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EU prepares to punish Israel over Gaza attacks

By Ambrose Evans-Pritchard in Brussels and Alan Philps in Jerusalem



THE European Union is preparing to strip Israel of privileged trade access as
a punishment for the use of "excessive force" against the Palestinians.


EU diplomats confirmed yesterday that it was now almost certain that the 15
EU foreign ministers would agree to punitive action at a key meeting on May
21, clamping down on Israel's long-standing abuse of Europe's "Rules of
Origin" regime.


This means Israel will no longer be able to get away with exporting duty-free
goods made at Jewish settlements in the West Bank and Gaza as if they were
Israeli products. EU sources said the Israeli ambassador in Brussels
requested an urgent meeting with Chris Patten, the European external affairs
commissioner, in the hope of heading off a rift.


If relations continued to deteriorate, it could ultimately lead to the
suspension of the EU's Association Agreement with Israel, though there was no
support yet among member states for this "nuclear option".


Last week, the EU signalled its tough new line by condemning Israel's 24-hour
incursion into the Gaza Strip
and its attacks on targets in Lebanon as
"excessive and disproportionate".


Israel had been counting on the traditional influence of Germany and Britain
to head off calls by a French-led block for punitive measures, but the
government of Ariel Sharon appears to have misjudged the level of dismay in
EU capitals over the Israeli military incursion into zones considered
sacrosanct under the Oslo Accords.


Diplomats in Brussels say Israel's leadership has been slow to recognise the
EU's transformation from a trading block to an aspiring superpower. The
Amsterdam Treaty, which came into force in 1999, created an embryonic EU
foreign and defence ministry under the control of a "High Representative",
Javier Solana.

At the same time, Commissioner Patten is turning the EU's aid budget, the
biggest in the world, into the spearhead of a foreign global policy. The
Middle East is a prime target for a demonstration of growing EU influence.


Brussels is the largest donor to the Palestinian Authority, spending �110
million a year. A further �390 million is spent annually bolstering peace
moves in the four neighbouring states.


In Jerusalem, Israeli officials said any punitive action by the EU would be
counter-productive if the bloc really wanted to play a significant role in
Middle East peace-making. It would only reinforce the perception among
Israelis of bias against them.



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