Palestinian Ambassador to the UK Husam Zomlot told The National that officials are discussing wider economic cooperation alongside Britain's planned settlement curbs, as bilateral trade reached £38 million in the four quarters to Q4 2025.
Zomlot said Palestinian and British officials have met regularly since London announced its plans in September. He also told The National that their discussions include possible exchanges involving technology and renewable-energy expertise.
Under the Sept. 8 plan, imports of goods from illegal settlements in occupied territories would be barred. The UK also plans penalties for companies and individuals whose services support settlement expansion, including in construction, infrastructure, financing and real estate. The UK said the measures would target settlements and settlement expansion, not Israel.
A Department for Business and Trade factsheet put trade in goods and services at £38 million in the four quarters ending Q4 2025, down £9 million, or 19.1%, from the preceding four-quarter period in current prices. Exports and imports were £19 million each. The UK told the United Nations Security Council on Sept. 28 that West Bank economic pressures included withheld clearance revenues, uncertain correspondent banking arrangements, and limits on movement and access. It called for steps to support trade and employment.
Describing the pressure on Palestinians’ economy, Zomlot told The National, “They are strangling our economy.”
Israel’s Foreign Ministry said it would close the British consulate in Jerusalem in response to the UK measures and argued that they would harm Palestinians working in settlements. The claim about the impact on workers is unverified. On Oct. 8, the UK said the building would continue operating as the UK Mission, Jerusalem, after discussions with Israel, and that it had temporarily withdrawn staff and family members.
Foreign Secretary Ed Miliband said legislation for the settlement measures would be in place within six to nine months of the Sept. 8 announcement.
