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UK Trade Deal Allows Date Exporter Linked to Bashar Masri Tariff-Free Access Amid US Lawsuit

UK Trade Deal Allows Date Exporter Linked to Bashar Masri Tariff-Free Access Amid US Lawsuit
Bashar Masri is accused of being an 'important' accomplice for Hamas - Alamy/Eddie Gerald

Summary: Nakheel Palestine, a Jericho-based date exporter linked to Bashar Masri, can sell dates tariff-free to the UK under a 2019 trade deal even as Mr Masri faces a US civil suit alleging he aided Hamas in the Oct. 7, 2023 attacks. Masri denies the claims and is seeking dismissal; critics warn trade with Gaza risks inadvertently benefiting Hamas. The case has intensified diplomatic tensions after the UK banned goods from Israeli settlements.

Nakheel Palestine, a Medjool date exporter jointly owned by companies controlled by Palestinian-American businessman Bashar Masri, is able to sell dates into the UK tariff-free under a 2019 trade agreement between Britain and the Palestinian territories. The preferential access comes as Mr Masri faces a US civil lawsuit alleging he aided Hamas in the Oct. 7, 2023 attacks.

The Lawsuit

About 200 relatives of Americans killed in the Oct. 7 attacks have filed a suit in Florida under the US Anti-Terrorism Act seeking damages from Mr Masri and several of his companies. Plaintiffs allege Mr Masri and his businesses provided funding, electricity and assistance that helped Hamas build and conceal tunnels allegedly used in the assault. The filing includes a 2022 photograph of Abdel Fattah Zrai — a Hamas leader and deputy economy minister who was later killed in 2024 — signing a document with Mr Masri.

UK Trade Deal Allows Date Exporter Linked to Bashar Masri Tariff-Free Access Amid US Lawsuit
Bashar Masri with Yasser Arafat in the 1980s

Mr Masri has denied the allegations, described them as baseless and immoral, and his lawyers have filed a motion to dismiss the case. His office has reiterated his long record of humanitarian work and said neither he nor his companies have engaged in unlawful activity or supported militancy.

How the UK Trade Deal Applies

Nakheel Palestine, operating out of Jericho, benefits from the 2019 UK–Palestinian territories trade arrangements that allow certain Palestinian goods to enter the UK without tariffs. The arrangement expressly extends to Gaza, raising concerns among critics about the risk that economic activity there could indirectly benefit Hamas through municipal or utility payments in areas where it exercises de facto authority.

UK Trade Deal Allows Date Exporter Linked to Bashar Masri Tariff-Free Access Amid US Lawsuit
Ed Miliband's trade ban on Israeli settlements has prompted retaliatory moves from Benjamin Netanyahu's government - AFP/Brendan Smialowski

Responses and Wider Diplomatic Context

Supporters of Mr Masri point to his decades-long involvement in development and diplomacy, previous cooperation with Israeli authorities and international funding his projects have received from organisations such as the UN, EU, World Bank and USAID. Mr Masri has also held advisory roles in international forums and stepped down from a Harvard Dean’s Council position after the lawsuit was filed.

Critics say it is inappropriate to grant trade privileges to businesses tied to Gaza when questions remain about links to Hamas. Sharren Haskel, a former Israeli deputy foreign minister, called on British politicians to explain who benefits from trade privileges. Ameer Kotecha, a former head of Palestinian affairs at the British embassy in Tel Aviv, warned that trade involving Gaza carries risks of inadvertent benefit to a proscribed organisation. Danny Kessler, chairman of UK-Israel Business, said Israeli firms would be angered by the UK's position.

UK Trade Deal Allows Date Exporter Linked to Bashar Masri Tariff-Free Access Amid US Lawsuit
Bashar Masri is accused of helping Hamas build its subterranean tunnel network

The dispute comes amid heightened UK–Israel tensions after the UK imposed a ban on goods from Israeli settlements. Israel responded with diplomatic retaliation, including closing Britain’s consulate in East Jerusalem and imposing travel restrictions on a group of British nationals. Observers note that the Masri case is among the first to try to hold a businessman and his companies civilly liable in US courts for alleged assistance to a designated terrorist organisation.

Notable Plaintiffs

Family members involved in the suit include Jon Polin and Rachel Goldberg, whose son Hersh Goldberg-Polin was killed by Hamas, and Eyal Waldman, a technology entrepreneur and peace campaigner whose daughter Danielle Waldman was killed at the Nova festival.

Current Status

Mr Masri and his legal team continue to seek dismissal of the case. UK government departments including the Foreign Office and the Department for Business and Trade were contacted for comment.

Context: On Oct. 7, 2023, Hamas carried out an attack that resulted in more than 1,200 deaths, mostly civilians, and the abduction of roughly 254 people.

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