Goods tied to illegal Israeli settlements in the occupied Palestinian territories are still reaching European markets, prompting questions about how they are exported, labeled and distributed, and whether current European rules are doing enough to stop settlement-linked trade.

A June 2026 report by the Global Echo Litigation Center, Importing Occupation, has drawn fresh attention to these supply chains.

It says that goods made in Israeli illegal settlements have entered European markets through systems that hide their actual place of origin.

Here is how the system works.

How widespread is the trade?