Canada’s vow to ban imports from Israeli settlements in the West Bank, explained

OTTAWA — Weeks ago, the government of Prime Minister Mark Carney promised to ban imports of products from Israeli settlements in the West Bank.

It’s not clear how or when Ottawa will implement that ban. A group of MPs and senators is urging quick action, while others say Canada should reconsider.

Tuesday’s election in Israel concluded a campaign that saw some Israeli candidates call for an expansion of West Bank settlements that Canada deems illegal. There was no clear winner in the election, leaving the parties to jockey for power by forming various coalitions.

Here’s what we know so far about Canada’s West Bank policy.

What has Ottawa promised?

On Sept. 8, Ottawa and multiple European nations pledged to ban imports of goods produced in Israeli settlements in the occupied West Bank.

Canada accused Israel of enabling violence by Jewish citizens of Israel who build homes and businesses in land Israel has occupied since 1967 — land the United Nations says should belong to Palestinians.

Canada and the other countries announced the ban in a joint statement that described Israel’s actions as “tantamount to the annexation of Palestinian land and forcible displacement of the Palestinian population.”

The statement focused on preserving the possibility of a two-state solution — a Palestinian nation existing in peace alongside Israel.

Settler violence has soared in the West Bank since the Gaza war started in October 2023, triggering a surge in Israeli military raids and Palestinian militant activity.

In August, Ottawa advised Canadian businesses to avoid engaging with Israeli settlements and warned that failing to do so could open them up to legal and financial risks.

When and how will this happen?

On the day of the announcement, Foreign Affairs Minister Anita Anand wrote on social media that Ottawa will implement the ban in “the coming months.”

Advocates for Palestinians want that ban to go beyond goods and target services, including by sanctioning Israeli companies that finance or insure the settlements.

Canada has had a trade agreement with Israel since 1997. The agreement defines Israel as “the territory where its customs laws are applied,” which includes the occupied Palestinian territories.

“Canada treats Palestine as if it were annexed by Israel,” the group Canadians for Justice and Peace in the Middle East argued in an August report.

“This contradicts Canadian foreign policy and international law … and provides a material incentive and economic reward to Israel’s ongoing settlement activity.”

It’s not clear how much of what Canada imports under the made-in-Israel label actually comes from West Bank settlements.

In a June analysis, the Global Echo Litigation Center — which opposes Israel’s occupation — found as much as one-fifth of Israeli agricultural goods bound for the EU included products originating in settlements, such as citrus fruits, dates and herbs.

The same group recently filed a complaint with the Competition Bureau over Israeli real estate events in Toronto and Montreal. They alleged illegal West Bank properties had been marketed to Canadians as being located in Israel.

How has Israel responded?

Israel has yet to respond specifically to Canada’s ban. Israel’s Foreign Minister Gideon Saar immediately responded to the bans by pledging “counter measures” against “countries that act, or will act, against Israel.”

Following a similar move by the United Kingdom, Israel closed the British consulate in East Jerusalem and expelled British officials from two projects Canada is part of: a Gaza remote security co-ordination centre and a project to train Palestinian Authority police.

The Israeli government also has denied Dutch diplomats access to the West Bank after the Netherlands started enforcing a ban on settlement goods.

As an occupying power, Israel can bar diplomats from accessing their own country’s diplomatic presences in the Palestinian territories.

What has happened since Canada’s announcement?

In September, documents Global Affairs Canada tabled in Parliament revealed that dozens of projects partly funded by Canadian aid in the West Bank had been destroyed or damaged by Israeli settlers since late 2023.

This month, the Israeli human rights group Yesh Din reported 234 incidents of settlers violently interrupting Palestinian olive harvesters in the West Bank. It said more than half of the incidents involved either crop theft or property damage.

On Oct. 9, the Canada-Palestine Parliamentary Friendship Group urged Ottawa to take action on its promised ban, arguing in a letter that Israel has expanded settler violence and territory since Canada’s announcement.

“Canada’s words must be backed by substantive action that will ensure Israel’s continued violations of international law and human rights have real consequences,” says the letter, signed by Liberal MP Salma Zahid.

Is this a good idea?

In a commentary published shortly after Canada’s West Bank announcement, Haaretz journalist Nagham Zbeedat noted many Palestinians work in factories and farms run by Israeli settlers.

“Some Palestinians welcome any measure showing that their cause has not disappeared from the international agenda. Others question who will bear the immediate consequences of the ban,” she wrote.

Zbeedat contrasted Israeli controls over Palestinian land, imports and banking with the state’s protection of and subsidies for settlers, arguing it emboldens them and strengthens the occupation.

She argued countries planning import bans should help create jobs for Palestinians outside the settlement system.

But a coalition of Palestinian trade unions in April 2023 called for a ban on products from settlements.

Legal scholars have cited a July 2024 advisory opinion by the International Court of Justice which calls on all states “to take steps to prevent trade or investment relations that assist in the maintenance of the illegal situation created by Israel in the occupied Palestinian territory.”

What do Israel’s advocates say?

The Centre for Israel and Jewish Affairs argues the ban shows Carney has a pattern of publicly criticizing Israel’s human rights record while giving a pass to countries like China, Turkey and Saudi Arabia where Canada has sought trade and investment.

“The approach that Canada has highlighted for other countries should be applied consistently with Israel, which prioritizes outcomes, strategic interests and influence. And right now, Canada has very little influence when it comes to Israel,” the group’s head Noah Shack said in an interview.

“We should be laser-focused as a country on how we can play an impactful role in building a culture of peace that can foster the achievement of peace between Israelis and Palestinians.”

Shack’s group argues Canada needs to use its leverage to get the Palestinian Authority to follow through on promised reforms and hold elections — instead of “imposing punitive measures on one party to the conflict, but not on the other.”

Shack said his group does not try to influence Israeli policy, including its response to Canada.

While Jewish groups critical of Israel have praised the import ban, Shack said many Jews worry Ottawa’s stance undermines the cause of peace in the Middle East and heightens the risk to Jewish people in Canada.

“The first principle needs to be do no harm, and to calibrate our response in a way that doesn’t inflame the problem further,” he said.

This report by The Canadian Press was first published Oct. 28, 2026.

Dylan Robertson, The Canadian Press