The UK has upped the ante on the continued wrangle over produce from settlements in Israel, after the government issued guidance on food labelling.

Voluntary guidance issued by DEFRA says labels could offer more precise information such as “Israeli settlement produce” or “Palestinian produce” to distinguish between goods grown in the settlements and those manufactured by Palestinians.

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.

The Guardian reports that a spokesman for the UK Foreign Office said: "We believe that would do nothing to advance the peace process. 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."

And pressure groups have taken a hard line stance on the issue, with campaigners protesting outside Waitrose stores in London last month.

Yasmin Khan, senior campaigns officer at the anti-poverty charity War on Want, said: “By selling produce from Israeli settlements, British supermarkets like Tesco, Sainsbury's and Waitrose are profiting from Israel’s illegal occupation of Palestinian land.

“Voluntary advice on labelling fails to deal with the issue. The government should impose an immediate and total ban on the sale of settlement goods in Britain.

“The government’s position is utterly contradictory. Ministers call settlements obstacles to peace, yet sustain their existence by allowing UK retailers to trade with them."

Yigal Palmor, Israel's foreign ministry spokesman, said: "It looks like it is catering to the demands of those whose ultimate goal is the boycott of Israeli products.

“The message here will very likely be used by pro-boycott campaigners. It is a matter of concern."

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