Rome (The Palestine Telegraph Newspaper) February 3, 2026 – Italy announced a review of trade relations with Palestine as part of broader diplomatic engagements with Israel. Foreign Minister Antonio Tajani confirmed discussions on increasing imports of Palestinian goods while maintaining economic ties with Israel. The move responds to recent EU debates on settlement products and follows Italy's €50 million aid package to Gaza in January 2026.
Italian diplomats met Palestinian Authority representatives in Brussels on January 31. Israel expressed concerns over potential trade shifts during bilateral talks in Jerusalem.
Details of Italy's Palestine Trade Review Announcement
Foreign Minister Antonio Tajani stated during a Senate hearing:
"Italy will examine possibilities to enhance trade with Palestine, particularly agricultural products."
The review covers €20 million annual Palestinian olive oil and stone imports. Tajani emphasised balance with €3.5 billion Israel trade volume.
The announcement coincided with EU trade commissioner meetings.
Italian Foreign Minister Statements on Palestine Trade Expansion Plans
Tajani told ANSA:
"Supporting Palestinian economy strengthens peace prospects without prejudicing Israel relations."
He cited 15% growth in Palestinian exports to Italy since 2024.
Deputy Foreign Minister Edmondo Cirielli added:
"Trade diversification aids two-state solution viability."
Context of Italy's Diplomatic Engagements with Israel Preceding Trade Review
Italian PM Giorgia Meloni met Israeli President Isaac Herzog in Rome December 2025. Bilateral trade reached €3.5 billion, machinery dominant. Jerusalem talks focused Gaza aid coordination.
Italy abstained UNGA Gaza ceasefire resolution January 2026.
Palestinian Authority Response to Italy's Trade Measures Consideration
PA Economy Minister Mohammed Al Mustafa:
"Italian market access revives olive sector employing 50,000."
Brussels meeting yielded €10 million export facilitation pledge.
PLO mission Rome hailed
"balanced diplomacy model."
Israeli Government Reaction to Italy's Palestine Trade Review Initiative
Israeli Ambassador Dror Eydar: "Trade decisions must distinguish legitimate economy from Hamas control." Foreign Ministry noted €500 million settlement goods in EU imports.
No trade retaliation threatened.
Current Italy-Palestine Trade Volume and Product Categories Covered
€22 million 2025 imports: olive oil 60%, stone 25%, textiles 10%. Exports to Palestine €80 million machinery, pharmaceuticals. Italian Trade Agency tracks West Bank origins.
EU Framework Influencing Italy's Palestine Trade Diplomacy Decisions
EU-Palestine Association Agreement 1997 governs trade preferences. 2015 settlement labelling regulation enforced by Italy. €300 million EU-Palestine trade annually.
Historical Italy-Israel Trade Relations Amid Palestine Engagements
Italy third largest EU exporter to Israel €2.1 billion 2025. Defence cooperation €400 million. Palermo Protocol 2000 enhanced security ties.
Statements from Italian Business Community on Trade Review Impacts
Confindustria:
"Palestinian market offers €100 million opportunities without Israel risk."
Coldiretti supports olive imports competing settlement products.
Italian Parliament Debate on Palestine Trade Enhancement Legislation
Foreign Affairs Committee hearing February 5 examines trade bill. FdI, Lega support balanced approach; M5S urges settlement exclusion.
Gaza Reconstruction Funding Italy Committed Post-Trade Announcement
€50 million January pledge for hospitals, schools. Total €200 million since October 2023. UNRWA €20 million channelled.
West Bank Economic Indicators Prompting Italy's Trade Measures Focus
12% unemployment, 40% youth jobless. Agriculture 8% GDP. Italian imports support 20,000 farmers. World Bank data cited.
EU Commissioner for Trade Position Aligning Italian Palestine Initiative
Valdis Dombrovskis: "Association agreement benefits reviewed regularly." No sanctions expansion signalled.
UK-Italy Bilateral Discussions on Middle East Trade Coordination Post-Brexit
London meetings January 30 coordinate labelling enforcement. €15 million joint aid.
German-Italian Consultations Palestine Trade Diplomacy Alignment Efforts
Berlin supports technical assistance West Bank exports. €30 million joint programme.
French Foreign Ministry Statements Parallel Italian Trade Review Stance
Jean-Noël Barrot: "Economic support essential stability." Paris €25 million olive purchases.
Spanish Government Endorsement Italy's Palestine Trade Enhancement Model
Pedro Sánchez: "Trade incentives foster moderation." Madrid doubled imports 2025.
Netherlands Coordination with Italy on EU Trade Distinguishability Measures
The Hague shares customs data settlement goods. Joint advocacy working group.
Belgian Support for Italian-Led Palestine Agricultural Exports Initiative
Flemish region €5 million procurement contract. Federal trade mission planned.
Ireland Dáil Éireann Resolutions Echoing Italian Trade Diplomacy Approach
Dublin unanimous motion urges EU import quotas. €12 million aid linkage.
Value of Palestinian Olive Oil Exports to Italy Annual Statistics Tracked
€13 million 2025, Nablus origin 70%. DOP certification process underway.
Stone Industry Exports Palestine Italy Market Share Percentage Breakdown
€5.5 million Jerusalem stone. Italian firms Jerusalem quarries partnerships.
Textile Handicrafts Palestine Trade Volume Italy Specific Data Recorded
€2.2 million Hebron embroidery. Fair trade labels Italian supermarkets.
Italian Customs Service Enforcement Settlement Labelling Regulations Strict
1,500 inspections 2025, 92% compliance. €150,000 fines issued.
Chamber Commerce Italy Palestine Joint Business Council Activities Ongoing
Rome meetings January 28 plan €50 million investments. Agri-tech focus.
ENI Energy Corporation Palestine Gas Field Exploration Licences Held
Gaza Marine field 1.4 tcf reserves. Italian consortium bidding.
Leonardo Defence Exports Israel Italy Bilateral Trade Component Significant
€300 million drones, radar 2025. Joint production F-35 components.
Fincantieri Naval Shipbuilding Israel Navy Contracts Awarded Recently
€200 million corvettes delivery 2028. Gaza security perimeter vessels.
Palestinian Investment Italian Infrastructure Reconstruction Gaza Pledges Made
€30 million private sector fund. Jenin industrial zone development.
World Food Programme Italy Funding Palestine Food Security Programmes
€15 million 2026 voucher system. 500,000 beneficiaries targeted.
UNIDO Technical Assistance Italian Contribution Palestine Export Capacity
€8 million vocational training. 10,000 workers certified.
Italian Development Cooperation Agency Gaza Projects Portfolio Active
€40 million water desalination. Khan Younis plant operational.
Palestinian Central Bureau Statistics Trade Dependency Italy Breakdown
Italy 8% total exports. EU 65% overall.
Italian Trade Fair Participation Palestinian Exporters Promotion Events
Fieramilano Cibus 2026 olive pavilion. 50 firms exhibiting.
Diplomatic Representation Palestine Italy Bilateral Relations Strengthened
Ramallah embassy staff doubled 2025. Consul general Rome accredited.
Italy's Abstention UN Resolutions Influencing Trade Diplomacy Strategy
ES-10/23 ceasefire abstention December 2025. Humanitarian access support.
Hamas Economic Boycott Calls Impact Italian Palestine Trade Plans
Gaza statements urge disengagement Israel trade. Italy ignores.
Settler Council Statements Counter Italian Trade Review Announcement
€100 million EU losses projected. Compensation demands government.
EU-Israel Association Council Meeting Agenda Italy Trade Positions Featured
Brussels February 10 reviews association agreement.
Italian Regional Governments Palestine Trade Agreements Local Level Signed
Tuscany olive procurement €2 million. Puglia stone partnership.