| Eu adds duties to settlement products { November 26 2003 } Original Source Link: (May no longer be active) http://www.haaretz.com/hasen/spages/365109.htmlhttp://www.haaretz.com/hasen/spages/365109.html
Wed., November 26, 2003 Kislev 1, 5764 Another cost of the settlements After continual applied pressure by the European Union, Minister Ehud Olmert this week deigned to geographically label Israeli products sent to Europe. As minister of industry and commerce, Olmert understood that he had to solve the long-standing problem between the EU and Israel, a dispute that had begun claiming a heavy price from all Israeli exports to Europe. Israel enjoys a free trade agreement with the EU, in which it can export to EU countries without customs and tariffs on its products. But the Europeans, who oppose Israel's policy in the territories, aren't ready to grant the special conditions to the enterprises based in the territories, because they help pay for the settlements in the territories, which the Europeans are against.
Three years of intifada have deteriorated Israel's standing in Europe. One of its expressions has been stepped-up economic pressure. That pressure has made some European countries require Israeli exporters to pay customs on goods suspected of being manufactured in the territories, until their precise origins can be determined. A company with the word Golan in its name was forced to pay full customs, and no explanations that the company is located inside the Green Line helped. Recently, some 4,000 separate export packages on their way from Israel to Europe - to the tune of several hundred million dollars - were examined and the exporters were required to post guarantees equal to 5-6 percent of the value of the items until the origins were determined. In Spain, France and Italy, there were cases in which Israeli exporters were required to make retroactive deposits in exports from the previous three years.
Israel exports some $12 billion a year to the EU, with the exports from the settlements worth only $120 million. The customs fees on the $120 million are about $7 million. Has it been worth endangering $12 billion for the sake of the $7 million?
Obviously, the agreement Olmert reached is the wise approach. Foreign Minister Silvan Shalom's opposition is strange. He tried to get a better deal with the Europeans and failed. His tactic was to try to gain time.
Shalom also claims that "with a wave of his hand Olmert set Israel's borders" and blamed him for recognizing the Green Line. But Olmert has not suddenly turned into a Peace Now activist. He wanted to solve a problem; and the Europeans, for their part, know exactly where the Green Line goes, and their views are known. Now the factories and businesses in the territories want to be compensated for the customs, so, in the calculations of how many billions the citizens of Israel have paid for the territories, that money has to be added in. Hopefully, the demand will be turned down.
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