**Norway Proposes Ban on Trade with Israeli Settlements in Occupied Palestinian Territories**
Norway's government has announced plans to prohibit all trade with Israeli settlements located in the occupied Palestinian territories, a move that underscores its commitment to international law and human rights. The proposal, which is currently open for consultation until September 19, aims to address the growing concerns regarding the legality and humanitarian implications of these settlements.
In a statement released on June 19, 2026, Minister of Foreign Affairs Espen Barth Eide emphasized that Israeli settlements in Palestine violate international law and contribute to the ongoing displacement and violence in the region. "The Israeli settlements in Palestine are in breach of international law," Eide stated, adding that they hinder the prospect of a peaceful resolution to the Israeli-Palestinian conflict.
The proposed legislation would not only ban the trade of goods produced in these settlements but also restrict various real estate transactions. This includes prohibiting the purchase of property within the settlements, as well as any services related to construction, renovation, or sale of properties in these areas. The Norwegian government aims to prevent its citizens and companies from contributing to the expansion and maintenance of these settlements.
"The settlements undermine the basis for a Palestinian state," Eide remarked. "With this legislative proposal, the government takes a clear stance and puts forward rules that set firm limits for Norwegian trade and business activities."
Norway, which is not a member of the European Union, officially recognized the state of Palestine in 2024, aligning itself with other EU member states such as Ireland and Spain. This recognition prompted a swift diplomatic backlash from Israel, which withdrew its ambassadors from Oslo, Dublin, and Madrid and summoned the respective representatives in Tel Aviv.
In addition to the proposed trade ban, Norway has recently joined forces with five other countries—namely the UK, Australia, Canada, France, and New Zealand—to impose coordinated sanctions against networks involved in financing and facilitating settler violence against Palestinians in the West Bank. Eide highlighted the urgent need to address the escalating violence and humanitarian crisis in the region, stating, "The settlements and the serious abuses committed by violent settlers are making the situation in the West Bank increasingly untenable."
The announcement of the trade ban has garnered mixed reactions. Francesca Albanese, the UN special rapporteur for the occupied Palestinian territory, described the proposal as "a small step, but it’s a beginning." She called on Norway to further evaluate its investments, particularly in light of its substantial sovereign wealth fund, which is one of the largest in the world. Albanese questioned how Norway could reconcile its human rights advocacy with its investments in entities linked to the occupation, especially after the International Court of Justice (ICJ) deemed the occupation illegal.
Norway's sovereign wealth fund, valued at approximately $2 trillion, holds stakes in around 8,700 companies globally, including several Israeli firms. Last year, the Norwegian government announced its decision to divest from 11 Israeli companies and has indicated that it continues to review its investment portfolio in relation to companies operating in the occupied territories.
As the consultation period for the proposed trade ban unfolds, the Norwegian government is expected to engage with various stakeholders, including human rights organizations, businesses, and the general public, to gather input on the legislation. The outcome of this initiative could have significant implications for Norway's foreign policy and its role in the ongoing discourse surrounding the Israeli-Palestinian conflict.
In summary, Norway's proposed ban on trade with Israeli settlements marks a notable step in its foreign policy, reflecting a commitment to uphold international law and address the humanitarian crises stemming from the ongoing occupation. The consultation process will be closely watched as it unfolds, with potential ramifications for both Norwegian and international relations regarding the Israeli-Palestinian issue.