On 4 August 2026, Trade Commissioner Maroš Šefčovič, answering a parliamentary question, declined to commit to ending Israel's most-favoured nation (MFN) treatment within the World Trade Organization (WTO), arguing that the EU applies the MFN principle in accordance with WTO rules and pointing instead to the existing proposal to partially suspend the EU-Israel Association Agreement. The answer, given on behalf of the European Commission, also confirmed that there is no G7 discussion on Israel's MFN status and that the issue was not on the agenda of the WTO's 14th Ministerial Conference in Cameroon.
The question, tabled by MEPs Rudi Kennes, Lynn Boylan, Rima Hassan, Danilo Della Valle, Manon Aubry, and Majdouline Sbai, pressed the Commission to follow the precedent set after Russia's illegal invasion of Ukraine, when the EU and other WTO members suspended MFN treatment for Russia. The MEPs argued that ending Israel's MFN status would be consistent with that approach. However, Šefčovič's reply reiterated the Commission's position from its earlier response to Written Question E-000951/2026, stating that MFN treatment for Israeli goods was not part of the package announced by Commission President Ursula von der Leyen on 10 September 2025. Instead, the Commission proposed a partial suspension of the EU-Israel Association Agreement on trade-related matters, which would remove the preferential conditions Israel currently enjoys—conditions more favourable than MFN treatment.
The answer noted that, following the European Council conclusions of June 2026, Member States discussed options on 13 July 2026, but no decision has been made public. Šefčovič also clarified that the EU's actions against Russia, including the suspension of MFN treatment, were implemented through specific trade measures under the Common Foreign and Security Policy (CFSP) sanctions procedure, and that the EU joined the WTO 'Joint Statement on aggression by the Russian Federation against Ukraine' in line with Council policy.
The reply offers no new commitments or timelines, and it does not address the MEPs' specific requests to engage with G7 partners or to advocate at the WTO ministerial conference. The Commission's stance suggests a preference for the targeted suspension of preferential trade terms over a broader MFN revocation, a position that balances legal consistency with WTO obligations against political pressure from some MEPs and civil society groups. The impact of this approach is significant for Israeli exporters, who would lose preferential access to the EU market if the suspension is adopted, while EU importers and consumers could face higher costs for Israeli goods. The decision also affects the EU's credibility as a rule-based trade actor, as it seeks to maintain WTO discipline while responding to geopolitical crises. The file now rests with the Council, where Member States must decide on the proposed suspension, with no clear timeline for further action.