Australia pulled out of West Bank sanctions at last minute, EU diplomats reveal - report

European diplomats from 12 countries revealed that Australia withdrew from joining the UK-led decision to impose sanctions on Israeli settlements in the West Bank late in the proceedings, according to a report from the Australian Broadcasting Corporation (ABC).

The UK’s trade embargo was followed by a collective statement from 12 Western-aligned governments who said they would also commit to, or consider the possibility of, establishing sanctions on Israeli settlements in the West Bank.

EU officials lobbied Australia as it tried to expand its coalition of countries to increase pressure on Israeli settlements that they view to be illegal under international law.

Australia was reportedly open to taking more aggressive action against settlements, but ultimately decided not to join the action late in the discussions, sources told the ABC.

In the end, Canada was the only non-European country to join the statement.

Australia has placed diplomatic pressure on Israel before

Over the last year, Australia has collaborated with other Western countries to add pressure on Israel over its war in Gaza and its settlements in the West Bank. In September, 2025, Australia recognized the State of Palestine at the United Nations General Assembly along with Canada and Portugal.

The ABC said it spoke with eight diplomatic sources familiar with the matter in Sydney, Canberra, Jerusalem, and Tel Aviv, who said the coalition of countries hoped Australia would join the decision to impose sanctions on Israeli West Bank settlements and were disappointed when it did not. The ABC’s sources wished to remain anonymous.

Australia’s Department of Foreign Affairs and Trade said Australia and its partners were “working closely together towards the same objective, even if we are not all taking exactly the same measures at the same time.”

“We are concerned blanket import bans present practical challenges, including how to ensure they do not inadvertently harm Palestinian businesses, workers and livelihoods. The UK government has acknowledged these challenges as they work on their legislation over the next year,” the statement read.

“In the meantime, Australia is pursuing further targeted measures, in coordination with international partners, to deter illegal settlements and settler violence.”

EU officials 'surprised' by Australia's decision

Two EU officials who spoke with the ABC said they were “surprised” Australia did not sign the statement in the end. However, a different official involved in the negotiations said that while Australia had signaled it was open to signing on, Canberra never finalized a decision to join the coalition.

The ABC also reported that some of the diplomatic sources it spoke with attributed Australia’s decision not to join the statement to domestic politics.

Sources speculated that criticism from Australian Jewish groups following the Bondi Beach terror attacks and increased antisemitism may have played a part in Australia’s decision not to level sanctions on Israeli settlements.

Another source told the ABC that the UK’s characterization of Israel’s policy in the West Bank took officials by surprise.

British Secretary of State, Edward Miliband, told parliament that settler violence against Palestinians constituted “ethnic cleansing” and that Israel’s government was turning a “blind eye” to it.

One EU source claimed that Miliband’s language departed from the agreed-upon final joint statement.

Last week the Australian Foreign Minister Penny Wong said Australia was “pursuing further targeted measures in coordination with international partners to deter illegal settlements and settler violence.”

In June of this year, Australia, the UK, Canada, France and Norway all announced sanctions against Israeli firms connected to financing and “enabling” settler violence in the West Bank.

Australia said it was “ready to take more action if the Government of Israel does not take urgent steps to address the situation on the ground.”