[A-List] Britain/US split: Israel

["Michael Keaney" <michael.keaney@xxxxxx>]

Britain clamps down on imports

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.