Australia is preparing to implement a new set of targeted sanctions against Israel amid ongoing concerns about settlement activity and violence against Palestinians but will not follow the lead of countries like the United Kingdom, France, and Canada in banning trade linked to Israeli settlements.

Foreign Minister Penny Wong confirmed the country’s commitment to coordinated international measures aiming to deter illegal settlement expansion and settler violence, which she described as threats to the viability of a two-state solution. However, Wong emphasized that Australia would not support a comprehensive ban on goods produced in settlements, citing concerns over potential negative impacts on Australian businesses, as well as on both Palestinian and Israeli communities.

“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,” Wong said.

She also criticized Israel’s actions, stating that they are “extinguishing the possibility of a two-state solution” and called for an end to settler violence, which she said includes the destruction of property, displacement of families, torture, sexual assault, and killings directed at Palestinians.

“We have taken action that do the same because we can’t say we’re for the state of Palestine, which I am very much a supporter of, and ignore the fact that illegal settlements are undermining the ability for a state of Palestine to emerge,” Wong added.

The Australian Centre for International Justice welcomed the UK’s recent measures but criticized Wong’s approach. Rawan Arraf, the center’s executive director, praised the UK's actions but argued that Wong’s legacy would be marked by “weak inaction” in response to both the international steps taken by other countries and serious allegations of genocide in Gaza.

Australia’s position reflects a cautious approach toward balancing diplomatic pressure on Israel with the potential economic and political ramifications of broader trade restrictions, as Canberra seeks continued cooperation with international partners to address ongoing conflict-related issues in the region.