Small businesses in Yesha (Judea, Samaria, and Gaza) could be in jeopardy, if the European Union makes good on threats to withdraw preferential tariffs from goods made there. The EU claims that Yesha goods must not be labeled \"made in Israel.\" Israeli and European representatives are set to meet in Brussels next Tuesday in an attempt to resolve the matter.
The special rates have applied for the past 25 years, and affect goods produced in Judea, Samaria, Gaza, eastern Jerusalem and the Golan Heights. Reuters reports that the Yesha products amount to only $200 million annually, and that Israel\'s benefit from the rates tops out at $6 million. European Commission External Affairs spokesman Gunnar Wiegand denied a report in The Guardian that the EU was seeking to \"punish\" Israel for its policies during the current war against Palestinian terrorism. However, Israel\'s Ambassador to the EU warned that such a move by the EU would harm the fragile Palestinian economy - up to 20,000 Palestinians work in Israeli factories in Yesha - and would undermine the EU\'s role as a credible mediator in the peace process.
The special rates have applied for the past 25 years, and affect goods produced in Judea, Samaria, Gaza, eastern Jerusalem and the Golan Heights. Reuters reports that the Yesha products amount to only $200 million annually, and that Israel\'s benefit from the rates tops out at $6 million. European Commission External Affairs spokesman Gunnar Wiegand denied a report in The Guardian that the EU was seeking to \"punish\" Israel for its policies during the current war against Palestinian terrorism. However, Israel\'s Ambassador to the EU warned that such a move by the EU would harm the fragile Palestinian economy - up to 20,000 Palestinians work in Israeli factories in Yesha - and would undermine the EU\'s role as a credible mediator in the peace process.