The main trade association between the EU and Israel is the EU-Israel Association Agreement, signed in 1995 and in force since 2000, establishing a free trade area for industrial goods and preferential access for agricultural products, which includes agricultural products from the occupied West Bank, forming a "broad framework for political, economic, research, and cultural cooperation," with the Israelis as EU's largest trade partner.
International law provides that member states of an economic alliance, if they choose to be neutral, are generally prohibited from supplying war materials to a war belligerent but are not required to stop all private commercial trade in other goods. The obligations of an economic alliance do not automatically override these principles of neutrality, though the situation is complex and subject to modern interpretations, especially regarding UN actions.
However, many EU member states, such as Germany, the Netherlands, and Hungary (country of birth of Theodor Herzl) are not neutral.
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