European commission approved Israeli proposal for exports from territories

The European Commission approved last week Israel's proposal for marking the origin of exports to the EU.
 
The marking will indicate whether goods are produced within Israel or in the territories. Goods exported to the EU from companies and factories located in the territories have, in recent years, been subject to delays upon entry into the EU.
 
According to the proposal the EU will impose customs duties on Israeli goods originating from the territories, since the EU does not include these goods in its customs exemption on Israeli products.
 
Minister of Industry Trade and Labor Mr. Ehud Olmert said, "In view of the lessons from rules of origin affair, the Ministry is formulating an insurance proposal for exporters for damage to trading rights." He was referring to a proposal to compensate exporters for the estimated $8 million in customs duties on the $150 million in Israeli exports originating from the territories.
 
Olmert added that legal experts of The Ministry of Industry Foreign Trade Administration are formulating a compensation model for the insurance payment. He emphasized that the payment would not be an export subsidy, which is banned under World Tourism Organization rules, to which Israel is a signatory.