Europe considers taxation of Israeli settlement goods

The European Union's (EU) Origin Committee, which consists of customs experts and commissioners, is to discuss imposing taxes on all Israeli goods produced in the Occupied Palestinian Territory, reports the Palestine Media Center (PMC) describing this as a toughening policy towards the illegal Israeli settlements. Discussions will focus on creating a common European policy, which would revoke duty benefits granted to Israeli settlement products, says the PMC.

The move, which follows the European Union's rejection of Israel's military occupation of the Palestinian Territory, including East Jerusalem, was the subject of European debate and Israeli objection in the past. It also signals the EU's discontent over Israel's refusal to provide it with a list of the Israeli factories operating in the Occupied Palestinian and Arab Territories.

Last November, the EU had issued a warning to European importers, specifying that Israeli exports originating in the Occupied Palestinian Territory as well as the Golan Heights were not included in the free trade agreement with Israel.

At present Israel enjoys a free trade agreement with the EU, which exempts it from customs duties. While the Israeli settlement products only amount to US $100 million of the US $8 billion Israel gains annually from its exports to Europe, Israeli officials have expressed their worry over the committee's deliberations.

According to PMC, the 1949 Fourth Geneva Convention clearly states that any settlement that the Occupying Power creates in an Occupied Territory is illegal and considered a war crime. Although High Contracting Parties to the Convention have affirmed the Convention's de jure applicability to the Occupied Palestinian Territory, including East Jerusalem, Israel maintains its refusal to respect its obligations as an Occupying Power, which would include the dismantling of its illegal settlements in that territory in addition to not exporting any products from them.