boycott of factories in the Israeli settlements as a measure that primarily harms Palestinian workers and their families.
"The boycott of factories in Judea and Samaria is a cynical measure that first and foremost harms Palestinian workers," Novogrotcki said.
"While various organizations present it as a moral step, in practice those paying the price are thousands of workers and their families who are losing a stable and dignified source of income. Instead of building economic bridges between Israelis and Palestinians, some are choosing to tear them down. Industry creates jobs, stability and hope, while the boycott creates exactly the opposite."
European politicians may see these restrictions as a statement of principle. For a Palestinian father who loses his job, however, the consequences will be measured in lost wages, unpaid bills, and difficulty supporting his family.
For many Palestinians, employment in Israel or Israeli businesses in the West Bank is an important source of income in the Palestinian Authority economy, where opportunities are limited.
The International Labor Organization (ILO) has documented the importance of this employment. In a 2017 report, the ILO said average wages earned by Palestinians working in Israel and Israeli West Bank settlements were more than twice those earned in the Palestinian Authority. It also reported that approximately one-quarter of the total wage income of Palestinians in the West Bank came from employment in Israel and Israeli settlements.
Earlier this year, the Palestinian Central Bureau of Statistics reported that about 48,000 Palestinians from the West Bank were employed in Israel and Israeli settlements in the first quarter of 2025. The number of workers in Israeli settlements reached 17,600 in the first quarter of 2026.
Do the Canadian and European governments imposing restrictions on Israeli settlements intend to offer these Palestinian workers comparable jobs? Have they established programs to help Palestinian businesses absorb thousands of displaced employees? Have they pledged funds to replace the incomes that may disappear as a result of their policies? Not a bit.
Their public announcements have concentrated on restricting trade from settlements. They have not set out a comprehensive replacement-employment plan for the Palestinians who could be affected.
There is a precedent for what can happen when an Israeli factory employing Palestinians closes due to a boycott.
SodaStream became a target of the international Boycott, Divestment and Sanctions (BDS) movement because it operated a factory in the Mishor Adumim industrial zone.
In 2015, the company closed that factory and transferred production to a new plant in southern Israel. The relocation, together with subsequent disputes over work permits, resulted in hundreds of Palestinians losing their jobs.
In 2016, Reuters reported that approximately 500 Palestinian workers had lost their jobs after the factory's relocation. Nabil Basharat, a father of seven, said he had worked for SodaStream for six years and become a department manager. "I used to make $2,000 a month or more and today I have nothing," he said at the time.
Some BDS campaigners advocate economic isolation that goes well beyond the Israeli settlements. Their campaigns often present boycotts as an act of solidarity with Palestinians, yet the experience of Palestinian workers employed by targeted companies demonstrates that economic pressure falls on the very people they claim to support.
There is also a broader question about the relationship between employment and coexistence. In factories where Israelis and Palestinians work together, workers have practical reasons to cooperate: completing production, earning salaries, and keeping their businesses operating. These everyday relationships do not resolve the Israeli-Palestinian conflict, but neither should they be dismissed as irrelevant.
Removing economic opportunities can deepen frustration and insecurity, and contribute to radicalization and violence. It is irresponsible to ignore the danger of leaving families without income while offering no realistic alternative.
Terrorist organizations exploit such grievances by portraying economic hardship as further proof that coexistence and cooperation have failed. The result is greater instability, not progress toward peace.
A political declaration from EU governments may win applause at home. A boycott campaign may satisfy European activists. Yet neither pays a Palestinian worker's bills or feeds his children.
The Europeans at the moment have their own problems with hostile minorities. To garner the votes of these "mostly peaceful protesters," many European leaders are apparently content to trample the Palestinians so long as the Jews can be punished for refusing to accept an openly genocidal bloc into their midst, as the Europeans so foolishly have done.
If European leaders genuinely want to improve Palestinian lives, they should measure their policies by their practical results. They should ask whether their restrictions will create new Palestinian jobs, expand Palestinian access to markets, strengthen independent businesses, or improve workers' rights. They should also explain what assistance will be available if factories close and employees are dismissed. Palestinians should not have to pay for Europe's anti-Israel campaigns and policies with their livelihoods.
Khaled Abu Toameh is an award-winning journalist based in Jerusalem.
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