The West won't punish the settlements. Its two-state solution was always a sham

 The West won't punish the settlements. Its two-state solution was always a sham

For decades, the EU has devised ever more convoluted ways to avoid penalising Israel's illegal settlements, even as they devour a two-state solution it claims is the only path to regional peace.

Johnathan Cook July 14, 2026  Johnathan Cook on Substack

If I asked you to cut off your arm, would you do it? 

What if I pointed out that that your arm regularly punched a neighbour in the face so violently that it broke their nose and teeth, and left them unconscious? Would you cut your arm off then?

I’m guessing the answer to both questions is a firm, “No.” 

Which is exactly why the European Union, Britain and the United States have precisely no intention of severing their support for Israel’s illegal Jewish settlements in the West Bank and East Jerusalem, however violent the Jewish colonisers who live on stolen Palestinian land prove to be.

For decades, settler militias – backed by Israeli soldiers – have beaten up Palestinians, shot them, poisoned their wells, chopped down their olive groves, torched their homes, all in an attempt to ethnically cleanse them from their historic homeland.

The relentless expansion of these illegal settlements has left any hope of a two-state solution in tatters. The West Bank is now an archipelago of Palestinian villages and towns isolated from one another by marauding violent settlers, apartheid roads only for Jews, steel and concrete barriers, and army checkpoints. 

All of this has happened in full view of western states over many decades. The International Court of Justice, the world’s highest court, ruled back in 2004 – nearly a quarter of a century ago – that these Jewish settlements violated international law and needed to be dismantled. 

It reiterated that demand in a decision two years ago in which it identified Israel as an apartheid state ruling over Palestinians. It warned states to “take steps to prevent trade or investment relations that assists in the maintenance of the illegal situation created by Israel in the occupied Palestinian territory”. 

And yet the West has done nothing meaningful year after year as the settlements have stolen more land from Palestinians, made their lives there ever more miserable, and trashed any chance of the West’s supposed ambition of two states living alongside each other.

Remember this when Israel’s apologists tell you to wait for the same court’s definitive ruling – in a year or two, or maybe three – on what it deemed in early 2024 to be a “plausible” genocide in Gaza, just three months into Israel’s mass slaughter there. 

Not only will any such ruling be far too late to make any difference to the victims of the genocide, but the US, Britain and Europe will do precisely no more to punish Israel for this crime of crimes – one we can see for ourselves without an ICJ ruling – than they have done in punishing Israel for the settlements. 

Punching fist

Why? Because most western states no more wish to impose a penalty on Israel for its crimes than you would want to amputate a healthy arm. 

If they refuse to lift a finger to stop a live-streamed genocide of Palestinians in Gaza, why on earth would anyone imagine they are ready to do anything to stop Israel’s violent settlers ethnically cleansing the West Bank? 

The settlements are as deeply integrated into Israel as your arm is attached to your shoulder. And in turn, Israel is as much the punching fist of the imperial West’s war machine as the City of London – and its former tax-haven colonies – are the beating heart of the imperial West’s financial machine.

Western elites cannot imagine a world without Israel as their military thug in the oil-rich Middle East any more than you can imagine life without your arm. 

That explains why no one really believed that EU foreign ministers, meeting once again this week to discuss banning settlement products – the bare minimum they have long been obligated to do under international law – would reach an agreement. 

More than 100 legal scholars had earlier written to the European Commission’s top trade and foreign policy officials stressing the EU’s “international legal obligation”.

But as everyone predicted, EU ministers kicked the can down the road – until at least October, when they agreed to more talks about talks. 

The EU has been delaying meaningful action on dealing with the settlements since at least 2004, when the ICJ ruled them illegal. 

A year after that ruling, the EU issued a Technical Agreement that removed preferential trade tariffs of the kind Israeli goods enjoy from any items produced in the illegal settlements. Israel agreed only because there were so many loopholes and workarounds it had no practical effect whatsoever. 

It was another seven years – in 2012 – before the EU started to express concern about these loopholes, including the fact that Israel was routinely mislabelling settlement products as “Made in Israel”. 

Fast forward another three years and the EU finally got around to pretending to be closing the loopholes. In November 2015, 11 years after the ICJ ruling, the EU issued an “interpretative notice” requiring labels on settlement goods stating: "Product from the West Bank (Israeli settlement)." 

Again, Israel simply ignored the notice and continued mislabelling products, or blended them with products made in Israel, making it hard to determine the provenance. 

Pure pantomime

Remember, these lengthy, meaningless battles were not about banning settlement products or even imposing punitive tariffs. They were simply about labelling them correctly. 

To this day, the overwhelming majority of consumers across the EU have no idea, even if items are correctly labelled, which they almost never are, that they are buying products supporting Israel’s violent campaign to ethnically cleanse Palestinians from their homeland. 

It was because of this utter farce that civil society organisations started to noisily accuse the EU of complicity in Israel’s ethnic cleansing of Palestinians from the West Bank and East Jerusalem, and demand instead the outright banning of all settlement products. 

These critics have now been banging their heads against a brick wall for over a decade. They have still achieved nothing, as this week’s EU meeting once again confirms. 

Even were they to win a victory a year or two hence on banning settlement products, Israel would still be able to use the same workarounds it has been for the past 22 years to avoid any meaningful impact. European consumers would still be directly subsidising the violence of Jewish settler militias and the expulsion of Palestinians from their homes. 

All of this has been pure theatre – or more accurately, pantomime – to suggest that some kind of administrative process is in hand, that legal avenues are being pursued, that Israel will one day pay a price for its decades-old programme of ethnically cleansing Palestinians. 

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And yet nothing ever actually happens. The most the EU is prepared to do is throw a sop to its critics by imposing symbolic sanctions on a couple of dozen of the most violent settlers – out of a total settler population of nearly 700,000. 

Those settlers did not end up in the West Bank and East Jerusalem by accident. Most were encouraged there by the Israeli state with offers of cheap housing, lower mortgage rates and higher funding of educational and other municipal services. 

Note too that this abject failure relates to Israel’s explicit goal in expanding its settlements: to eviscerate the two-state solution the West says it craves as the only way to bring peace to the region. 

The fact is Europe, Britain and the US have no interest in the two-state solution. If they did, they would have used the ICJ ruling in 2004 as grounds to ban settlement products, give that ban real teeth, and threaten Israel with a loss of all preferential trade with the West until it abided by international law and removed all obstacles to Palestinian statehood, including the settlements.

They did none of this because that was never their intention. 

Their only concern is keeping Israel – their pit bull in the Middle East – fed and watered. 

If Israel wants the settlements to continue expelling Palestinians off their lands until there are no Palestinians left on those lands, then the West is not going to naysay it. 

Just as if Israel wants to continue deliberately targeting Palestinian children in Gaza for death, as a United Nations inquiry recently determined, then the West will turn a blind eye to that too. 

If Israel’s soldiers and Jewish settler militias want to take a US Congressperson hostage in the West Bank, as they briefly did to Democrat politician Ro Khanna last week, no western leader is going to make a fuss about it.

Israel may be a rogue state but it is a rogue state made entirely in the western elite’s image. The West’s only real concern is in ensuring its own publics don’t realise, as they watch a genocidal state disappear the Palestinians, that they are looking into the mirror.