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The UK has increased pressure on Israel regarding its West Bank settlements by advising UK supermarkets on food labelling to distinguish between goods grown in the settlements and those manufactured by Palestinians, the Guardian has reported.

Until now, food including fruit, vegetables and herbs has been labelled simply “Produce of the West Bank”, but this new voluntary guidance issued by the Department for the Environment, Food and Rural Affairs (Defra), says labels could offer more precise information, such as “Israeli settlement produce” or “Palestinian produce”.

EU law already demands that a distinction be made between goods originating in Israel and those from the occupied territories, but pro-Palestinian campaigners say this is not always observed.

Defra has also stated that traders declaring produce from the occupied territories as 'Produce of Israel' would be committing an offence.

However, the UK Foreign Office said that it was in no way calling for a boycott of Israel. 'We believe that would do nothing to advance the peace process,” a spokesman said. “We oppose any such boycott of Israel. We believe consumers should be able to choose for themselves what produce they buy. We have been very clear both in public and in private that settlements are illegal and an obstacle to peace.'

Nevertheless, Israeli officials have condemned the move. 'It looks like it is catering to the demands of those whose ultimate goal is the boycott of Israeli products,' said Yigal Palmor, Israel's foreign ministry spokesman. 'The message here will very likely be used by pro-boycott campaigners. It is a matter of concern.'