The Dutch government plans to ban imports of goods produced in settlements in occupied Palestinian territories over Israel's plans for the West Bank and its military offensive in Gaza.
The Netherlands imposed travel bans on two far-right Israeli cabinet ministers in July, accusing them of inciting violence against Palestinians and calling for an “ethnic cleansing” of Gaza, but the government had been reluctant to take further steps until now.
Last month, former foreign minister Casper Veldkamp resigned because he said he felt no support from the cabinet to take additional measures against Israel. But his successor, David van Weel, told parliament on Wednesday that he instructed his department to draft a government decree on the import ban, saying the measure would be introduced as soon as possible.
The Netherlands is a leading global buyer of Israel's exports, but Mr van Weel did not say what volume of goods are imported from Israeli settlements.
Most of the international community considers Israeli settlements in the West Bank illegal under international law. The Israeli government deems settlements legal under its own laws, while some so-called outposts are illegal, but are often tolerated and sometimes later legalised.
The Netherlands also supports the European Commission's plans to suspend trade-related measures in a EU agreement with Israel, Mr van Weel said.
The Netherlands is widely considered as one a close ally of Israel. But in May, Mr Veldkamp led a diplomatic push for the EU to review its association agreement with Israel. This came after Israel broke a ceasefire with Hamas in Gaza amid famine warnings.
The EU's external action service in June found that Israel had breached a human rights clause enshrined in EU-Israel relations. But states have so far failed to agree on any measures. On Wednesday, the EU Commission announced it would pause at least $37 million in bilateral support to Israel.
The Netherlands is now one of a handful of European countries, alongside Ireland and Slovenia, that has publicly stated its intention to end commercial ties with the occupied Palestinian territories.
In June, nine EU states led by Belgium asked the European Commission to spell out the legal implications of such a ban. There are fears it could go against common market rules, though Ireland argues that an advisory opinion issued by the International Court of Justice in July last year renders such a decision legally sound.
The court found that states are “under an obligation not to render aid or assistance in maintaining the situation created by Israel’s illegal presence in the Occupied Palestinian Territory”.
