In a significant shift in European Union foreign policy, EU High Representative for Foreign Affairs Kaja Kallas announced on May 20, 2025, a review of the EU-Israel trade agreement due to the ongoing crisis in Gaza, alongside a decision to lift economic sanctions on Syria to support its post-war recovery. These moves, reported by news.az and corroborated by Reuters and Al Jazeera, reflect the EU’s response to evolving Middle East dynamics.
Review of EU-Israel Trade Agreement
Kallas, addressing EU foreign ministers in Brussels, called for a reassessment of the EU-Israel Association Agreement, specifically Article 2, which ties trade relations to human rights obligations. This follows a Dutch proposal backed by a majority of the 27 EU member states, driven by concerns over Israel’s renewed military offensive in Gaza, described as “catastrophic” by Kallas. International pressure has intensified, with countries like the UK, Canada, and France threatening further actions if Israel does not ease restrictions on Gaza aid. The review aims to address alleged human rights violations, though sanctions on violent Israeli settlers in the West Bank were blocked by Hungary
Lifting Sanctions on Syria
The EU’s decision to lift economic sanctions on Syria, imposed during Bashar al-Assad’s regime, marks a turning point for the war-torn nation. Following Assad’s ouster in December 2024, Kallas emphasized the EU’s commitment to supporting Syria’s rebuilding efforts, stating, “We want to help the Syrian people rebuild a new, inclusive and peaceful Syria.” This aligns with a U.S. policy shift under President Donald Trump, who announced sanctions relief on May 14, 2025, during a Gulf visit. The EU had already eased restrictions on energy, transport, and reconstruction, but Germany, Italy, Austria, and the Netherlands pushed for further relief, including lifting sanctions on Syria’s central bank to aid economic recovery. Syria’s Foreign Minister Assad al-Shaibani hailed the decision as a step toward stability.
The dual decisions come amid complex regional developments. The EU’s review of Israel’s trade deal responds to mounting criticism of Israel’s actions in Gaza, with French Foreign Minister Jean-Noel Barrot noting support from 17 EU states. Meanwhile, Syria’s sanctions relief follows U.S. encouragement from Saudi Arabia and Turkey, though Israel expressed concerns about Syria’s new leadership under interim President Ahmed al-Sharaa. Trump’s push for Syria to join the Abraham Accords and normalize ties with Israel adds another layer of complexity, with some suggesting sanctions relief could be tied to such diplomatic moves.
Implications and Reactions
The EU’s policy shift has sparked varied responses. In Syria, the lifting of sanctions is seen as a “significant” step toward financial stability and improved living standards, as noted by Al Jazeera’s Hashem Ahelbarra. However, analysts warn that unraveling complex sanctions, like the U.S. Caesar Act, may take time and face challenges. On the Israel front, Prime Minister Benjamin Netanyahu has resisted international pressure, arguing that Israel’s actions are necessary for security. The EU’s moves signal a balancing act between humanitarian goals and geopolitical pressures, with Kallas navigating a delicate path to maintain EU influence in the region.
As the EU charts this new course, the world watches closely. Will the review of the Israel trade deal lead to tangible changes, and can Syria’s sanctions relief pave the way for lasting recovery? These questions will shape the Middle East’s future.
