Israelis are very good at bypassing such laws. They will just change the country of origin. I know for sure that many Israely electronics equipment produced in Israel are being sold under other country of origins in order to sell them in Arab/Muslim countries. This is much easier for them. Just change the label to say " Made in Israel". EU is just grandstanding.
Saudi forces kill two militants after failed car-bombing (AP)
from the article: EU foreign ministers pushing to label all settlement products