IN BRIEFThe UK, France and Canada have announced trade restrictions with Israeli settlements in the West Bank.The settlements are widely considered illegal under international law, which Israel disputes.Israel ‌will close the British consulate in East Jerusalem after the United Kingdom, France and Canada announced plans to ban imports from Israeli settlements in the West Bank — something Australia has ruled out.Israeli foreign minister Gideon Sa'ar said the UK will no longer participate in a US-led coordination mission ‌for Gaza while some British officials and nationals — including former Labour Party leader Jeremy Corbyn — would be banned from entering the country."The British move is morally distorted, and constitutes blatant interference in the affairs of a sovereign ‌state and its electoral process," he said. Foreign Minister Penny Wong has ruled out Australian support for a similar blanket ban, saying it may have unintended consequences, but has flagged a raft of new sanctions against Israel is in the works.Sa'ar said Israel's response had been coordinated with Prime Minister Benjamin Netanyahu. News that makes senseYour trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.The multilateral trade action is the latest to target Israel's settlement policy and underscores the country's growing diplomatic isolation among some of its traditional allies.The UK, Canada, and France were joined by 10 other foreign ministers from countries including Denmark, Norway, Poland, Spain and Sweden in a statement reaffirming ‌support for a negotiated two-state settlement — ‌a Palestinian state co-existing peacefully alongside Israel.International concern is mounting over the recent rise in settlement expansion and violence in the Israeli-occupied West Bank, territory traditionally inhabited by Arab communities."Together, we are resolute: the two-state solution must be protected, and we will take action in pursuit of a just and lasting peace," the statement read.Australia plans new sanctionsWong has warned that Netanyahu is at risk of "extinguishing the possibility" of a two-state solution as her government plans its own sanctions package."I can announce Australia is pursuing further targeted measures in coordination with international partners to deter illegal settlements and settler violence," Wong said during a speech in the Senate on Tuesday."Australia is not, at this time, pursuing a blanket-style import ban. We have concerns about the implementation of a blanket ban and unintended consequences for Australian businesses, for Palestinians and for Israelis, and we will continue to work with partners to protect the prospects of a two-state solution."She noted that Australia "continues to call on Israel to take urgent steps to address the situation on the ground", which includes stopping settlers "destroying properties, displacing families and beating, torturing, sexually assaulting and killing Palestinians".Prime Minister Anthony Albanese has also said that Australia's position on the Middle East remains the same."I have made clear on a number of occasions — we support a two-state solution in the Middle East. We think that is important for both Israelis and Palestinians to be able to live in peace and security," he said.Why did the UK issue an import ban?UK foreign minister Ed Miliband said the UK could no longer simply "call out" injustice and suffering, but had to act to oppose the expansion of settlements, which he said threatened the viability of a Palestinian state.The former Labour leader, who was appointed to the role in July, added that the UK believes the ethnic cleansing of Palestinians is happening in areas of the West Bank."Today we refuse to be bystanders to further suffering and to the destruction of the two-state solution," Miliband said.Israeli settlers plant flags on a Palestinian home in Beit Sahour, east of Bethlehem in the occupied West Bank. Source: AFP / Mosab ShawerSa'ar described the comments about ethnic cleansing as "outrageous lies" while Israeli President Isaac Herzog accused the UK of interfering in Israel's upcoming elections, due in late October.Canadian foreign minister Anita Anand voiced her country's long-held support for a two-state solution in announcing the ban on West Bank imports. "A two-state solution is the way forward for long-term peace that also addresses Israel's legitimate security concerns," she said. "Illegal settlements in the West Bank significantly undermine these objectives."The United Nations, Palestinians and most countries regard settlements as illegal under international law. Israel disputes this. The Reuters news agency published a report on Tuesday showing Israel's government is financing some of the West Bank's most radical settlers, who use illegal outpost farms to ⁠displace Palestinians.In introducing its ban, France cited the "frenzied expansion" of settlements there and a "flare-up of violence" as the reasons for taking action.However, US secretary of state Marco Rubio said the sanctions could destabilise the West Bank and that Washington would not support a block on imports.What products come from the West Bank?Direct exports from Palestinian territories — comprising the West Bank and Gaza — to Australia are minimal, with economic analytics firm ISI Markets valuing Palestinian trade to the Oceania region at less than $415,000 per year in 2017.Most commercial goods originating in the West Bank are routed through Israeli infrastructure and customs, making precise sourcing difficult.West Bank ‌settlements mainly produce agricultural products, including dates, citrus fruits, herbs and wine, which make up a small fraction of Israel's total exports.Israel was Australia's 49th largest two-way economic partner in 2023, with goods valued at approximately $1.4 billion traded between them. Industrial machinery, plastics, medical and electronic devices are Australia's main imports.Given the small volume of exports from the settlements, the trade bans are largely symbolic and will not dent larger bilateral trade flows. Still, they are part of wider efforts to reinforce support for the two-state solution — announced as Israel revealed plans for 1,000 new West Bank homes on Tuesday.— With additional reporting by Reuters.For the latest from SBS News, download our app and subscribe to our newsletter.