Subscribe to Print Edition | Tue., December 23, 2008 Kislev 26, 5769 | | Israel Time: 01:58 (EST+7)   Back to Homepage web haaretz.com Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate GA 2008 Travel Week's End Anglo File

Last update - 03:51 19/11/2008 Israel worried that U.K. pressure will harm exports to Europe By Ora Coren, Haaretz Correspondent Tags: U.K., West Bank, exports  The old disagreement between Israel and the European Union over exports from the "territories" - areas beyond Israel's pre-1967 borders - has resurfaced, this time courtesy of Britain. The hope in the U.K. is that economic pressure will persuade Israel to reach agreement with the Palestinians and stop building in the settlements. Sources near the talks say London is accusing some Israeli companies of fraud: Their labeling indicates that they manufacture in Israel, but their plants are in the territories. Advertisement The British are pressing the European Commission to take action against Israel, but the EC has demanded evidence of the alleged fraud. The British are working on finding proof, and have also complained to Israeli customs about certain companies. Another old spat to resurface is between Israel and the EU over recognition of the Palestinian-European trade pact. Europe wants Israel to recognize the agreement, but Israel says recognition would acknowledge the Palestinian Authority as a state. Since the territories are included in the joint customs agreement, Israel argues, Palestinian exports to the European Union should be included in the trade agreement between the EU and Israel. The EC has rejected Israel's position in the past, and signed a separate agreement with the Palestinian Authority. British consumers are also protesting against labels indicating that products were made in the West Bank. That is misleading, say the British: Consumers assume that the product is manufactured by Palestinians. The matter is currently under joint British-Israeli review. Small numbers Exports from the territories to the EU total just $120 million a year. Under agreements between Israel and the EU, these exports are not eligible for customs benefits available to other Israeli exports, because the products are manufactured in areas that the EU does not recognize as part of Israel. Based on experience, there are concerns in Israel that the discussion on exports from the territories will affect all Israeli exports to Europe. Roughly that happened four years ago, after Israel rejected European demands to specifically label products produced outside the pre-1967 war borders. Israel's stance is that such a move should be reciprocal, i.e., include formal recognition of Israel's right to exist by the Palestinians. It also thinks the move should be part of political, rather than commercial negotiations with the EC. To avoid impairing exports, Israel sought a solution acceptable to the EU: Exports from the territories would be labeled by the location of the manufacturer. EU tax authorities would prepare a list of areas outside the 1967 borders, and products would be taxed accordingly. Livni protests It appears to be the fruits of long efforts by a strong pro-Palestinian lobby that now spur the British into action. Nevertheless, the British insist that at British consumers want to know the source of the products that they purchase. Israeli exports to Britain totaled about $1.42 billion in the first nine months of the year. These may come under pressures that include bureaucratic delays or levying of customs until the source of production can be identified. But the biggest fear in Israel is that the issue will spill beyond manufacturers in the territories, affecting all local exporters and all exports to the EU - as was the case the last time that the issue boiled to the surface. Israeli exports to the EU total $10-15 billion annually. Meanwhile, the issue is being addressed at the most senior political level, by Foreign Minister Tzipi Livni. The Ministry of Industry, Trade and Labor is also being kept updated on developments. In a meeting this week in Israel, Livni tried to persuade British Foreign Minister David Miliband that the UK's stance in the matter is overly extreme, but such declarations are not expected to advance a solution. Bookmark to del.icio.us   Can war be avoided? Can Israel accept Hamas rule, and ease, rather than tighten its chokehold on Gaza? Latke eating champ Body builder eats 46 latkes in 8 minutes to win N.Y. Hanukkah contest and set a new record.   1.   Hey Michael, fraud it is... 04:38  |  BBSNews 19/11/08   2.   Did You Think EU Would Violate UN Resolutions? 05:48  |  Reader 19/11/08   3.   Well If Israel Took My Advice 05:48  |  Ralph Levy 19/11/08   4.   UK occupied torritories 05:55  |  Roberto 19/11/08   5.   Well, The EU Could Insist That All Goods Produced ... 06:52  |  Reader 19/11/08   6.   Oh! So Israel is worried about the acknowledgement... 07:08  |  Maureen Ann 19/11/08   7.   "Settler Rabble" 07:35  |  One of the "Rabble 19/11/08   8.   Do Chines companies label products made in Tibet, hyproctas? 07:43  |  Dan 19/11/08   9.   Hey "rabble" uh uh... 08:07  |  BBSNews 19/11/08   10.   #6 maureen breaks FREE from her BWoI bog 08:57  |  CK Tan 19/11/08   11.   Number 4 09:07  |  Zimmer 19/11/08   12.   The EU has the power to squeeze the life out of Israel 09:20  |  Clickfool 19/11/08   13.   Dan tries misdirection # 8 09:25  |  Clickfool 19/11/08   14.   1 BBS News. It does indeed look like fraud. 09:30  |  Michael 19/11/08   15.   #8 Two quick points of order, Dan 09:30  |  Johnboy 19/11/08   16.   God, you`re a bore, Roberto # 4 09:33  |  Clickfool 19/11/08   17.   #7 Rabble-rousing, I see..... 09:39  |  Johnboy 19/11/08   18.   Many examples of Israeli fraud have surfaced 09:40  |  Clickfool 19/11/08   19.   Ticking Clock 09:57  |  Ola 19/11/08   20.   CKTan, predictably windwmilling with words # 10 10:26  |  Clickfool 19/11/08   21.   We had that coming 10:49  |  Northern 19/11/08   22.   What is 100millions against 112bilions from Israel´s anual income 11:21  |  JP 19/11/08   23.   Are the British "cooking up" Sanctions...? 11:31  |  Stephen. 19/11/08   24.   not yet public 12:18  |  peter 19/11/08   25.   Exactly, Roberto, we`re all in favour 12:36  |  Minister 19/11/08   26.   Israelis should boycot produce from the west bank 13:07  |  SJ 19/11/08   27.   For JP in Brazil # 22 13:33  |  Clickfool 19/11/08   28.   when are the blind moderators going to post reality 13:50  |  victor hardman 19/11/08   29.   Clickheels re: Israel, small, dependent blah blah 15:04  |  Petra 19/11/08   30.   Creepfool do you label made in occupied Tibet in UK? 15:06  |  Dam 19/11/08   31.   Daft as a brush # 28 15:19  |  Clickfool 19/11/08   32.   Johnboy 3 even quicker points in order 15:23  |  Dan 19/11/08   33.   And it`s about time 15:45  |  ted s 19/11/08   34.   Child demands 16:01  |  Mark Lincoln 19/11/08   35.   #28 Paul Harris aka Victor Hardman /Devalera 16:11  |  Labhras 19/11/08   36.   Britain`s exports 18:42  |  Jehiel Chaleff 19/11/08   37.   Dan, That`s a Good Point...I`d Buy Products Labelled...(2nd) 05:21  |  Reader 20/11/08   38.   Release Dr. Mustafa Barghouti 03:06  |  kmansfield 09/12/08   39.   What, me worried?--Al Newman 01:47  |  a wandering Jew 23/12/08

Read & React Bradley Burston: Can the First Gaza War be stopped before it starts? Responses: 186 Strikes on Negev drop as Hamas holds 24-hour truce Responses: 163 Renowned author Amos Oz lays into Barak for 'letting settlers wreak havoc' Responses: 15 B'Tselem: 58% of Ofra settlement built on Palestinian land Responses: 82 More Headlines 01:30 Olmert to Turkish PM: We must advance toward direct Israel-Syria talks 23:59 Mubarak extends rare invite to Livni for talks on Gaza violence 23:50 U.S. warns Russia against sale of advanced missiles to Iran 00:03 Fight against settlements not about boycotting Israel, says U.K. envoy 00:44 Renowned author Amos Oz lays into Barak for 'letting settlers wreak havoc' 01:55 Welfare authorities take away two sisters, and return only one 01:36 YouTube allows Web users to interview Israel's future prime minister 00:38 Strikes on Negev drop as Hamas holds 24-hour truce 01:50 Health Ministry: 20,000 legal abortions performed in Israel annually 21:19 Can the First Gaza War be stopped before it starts? 20:20 Trial begins in Yemen over murder of local Jew 19:52 Israel's main TV channels bump political ads from primetime 17:40 Livni, on her home life: We're a completely normal family 15:23 Man eats 46 latkes in 8 minutes to win N.Y. Hanukkah contest 17:31 ANALYSIS / Israel must choose between bad and worse Gaza options Previous Editions Select Day 22 dec 21 dec 19 dec 18 dec 17 dec 16 dec 15 dec 14 dec 12 dec 11 dec 10 dec 09 dec

Special Offers Advertisement Summer in Israel Israeli style - Tzofim Chetz V'Keshet 2009 SURF RAMBAM Keep current about new-wave medical care, education and research. Summer Camp in Israel The best place for your children this summer Academic Studies in Israel All the Q & A at the IDC HERZLIYA Open House, January 9,2009 Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. Car rental in Israel Shlomo Sixt Receive $15.00 from our low rates. Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Jewish Singles Personal Ads Find the love of your life on JDate.com Hebrew Summer courses From $39.95 Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel

birthright Israel | Search engine marketing

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved