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The UK has announced a ban on imports of goods produced in illegal Israeli settlements in the West Bank and plans to establish new powers to sanction individuals and businesses that support or profit from settlement activities. This is part of a package of measures targeting Israel's expanding settlements and escalating settler persecution of Palestinians. Foreign Secretary David Miliband used the strongest language ever used by any government, but the actual impact and implementation of the ban have presented a series of challenges. One problem is the limited scale of trade. The UK and Israel have a free trade agreement, with annual trade between the two countries expected to reach approximately £6 billion by 2025. The new ban only targets goods from settlements in the occupied Palestinian territories. Official data shows that the UK recorded only £6 million in imports from Palestine in the past four quarters, which, even if all from settlements, represents only 0.1% of total UK-Israel trade. The UK government also acknowledges the difficulty in quantifying accurate data on settlement trade. A second problem is country of origin identification. Settlement goods are often integrated into Israeli supply chains and exported as "Israeli products." Surveys show that about one-sixth of fresh agricultural products shipped from Israel to Europe contain settlement products. While the UK has required importers applying for tariff preferences to declare the Y864 code and indicate the country of origin's postcode, customs faces difficulties in tracing the actual source if the declaration is inaccurate. Furthermore, some issues regarding the sanctions provisions remain unclear. The UK's commitment to sanction companies that "support, assist, or profit from settlement" raises a distinct question: what happens when companies profiting from settlement activities also have business dealings with the UK government? An Al Jazeera investigation found that over £2.1 billion in public sector contracts flowed to 17 companies linked to settlements, with Motorola Solutions accounting for over £1.7 billion ($2.3 billion), largely through its UK subsidiary, Airwave Solutions. The government has not yet stated whether existing contracts will be terminated or restructured if these companies are identified.

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