A note circulated to the EU has called for more stringent labelling for settlement-produced goods, which often appear in UK shops either designated falsely as being from Israel, or labelled as coming from the West Bank suggesting Palestinian origin.
The note also warns such goods may have been illegally exempted from tariffs, violating the Israel-EU trade agreement.
The move, reported by The Indepedent, is a signal of growing frustration over continued expansion of Jewish settlements on the West Bank despite Israeli promises to halt construction as part of the "road map" to peace with the Palestinians.
Though Israel has taken moves to dismantle wildcat outposts set up by radical settlers, it has permitted what is termed "natural growth" in some settlements as well as new building in Jewish neighbourhoods of East Jerusalem, which the Palestinians claim as capital of a future state.
Israel's settlements in the Jordan Valley are major producers of fruit, vegetables, flowers and fresh herbs, while other settlements run wineries and greenhouse operations, and produce plastics and other household goods in light industrial zones. The well-known Ahava cosmetics, made with Dead Sea minerals, are produced in the settlement of Mitzpe Shalem.
"We are aware of it and there is a dialogue between us and the British authorities," said the Israeli foreign ministry spokesman Yigal Palmor. "Our position in the past has been that labelling is out of the question and that products could be identified according to the zip code."
The move follows consumer protests in The Netherlands last year which extracted promises from a major importer of organic produce, Udea, to refrain from dealing in settlement-produced items. Earlier this autumn the Dutch company Heineken, which has a partial ownership of Barkan Wineries, moved the last of the winery's operations out of a West Bank industrial zone, under pressure from consumer groups and the Dutch government.
UK supermarkets have acknowledged importing food including organic herbs grown on settlements but say by designating them as from the West Bank they are complying with EU requirements. However Marks and Spencer has stopped stocking goods from the West Bank.
On Sunday the Israeli government said it had decided to end all forms of support for "wildcat" settler outposts on the West Bank, which usually take the form of makeshift caravans camps.
telegraph.co.uk
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