The European Union and Israel

The legal basis for relations is the EU-Israel Association Agreement that entered force in 2000. The framework sets provisions on regular political dialogue, freedom of establishment and liberalisation of services, the free movement of capital and competition rules and the strengthening of economic and social cooperation.

The agreement states that the respect for human rights and democratic principles is an essential element of the agreement. It also establishes an Association Council held at the level of ministers of foreign affairs to be supported by an Association Committee. 

EU-Israel relations are underpinned by the 2005 Action Plan under the European Neighbourhood Policy. The Action Plan aims to gradually integrate Israel into European policies and programmes and also established 10 sub-committees that meet regularly to discuss priorities and exchange views. 

In light of the brutal and indiscriminate terrorist attack by Hamas across Israel on 7 October 2023, the EU condemns, in the strongest possible terms, the Hamas group and reiterates its support for Israel in its right to defend itself, in line with international law.   The EU considers Hamas and Palestinian Islamic Jihad (PIJ) terrorist organizations. Through the sanctions measures against Hamas and its supporters approved in January and April 2024, the EU showed decisiveness against the brutalities committed on October 7. Israelis and Palestinians deserve to live in a just, lasting, and secure peace. The EU has worked with its partners with absolute urgency to contribute towards ending the fighting, freeing the hostages and improving the humanitarian situation in Gaza, reiterating the importance of ensuring the protection of all civilians, at all times. 

The European Union stands ready to contribute to the implementation of the Comprehensive Plan to End the Gaza Conflict in accordance with United Nations Security Council Resolution 2803, including through the European Union Border Assistance Mission to the Rafah Crossing Point (EUBAM Rafah) and European Union Police Mission for the Palestinian Territories (EUPOL COPPS). 

The EU is committed to engage against extremist settlers’ violence in the Occupied Palestinian Territories. From April 2024, the Human Rights Sanctions Regime also applies to specific individuals and entities that are responsible for serious human rights abuses against Palestinians in the West Bank and East Jerusalem.

Trade relations are governed by a Free Trade Area agreement that is part of the EU-Israel Association Agreement (2000). 

Concerning trade in goods, the EU is Israel’s first trading partner, with about 32% of Israel’s total trade in 2024. Israel is the EU’s third largest trading partner in the Mediterranean (after Morocco and Algeria) and ranks 27th among the EU’s trading partners, representing almost 1% of the EU’s total trade in goods in 2024. The most traded goods are machinery and transport equipment, chemicals and other manufactured goods. 

With regard to trade in services, the EU is an important partner for Israel, representing 22% of Israel’s total trade in 2023 (latest figures). 

In 2023 (latest figures) the EU was #2 investor in foreign direct investment stocks and #5 investor in foreign direct investment flows.

The EU and Israel’s main economic agreements are:   

• Agreement on agriculture and fisheries which greatly improved market access (2010). 
• "Open Skies" agreement (fully entered into force in 2018) which liberalized EU-Israel air travel, and the related Eurocontrol association agreement (2016).  
• Agreement on Conformity Assessment and Acceptance of industrial products (ACAA) (entered into force in 2013), bringing mutual recognition of pharmaceutical certification. 

Both sides hold annual sub-committee meetings on mutually relevant trade and economic matters. The EU also supports Israel in aligning its legislation with the EU acquis (e.g. in the field of SPS, food safety, standards) via Twinning and TAIEX instruments. 

Israel benefits from Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI-GE) for the period 2021 to 2027. The EU cooperation is aimed to reinforce EU-Israel bilateral relations and contribute to create a conducive environment for sustainable regional peace and support for the Middle East Peace Process (MEPP). The EU cooperation aims also to create synergies with the clusters and priorities of the upcoming New Pact for the Mediterranean.

These objectives have been traditionally pursued through the alignment of Israeli norms and standards with those of the EU and the promotion of institutional cooperation (Twinning and TAIEX programmes).  The EU cooperation also contributes to the support to the Middle East Peace Process and the stabilization of the region by supporting the normalization of the relations between Israel and Arab countries and supporting civil society organisations through the European Peacebuilding Initiative.

The EU has also actively support the global fight against antisemitism, in line with the objectives of the EU Strategy on Combating Antisemitism and Fostering Jewish Life (2021-2030), by strengthening its cooperation with the Yad Vashem – the World Holocaust Remembrance Centre in Jerusalem, and has contributed to promote human rights and strengthening civil society organisations as independent actors of good governance and development.