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Israeli concerns over EU settlement trade policy

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Israeli officials reacted with concern to a decision taken by the European Commission at the end of last week to ban Israeli dairy and poultry products from areas beyond the pre-1967 borders.

The Commission announced that because it does not recognise Israel Agriculture Ministry activity beyond the pre-1967 borders (West Bank, Golan Heights and East Jerusalem), food from these areas is considered unregulated. As a result, from 1 September, it will block the entry of all animal products, including eggs, poultry and dairy. Although the Commission’s ruling is purely technical, it is being widely perceived in Israel as a political manoeuver.

Agriculture Minister Yair Shamir told Maariv that “Israel is working with the European Union in a joint effort … to prevent the new regulations from coming into effect.” Meanwhile, it has been suggested that Israeli producers will have to create two production lines, one dedicated to the European market which will use ingredients sourced only from within Israel’s pre-1967 borders.

Labour Party faction head Eitan Cabel said that the Commission decision was “not surprising” and that it is “a direct result of [Prime Minister Benjamin] Netanyahu’s settlement policy and the deadlock in the peace process.” Echoing similar sentiments, Knesset Economic Affairs Committee Chairman and Labour MK Avishai Braverman commented, “It is incumbent upon the prime minister to understand that without a political initiative, Israel’s economic standing will become problematic.”

In a separate announcement, the European Union Council on Friday said that it “strongly welcomes” the current five-day ceasefire and Egyptian efforts to broker a longer-term truce. It said that a “durable ceasefire… must end the threat to Israel posed by Hamas and other militant groups in Gaza as demonstrated by rocket attacks and tunnel construction. All terrorist groups in Gaza must disarm.” The statement also called for a “comprehensive peace where two democratic states, Israel and Palestine, live side by side.” Israel’s Foreign Ministry welcomed the EU commitment to demilitarise Gaza and also emphasised the importance of Egypt’s efforts.