The Yedioth Ahronoth newspaper in Israel on Wednesday described the announcement by 12 Western countries, led by Britain, to restrict trade with illegal Israeli settlements in the occupied West Bank as a “diplomatic setback and a significant failure” for Prime Minister Benjamin Netanyahu’s government.

Britain, Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain and Sweden announced Tuesday their intention to impose restrictions on trade in goods originating from illegal Israeli settlements.

In a statement, the 12 countries said the Israeli government’s actions in the occupied West Bank undermine the possibility of a two-state solution and urged Israel to immediately halt illegal settlement expansion and violence by occupiers.

Yedioth Ahronoth said that “with the European Union unable for months to reach consensus on sanctions that would ban imports from Israeli settlements, several European countries have begun pursuing restrictions independently, moving the issue from EU-wide diplomacy to national legislatures.”

The absence of an agreement in Brussels led governments supporting the restrictions to conclude that each country would need to enact its own legislation to ban imports from illegal settlements, it said.