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7/31/2019 Trading Peace
1/19
Trading away Peace:
H ep hp t i ttmt
7/31/2019 Trading Peace
2/19
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:
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
7/31/2019 Trading Peace
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Trading away Peace: H ep hp t i ttmt4 Trading away Peace: H ep hp t i ttmt 5
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
7/31/2019 Trading Peace
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Trading away Peace: H ep hp t i ttmt6 Trading away Peace: H ep hp t i ttmt 7Trading away Peace: H ep hp t i ttmt 7Trading away Peace: H ep hp t i ttmt6
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).
7/31/2019 Trading Peace
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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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Trading away Peace: H ep hp t i ttmt10 Trading away Peace: H ep hp t i ttmt 11
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
7/31/2019 Trading Peace
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Trading away Peace: H ep hp t i ttmt12 Trading away Peace: H ep hp t i ttmt 13
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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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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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 (