Trade Minister Ehud Olmert decided three months ago to facilitate the European Union's discrimination against products made in Yesha, thus arousing the ire of the nationalist public - and now it turns out that the European Union itself is not so enthusiastic about the idea. So say sources in the Foreign Ministry, which led the campaign against Olmert's decision.



The story began many years ago when European countries said that they would not grant free-trade benefits to goods made in Judea, Samaria and Gaza - and threatened to remove such benefits from all goods made in Israel. Olmert recommended, and the Cabinet approved, a "compromise" by which every Israeli product would list its city of manufacture. The Foreign Ministry was against the decision from the start, saying that it was the beginning of a dangerous capitulation to European dictates regarding the areas of Judea, Samaria and Gaza. Sources close to Foreign Minister Silvan Shalom also say that the decision was made in an amateurish manner.



Trade Ministry sources say, however, that the European Union has not yet made any decision on the matter. In general, this disagreement is seen as a symptom of the tense personal relations between Olmert and Shalom - both of whom have designs on succeeding Ariel Sharon as Prime Minister in the next elections.