Trading Peace

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  • 7/31/2019 Trading Peace

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    Trading away Peace:

    H ep hp t i ttmt

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    Trading away Peace: H ep hp t i ttmt2 Trading away Peace: H ep hp t i ttmt 3

    THis rePorT is Produced by

    THe ollowing organisaTions:

    1. Aprodev

    2. Blijk dln (Blgium)

    3. Caabu (UK)

    4. CCFd - T Sliai (Fanc)

    5. Chistian Ai (UK an Ilan)

    6. Chuch f Swn

    7. Cai (Nthlans)

    8. danChuchAi (dnmak)

    9. diaknia (Swn)

    10. FinnChuchAi (Finlan)

    11. ICCo (Nthlans)

    12. IKv pax Chisti (Nthlans)

    13. Intnatinal Fatin f Human rights (FIdH)

    14. Mical Ai f palstinians (UK)

    15. mic intnatinal (Gmany)

    16. mic intnatinal switzlan

    17. Th Mthist Chuch in Bitain

    18. Nwgian pls Ai

    19. Nwgian Chuch Ai

    20. Quak Cuncil f euan Affais

    21. Quak pac an Scial Witnss (UK)

    22. Tcai (Ilan)

    F m infmatin las cntact:

    [email protected]

    publish octb 2012

    pint n Cyclus off st a, ma fm 100 %

    recycled bres. Printed with inks based on vegetal oil,

    without IP alcohol, without solvents

    Cover Photo: A view of the settlement of Modiin Illit,

    built on lands taken from the neighbouring Palestinian villages.

    Eduardo Soteras/Activestills.org

    dsign by Miiam Hml, www.atknw.c.uk

    conTenTs

    oreword 5

    eXecuTiVe suMMary 6-7

    inTroducTion 8

    MaP o seTTleMenTs 9

    cHaPTer 1 israeli seTTleMenTs and THeir iMPacT 10-16

    1.1 impt Pt ht vh

    1.2 sttmt, t tt

    cHaPTer 2 THe Two econoMies o THe wesT 17-19

    bank: laVisH subsidies Vs. criPPling barriers

    2.1 bft ttmt

    2.2 rtt Pt m t

    2.3 eu Pt p

    cHaPTer 3 euroPes econoMic links wiTH seTTleMenTs 20-25

    3.1 Vm ttmt t th th eu

    3.2 Mt mm ttmt pt ep

    3.3 ivvmt ep mp

    cHaPTer 4 euroPean Policies Vis-a-Vis seTTleMenTs 26-29

    4.1 sttmt pt mt

    4.2 cm

    4.3 d pvt t th ttmt

    4.4 b mpt ttmt pt

    4.5 ex ttmt m mt pt tmt th i

    cHaPTer 5 recoMMended Measures 30-31

    or euroPean goVernMenTs and THe eu

    endnoTes 32-35

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    orewordH v b

    i 1993, i ppt eucmm ext rt.it tm hp mtt i th Pt,mth th tho a.

    Almost 20 years have passed since the Oslo Accords were signed

    and peace in the Middle East seems more remote than ever.

    That no comprehensive peace has been achieved is due to a

    numb f asns. Th stagnatin f th ac css cannt

    b attibut t a singl fact.

    However, one of the main reasons I would say the decisive

    n is Isals incssant sttlmnt licy in th Wst Bank an

    East Jerusalem. In recent years, this policy has been preventing

    the resumption of meaningful peace negotiations. But its negative

    impact goes much further: it threatens the viability of the two-state

    solution and thus the very feasibility of peace.

    duing th ast cas, th eU has cnsistntly citiciz

    and condemned the settlement policy. Dozens of ofcial EU

    statements and positions reafrm the illegality of the settlements

    un intnatinal law an ga thm as maj bstacls t

    ac. ratly, th eU has stss that it will nt cgnis

    any unilatal changs t th -1967 bs, incluing with

    ga t Jusalm.

    As sttlmnt cnstuctin has cntinu an acclat,

    however, we Europeans have failed to move from words to action.

    So far, we have refrained from deploying our considerable political

    and economic leverage vis--vis Israel to contain developments on

    the ground that contradict our basic values and that undermine our

    statgic intsts.

    As th winw f tunity f ac btwn Isal an

    th palstinians is clsing bf u ys, th eU nw facs

    a funamntal challng an ssibly last chanc t tanslat

    its principled positions into effective action. If Europe wants to

    preserve the two-state solution, it must act without delay and take

    th la.

    This gunbaking t suggsts hw th eU cul s. It

    identies concrete measures that the EU and its 27 member states

    shul at t st cibility t th eUs sitins an cntain

    the settlement policy. At the highest level, they deserve serious

    cnsiatin.

    I am f th inin that ths masus, ict nly at illgal

    sttlmnts utsi Isals cgnis bs, nt cnstitut

    an anti-Israel agenda. On the contrary, the preservation of the two-

    stat slutin, in accanc with intnatinal law, shul b sn

    as a cntibutin t Isals scuity an lgitimacy.

    Hans van den Broek

    Fm Minist f Fign Affais f th Nthlans (1982-1993)

    an fm eU Cmmissin f extnal rlatins (1993-1999)

    Th rights Fum

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    eXecuTiVe suMMary

    Th ep u pt t : i ttmt thp Pt tt tt , ttt t t p tht t m t-tt t mp.1 yt thpt h h ep p hpt th ttmt. it v tht theu mpt ppxmt ft tmm m th ttmt th

    m th Pt thmv.sali sttlmnts a cmmunitis stablish n titis

    ccui by Isal sinc 1967. Tay th a m than 500,000

    sraeli settlers living across the occupied West Bank, including East

    Jusalm. Sttlmnts cntl m than 42% f th Wst Banks

    an an th majity f its wat an natual sucs.2 Thi aily

    ncachmnt n palstinian tity unmins th fasibility f th

    tw-stat slutin mt by th euan Unin.

    Over the past two years, settlement expansion has accelerated

    with more than 16,000 new housing units announced or approved.3

    Manwhil th mlitins f palstinian stuctus - incluing ths

    funded by European donor support - are on the rise, displacing over a

    thusan l fm thi hms in 2011, almst twic th numb

    n 2010.4 The last two years have also seen unprecedented numbers

    of violent attacks by settlers against Palestinians.

    a mt t-t tm

    Through the establishment of settlements, successive Israeli

    governments have created a discriminatory two-tier system in the

    West Bank with settlers enjoying all the rights and benets of Israeli

    citiznshi, an palstinians subjct t Isali militay laws that

    deprive them of their fundamental rights.

    Movement of Palestinians within the West Bank and access to

    essential services, including hospitals, remains hampered by some

    542 obstacles to movement, including roadblocks and checkpoints,

    sit limit asing in th last yas.5 Accss t wat als

    remains hugely unequal with Israel over-extracting West Bank water

    sucs, whil sticting palstinians fm illing nw wlls an

    developing their water infrastructure. In some cases, pumping of

    gunwat t iigat xt cs n sttlmnt fams has i u

    nearby Palestinian wells, limiting Palestinians ability to cultivate their

    wn lans.

    Aing t th cntaictins at th hat f eU licy twas

    Isals illgal sttlmnts, th eU has fail t fully xclu

    settlements from the benets of its cooperation programmes

    and bilateral agreements with Israel. In several cases, EU public

    funds for research and development have been used to directly

    support activities in settlements.10 The newly ratied EU-Israel

    Agmnt n Cnfmity Assssmnt an Acctanc f

    Inustial pucts (ACAA), is anth xaml f eUs failu t

    insist on a rm distinction between Israel proper and the illegal

    sttlmnts.

    Th

    Th many linkags with sttlmnts a incnsistnt with

    eus bligatins un intnatinal law, which stiulats

    that third parties, including European governments, have the

    uty nt t cgnis, ai assist sttlmnts as wll as th

    duty to effectively oppose them. By trading with settlements and

    cntibuting t thi mannc, th eU is als unmining

    its years of political and nancial investment in Palestinian

    stat-builing ffts. Th is a gwing awanss amng

    European governments of the need to close the gap between

    thi htic n sttlmnts an thi actic. Th Bitish an

    Danish governments have already taken concrete steps by

    ating guilins f cct lablling f sttlmnt ucts.

    But there is much more that national governments and the EU

    can t nsu thi licis nt ictly inictly sut

    sttlmnts an th assciat injustics.

    Th t m th wt b

    Settlement farmers and manufacturers benet from wide-ranging Israeli

    government subsidies and enjoy easy access to international markets

    via government-built roads that bypass Palestinian populated areas.

    In stark contrast, the Palestinian economy is severely constrained

    by Isali stictins n accss t makts an natual sucs,

    th annual cst f which has bn stimat at eUr 5.2 billin

    85% f th ttal palstinian Gdp.6 As a sult f ths stictins,

    Palestinian exports have declined from over half of Palestinian GDP

    in the 1980s to less than 15% of GDP in recent years, effectively

    negating any benets of the EUs preferential trade agreement with the

    palstinians.7

    This has hl cat a situatin wh th palstinian Authity is

    nnt n lag amunts f funs fm th eU an th fign

    donors and is currently facing an acute scal crisis.

    Th tt ep t th ittmt

    The most recent estimate of the value of EU imports from settlements

    provided by the Israeli government to the World Bank is $300m

    (230m) a ya8; this is approximately fteen times the annual value of

    eU imts fm palstinians.9 With m than fu millin palstinians

    and over 500,000 Israeli settlers living in the occupied territory this

    means the EU imports over 100 times more per settler than per

    palstinian.

    Th mst cmmn sttlmnt ucts sl in eu inclu

    agicultual ucts ,such as ats, citus fuits an hbs, an

    manufactured products including cosmetics, carbonation devices,

    lastics, txtil ucts an tys.

    Despite its rm position that settlements are not part of Israel, Europe

    has bn accting imts f ths sttlmnts ucts with igin

    signat as Isal, thus acquiscing t Isals xtnsin f its

    sovereignty over the occupied territory. Many of these products are

    als sl in euan sts un th mislaing labl Ma in

    Isal, nying cnsums thi ight, un xisting eU cnsum

    tctin lgislatin, t mak infm cisins whn thy sh.

    As a sult, many euan cnsums a unwittingly suting th

    settlements and the attendant violations of human rights.

    Byn th ta in sttlmnt gs, sm euan-wn

    companies have invested in settlements and related infrastructure or

    are providing services to them. Cases that have been reported include

    G4S (UK/dnmak), Alstm (Fanc), vlia (Fanc), an Hilbg

    Cmnt (Gmany). oths, such as dutsch Bahn (Gmany),

    AssaAbloy (Sweden), and Unilever (Netherlands) have already ceased

    their activities in the West Bank in recent years, setting an example for

    th cmanis still ing businss in th sttlmnts.

    ex ttmt m eu

    t t th i

    rmm m ( tvmt th eu pppt)

    s mpt ttmt pt

    Natinal an eU1. ensu cct cnsum lablling

    f all sttlmnt ucts as a minimum

    masu, as n by th UK

    and Denmark, but also covering

    manufactu ucts.

    2. As a futh masu, iscuag

    businsss fm uchasing sttlmnt

    gs an fm all th cmmcial

    and investment links with settlements,

    by means of formal government advice.

    3.As a more comprehensive option, ban

    imts f sttlmnt ucts, as call

    f by Ilan.

    Natinal

    Natinal in absncf cmmn eU actin

    eU/eFTA

    Natinal an eU

    Natinal an eU

    Natinal

    Natinal in absncf cmmn eU actin

    4. exclu sttlmnt ucts fm

    fntial makt accss by insisting

    that Isal stat signating th igin f

    sttlmnt ucts iffntly than Isal.

    5. exclu sttlmnts fm bilatal

    agmnts an catin instumnts

    with Isal by mans f xlicit lgal

    provisions and safeguards.

    6. exclu sttlmnt ucts an

    cmanis fm ublic cumnt

    tns.

    tt th ttmt

    7. Remove organisations funding settlements

    fm tax uctin systms, as n in

    Nway.

    8.Prevent nancial transactions to settlements

    and related activities by means of applying

    restrictive measures, as a more

    comprehensive approach.

    Natinal

    Natinal

    eU

    oeCd mmbs

    oth m

    9. discuag citizns fm buying

    ty in sttlmnts by mans f

    formal advice, as already done by

    several EU member states.

    10. Issu guilins f euan tu

    operators to prevent support for

    sttlmnt businsss.

    11. daw u a list f cmanis mis-

    stating th igin f sttlmnt

    gs as Isal as qust by th

    euan paliamnt.

    12. Insist that Isal isagggats

    settlement data provided to the

    oganisatin f ecnmic C-

    Operation and Development (OECD).

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    Trading away Peace: H ep hp t i ttmt8 Trading away Peace: H ep hp t i ttmt 9

    inTroducTion

    Th t t th pt hmt, vpmt, hmht, p- tht m eu mmtt, m n stz - hv t th mpt i ttmt Pt mmt th ptt m . i tt tth mm h ppt tht th

    tt tmt ttq, th hv tht th t th m tt. sttmt xp, Pt t h t m, h th t tt hpt, tt thpt thm mvmt hth t v. Pthm tt mh t m ttmt,p h pp v .

    ARIEL

    SHILO

    ELI

    MEHOLA

    MEVODOTAN

    KEDUMIM

    SHAVESHOMRON

    SALIT

    AVNEHEFETZ ENAV

    ELKANA

    HALAMISH

    TALMON

    ITAMAR

    ELONMOREH

    OFRA

    BETEL

    MA'ALEMIKHMAS

    MEVOHORON

    KARNESHOMRON

    K.ADUMIM

    K.ETZIONEFRATA

    TEKOA

    KIRYATARBA

    NEGOHOT

    HAGGAY

    MA'ON

    SUSSIYA

    OTHNIEL

    SHIM'A

    MITZPESHALEM

    QALYA

    MA'ALEADUMIM

    G.ZE'EV

    GILOHAR

    HOMA

    BRAKHA

    YIZHAR

    Migron

    Mle.

    Rehavam

    Mp.Kramim

    Adi Ad

    PalgeMayim

    Hayovel

    Kida

    Nablus

    Tulkarm

    Jenin

    Ramallah

    Jerusalem

    Jericho

    Bethlehem

    Hebron

    Qalqilya

    Gaza

    Rafah

    KhanYunis

    Settlements Established and Evacuated 1967 - 2008

    ISRAEL

    Med

    iterran

    ean

    Sea

    Dead

    Sea

    JordanR

    iver

    Map : Jan de Jong

    10 Km

    G A Z A

    S T R I P

    W E S T B A N K

    Palestinian-usedand accessed areaseast of the Barrier

    Settlement Areas

    Green Line

    Separation BarrierRoute ( April 2006)

    Settlementsestablishedin1960's

    Settlementsestablished

    in 1970'sSettlementsestablishedin 1980's

    Settlementsestablished1990 - 1995

    Settlement Outpostsestablished beforeMarch 2001

    Settlement Outpostsestablished afterMarch 2001

    Settlements evacuatedin September 2005

    Th sitin f th euan Unin is abslutly cla:

    Sttlmnts a illgal un intnatinal law, cnstitut an

    bstacl t ac an thatn t mak a tw-stat slutin

    imssibl.11 Yet, over the years, the EUs statements have done

    littl t halt th cntinu sttlmnt cnstuctin. At th sam

    tim, eu has cntinu taing with th sttlmnts, thus

    facilitating their entrenchment and growth. Given that settlement

    expansion is making a viable Palestinian state all but impossible,

    th ta with sttlmnts is unmining billins f eus in ai

    that Europe has invested in Palestinian state-building efforts. There

    is a growing awareness among European governments of the

    n t ctify ths licy incnsistncis.

    This t cumnts th ffcts f Isali sttlmnts n

    Palestinian rights and livelihoods and describes the Israeli

    governments starkly different treatment of settlers and

    palstinians in th Wst Bank. It utlins th cnmic links

    btwn eu an th sttlmnts, naming th mst cmmn

    settlement products sold in Europe and detailing the involvement

    f euan cmanis. Th t als analyss euan

    and national policies relevant to trade and other linkages with

    sttlmnts. It snts a ang f cnct an fasibl masus

    to bring the actions of national governments and the EU in line

    with thi ws an t nsu that thi licis nt ictly

    inictly assist th sttlmnts.

    Settlements Established & Evacuated, 1967-2008

    Funatin f Mil east pac an Jan Jng, Fb 2008

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    The construction of the Wall in the Palestinian village of Al Walaje which has beensurrounded by thousands of settlement units in the Gush Etzion bloc. Photo: David Levene

    cHaPTer 1israeli seTTleMenTsand THeir iMPacT

    sttmt i mmtth tt p th 1967 a-i .sttmt ppt tt p ,hpt, th pt v thm m th Pt ppt. sttmtvt tt un stc t t, thhtth 45 i pt

    th Pt tt, v ivmt h pmt tttmt xp.

    There are now more than 500,000 Israeli settlers living in over 200

    sttlmnts in th Wst Bank, incluing east Jusalm.12 Th

    sttl ulatin has m than ubl sinc th cnclusin f

    the Oslo peace accords in 1993, which were intended to provide

    a famwk f ning th ccuatin.13 Th sttl ulatin is

    growing at a much faster rate (an average of 5.3% annually over

    th last ca) than th Isali ulatin as a whl (1.8%).14

    Sm f th lagst sttlmnts, such as Maal Aummim, Ail

    an Bta Illit a nw sizabl twns with tns f thusans f

    inhabitants.

    duing th ast tw yas in aticula, fllwing th failu f US

    President Obamas effort to convince the Israeli government to

    fz sttlmnt cnstuctin, sttlmnt gwth has makly

    accelerated. More than 16,000 new housing units have been

    announced or approved since October 2010.15 Over the same

    period, Israeli authorities have stepped up demolitions of

    Palestinian homes, while violent attacks by settlers against

    Palestinians have also sharply increased.

    Th gwth f sttlmnts is cating facts n th gun that a

    violating the Palestinian right to self-determination and making the

    two-state solution promoted by the European Union ever harder

    to achieve. More than 42% of West Bank land and the majority of

    water and natural resources have been seized from Palestinians

    an allcat t sttlmnts.16 Sttlmnts an th lat

    infastuctu, incluing nw a ntwks an th saatin

    barrier, have carved up Palestinian communities into disconnected

    enclaves with movement controlled by checkpoints. This land

    grab, that has no legitimate security justication, has dramatically

    reduced the space available for Palestinians to develop livelihoods

    an cnstuct husing an infastuctu. At th sam tim,

    settlements have been integrated with Israel proper, blurring the

    intnatinally acct -1967 b btwn Isal an th

    Wst Bank.

    Thugh th stablishmnt f sttlmnts, Isal has cat

    a isciminaty tw-ti gim in th Wst Bank with tw

    populations living separately in the same territory under two

    iffnt systms f law. Whil sttls njy all th ights an

    benets of Israeli citizens, Palestinians are subject to a system of

    Israeli military laws that deprives them of their fundamental rights.17

    Israels continuing announcements to accelerate

    the construction of settlements in the Occupied

    Palestin ian Territories, in cluding East Jerusa lem,

    send a devastating message. We call on the Israeli

    government to reverse these steps. The viability

    of the Palestinian state that we want to see and the

    two-state solution that is essential for Israels long-

    term security are threatened by the systematic and

    deliberate expansion of settlements. Settlementsare illegal under international law and represent a

    serious blow to the Quartets efforts to restart peace

    negotiations . All settlement act ivity, including in

    East Jerusa lem, must cease immed iately.

    eU statmnt at th UN Scuity Cuncil, dcmb 201120

    Isra eli soldier searches boys school bag in Hebron. pht: Tcai/Alan Whlan

    a a, b c: pmttmp

    Under the Oslo Accords, the West Bank was divided into

    three administrative zones which were meant to be temporary

    and transitional. Area A, which covers just 18% of the West

    Bank, is under civil and security control of the Palestinian

    Authority. Area B is under Palestinian civil control and joint

    Isali-palstinian scuity cntl. Aa C is un th full

    civil and military control of the Israeli government and it is the

    area where Israeli settlements are located. Covering 62% of

    th Wst Bank, Aa C is th lagst an th nly cntiguus

    area connecting 227 separate enclaves (A and B).18 In

    to travel through Area C Palestinians must cross through

    chckints. Aa C als cntains th majity f wat

    sucs an gazing an agicultual lan. As th eU has

    nt in an intnal t, th palstinian stat-builing jct

    supported and co-nanced by the EU is in effect partly limited

    t th fagmnt an islat islans f aas A an B in th

    can f th cntiguus aa C.19

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    1.1 impt Ptht vh

    Demolitions deprive people of their homes, remove their sources

    of livelihood and have an overwhelmingly negative psychosocial

    imact. M than half th palstinians islac in 2011

    w chiln24 f whm th lss f thi hm is aticulaly

    devastating.

    Accing t Isali authitis, mlitins a cai ut

    bcaus stuctus lack th qui builing mits. In ality,

    it is almst imssibl f palstinians t btain mits t

    build homes, clinics, schools, wells, animal pens or other vital

    infastuctu f lcal cmmunitis in Aa C. Isali authitishave rejected 94% of construction permit applications for

    palstinian stuctus in Aa C in cnt yas.25

    In cntast, Isali sttlmnt cnstuctin cntinus unabat

    and receives strong government support despite violating

    international law. Even in cases where Israeli settlers have built

    nti sttlmnt utsts in bach f Isals wn gulatins,

    the Israeli authorities have rarely demolished the buildings. In

    some cases they have retroactively approved their construction or

    cnnct thm t th a ntwk, lcticity an wat suly

    and provided security forces to guard them. There are currently

    abut 100 sttlmnt utsts built withut th qui mits

    (whil all sttlmnts, whth with mits nt, a illgal

    un intnatinal law).26

    An Israeli settlement on the outskirts of East Jerusalem. Settlements are beingconstructed around the city, cutting off Palestinian East Jerusalem from the West

    Bank. Despite widespread water shortages in Palestinian communities, many of these

    settlements boast swimming pools and water featur es. Photo: Trcaire/Alan Whelan

    uq t t

    Israel maintains a hugely unequal division of water resources in the

    West Bank to the benet of settlers and at the expense of Palestinians.

    Isal has bn xtacting Wst Bank wat at such a at that it has

    led to a decline in water available to Palestinians.35 At th sam tim,

    Israeli-imposed restrictions prevent Palestinians from drilling new wells

    and developing their water sector to meet their needs.36

    Un th osl Agmnt, which was mant t b tmay an

    tansitinal, Isalis w allcat fu tims m wat fm th

    sha Wst Bank aquifs than palstinians. In actic, Isal has

    bn xtacting u t 80% m than this allcatin ag un osl.

    As a result of the Israeli over-extraction, combined with restrictions on

    Palestinian drilling and water sector development, the amount of water

    Palestinians extracted from 1995 to 2007 decreased by 4%, even as

    th palstinian ulatin incas by half, accing t th Wl

    Bank.37

    Average Palestinian water consumption in the West Bank is about

    73 lits a ay sn wll blw th 100 lits caita aily

    cmmn by th Wl Halth oganisatin (WHo) as th

    minimum quantity f basic cnsumtin. p caita wat us f

    Isalis - incluing sttls - is th an half tims high.38

    Th unqual accss t wat ks Isali sttlmnt fams wll

    iigat an lush, whil th palstinian agicultual sct cul sut

    u t 110,000 m jbs with aquat accss t wat.39

    In the Jordan Valley, Israel has drilled deep wells to service water-

    intensive export-oriented agriculture in settlements. Fewer than 10,000

    sttls in th aa us n-quat th ttal amunt f wat cnsum

    by th nti palstinian ulatin f th Wst Bank, sm 2.5 millin

    l.40 In sm cass, uming f wat fm Isali wlls in th

    ccui tity t iigat sttlmnt agicultu f xt has i

    up nearby Palestinian wells, limiting Palestinians ability to cultivate their

    wn lans.41 While in 1967, there were 209 active Palestinian wells in

    th Jan vally aln; tay th a nly 89.42

    Members of the a-Rashaydah family after the demolition of their home in Fasayil,the Jordan Valley. Photo: BTselem/Atef Abu a Rob

    Th Isali licy f builing sttlmnts in th ccui tity

    results in widespread human rights violations and undermines

    the development of Palestinian communities. Palestinian homes

    a mlish t mak way f illgal sttlmnts, islacing

    hundreds of people every year. Settlements deny Palestinians

    freedom of movement and deprive them from accessing vital

    sucs such as wat an famlan.

    dmt pmt

    The last few years have seen a large increase in demolitions ofpalstinian hms an infastuctu by Isali fcs, sulting

    n acclat fcibl islacmnt f l. In 2011, 622

    Palestinian homes, wells, rainwater harvesting cisterns and other

    ssntial stuctus w sty in Aa C an east Jusalm,

    islacing almst 1,100 palstinians. This is almst ubl th

    number of people displaced in 2010, and the highest gure in

    years. Over 60% of demolitions are carried out close to, or inside,

    aas allcat t sttlmnts.21

    n the rst nine months of 2012, the number of demolitions per

    mnth has kt ac with th cing c ya.22 Thusans

    m main at isk f mlitin an islacmnt in Aa C an

    east Jusalm. dstuctin f th ccui ulatins ty,

    except in cases of absolute military necessity, is a violation of

    ntnatinal law.23

    Demolitions also affect projects funded by European governments

    on behalf of the Palestinians. During 2011 and the rst half of 2012,

    at last 62 stuctus fun by euan ns w mlish

    in Aa C; incluing wat cistns, animal shlts an agicultual an

    sintial stuctus. At last anth 110 stuctus fun by euan

    donors are under threat of demolition, having received demolition or stop

    wk s fm Isali authitis.27 Th a n knwn cass wh

    European donors have received any compensation from the Israeli

    authitis f th amag t thi jcts.

    chpt, th pt

    Since the 1990s, Israel has put in place an extensive network of

    obstacles blocking Palestinian movement within the West Bank,

    incluing chckints, ablcks an th saatin bai,

    accompanied by a restrictive system of permits. Despite some easing

    f th hysical stictins in th last fu yas, palstinians still fac

    major difculties in travelling between different West Bank cities,

    accssing thi wklacs, famlan, schls an hsitals, an

    visiting their family relatives.28

    According to recent UN gures, there are approximately 542

    roadblocks and checkpoints obstructing Palestinian movement in the

    Wst Bank. Aximatly 70 cmmunitis, with a cmbin ulatin

    of 190,000, are forced to use detours that are two to ve times longer

    than th ict ut t th clsst city. 29

    Most of the restrictions on Palestinian movement in the West Bank

    a intn t tct th Isali sttls scuity an t facilitat thi

    movement.30 In contrast to the Palestinians, settlers have easy access

    t scial as that byass palstinian ulat aas an cnnct

    sttlmnts t th a ntwk an citis insi Isal an t th

    sttlmnts.

    Th saatin bai is a maj aitinal bstacl t palstinian

    movement. The route of the barrier deviates from the internationally

    acct -1967 Gn Lin f 85% f its 700km ut, making

    th bai illgal un intnatinal law, as stat by th Intnatinal

    Cut f Justic.31 Cutting int th Wst Bank, th bai is

    dividing Palestinian communities from one another, isolating some

    11,000 palstinians n th Isali si an saating fams

    fm thi lans. Th ut f th bai is imaily tmin by

    th lcatin f th sttlmnts, as it ks 85% f th sttlmnt

    ulatin, incluing aas lann f futu sttlmnt xansin,

    n th Isali si f th bai. 32

    Accss t east Jusalm als mains a maj blm. Isal bligs

    any Palestinian who does not have residency rights in Jerusalem

    Isali citiznshi t aly f a mit thugh a cmlicat an

    tim-cnsuming css. This is als th cas f mical atints

    accssing palstinian hsitals in east Jusalm. 19% f atints

    an thi cmanins in th Wst Bank wh ali f halthca

    accss in 2011 ha thi mits ni lay.33 In a vast majority

    of ambulance transfers, patients must be moved from a Palestinian

    ambulanc t an Isali ambulanc at a chckint bf nting

    Jusalm.34

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    b Mh

    Th palstinian cmmunity f Baala in th nthn Jan vally

    was once a thriving agricultural area. In 1969, Israel established the

    Mehola settlement, allocating agricultural land privately owned by

    Palestinians for the exclusive use of Israeli settlers.

    Sinc thn, th man fm th sttlmnts f wat t gw

    crops and service their homes has had a directly negative

    impact on Palestinians access to water. Deep, high-volume

    wlls ill by th Isali wat cmany Mkt in th 1960s

    an 70s caus shallw palstinian wlls an sings t y

    u.47 In principle, Mekorot agreed to provide water from its wellst affct palstinians but Baala sints tl Human rights

    Watch that they have no control over the operation of the Israeli

    wells and have suffered severe shortages in summer.48 Fams

    from Bardala said they could only cultivate one-third to one-half

    as much lan as thy us t, u t lack f iigatin wat.49

    Some farmers have resorted to purchasing portable water

    tankers for irrigation, though Israeli forces have in some cases

    conscated the water tanks and ned the owners.

    Meanwhile, the settlers have no problem with access to water: in

    aitin t a swimming l, Mhlas gnus wat suly allws

    it to grow crops for export. According to the Israeli group Who Prots,

    Mhla ucs mlns an ats f xt t eu.50

    Pt ttmt

    The space for Palestinian economic activity and employment is

    severely constrained by sweeping Israeli restrictions. As a result,

    many Palestinians have little option but to seek employment in the

    same settlements, which are the very reason for their poverty and lack

    f tunity. This is sit th licy f th palstinian Authity,

    sut by palstinian ta unins, that iscuags palstinians

    fm wking in th sttlmnts.

    The Israeli settlement economy, on the other hand, benets from the

    xlitatin f palstinian labu. palstinians wking in sttlmnts

    a mly mainly in cnstuctin, agicultu an in th inustial

    zns.

    At last 9,500 palstinians a wking in sttlmnt fams, which

    in some cases have been built on land expropriated from them. In aharsh irony, some Palestinian farmers have become, in effect, tenant

    wks n what us t b thi wn lan.51 palstinian wks ftn

    face discrimination and violations of their rights. While the minimum

    wage in Israel is currently $6.00 per hour, Palestinians working on

    Israeli settlements in the Jordan Valley are paid only an average of

    $2.00$4.80 per hour. None of the Palestinian workers interviewed in

    a recent survey received the benets that Israeli workers are entitled

    to by law, including holidays, overtime pay, health insurance or sick

    ay.52

    According to Kav LaOved, an Israeli NGO protecting labour rights,

    chiln as yung as 12 als wk sasnally n th Jan vally

    sttlmnt fams, mainly whn ats, s an tmats a

    harvested.53

    Palestinians construct a greenhouse on an Israeli settlement farm in the JordanValley. Photo: Christian Aid/Tabitha Ross

    stt v

    Th snc f illgal sttlmnts in th ccui tity is a

    source of extreme tension that often leads to violence on both sides.

    Palestinians living in the vicinity of settlements located throughout

    the West Bank have been subjected to increasing numbers of violent

    attacks cmmitt by sttls.

    2011 saw a c numb f sttl attacks sulting in palstinian

    casualtis an ty amag: 32% m than in 2010, an

    144% more than in 2009. Nearly 250,000 people live in communities

    vulnerable to settler violence.54

    In addition, about 10,000 Palestinian-owned trees, primarily olive

    ts, w amag sty by Isali sttls last ya,

    signicantly undermining the livelihoods of hundreds of families.55

    Other acts of settler violence against Palestinians have included

    stone throwing, blocking roads, torching elds and other damage to

    ty.

    Wat cistns us by palstinian fams t cllct ainwat a

    fquntly mlish by th Isali authitis (46 in 2011 aln),

    futh limiting thi ability t gw cs.43 In aitin, a gwing

    number of water springs on Palestinian land in the vicinity of

    settlements have been taken over in recent years by settlers who

    have subsequently blocked Palestinian access to them.44

    Many Palestinian farmers have no choice but to purchase water

    from mobile tankers that is up to ve times more expensive than

    water from a regular supply, making their produce more expensive

    and less competitive.45 Overall, the lack of access to water has led

    to a fall in the viability of farming and a loss of livelihoods.

    Isals xlitatin f wat sucs f th ccui tityat the expense of local population is an ongoing violation of

    ntnatinal law.46 By imting agicultual cs gwn n

    sttlmnts an nnt n xtactin f wat eu is

    contributing to this ongoing violation.

    1.2 sttmt, t tt

    wh ttmt ?

    As th ccuying w, Isal is blig t sct intnatinal

    humanitarian law as set forth, inter alia, in the Fourth GenevaConvention (1949) and the Hague Regulations (1907).

    The Fourth Geneva Convention prohibits an occupying power from

    tansfing its citizns int th ccui tity (Aticl 49). Th

    Hagu rgulatins hibit an ccuying w fm untaking

    mannt changs in th ccui aa unlss ths a u

    to specic military needs, or unless they are undertaken for the

    benet of the local, in this case Palestinian, population.58

    By seeking to prevent de facto annexation, these prohibitions

    infc th basic incil that an ccui nly acquis

    temporary authority over an occupied territory, not permanent

    sovereignty.59 Thy a als in accanc with th incil f

    inamissibility f th acquisitin f tity by wa.60

    The creation of settlements for Israeli civilians in the occupied

    Palestinian territory violates these international laws, as concluded

    by the UN Security Council, conrmed by the International Court

    f Justic an atly stat by th eU.61 Sttlmnts als

    bach th palstinian ight t slf-tminatin.62

    A number of related Israeli practices are also illegal under various

    provisions of international humanitarian and human rights law,

    incluing:

    the appropriation of Palestinian land for settlements and the

    xlitatin f palstinian nn-nwabl natual sucs; 63

    unjustied changes in pre-existing laws on water distribution and

    lanning;64

    demolitions of Palestinian structures and forcible displacement of

    palstinians;65

    construction of the separation barrier where it deviates from the

    -1967 Gn Lin;66

    movement restrictions linked to settlements.67

    Un intnatinal law, Isali authitis a blig t scu law

    and order and to investigate and prosecute crimes. Still, settlers

    committing violent attacks enjoy almost total impunity. According to the

    Israeli rights group Yesh Din, over 90% of complaints regarding settler

    violence led by Palestinians with the Israeli police in recent years

    have been closed without indictment.56 Out of 162 complaints led by

    Palestinians against incidents of vandalism of their trees by settlers

    over the past seven years only one resulted in an indictment.57

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    wht th t epvmt?

    Un intnatinal law, thi stats, incluing euan

    governments, have the following obligations with regard to serious

    bachs f intnatinal law:

    uty nt t cgnis as lawful a situatin aising fm a bach

    f intnatinal law (uty f nn-cgnitin);

    uty nt t n ai assistanc in maintaining th illgal

    situatin; an

    uty t nsu cmlianc by all signatis, incluing Isal,

    with international humanitarian law (i.e. to exert inuence, to the

    degree possible, to stop its violations).68

    In a cntly ublish lgal inin, Jams Cawf, fss

    of international law at Cambridge University, argues that allowing

    trade with settlements does not violate the duty of third states

    nt t ai assist bachs f intnatinal law, as th link

    btwn th thi stats cnuct an th illgal cnuct f Isal

    s insufcient.69 However, referring to the principles established

    by th Intnatinal Cut f Justic in latin t Suth Aficas

    ccuatin f Namibia in 1971, Cawf agus that allwing

    ta with sttlmnts might in sm cass bach th thi stats

    duty of non-recognition, depending on the specic facts.70

    cHaPTer 2THe Two econoMieso THe wesT bank:laVisH subsidies Vs.criPPling barriers

    m mt pt ttmt t m - vmt tv m t ttmt v p tht pPt ppt . i ttt, th Pt m t v tt mtp ph mttvt mp th itht. Th m th Ptpt m th eu

    th .

    2.1 bft ttmt

    Settlements have established modern agribusinesses and

    industrial zones that produce high value goods for export to the

    eU an intnatinal makts. This is atly u t th scial

    incentives provided by the Israeli government.

    Most settlements are classied by Israel as national priority

    areas which entitles them to a wide range of nancial benets

    an subsiis, incluing f husing cnstuctin, ucatin,health services and local development. The benets provided

    to settlers are signicantly higher than benets for Israelis living

    within th -1967 lins. Accing t th Isali NGo pac

    Now, the Israeli government spends at least 1.6 billion shekels

    (330 million) annually on benets for settlers over and above the

    level of benets provided to citizens inside Israel proper. This does

    not include the signicant security funds spent on settlements.

    Government grants for local authorities in settlements were more

    than twic as high caita than insi Isal, whil sning n

    ucatin uil was 63% high in sttlmnts.75

    Settlements have established modern agribusinesses and industrial

    zones that produce high value goods for export to the EU and

    international markets. This is partly due to the special incentives provided

    by the Israeli government.

    A number of benets directly affect the industrial and agricultural businesses

    operating in settlements, including those exporting to Europe, and give themsignicant competitive advantage. Some of these benets include:

    state investment in development of industrial areas that have been built in

    sttlmnts;

    a 69% iscunt n las f lan intn f inustial us, tuism an

    ta;

    benets for factories including grants of 24% of the investment, income tax

    benets, grants for research and development of up to 60% of the cost of

    every project and assistance in hiring workers in certain areas of activity;

    benets for agriculture ,including grants of up to 25% of the investment

    for the establishment of agricultural enterprises and tax benets on prots

    ranging from 25-30% and on investments used especially by settlement

    fams in th Jan vally that uc mainly f xt t eu.76

    The Israeli government is also spending considerable funds on

    building settlement infrastructure, including the previously mentioned

    scial as that facilitat ai an unftt accss by sttls t

    bth Isali an xtnal makts.

    The Israeli government even has a special subsidy for reimbursing

    sttlmnt xts blig t ay eU imt uty. This

    cmnsatin was intuc whn th eU an th euan F

    Ta Assciatin (eFTA) ci t xclu imts f sttlmnt

    ucts fm taiff-f tatmnt in 2005 (s chat 4.1). F

    2012, the Israeli government budgeted 10.8 million shekels (2.2

    millin) f ths imbusmnts.77

    In 2005, th eU has f stats jintly call f th ablitin f

    nancial and tax incentives and direct and indirect subsidies [by the

    Israeli government], and the withdrawal of exemptions beneting

    th sttlmnts an thi inhabitants.78 However, the appeal went

    unheeded by the Israeli government.

    According to another view, third states do have an obligation to end

    all ta with sttlmnts, as stats mitting nty f sttlmnt

    ucts t thi makts a imlicitly cgnising, aiing an

    assisting sttlmnts.71

    Even if states are not obliged to stop the import of settlement

    ucts, Cawf ints ut that if an eU mmb stat wish

    t s, this wul b missibl un eU an Wl Ta

    oganisatin law.72

    Cawf futh agus that thi stats uchas f agicultual

    uc fm sttlmnts (.g. thugh ublic cumnt) wul

    bach thi bligatin nt t ai assist th nging cmmissin fan intnatinally unlawful act. This is bcaus sttlmnt agicultu is

    heavily dependent on water and water distribution in the West Bank is

    regulated by Israel military orders that contravene the occupiers duty to

    sct -xisting laws.73

    Crawford also argues that nancing construction of settlement-related

    infastuctu (.g. th Jusalm light ail) may bach th uty f nn-

    cgnitin, sinc it cntibuts t making th ccuatin mannt.74

    In th last chat, this t uts fwa cnct masus th

    EU needs to take if it is serious about its obligation to effectively

    oppose the settlements and associated violations of international law.

    Some streets in the old centre of Hebron are now off limits to Palestinians due tothe presence of settlers in the centre of the city. Streets such as this were once busy

    markets but are now empty. Photo: Trcaire/Eoghan Rice

    Vineyards that form part of an illegal Israeli settlement in the Jordan Valley in

    th Wst Bank, built n cnfiscat palstinian lan. pht: Tcai/Gay Walsh

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    2.2 rtt Ptm t

    Accing t th pais ptcl, sign in 1994 as at f th osl

    ac css an cgnis by Isal as th fmal basis f

    economic relations with the Palestinian Authority, Palestinians have

    h ight t xt thi ucts withut stictins an shul b

    given equal treatment to Israeli exporters.

    The EU and EFTA both have trade agreements with the

    palstinians ganting thm fntial accss t th euan

    makt, incluing uty-f accss f inustial ucts.79 In

    2011, th eU xtn th uty-f accss t mst palstinian

    agicultual xts, in what th eU has call n f th mst

    generous [agreements] that the EU has ever signed in the eld of

    agicultu.80

    However, the difference between theory and reality could not be

    reater. Wide-ranging Israeli restrictions effectively invalidate the

    EUs agreement with the Palestinians, affect every aspect of their

    business activity and keep their exports to Europe to a minimum.

    Th stictins inclu:

    Constraints on access to land and water: Ths stictins

    a aticulaly ciling f th palstinian agicultual sct.

    Accing t UNCTAd, th cnmy has lst accss t 40%

    f Wst Bank lan, 82% f its gun wat, an m than tw

    his f its gazing lan an th imact n palstinian agicultu

    has been devastating.81 rstictins n accss t wat mak

    Palestinian produce much more expensive than produce from

    ttlmnts.82

    Ban on dual-use items: Isal bans palstinians fm imting a

    ang f ual-us itms, incluing chmicals an ftiliss us

    n factories and agriculture. While Israeli settlers have full access to

    hese materials, Palestinians are forced to turn to more expensive

    or less effective alternatives that further increase the cost of

    production and often have greater negative long-term impact on the

    environment. 83 It is stimat that th ftiliz stictins la t

    osses of between 20% and 33% in agricultural productivity.84

    Obstacles to movement of goods: Whil sttls njy asy

    an ict accss t Isali an intnatinal makts, all palstinian

    gs stin f Isal futh xt must ass thugh Isali

    checkpoints where they are unloaded from Palestinian vehicles and

    extensively checked before they can be re-loaded onto an Israeli

    vehicle on the other side (the so-called back-to-back system). This

    s xtmly tim-cnsuming an ftn amags th ucts.

    palstinian gs stin f intnatinal makts thn ass thugh

    sraeli port and airport t erminals where they face further disadvantages,

    obstacles and excessive time delays. All these obstacles signicantly

    educe the competitiveness of Palestinian products and increase the

    unpredictability of their delivery times and quality.85

    Laith Nasser (3) from the village of Susiya in the South Hebron Hills, which is currently

    under threat of demolition. L aiths family have had their home demolished seven times.Photo: Trcaire /Eoghan Rice

    Th xansin f sttlmnts an assciat islacmnt f

    Palestinians from Area C have undermined the effectiveness

    f eU ai an bstuct th stat gal f this funing:

    palstinian stath as at f a tw-stat slutin. By taing

    with sttlmnts an cntibuting t thi mannc, th eU is

    undermining its own investment in Palestinian state-building efforts.

    Futhm, whil th eUs ai has bn cucial t ass th

    urgent needs of Palestinians living in poverty, it has also effectively

    relieved the Israeli government of its obligation as the occupying

    w t nsu th wlfa f th ccui ulatin.

    If EU aid is to have lasting impact and not only perpetuate the

    status quo, governments need to invest not only money but also

    political will to address the root causes of Palestinian poverty and

    ai nncy.

    At present, international donors meet most of thebill for the conseq uences of occupation that shou ld

    be met under the Geneva convent ion by Israel. ... If

    Israel conti nues, as its prime mi nister says it w ill,

    to build settlements, making an agreement on a

    viable Palestinian state all but impossible, should the

    internat ional communit y simply shr ug its shoulders

    and write more cheques? The money that I spent in

    Palestin e on behalf of Europe an voters and ta xpayers

    over five years as a European commissioner has

    drained away into the blood-soaked sand.

    Chis pattn, fm eU Cmmissin f extnal rlatins98

    A photo contrasts life in a busy Hebron market in 1999 and life on t hat street today.

    The old centre of Hebro n has been closed to Palestinians, turning the city into a ghosttown. Photo: Trcaire /Eoghan Rice

    Gaza closure: Cma t th Wst Bank, th Gaza Sti has

    been subject to even more stringent restrictions, especially since the

    takeover by Hamas in 2007. Exports from Gaza, a territory inhabited

    by 1.6 million Palestinians, have been banned almost entirely,

    contributing to the low volume of overall Palestinian exports. Despite

    the easing of some restrictions by Israel since 2010, the volume of

    exports from Gaza is still less than 2% of the pre-2007 levels.86 eU

    imports from Gaza over the ve years of blockade have been limited

    t a fw shimnts f agicultual uc t th Nthlans an

    tw tucks f gamnts t th UK. 87

    Altgth, th Isali stictins main th maj imimnt t

    sustainabl cnmic gwth in th ccui palstinian tity,

    accing t th Wl Bank.88 A palstinian stuy cit by th

    World Bank estimated the total cost of the Israeli restrictions at $6.9

    billin (5.2 billin) in 2010, 85% f th ttal palstinian Gdp. In

    th ws, if th stictins w lift, th palstinian cnmy

    wul b almst ubl in siz than it is tay.89

    2.3 eu Pt pIsali sttlmnt licy an th assciat stictins lac

    n th palstinian cnmy mak th palstinian Authity (pA)

    nnt n funs fm th eU an th fign ns f

    aximatly n-thi f its xnitu.92 Th eU is th lagst

    donor to the Palestinians: it gave approximately 5 billion between

    1994 an 201193, an allcat 525m in 2011 aln94; this s nt

    include additional assistance provided by individual member states.

    Althugh palstinians a amng th highst caita

    ciints f fign ai in th wl, fign funing is unabl t

    cmnsat f th aalysing imact f Isali cnstaints n

    accss t makts an sucs. Th pA is cuntly facing an

    acute scal crisis and protests against the dire economic situation

    have spread across the West Bank. At $1.14 billion (0.9 billion),

    expected foreign aid this year is not sufcient to cover the PAs

    projected $1.5 billion (1.2 billion) budget decit.95 Th euan

    Cmmissin cntly annunc nw funing f 100 millin f

    th palstinians.96

    The PAs scal crisis and its dependency on large amounts of

    foreign funding would be signicantly alleviated or even entirely

    prevented if the Israeli government lifted its debilitating restrictions

    n th palstinian cnmy. A cnt stimat cit by th

    World Bank shows that if Israeli barriers to the development of

    Palestinian agriculture were removed to allow the cultivation

    f nly an aitinal 3.5% f Aa C in th Jan vally, th

    Palestinian economy could gain $1bn a year comparable to the

    nti annual fign ai bugt t th pA.97

    The increased restrictions on the movement ofgoods and people across the Israel/ WBG borders

    since the mid-1990s, culminating in the blockade on

    Gaza and completion of the Separation Barrier, led to

    a decline in exports to less than 15 percent of GDP in

    recent years . This is down f rom over half of GDP in

    the 1980s, when Palestinians enjoyed mostly free a nd

    unhindered trade with Israel.

    Intnatinal Mntay Fun90

    Very few economies have faced such a

    comprehensive array of obstacles to investment

    not just of physical impedi ments to movement, but

    also comprehensive institutional and administrative

    barrie rs. The numerous Isr aeli road blocks,

    closed areas, restricted roads, and growing

    settlements have cut the Palestinian communities

    into isolated canton s, raising tr anspor tation costs

    and significantly limiting the ability of Palestinian

    enterprises to achieve economies of scale.

    Wl Bank91

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    cHaPTer 3euroPes econoMiclinks wiTH seTTleMenTs

    3.1 Vm ttmtt th th euIt is difcult to determine the exact volume of exports from the

    sttlmnts t th eU as th eU s nt cllct saat ta

    ata f sttlmnts. Th Isali Ministy f Fign Affais has,

    however, recently informed the World Bank that settlement

    exports to the EU amount to $300 million per year (230

    millin).100 This snts aximatly 2% f ttal Isali

    xts t th eU.101

    This is lw than th sha f sttl ulatin in th ttal

    Isali ulatin (c. 7%) an than th sha f th sttlmnt

    cnmy in Isals Gdp, stimat by th oeCd at 3.9%.102

    It is likely that if the value of settlement exports to Europe were

    ajust t inclu ucts whlly atially uc packed in settlements, the gure would be signicantly higher.

    While settlement exports may represent a relatively small

    tin f ttal Isali xts, thy still amunt t a

    considerable quantity in absolute terms and are of vital

    importance for the economic viability of many settlements. Trade

    with sttlmnts blsts thi cnmy an cntibuts t thi

    mannc an gwth, thby hling t tuat th

    assciat imacts n palstinian cmmunitis.

    Exports from settlements to the EU also vastly exceed

    Palestinian exports to the EU, which have had an average value

    of 15 million a year over the past ve years.103 In, using

    the gure provided to the World Bank, the value of exports from

    illegal settlements to the EU is approximately fteen times the

    value of the Palestinian exports.

    More than four million Palestinians and over 500,000 Israeli settlers

    live in the occupied territory. Therefore, in per capita terms, the EU

    imts at last 100 tims m sttl than palstinian.

    This is sit th eUs cnmnatins f th illgal sttlmnts

    and its signicant nancial support for the economic viability and

    development of the Palestinian Authority.

    The discrepancy is largely driven by Israels generous incentives for

    sttlmnt businsss an th ciling stictins ims n th

    palstinian cnmy scib in th cing chat. By imting

    vastly more from settlements that are taking advantage of the

    occupation than from producers living under the occupation, Europe is

    hling ntnch th isciminaty tw-ti systm in th Wst Bank.

    3.2 Mt mm ttmtpt ep

    at pt

    Agicultual ucts gwn in th sttlmnts inclu ats,

    grapes, peppers, fresh herbs, cut owers, avocados, citrus fruits,

    tmats, aubgins, cucumbs an tats.104

    The products are most likely to be found on the shelves of

    euan tails uing wint mnths whn thy a ut f

    sasn in eu. In mst euan cuntis wh th a

    n cla lablling guilins an wh sumakts cntinu

    sucing sttlmnt gs, it is usually imssibl f th cnsum

    to tell whether fruits and vegetables marked as Israel are from

    Isal fm th sttlmnts.

    Fsh agicultual uc fm sttlmnts is xt t eu

    by Isali cmanis that suc fm bth Isal an fm

    sttlmnts. Mhain is cuntly th lagst Isali cmany

    exporting fruits and vegetables to the EU and worldwide, followed

    by Arava Export Growers. Both companies are known to be active

    in th sttlmnts f th Jan vally. Haiklaim is th main Isali

    xt f ats, a lag sha f which cms fm sttlmnts.105

    Aat fm fsh uc, a numb f Isali wins sl in eu

    a ma fm gas gwn in sttlmnts. Accing t th Isali

    NGO Who Prots, all of the major Israeli wineries exporting to

    Europe have vineyards in the occupied Golan Heights and most in

    th Wst Bank.106 F cssing cmanis bas in th Wst

    Bank sttlmnts an xting t eu inclu Achut (uc

    of Achva halva) and Adanim Tea (herbal teas).107

    wh m th ittmt ppt Pttth, th eu tmpt t tm m m thttmt th m th Pt. t, m ep mphv vt ttmt t

    tt pv vt thm. Th m hp tht ttmt v th. a mtttmt pt thm M i, mep m ttppt th ttmt tp.

    The EU is Israels leading trade partner receiving 20% of total

    sraeli exports. The EUs importance may be even higher in the

    cas f sttlmnts bcaus f th high tin f fsh

    agricultural products in their export. 66% of fruit and vegetables

    exported by Israel are sent to the European market, a gure that

    can b xct t b simila f fsh uc fm sttlmnts.99

    Europe is also the main export market for two signicant

    manufacturing companies in the settlements: Ahava (cosmetics)

    and SodaStream (home carbonation devices).

    230mxpt t th eu m

    ttmt;

    15 mPt xpt

    t th eu

    Citrus fruits being sold in a supermarket. Photo: www.freeimageworks.com

    op J V:m jt

    du t its climat an ich wat sucs, th Jan vally is

    th main agicultual gin in th Wst Bank an cul b th

    breadbasket of a future Palestinian state. However, Israeli settlers now

    control and exploit most of its land and water resources. Settlers have

    established modern farms that generate large volumes of produce,

    minantly f xt:

    The value of agricultural production in the Jordan Valley settlements

    is stimat at abut 500 millin shkls (100 millin) ya.108

    Th main agicultual ucts inclu ats, gas, s an

    fsh hbs.109

    M than 80% f ats fm th Jan vally sttlmnts a

    gwn f xt.110

    Abut 70% f gas uc by th Jan vally sttlmnts

    a ict f xt an mak u aximatly half f all gas

    xt by Isal.111

    Fsh hbs fm th Jan vally sttlmnts a all f xt

    an cnstitut abut half f ttal Isali xts f fsh hbs; 80%f thm a xt t eu (mainly Fanc, Switzlan, th

    Netherlands and Scandinavian countries).112

    While providing most of the agricultural settlement produce exported to

    eu, th Jan vally is als an aa wh sttlmnt xansin

    has made life particularly difcult for Palestinian communities and

    wh th inquitis btwn sttls an palstinians a mst

    xtm. Isali sttls mak u 13% f th ulatin f th Jan

    Valley but effectively control 86% of its land. Appropriations of land,

    demolitions and displacement have accelerated in recent years. The

    Israeli government has also discussed a plan to increase the allocation

    of land available for cultivation by settlers in the Jordan Valley by 130%

    an thi wat allcatin by 20%.113 euan man f sttlmnt

    fruits and vegetables is contributing to these developments.

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    Mt

    Sttlmnts in th Wst Bank uc a ang f inustial

    gs, mstly manufactu in us-built inustial zns.

    Like the settlements themselves, the industrial zones are a

    violation of international law, which prohibits the occupying power

    fm cnstucting mannt infastuctu in ccui tity,

    unless it is for military use or serves the interests of the occupied

    ulatin.114 examls f inustial ucts manufactu in

    sttlmnts an sl in eu inclu:

    ahv mt:

    Ahava Dead Sea Laboratories is a cosmetics company that

    ats in th Wst Bank. It manufactus all f its ucts in

    Mitz Shalm, an Isali sttlmnt in th ccui Jan vally, n

    the shore of the Dead Sea. According to Who Prots, the company also

    has a licns t xtact mu fm th ccui aa f th da Sa

    n sm f its ucts - a bach f intnatinal law, which hibits

    xlitatin f natual sucs f an ccui tity f cmmcial

    purposes. Ahava exports a signicant share of its products overseas

    ncluing t sm 20 euan cuntis. 115

    Ahava made $17 million in prot from exports in 2008. Products of the

    company are sold across Europe in branded Ahava stores as well as in

    hamacis an tail chains. dsit bing uc in a sttlmnt

    n the West Bank, Ahava products are labelled Made in Israel, thus

    mislaing cnsums. Abut 45% f th cmanys shas a wn

    by two settlements, which means that revenues from the sale of Ahava

    products directly support their continued existence and development.116

    sstm t v:

    SodaStream produces home devices for carbonation of water and

    sft inks. SaStam ucts, als knwn un th ban

    nam Sa Club, a sl at m than 35,000 sts wlwi

    an 68% f sals a in eu.

    Still, until Isali cnstaints n palstinians in th Jan vally

    are removed, it is unlikely the company will be able to unleash its

    full tntial. Th cmanys fams a sa acss lan that

    falls in Area C. Given the restrictions and lack of development in

    Aa C, th cmany has ha t buil fm th gun u, ftn

    withut mits which a almst imssibl t btain. In

    to move workers and goods between the farms and to markets,

    Nakhl palstin ha t buil its wn agicultual as. Thy

    have also had to install their own electrical grid, costing over

    $100,000, to power workstations and irrigation systems. The

    cmany als facs stictins n builing wahuss, an has

    outstanding demolition orders against one of its reservoirs, a well,

    a storage facility, a resting house for eld workers and a computer

    wk statin. Nakhl palstin has bught th cass

    challnging th mlitin s t th Isali Sum Cut.

    st Pt t m th J

    V: f12316 kilmts nth f th da Sa, Zuhai Al-Manash uns

    the largest Palestinian agricultural development project in the

    West Bank. Nakheel Palestine for Agricultural Investment is

    cultivating date trees on 750 acres around the city of Jericho

    in th Jan vally. With 20,000 ts, th th-ya-l

    cmany xcts t uc btwn 400 an 600 tns f high

    quality Mjl ats f xt this ya.

    But this is just a tiny factin f what his Isali cmtits in th

    Jordan Valley are currently exporting. With large government

    subsidies, Israeli settlers have been able to establish industrial-

    scale date farms, and are ooding markets.

    In cntast, palstinians in th Jan vally fac stictinsn th us f lan, wat, an n builing, which mans that

    cmanis lik Nakhl palstin a nt cmting n a

    level playing eld. Without proper methods for storing and

    figating, palstinian fams n t sll quickly bf thi

    products spoil. Israeli checkpoints and restrictions on moving

    gs t makts mak this challnging.

    In sit f this, Al-Manash says gwing ats is a statgic

    chic t k th palstinian snc an agicultu in th

    Jordan Valley alive. Without adequate water, there are few other

    crops that Palestinians can cultivate. Whereas settlement farms

    a allw t ill nw, wlls, stictins n palstinians

    wat us mans that thy a lft with l, shallw wlls with

    salinat, backish wat. dats a n f th fw agicultual

    ucts that can withstan this lw quality wat. Sinc ats

    are mostly sold as semi-dried fruit, they have a longer shelf life

    an can withstan th lngthy lays fac by palstinian xt

    gs at Isali chckints an in t tminals.

    Palestinian investment in dates is the right choice for the Jordan

    Valley given the situation we are facing right now, Al-Manasreh

    xlains. Th is a lt f agicultual lan in th Jan vally

    that has bn abann by palstinian fams bcausthy cant accss wat. Whn lan lays fallw, it can asily b

    conscated by settlement farms. Our strategy is not just about

    making mny, it is als abut king palstinian uctin

    going and giving farmers incentives to grow.

    With the goal of providing a solid alternative to employment on

    sttlmnt fams, Nakhl palstin cuntly mlys 40 full

    tim an 100 sasnal wks. With lans t lant an aitinal

    24,000 at ts in th nxt tw yas, Al-Manash xcts t

    til its wkfc.

    Workers sort dates for export at Nakheel Palestine for Agricultural Investment.

    The company Ahava labels their products Made in Israel, despite the fact thatthey are manufactured in a settlement in the occupied Palestinian territory. The postal

    Code 86983, shown in tiny characters on the packaging, is the postal code for the

    Israeli settlement Mitzpe Shalem by the Dead Sea. Photo: Norwegian Peoples Aid

    SodaStream devices are especially popular in Sweden; it is

    estimated that one of every ve Swedish households owns a

    SodaStream device.117

    Th main facty is in th Mish Aummim inustial zn in th

    Wst Bank. Mish Aummim is at f Maal Aummim, n f

    th lagst sttlmnts statgically lcat ast f Jusalm,

    th stablishmnt f which is cnsi n f th lagst

    expropriations of private Palestinian land during the occupation.118

    SaStam ays taxs t Maal Aummim Municiality; its

    revenues are thus directly funding this settlement, which effectively

    bifucats th Wst Bank an is cnsi t b a maj bstacl

    t any futu ac agmnt.119

    Th cmany als has a uctin facility in Isal an

    recently has been giving contradictory statements about where

    different devices for different markets are manufactured. The

    ucts a usually sl aba un th labl Ma in Isal.120

    kt pt:

    Th Isali cmany Kt plastic is a lag manufactu f inan ut lastic funitu an hushl ucts that ats in

    90 cuntis wlwi. Kt an its subsiiay, Liski, at tw

    factis in th Bakan inustial zn in th Wst Bank, but it als has a

    numb f th factis in Isal an aba. It is uncla which f th

    Kt ucts a manufactu in th tw sttlmnt factis.121

    oth manufactuing cmanis bas in sttlmnt inustial zns

    and exporting to Europe include: Barkan Mounts (television mounts);

    oftx (txtil ucts); Sugum (ca lastics); Ti T Tys Sta

    (Intsta tys); Twitlast (lastic accssis); an Yani Lcks

    (locking mechanisms). Many of these companies deliver components

    that a sl n intnatinal makts un iffnt bans.122

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    3.3 ivvmt epmp

    Byn th ta in sttlmnt gs, sm intnatinal

    companies operate in settlements including through the provision

    of services and support to associated infrastructure. These

    activities include construction of transport infrastructure, provision

    of transport services to settlements, delivery of equipment

    for checkpoints, provision of security services to settlement

    businsss, xtactin f nn-nwabl sucs, an

    investment in settlement factories. Below are several prominent

    xamls, bas n cnt infmatin fm multil sucs:

    G4S, th Bitish-danish multinatinal cmany, has bn

    providing, through its Israeli subsidiary, security services and

    quimnt t Isali chckints, t isns taining palstinians

    from the OPT inside Israel, and to private businesses in settlements.Following civil society pressure, G4S stated that it would end some of

    the controversial contracts between 2012 and 2015.127

    Alstom, the French multinational company, has been involved

    in th light ail jct that cnncts Jusalm with naby

    settlements in violation of international law and that started

    ating in 2011. In lat 2011, Alstm annunc it wul sll its

    stak in th jct cnstium, but has nt yt succ t

    so. Alstom also remains involved in ongoing maintenance as the

    provider of the train units.128

    Veolia, the French multinational company, has also been involved

    in th Jusalm light ail jct, incluing thugh a majity

    sha in th cmany ating th tains. Fllwing camaigns

    and negative publicity Veolia declared it would sell its shares but

    thus far has been prevented from doing so by the Jerusalem public

    tanstatin authitis with whm it has cntactual bligatins.

    Thugh its Isali subsiiais, vlia als has a cntact f

    waste collection services from an Israeli army base in the Jordan

    vally.129

    Heidelberg Cement, th Gman cmnt uc, wns a san

    and gravel quarry and two concrete plants in the West Bank,through its Israeli subsidiary Hanson Israel. Quarry activities

    carried out for the benet of Israeli industry rather than the

    ccui ulatin a cntay t intnatinal law. Hilbg

    Cmnt has ti t sll its Wst Bank atins, but s fa

    withut succss.130

    Some European companies have already ceased their activities

    in th Wst Bank in cnt yas aft thy w alt t thi

    international law aspects by civil society and, in some cases, also

    by their governments:

    AssaAbloy, th Swish manufactu f lcks, lcat th

    facty f th Isali cmany Mul-T-Lck, wn by AssaAbly,

    fm th Bakan inustial zn in th Wst Bank t a sit within

    the Green Line. AssaAbloy announced the move in 2008 due to

    citicism in a t fm Swish NGos ch by th Swish

    government. The company completed the relocation in 2011.131

    Deutsche Bahn, th Gman stat-wn ailway cmany,

    pulled out of the above-mentioned high-speed railway project

    linking Jerusalem and Tel Aviv. This happened in March 2011

    after an intervention by the German government. The Minister of

    Transport dened the project as problematic for foreign policy and

    potentially in violation of international law.132

    Unilever, th UK an dutch multinatinal cmany, is in th

    process of moving the factory of the Israeli company Beigel &

    Beigel, owned by Unilever, from the Barkan zone to Israel proper

    in 2012. Beigel & Beigel is a major producer and exporter of

    pretzels, crackers and biscuits. The move should be completed by

    dcmb 2012.133

    Ths xamls shw th ath t fllw f th cmanis still

    doing business in the settlements. They also show that governments

    can play a constructive role in stopping and preventing companies

    involvement in settlements and the occupation.

    Businesses that are involved in violations of international law may

    fac th isk f lgal actin. Cmanis als incasingly cmmit

    t, an hnc a incasingly hl accuntabl t intnatinal

    frameworks of corporate social responsibility (CSR) that have

    mg in cnt yas. Ths inclu th ruggi Guilins

    (Th UN Guiing pincils n Businss an Human rights) an

    th oeCd Guilins f Multinatinal entiss. Bth ths

    famwks cmmn that cmanis assss th human

    ights imact f thi atins (incluing tntial bachs

    f intnatinal humanitaian law) as at f thi CSr licis.

    They advise businesses to avoid adverse human rights impactsconnected to their operations, even if they do not contribute

    ictly t ths imacts. Ths famwks als qui

    governments to provide effective guidance to companies.134

    The trade and investment linkages between Europe and settlements

    support the latters economic viability and further growth. If European

    governments are serious about their commitment to international law

    and Middle East peace, they need to urgently move beyond rhetoric

    an tackl ths cnmic linkags.

    dt m th J V

    dats fm th ccui Jan vally a n f th mst

    minnt agicultual sttlmnt ucts, an can b fun n

    supermarket shelves across the world.

    M than 80% f ats fm th Jan vally sttlmnts a

    gwn f xt.124 In 2011, glbal Isali at xts ach

    25,000 tns, f which 12,000 w uc in th Jan vally

    sttlmnts. Many f ths a th ula Mjl ats. Isal

    produces over 50% of the worlds Mejdool dates, half of which

    a gwn in th Jan vally sttlmnts.125

    In contrast to the volumes of dates from Israeli settlements,

    palstinians uc sm 2,500 tns f ats in th ccui

    tity, f which abut 300 tns a xt, mst f thm

    t th Gulf stats.126

    Th main Isali xt f ats is th cmany Haiklaim.

    Haiklaim aas t mak all ats as Isali uc, making it

    difcult for the consumer to distinguish between dates from Israel

    an fm th ccui Jan vally.

    Dates on sale in the Netherlands. The label reads West Bank which leaves theconsumer unclear whether the fruits are from Israeli settlements or from Palestinian

    producers. After enquiry, the seller explained the dates were from Tomer settlement

    in the Jordan Valley. Photo: Willemijn Leenhouts / Cordaid

    Palestinians harvesting dates in Tomer settlement, Jordan Valley.Photo: Jean-Patrick Perrin

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    4.3 d pvt t th ttmt

    Intnatinal famwks f cat scial snsibility (CSr)

    provide a basis for possible more comprehensive government

    masus than cct lablling f sttlmnt ucts. CSr

    guilins incluing th UN Guiing p incils n Businss

    an Human rights an th oeCd Guilins f Multinatinal

    Enterprises require governments to provide effective guidance

    t cmanis n hw t sct human ights thughut thi

    atins (s chat 3.3).

    Governments could encourage importers and other businesses,

    by means of formal advice, to refrain from any economic dealings

    with sttlmnts incluing uchasing f sttlmnt gs an

    investment in settlements. An existing example is the Norwegian

    governments position on Western Sahara that discourages trade,

    investment, resource-extraction and other forms of commercial

    activity in that territory.156

    Such government initiatives could build on steps already taken

    by the private sector in some cases. In Norway, two of the main

    importers of fruit and vegetables, BAMA and Coop, have written

    agmnts with thi sulis in Isal stating that fuit an

    vegetables produced in settlements shall not be supplied to them. In

    March 2012, the VITA chain, which was the main retailer of Ahava

    csmtics ucts in Nway, annunc it wul st all sals f

    settlement products, citing Norways ofcial position on the illegality

    of settlements, and encouraged Ahava to relocate its factory to Israel

    . Whil sttlmnt ucts a still bing sl by th sts

    in Nway, th xtnt f Nways ta with sttlmnts has bn

    reduced as a result of these private sector steps.157

    Similarly, as mentioned, most UK food retailers appear to have

    st slling wn-ban sttlmnt uc fllwing th

    publication of the labelling guidelines by the government. Large

    tails claim thy a abl t us thi tacability mchanisms t

    conrm that goods are not sourced from settlements.

    The UK Co-operative Group went a step further and ended

    all ta with sulis that suc uc fm bth Isali

    sttlmnts an Isal itslf, citing th csts f tacing an auiting

    all thi uc t nsu th xclusin f sttlmnt gs. Th

    C- cancll its cntacts (wth 350,000) with fu f its

    Israeli suppliers (Agrexco, Mehadrin, Arava, and Adafresh) that

    a knwn t suc uc fm sttlmnts but mhasis

    thy wul cntinu t us sulis fm insi Isal that nt

    suc fm sttlmnts.158

    4.4 b mpt ttmtpt

    Whil th intuctin f lablling guilins wul nabl

    cnsums t chs whth thy wish t buy sttlmnt gs

    or not, it may not be sufcient to meet European governments

    obligation to exert their inuence, to the degree possible, to stop

    violations of international humanitarian law.159

    pmitting ta with sttlmnts at all aas incnsistnt with

    European governments recognition of their illegality and the

    fact that all uctin an manufactuing within th sttlmnts

    involves further breaches of international law. Under Article 215 of

    the EU Treaty the EU could adopt restrictive measures to ban the

    imt f sttlmnt ucts.

    Th Iish Fign Minist has alay call f an eU-wi

    ban n imts fm sttlmnts160, but in the interim, individual

    governments could implement such an import ban unilaterally.

    The European Commission has conrmed a member state can

    unilatally at masus t stict ta if n th basis f

    rgulatin 260/2009 it can justify its actin n guns f ublic

    mality, ublic licy ublic scuity an in ing s it s

    nt infing eC law.161 Jams Cawfs lgal inin (s

    chapter 1.2) argues that an individual member state could lawfully

    ban ta with sttlmnts an that such a masu wul nt

    bach Wl Ta oganisatin gulatins.

    A ban n th imt f Isali sttlmnt gs is nt a ban

    byctt n ta with Isal, which th signatis t this t

    not advocate.

    4.5 ex ttmt mmt pt -tmt th iAs in the case of the Technical Arrangement discussed above,

    Isal xtns th titial sc f its agmnts with th eU

    t inclu th sttlmnts, which it tats as an intgal at f

    its tity in accanc with its mstic law. Th eU, which

    s nt cgnis sttlmnts as at f Isal, is bligat by

    its wn law t stict th titial sc f its agmnts an

    catin instumnts t Isal within its -1967 bs.

    However, several examples show the EUs efforts to ensure that

    a still falling sht f what is ncssay:

    Un th eUs research and development funding programme

    FP7 for 2007-2013, EU public funds worth 1.13m have been

    awarded for research carried out by the Ahava cosmetics company

    in a facty bas in an illgal sttlmnt.162 Un th sam

    gamm, th eU has als cntibut 114,400 t th Isali

    Antiquitis Authity bas in illgally annx east Jusalm.163 In

    allowing its public funds to support activities in settlements, the EU

    risks breaching its duty not to aid and assist violations of international

    humanitaian law.

    Th nw Agreement on Conformity Assessment and Acceptance

    of Industrial Products (ACAA) that facilitats eU-Isal ta in

    inustial ucts s nt inclu an aquat titial claus t

    restrict its application to Israel proper. The agreement was ratied

    by th euan paliamnt in octb 2012.164 Unlss Isal

    itslf fmally limits th alicatin f ACAA t Isal , th

    agmnts imlmntatin will la th eU t fmally cgnis

    Israeli authorities jurisdiction over the settlements. Implementing

    ACAA withut btaining such a bining titial limitatin fm

    Isal wul thus bach xisting eU an intnatinal law an st a

    angus cnt.

    Th EU-Israel civil aviation agreementsign in July 2012 als has

    a very weak territorial clause that entitles Israel to apply its provisions

    byn th Gn Lin.165

    The problem can be solved if EU and national bilateral agreements

    with Israel include clear territorial provisions that explicitly restrict

    thi alicatin t Isal , galss f Isali mstic law.

    Similarly, regulations for cooperation programmes would have to

    cntain lgal safguas that xclu aticiatin f ntitis bas

    ating in sttlmnts.

    In cas f th Fp7 gamm, th euan Cmmissin amitt

    the regulations did not prevent settlement entities from participating

    and tried to lter out ineligible entities using the list of settlement

    stcs. Aat fm imsing an aitinal buaucatic bun

    n th Cmmissin, this aach s nt xclu ntitis such

    as the Ahava company that operates wholly in a settlement but

    uss a gistatin ass within Isal. Th succss t th Fp7

    gamm, Hizn 2020, ffs an tunity t inclu a cla

    legal safeguard to prevent the problem from re-occurring. The draft

    gulatin cuntly un iscussin in th euan paliamnt s

    not contain an adequate provision.

    As this chat has shwn, th a still many gas btwn

    European governments declaratory positions on settlements and their

    actic. Yt, th awanss f th n t ctify ths incnsistncis

    is growing. The nal chapter proposes concrete measures to bring the

    euan licis cls in lin with thi htic.

    cm ptt ttmt

    eU cnsum tctin lgislatin, incluing th eU Unfai

    Commercial Practices Directive (UCPD), gives consumers

    th ight t th infmatin thy qui t xcis chic.149

    UCpd has bn tanss int natinal lgislatin in all eU

    member states and its relevance to settlement products has

    been conrmed by the European Commission150 an ths151.

    Th Fign Affais Cuncil in May 2012 call f mmb

    states to fully and effectively implement European legislation

    alicabl t sttlmnt ucts.

    UCPD prohibits the provision of false, deceptive or potentially

    misleading information where it can cause the average

    consumer to make a choice he or she would not have made

    otherwise. Similarly, the Directive prohibits the omission of

    material information which the average consumer needs to

    mak an infm chic.

    Wh a uct fm a sttlmnt is labll as puct f

    Isal, this is a cas f mislaing infmatin hibit un

    the Directive, given that settlements are not part of the territory

    f Isal un intnatinal law.

    Wh a sttlmnt uct is labll puct f th Wst

    Bank, this t can b cnsi mislaing infmatin an a

    breach of the Directive.152 Althugh th sttlmnts a factually

    located in the West Bank, it can be argued that the average,

    asnably wll-infm cnsum ns t b abl t

    istinguish btwn ucts lgitimatly ma by palstinian

    producers living under occupation and products of Israeli illegal

    settlements taking advantage of the occupation, so that the

    cnsum can mak an infm cisin n thical guns.

    UCpd is sulmnt by m tail gulatins lating

    t f ucts. F fsh uc, inicatin f th cunty

    f igin - in a way which s nt misla th cnsum - is

    manaty.153 F th f itms, bas n a nw gulatin

    that must b ali fm 2014, infmatin n th cunty forigin or place of provenance must not be misleading, and is

    qui wh its absnc is likly t misla cnsums.154

    As far as cosmetic products are concerned which is relevant

    for the case of Ahava products made in a settlement - a new

    eU csmtics gulatin that must b ali fm 2013 will

    mak igin lablling f csmtics cmulsy acss th eU.155

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    TrAdING AWAY peACe: Hw eu hls sustain illgal Isali sttlmnts30 TrAdING AWAY peACe: Hw eu hls sustain illgal Isali sttlmnts 31

    cHaPTer 5recoMMendedMeasuresor euroPeangoVernMenTsand THe eu

    a t th tt pt thtttmt tt p ep vmt th eu mt pt t mt th p t t t ppt thmt xp ttmt. btht vmt th eu hv m m t thp.

    Th m tt ttmt, t i. apt thm tv -mph th p-1967 g l tht ttmt xp tht t mpt th vt th eu-pmt t-tt t.it tt thttt ph.

    s mpt ttmtpt

    1. Ensure correct consumer labelling of all settlement

    products:As a minimum masu in lin with xisting

    consumer protection legislation, European governments must

    issu guilins t nsu all sttlmnt ucts (incluing

    manufactu gs) a accuatly labll s that cnsums

    a awa f thi tu igin an can mak an infm chic.

    Sttlmnt ucts shul b labll as, f xaml, Wst

    Bank (Isali sttlmnts) t claly istinguish thm fm bth

    ucts ma in Isal an palstinian ucts. Th euan

    Commission should also provide EU-wide guidance for correct

    lablling f sttlmnt ucts t nsu hamnisatin.

    2. Discourage companies from trading with and investing

    in settlements: As a more comprehensive measure than

    correct consumer labelling, national governments should issue

    formal advice to importers and other businesses to refrain from

    purchasing settlement goods and to avoid all other commercial

    and investment links with settlements. OECD Guidelines for

    Multinatinal entiss an th UN Guiing pincils n

    Business and Human Rights can be used as the relevant

    international framework. Companies involved in settlement-related

    economic activities should be called to account. The Norwegian

    governments position on Western Sahara that discourages trade,

    investment, resource-extraction and other forms of commercial

    activity in that territory can serve as an example.166

    3. Ban imports of settlement products:As a futh-aching

    measure, governments could legally exclude settlement

    ucts fm nty t th eU makt. Ta in ucts f illgal

    sttlmnts is incnsistnt with eU fign licy an, at last in

    cases of products involving the use of non-renewable resources

    such as wat minals, may ictly ai assist nging

    breaches of international law. The Irish government has called for

    an eU-wi ban n imts fm sttlmnts167, but in th intim,

    national governments can implement such a measure. A ban

    n th imt f Isali sttlmnt gs is nt a ban byctt

    n ta with Isal, which th signatis t this t nt

    advocate.

    ex ttmt m eu t t th i

    4. Ensure settlement products do not benet from

    preferential market access: In cmlmntaity with thabove measures on sales and imports, the EU and EFTA must

    revise the Technical Arrangement with Israel to guarantee all

    settlement products are effectively excluded from preferential

    tatmnt. In t nsu that, an t ly imlmnt

    eUs wn gulatins, eu must insist Isali xts stat

    cctly signating th igin f sttlmnt ucts, an cas

    signating thm as Isal.

    5. Exclude settlements from bilateral agreements and

    cooperation instruments: The EU and national governments

    must ensure agreements and cooperation instruments involving

    Isal cannt b ali t sttlmnts:

    All agmnts with Isal must inclu cla titial

    provisions that explicitly restrict their application to Israel proper,

    regardless of Israeli domestic law. The EUs newly ratied ACAA

    agmnt170, which s nt cntain an aquat titial

    claus, shul nly b imlmnt if Isal itslf fmally limits

    its alicatin t Isal .

    rgulatins f catin gamms, incluing th eU-

    fun sach gamm Hizn2020 cuntly un

    iscussin, must inclu lgal safguas that xclu

    aticiatin f ntitis bas ating in sttlmnts.

    National governments must apply the same provisions and

    safguas in thi bilatal latins with Isal.

    6. Exclude settlement products and companies from public

    procurement: In tning f ublic cntacts, such as cating

    services or equipment supplies, EU institutions, governments,

    an stat-fun bis shul scify that n sttlmnt

    products or services may be supplied under the contract and

    that cmanis ating in sttlmnts a xclu.171 This

    must b n bf Isal is allw incas accss t ublic

    procurement markets in the EU, as currently envisaged under the

    eU-Isal Actin plan.

    ttt ttmt

    7. Remove organisations funding settlements from tax

    deduction systems: National governments must ensure that gifts

    to organisations that provide funds to Israeli settlements are not

    tax-deductible. The Norwegian governments decision in September

    2012 t xclu th Kaml-instituttt, a Nwgian ganisatin

    that has cllct natins f Isali sttlmnts, fm its list

    of organisations eligible for tax deductible gifts, can serve as a

    ml.172

    8. Prevent nancial transactions supporting settlements

    and related activities:As a more comprehensive measure and

    as cmmn by th eUs Has f Missins in th opT,

    governments should apply restrictive measures to all nancial

    tansactins fm thi citizns, ganisatins an businsss in

    support of settlement activities breaching international law.173 In th

    absnc f cmmn eU actin, such masus can b imlmnt

    by national governments.

    oth m9. Discourage citizens from buying property in settlements:

    National governments must issue formal advice to citizens not

    t buy ty in sttlmnts, alting thm t th illgality f

    sttlmnts, th ubtful lgal titl f mst sttlmnt tis an

    their uncertain future if a Palestinian state is established. Several EU

    member states have already issued such advice, but it should be

    stngthn an imlmnt by all mmb stats.

    10. Issue guidelines for European tour operators:As

    cmmn by th eUs Has f Missins in th opT, natinal

    governments must compile guidelines for tour operators to prevent

    sut f sttlmnt businsss, incluing htls, bus ats,

    achalgical sits, tc.174

    11. Draw up a list of companies mis-stating the origin of

    settlement goods:As qust by th euan paliamnt, th

    euan Cmmissin shul aw u a list f cmanis xting

    sttlmnt ucts, which sist in mis-stating th nn-fntial

    igin f ths gs as Isal. This masu wul b cmlmntay

    to the revision of the Technical Arrangement (no. 4 above).175

    12. Insist that Israel disaggregates settlement data for the

    OECD: European governments and other OECD members must

    require that statistical data provided by Israel always distinguishes

    between Israel proper and the settlements, in order to avoid

    validating an internationally unlawful situation. During its accession

    to the OECD in 2010, Israel had to commit to provide disaggregated

    statistics when required to do so. Since then, however, the OECD

    has fail t qust Isal t s.

    We consider it necessary that the EU bring an end

    to the import of settlement products which are, in

    contradiction w ith EU labeling regulations, marketed

    as originating in Israel.

    Javier Solana, Richard von Weizscker, Helmut Schmidt, Romano

    pi, Fli Gnzals, Linl Jsin an 20 th fm

    euan las168

    Contrary to what you may think, EU member states

    which take these measures act in Israels interest.

    They do so because they take steps that defend and

    reinforc e the Green Line .

    Avraham Burg, former Speaker of the Knesset and Chairman of

    th Jwish Agncy an th Wl Zinist oganizatin, xssing

    support for the British and Danish moves on settlement products.169

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    Trading away Peace: H ep hp t i ttmt32 Trading away Peace: H ep hp t i ttmt 33

    endnoTes

    1 Cuncil f th euan Unin (eU), Cuncil Cnclusins n th Mileast pac pcss (8 dcmb 2009): .

    2 BTslm, By hk an by ck - Isali Sttlmnt plicy in th WstBank (July 2010): .

    3 Th rights Fum, exansin f Isali Sttlmnts exansin Mnit,octb 2010 octb 2012 (19 octb 2012).

    4 United Nations Ofce for the Coordination of Humanitarian Affairs (UNoCHA), dmlitins an Fc dislacmnt in th occui WstBank (Januay 2012): .

    5 UN OCHA, West Bank Movement and Access Update (September 2012):.

    6 palstinian Ministy f Natinal ecnmy an th Ali rsach Institut- Jusalm (