The European Union is planning to force all Israeli companies operating in the West Bank and East Jerusalem to label their products as "Made in occupied territories," according to the Voice of America.
The plan comes at a time when the U.S. government is struggling hard to broker negotiations between Israel and Palestine.
The two sides were unable to come to a common ground as Israel continued its occupation of land captured in the 1967 Arab-Israeli war and till date, all the products in the occupied territories made by Israelis are tagged as "Made in Israel."
The two sides have agreed to talks after frenetic efforts by the U.S Secretary of State, John Kerry. Israel and Palestine are meeting in Washington this week and this will "serve as an opportunity to develop a procedural work plan for how the parties can proceed with the negotiations in the coming months."
The European Union is planning to set rules to implement longstanding consumer legislation, according to Maja Kocijancic, spokesperson for EU Foreign Affairs.
"The main principle of this legislation is that the information must not mislead the consumers. 'Made in Israel' as a label is misleading when it comes to settlement products. Currently the internal consultations on this are ongoing," said the spokesperson.
The European Union has also voted to block its grants and loans to Israeli entities if they are operating in "occupied" West Bank and East Jerusalem.
