Norway Proposes Ban on Settlement Trade

The Norwegian government announced on Friday a legislative proposal to prohibit all trade and commercial transactions with Israeli settlements located in the occupied Palestinian territories. Foreign Minister Espen Barth Eide stated that the measure aims to address the expansion of settlements, which Oslo maintains are in violation of international law and undermine the viability of a future Palestinian state.

The proposed bill seeks to outlaw the purchase of property within settlements, the provision of construction or renovation services, and the acquisition of commercial enterprises headquartered in these areas. The government has initiated a three-month consultation period for the draft legislation, which is scheduled to conclude on September 19.

This policy shift follows Norway's formal recognition of the state of Palestine in 2024 and aligns with recent coordinated sanctions imposed by a coalition of nations targeting entities involved in settler violence. While the move represents a significant diplomatic escalation, critics, including UN special rapporteur Francesca Albanese, have questioned the consistency of the policy given the continued exposure of Norway’s $2 trillion sovereign wealth fund to companies linked to the occupation. The proposal marks a hardening of Norway's stance on the conflict, moving beyond diplomatic rhetoric toward direct economic regulation of business activities in the West Bank, Gaza, and East Jerusalem.