Britain announced on Tuesday that it will ban imports of goods produced in Israeli settlements in the occupied West Bank, marking a significant shift in Middle Eastern policy.

Foreign Secretary Ed Miliband told lawmakers that the government views the occupation as unlawful under international law and believes settlers have engaged in ethnic cleansing of Palestinians in parts of the territory. The measures include an import ban on settlement goods as well as restrictions on services such as construction, infrastructure, financing, and real estate tied to settlement expansion.

Miliband, who took the role in July under Prime Minister Andy Burnham, framed the decision as support for a two-state solution. Officials emphasized that the steps target settlements specifically and do not constitute a boycott of all Israeli goods.

The announcement comes amid recent Israeli tenders for over 1,200 housing units in the E1 area east of Jerusalem, a project critics say would undermine Palestinian territorial continuity. It aligns Britain with several European nations that have already imposed or are considering similar trade restrictions on settlement products.

Previous UK guidance already denied preferential tariffs to settlement goods and advised businesses against economic activity there, but this represents the first outright import prohibition. The policy change follows months of pressure from Labour backbenchers and international court rulings on the legality of the occupation.

Israeli officials have criticized the move, while the United States has expressed opposition. The ban is expected to have limited direct economic impact given the small share of settlement goods in overall UK-Israel trade, which totals around $8 billion annually.

Britain has long maintained close security and economic ties with Israel. The new restrictions reflect evolving diplomatic dynamics under the current Labour government.