Britain
clamps down on imports from Israels illegal settlements
Michael White, political editor
Friday April 4, 2003
The Guardian
Tony Blair's government tightened the screws on Israel's illegal
West
Bank settlements yesterday by warning British food and agricultural
importers that they will now be liable for taxes on zero-rated goods
which are not genuinely Israeli.
To the delight of Labour MPs critical of the settlements, widely
seen
as a barrier to peace between Israel and the Palestinians, the
Treasury issued a written commons statement which signals a
tightening up of customs checks in response to Israeli stonewalling
on the exact origins of its exports.
John Healey, the economic secretary in Gordon Brown's team, said
that
the latest agreement between Israel and the EU to provide zero-rates
of duty on Israeli products does not extend to goods originating
in
territories occupied during the 1967 war, including Gaza and the
West
Bank.
"These settlements are illegal under international law, they
are not
part of Israel," one Labour MP said yesterday. "By buying
such goods
we are subsidising these settlements."
Less than 10% of Israel's farms exports are said to emanate from
the
West Bank, but such goods are used to defray the heavy cost of
subsidising the settlements from Palestinian attacks.
Mr Healey told MPs that zero-rating may be denied "where there
is
reasonable doubt as to entitlement". Israel has not denied
certifying
goods from the West Bank as Israeli.
The EU is also tightening up its controls.
Britain's active role in persuading President George Bush to embrace
the "road map" to restore the Middle East peace process
- as part of
the US regional strategy against Iraq - has prompted hostile
commentary in Tel Aviv.
Mr Healey said that Israel had failed to prove the legitimacy of
goods suspected of coming from the occupied territories.
"Customs and excise have now begun issuing duty demands to
UK
importers where there is reason to suspect that goods may have
originated in Israeli settlements in the occupied territories,"
he
said.
Israel will still be able to export goods produced in settlements,
but they will not be eligible for the special rates of duty.
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