The current anti-Israeli feeling in Europe has led to manufacturers and retailers opting for non-Israeli products and produce as more importers decide not to buy goods from a state that treats the United Nations and human rights law with such contempt.
Up to now, the EU has been Israel’s primary, bilateral trading partner but the political climate has radically changed in recent months as Europe loses patience with the Netanyahu government and its all too obvious moves to prevent the establishment of a Palestinian state. The EU urgently wants a settlement to the Palestinian conflict but now sees that the current right-wing, Israeli administration of Binyamin Netanyahu is not, and never will be, a partner for peace.
If the EU Commission decides to abrogate the Association Agreement with Israel, as now looks possible, then the Israeli economy is likely to be very severely dented indeed whether Mr Netanyahu finds replacement orders in the Far East or not. But for the EU, a settlement to the conflict is the highest priority.