A/HRC/34/39 security budget allocated by the Ministry of Construction and Housing, totalling approximately US$ 25 million in 2015.48 31. Intensified efforts by Israeli settler groups to take control of East Jerusalem properties, often located deep within Palestinian neighbourhoods, have generated an increased risk of evictions of Palestinian families (see also para. 56 below). Retroactive legalization of outposts in Area C 32. Successive reports to the General Assembly have detailed Israeli support to settlement outposts (erected by settlers without official approval from the Government of Israel) through the provision of funds, infrastructure and security, and through the lack of any action to remove them. 33. While no outpost has been legalized since May 2014, efforts to retroactively approve such settlements took a new form during the period under review, as a draft bill was introduced to avert the impending court-mandated 25 December 2016 deadline for the evacuation and demolition of the outpost of Amona, erected on the private lands of residents of Silwad, Ein Yabroud and Taibeh. The “regularization bill” envisaged the retroactive “regularization” of settlement houses built on private Palestinian property, which would remove key legal obstacles to the retroactive legalization of dozens of unauthorized outposts.49 C. Production of and trade in settlement goods 34. The production of and trade in settlement goods raises concerns about the human rights impact on Palestinians caused and exacerbated by business enterprises and States. The human rights obligations of Israel within the Occupied Palestinian Territory stem from the jurisdiction and effective control it exercises as the occupying power. That includes the obligation to protect individuals and communities from adverse human rights impacts by third parties, such as business enterprises, operating in territory under its effective control. Under article 1 common to the Geneva Conventions, States parties have to respect and ensure respect for the Conventions. Accordingly, third States are under the obligation not to recognize the unlawful situation resulting from Israeli settlements, nor to aid or assist in the violations committed by Israel.50 35. The European Union is the main trading partner of Israel, with trade worth over 32 billion euros in 2015. The Government of Israel has reportedly estimated that the annual value of industrial goods produced in settlements and exported to Europe is US$ 300 million. Agricultural production provides the main source of income for settlements in the Jordan Valley, with 66 per cent of their produce being exported. 36. Products that are wholly or partially produced in settlements are frequently labelled as coming from Israel, obscuring their actual origin. That allows the exports to be covered under preferential trade agreements with the European Union that exclude settlements. Some measures have been taken to address that issue. During the reporting period, the European Union issued new labelling guidelines for products coming from the West Bank, including East Jerusalem, and the Golan Heights. Under those guidelines, any product originating from a settlement must not be labelled as “Made in Israel” but must clearly be labelled as having been produced in a settlement. 37. While States have a primary duty to protect human rights, there is an independent corporate responsibility to respect human rights applicable to all business enterprises, irrespective of where they operate. That has been recognized in the Guiding Principles on 48 49 50 8 Ibid, p. 12. See A/HRC/31/43 and A/71/355. See also www.ohchr.org/EN/NewsEvents/Pages/ DisplayNews.aspx?NewsID=21003&LangID=E. See Legal Consequences of the Construction of a Wall in the Occupied Palestinian Territory, paras. 157-159, and International Committee of the Red Cross, 2016 commentary on article 1 common to the Geneva Conventions, para. 163.

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