Thirteen US states have threatened to impose economic measures on British businesses in retaliation for the UK’s sanctions targeting Israeli settlements in the West Bank, accusing London of “aligning” itself “with Hamas and Hezbollah”.
In a letter to Britain's ambassador to Washington, Christian Turner, the states’ attorneys general, all of whom were elected as Republicans, demanded that the UK and the Netherlands abandon their restrictions on economic activity connected to the settlements.
Foreign Secretary Ed Miliband confirmed in September that the UK, along with several European nations and Canada, would ban the import of goods linked to settlements, while the Foreign Office also imposed direct sanctions on several individuals accused of involvement in settlement expansion and anti-Palestinian violence.
But this week’s letter, led by Iowa Attorney General Brenna Bird, warned that British companies could face serious financial consequences if the measures continued.
“Beyond the economic harms that your anti-Israel sanctions have created, your nations have also aligned themselves with the policy objectives of terrorist organisations like Hamas and Hezbollah,” the letter stated.
“Your anti-Israel sanctions may thus disqualify companies from your nations from contracting with our states, or require our states to divest from your companies.”
The attorneys general argued that the restrictions would damage American businesses as well as British commercial interests, claiming they were being forced to choose between complying with UK policy and maintaining business relationships with Israel.
“These unnecessary economic harms derive entirely from your unilateral decision to impose unlawful sanctions on Israel,” they wrote.
“The economic harm that you are threatening to our states and our citizens may warrant remedies under US trade law,” the signatories said, adding that they may also seek permission from the federal government to impose tariffs, which are set by Congress, on British goods.
“We reserve our right to pursue such remedies if you persist in your anti-Israel campaign.”
The letter was signed by attorneys general from Alabama, Arkansas, Florida, Georgia, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Ohio, Oklahoma and South Carolina.
The British government has maintained that the policy targets settlements rather than Israel itself, and distinguishes between legitimate trade with Israel and economic activity in territory that, as far as London is concerned, has been occupied since 1967.
The American officials rejected that distinction, arguing that the restrictions interfere with Israel's sovereignty and effectively support the objectives of Hamas and Hezbollah.
“The sanctions directly advance the policies that these terrorist organisations have sought to achieve through brutal violence against civilians, women, and children,” the letter claimed.
“Moreover, your sanctions could be seen to provide a veneer of legitimacy to the policy aims of these terrorist organisations, suggesting that prominent European nations share them.”
The attorneys general urged Britain and the Netherlands to reverse their decisions, writing: “For the foregoing reasons, we respectfully urge the Netherlands and the United Kingdom to rescind or halt implementation of the recently enacted trade sanctions against Israel or any component of Israel.
“We hope that you will join our states in their stand against terrorism and anti-Semitism.”
Bird also criticised the policy in an individual statement announcing the intervention, saying: “These sanctions are bad for American business.
“By limiting trade markets and imposing sanctions, Iowa’s economy will be hurt by countries choosing to align their policies with terrorist organisations instead of our closest ally in the Middle East.”
Israel, meanwhile, has already retaliated against Britain over its settlement policy. In September, the Israeli government moved to close the British consulate in East Jerusalem and expelled British officials, although a last-minute agreement prevented the consulate's complete shutdown.
The sanctions were introduced amid increasing violence by Israeli settlers against Palestinians in the West Bank, alongside continued settlement expansion supported by hardline members of Benjamin Netanyahu's government.
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