A group of 14 MEPs from across the political spectrum has called on the European Commission to investigate what they describe as systematic circumvention of the EU-Israel Association Agreement, alleging that agricultural goods from Israeli settlements in occupied territories are fraudulently labelled as 'Made in Israel' to benefit from zero-duty access to the single market. In a parliamentary question submitted on 17 June 2026, the MEPs warn that this practice constitutes customs fraud, undermines EU sanctions against extremist settlers, and violates consumer rights to transparent product origin information.
The question, led by Danilo Della Valle (The Left) and co-signed by members of S&D, Renew, Verts/ALE, and non-attached groups, cites an investigation by the NGO Global Echo which claims that approximately 20% of Israeli agricultural exports to the EU originate from settlements. The MEPs ask the Commission three concrete actions: tasking the European Anti-Fraud Office (OLAF) with a probe into the fraud's extent, introducing binding traceability mechanisms to prevent sanctioned entities from benefiting from preferential tariffs, and considering a precautionary suspension of zero-duty access for high-risk agri-food categories such as dates and citrus fruits pending a comprehensive audit.
The question reflects a push for stronger enforcement of EU external trade rules and sanctions regimes, pitting consumer protection and legal compliance against trade liberalisation with a key partner. If the Commission takes up the request, it could lead to increased scrutiny of import supply chains and potential trade disruptions for Israeli agricultural exporters. The Commission is expected to reply within approximately six weeks, and its answer will signal whether it views the allegations as credible enough to warrant formal investigation or prefers to maintain existing trade arrangements. The MEPs' initiative also puts pressure on the Commission to clarify how it reconciles trade preferences with EU foreign policy positions on occupied territories.