... Pretty sure you can't be racist against a nationality Ron.
Yes and no, it depends on what extend "Israeli" is a nationality or an ethnic group designation. Galloway was careful not to say "I don't debate with Jews", he said "I don't debate with Israelis".
My problem with Galloway is that he's choosing not to debate with the Israelis whereas in the late 80s-early 90s, he was arguing quite steadfastly in favour of engaging the IRA in peace talks. He was vilified by the British press even though Thatcher and later Major were, in secret, doing exactly that.
Both the IRA and Israel are guilty of terrorism. Why was he so adamant in finding common ground with the first but not with the second?
I don't know if this helps, but there are rumours abound that Galloway converted to Islam in the early 00s.