israel balks at UK plan to curb exports from illegal settlements

iSRAEL and the UK are at loggerheads over a British initiative aimed at stemming the expansion of illegal Israeli settlements in the West Bank.

Britain proposes an economic strategy that would make products from the settlements less competitive in their key market, the European Union.

An Israeli official told The Scotsman that Israel was annoyed about the UK initiative, which aims to distinguish between goods produced inside Israel – which are exempt from EU tariffs – and those made on settlements in the occupied territory, which are not exempt.

"Britain is sticking this issue in our behind but it won't do anyone any good," said the official, who requested anonymity.

The comment came at the outset of a two-day visit by David Miliband, the Foreign Secretary, to Israel and the Palestinian Authority in the West Bank.

After the Foreign Secretary met the Israeli premier, Ehud Olmert, yesterday, a spokesman for Mr Miliband said that there was a "clear exchange of views on the rules of origin" governing goods coming from settlements. More lies