A/HRC/25/67 portfolio, due to its extraction of non-renewable natural resources from occupied Palestine.47 Such examples should lead the way for more countries and companies to follow suit, as well as alerting Governments to their responsibility to urge companies subject to their authority to act in accordance with international law. 43. While due diligence on the part of businesses is an inherent aspect of corporate responsibility, Governments also have the obligation, as noted by the fact-finding mission on settlements, to take measures to ensure that they do not recognize an unlawful situation arising from the illegal activities of Israel.48 In this regard, the European Union guidelines which establish that all agreements between Israel and the European Union for grants, prizes and financial instruments funded by the European Union must now unequivocally and explicitly indicate their inapplicability to the territories occupied by Israel in 1967 represents a step in the right direction. 44. The Special Rapporteur is also encouraged by the recent issuance by the Government of the United Kingdom of Great Britain and Northern Ireland of guidelines for businesses, which for the first time outline the risks of trading with Israeli settlements, and specifically warn of the legal and economic risks stemming from the fact that the Israeli settlements, according to international law, are built on occupied land and are not recognized as a legitimate part of the territory of Israel.49 Trade with the settlements 45. The diligence shown by the European Union and some of its Member States regarding the responsibility of businesses operating in occupied Palestine naturally leads to the following question: Are the same human rights standards applied by countries when it comes to trade relations with the settlements? If the statements issued by the European Union and the United States protesting the expansion of settlements reiterate their illegality and illegitimacy, then steps should be taken to ensure that related actions also reflect a genuine commitment to human rights and respect for international law, for example by ceasing trade with the settlements starting with a ban on imports of settlement produce. 46. While produce originating in the Israeli settlements is not entitled to benefit from preferential tariff treatment under the European Union-Israel Association Agreement, fresh agricultural produce exported from the settlements — but falsely labelled as “made in Israel” — can still be found on many supermarket shelves across the European Union due to the voluntary nature of labelling requirements. Considering the fact that the European Union remains one of the most important trading partners for the settlements, with annual exports worth $300 million, a ban on settlement produce would have a significant impact. It should also not be forgotten that trade with settlements is linked to the violation of human rights with respect to Palestinian communities denied access to fertile agricultural land, water and other natural resources. 47. So long as illegal settlements are supported through trade, statements protesting the expansion of settlements from the main trading partners of Israel will have little resonance on the ground, and third party States will continue to be associated with the violation of human rights in occupied Palestine. 47 48 49 Palestinian BDS National Committee, submission to Special Rapporteur (November 2013). A/HRC/22/63, paras. 116–117. See www.theguardian.com/world/2013/dec/09/uk-government-warns-over-business-israeli-settlements. 13

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