US won't condemn EU decision to label settlement products - Yoni Hersch, Mati Tuchfeld, Nitzi Yakov, Hezi Sternlicht, News Agencies and Israel Hayom Staff

by Yoni Hersch, Mati Tuchfeld, Nitzi Yakov, Hezi Sternlicht, News Agencies and Israel Hayom Staff

Obama administration says European Union's decision to distinguish products made in Judea and Samaria from those made in Israel does not constitute boycott measure • Zionist Union MK: When the EU labels settlement products, it labels itself biased.

Produced in Mitzpe Shalem, west of the Dead Sea, Ahava cosmetics will now have to carry labels saying 'Made in the West Bank' | Photo credit: EPA

Jerusalem's hopes that the American administration would condemn a recent EU decision to label Israeli products manufactured in Jewish settlements were dashed on Thursday when the administration declared that the EU guideline did not qualify as a boycott and therefore did not warrant condemnation.

On Wednesday, the European Commission issued directives "on the indication of origin of goods from the territories occupied by Israel since June 1967." The move has been harshly criticized by Israel, with Prime Minister Benjamin Netanyahu lambasting the EU's "double standards," and Foreign Ministry officials denouncing the move as "veiled anti-Semitism" that would only promote de facto boycotts of Israeli goods. 

"We do not believe that labeling the origin of products is equivalent to a boycott," State Department spokesman Mark Toner said Thursday. "And as you know, we do not consider settlements to be part of Israel. We do not view labeling the origin of products as being from the settlements as a boycott of Israel."

Before the EU acted, the U.S. position was more ambiguous. Toner and other officials stressed only that Washington opposed any boycotting of Israel, while saying the EU's response "shouldn't come as a surprise" given Israel's continued construction of settlements on land the Palestinians seek for their future state.

"We understand the objective is to provide EU consumers correct information on the origin of products, as required by EU law," Toner said. "The EU has made clear that measures are not a boycott, and the EU has also made very clear that they oppose boycotts against Israel. EU guidelines for products that are sold in EU countries are for the EU to determine."

Toner said the labeling rule only clarifies existing European regulations and wasn't a "new measure."

"These are technical guidelines delineating the origin of products. Consumers will then be aware of the origin of a product when purchasing it, as they are made aware for products across the globe," he said.

American laws for Israeli settlement exports are somewhat similar, Toner said. They must be marked as "products of the West Bank," though the U.S. does not differentiate between goods from settlements and those coming from elsewhere in the territory.

In Israel, meanwhile, the move sparked an outcry across the political spectrum. Opposition MK Hilik Bar (Zionist Union) remarked that "when the EU labels settlement products, it labels itself biased and therefore a less relevant mediator in the peace process."

Bar, who is currently attending a conference in Brussels, urged the EU to remain impartial. "Don’t be pro-Arab or pro-Israel -- be pro-solution. Promote confidence-building measures and Israeli-Arab cooperation. Measures like product labeling mean that you ignore the most important factor in finding a solution -- the Israeli public."

The EU insists the move is a technical matter, saying its implementation, in part or in full, was up to each of the bloc's 28 member-nations, but Israeli officials have branded it "discriminatory" and damaging to peace efforts with the Palestinians.

EU special envoy to the Middle East Fernando Gentilini said Thursday that "I know Israel well, and I understand the complex significance people are attributing to this decision, but it is a technical move by the EU, and it has nothing to do with an EU boycott of Israel. 

"This is an implementation of a consumerism measure that provides people with more information on the origins of the products they buy," he said. 

The economic impact of the EU's step is likely to be minimal. While the EU is Israel's largest trade partner, settlement products account for less than 2% of Israel's 13 billion euro ($14 billion) exports to Europe each year. Still, the move is highly symbolic, signaling Europe's growing discontent with Israel amid a long, diplomatic deadlock in the Mideast peace process.

Once implemented, European consumers will be able to read on the label of most products, including agricultural goods, olive oil, cosmetics and wines, if they were produced in Israeli settlements. Although such products will not be banned, Israel fears the labels will cultivate a political stigma and could lead to a full-scale boycott.

Meanwhile, a Samaria-based winery won a top award at the Terravino Mediterranean International Wine and Spirit Challenge. The annual competition, celebrating its 10th anniversary, was held in the central Israeli city of Netanya this year. Some 518 wineries from 23 countries were featured in the competition, considered one of the most prestigious wine industry events in the world. 

The Tura Winery, which operates out of the Jewish community of Rechelim, east of Ariel, was awarded the double gold medal. Fourteen double gold medals were awarded overall, six of them to Israeli wineries.

Tura Winery owner Vered Ben Saadon told Israel Hayom: "Beyond the good feeling of having won, this is our answer to the boycott. When some people are trying to label my products, it is the quality of the wine that proves victorious."

Yoni Hersch, Mati Tuchfeld, Nitzi Yakov, Hezi Sternlicht, News Agencies and Israel Hayom Staff

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