I completely agree however you're missing the point that the EU exempts most Israeli produce, just NOT settlement produce. If you want to tax EU stuff then go ahead but don't be surprised if the EU reacts in kind. Settlements are illegal and the world knows this, the tax rules were long overdue BUT the EU is now catching up.
UN to hold off on separate Afghan bombing probe for now (Reuters)
from the article: Israeli West Bank food company fakes address for EU markets