NETIV HAGDUD — An international campaign to boycott Israeli settlement products has rapidly turned from a distant nuisance into a harsh economic reality for Israeli farmers in the West Bank’s Jordan Valley.
The export-driven income of growers in the valley’s 21 settlements dropped by more than 14 per cent, or $29 million, last year, largely because Western European supermarket chains, particularly those in Britain and Scandinavia, are increasingly shunning the area’s peppers, dates, grapes and fresh herbs, according to settlers.
“The damage is enormous,” said David Elhayani, head of the Jordan Valley Regional Council, which represents about 7,000 settlers. “In effect, today, we are almost not selling to the [western] European market anymore.”
Israel has played down the impact of the campaign of boycott, divestment and sanctions launched by Palestinian activists in 2005 to pressure Israel to withdraw from occupied lands.
“By and large, it’s unpleasant background noise,” said Israeli foreign ministry spokesman Yigal Palmor, arguing that its overall effects have been negligible.
Israeli supporters of a land-for-peace deal with the Palestinians have warned that Israel could face a snowballing boycott — of the magnitude that brought down apartheid in South Africa — if it rebuffs proposals US Secretary of State John Kerry is to present in coming weeks.
Finance Minister Yair Lapid, speaking to the news website Ynet, warned Israelis on Friday that “a continuation of the existing situation will hurt the pocketbook of each of us”, particularly by hitting exports.
The Palestinians, too, could face repercussions if the talks collapse, such as less foreign aid from Europe.
Israeli security hawks say the valley must remain under Israeli control forever. The Palestinians argue that this would prevent them from establishing a viable state because they need the farm lands and open spaces.
Uzi Dayan, a former Israeli national security adviser, said Israel needs the valley, which makes up close to one-fourth of the West Bank, for strategic depth.
“Being here in the Jordan Valley, it is something existential,” he said last week, standing on a mountaintop overlooking sprawling date palm plantations. “The national security of Israel is based on defensible borders, not on boycotts.”
But economic worries are growing for some of the valley’s farmers.
Niva Benzion, who lives in the Netiv Hagdud settlement, used to sell 80 per cent of her sweet peppers and grapes to supermarket chains in western Europe, particularly in Britain.
Sales to western Europe plummeted in the past two years, she said, adding that she now sells mostly to eastern Europe and Russia, for up to 40 per cent less. She reduced her growing area by one-third this season and doubts she can make ends meet in the future.
Zvi Avner, head of the agriculture committee in the Jordan Valley, confirmed that sales of peppers and grapes to western Europe — mainly Britain and Scandinavia — have dropped by about 50 per cent and fresh herbs by about 30 to 40 per cent.
Avner and Elhayani said they are confident they can overcome the difficulties by selling in new markets and by farming more effectively.
The European Union (EU) says Israel’s settlements in the West Bank and East Jerusalem, now home to more than 550,000 Israelis, are illegal under international law, but has not called for a consumer boycott of settlement products.
As part of the US-led peace talks, the EU has promised Israel and the Palestinians an unprecedented partnership, just short of full membership, if they strike a deal. However, if talks fail, the Palestinians might expect a cutback in EU aid, while Israel might have to brace for a tougher anti-settlement stance by Europe.
This might include reviving plans for EU-wide guidelines for labelling settlement products. Currently, about half the 28 member states support such labeling, a step that would enable consumers to observe a boycott.
Britain issued guidelines to retailers for the voluntary labelling of settlement products in 2009. In December, Britain’s overseas trade body strongly discouraged firms from doing business with settlements.
In recent years, several British supermarket chains have either begun labeling or stopped selling goods from Israeli settlements.
“Supermarkets are now starting to realise that there’s a really big reputational risk involved here,” said Michael Deas, a Britain-based coordinator for the international boycott movement.
Marks & Spencer said it hadn’t sold any products from the West Bank since 2007. Upscale supermarket chain Waitrose said it stopped selling herbs from the West Bank several years ago. Morrisons, Britain’s fourth-largest grocer, said it stopped selling dates from the West Bank in 2011.
In 2012, the Co-operative Group (Co-op), the country’s fifth-largest grocer, banned Israeli settlement produce from its shelves.
Some retailers, like Co-op, said they were taking a moral stand, decrying the settlements as illegal. Others, like Waitrose, said their decision was commercial.
In Germany, the Kaiser’s supermarket chain said it stopped carrying products from the West Bank and the Israeli-annexed Golan Heights in 2012.
Israeli officials say the boycott has strong anti-Semitic overtones and aims to delegitimise the Jewish state.
Supporters of the campaign say they are gaining momentum and have pointed to a string of recent successes.
Last week, Dutch pension asset manager PGGM said it divested from five Israeli banks because they are involved in financing the construction of Jewish settlements.
Other moves, such as a recent decision by an American scholarly group to boycott Israeli universities, invited a broad backlash, in part because it targeted Israel and not just settlements.
Jordan Valley settlers say a boycott also hurts about 6,000 Palestinians employed on their farms.
Palestinian officials counter that Israel has suppressed virtually all Palestinian economic development in the valley and that Palestinians could create tens of thousands of jobs if freed from Israeli shackles.
While some settlers hope to see the valley annexed to Israel, Benzion, 57, said she wouldn’t stand in the way of peace, even if it means dismantling her life’s work.
“Nothing breaks my heart so easy, especially not bricks,” she said. “I will not even have a second thought of leaving here, if it’s for a peace treaty with our neighbours. I will cherish that.”
But expressing anger at the decision by Dutch pension asset manager PGGM to divest from Israeli banks over settlement building in the West Bank, the Israeli foreign ministry summoned Ambassador Caspar Veldkamp “for clarification” over the decision.
The ministry “told the Dutch ambassador that the decision of the PGGM pension fund to divest from Israel is unacceptable and relies on false pretence”.
“We expect the government of the Netherlands... to take an unequivocal stance against such steps, which only wreak damage to the relations between Israel and the Netherlands,” the ministry said.
Dutch Prime Minister Mark Rutte said that PGGM’s decision “was their own and has nothing to do with the Dutch government”.
“We are against a boycott and against sanctions [against Israel],” he told journalists at his weekly news conference in the Hague. “But we are against the settlements.”
Dutch “companies are free to do business within the settlements, but we would not support that”, Rutte said.
PGGM’s divestment came a month after a major Dutch water supplier ended a partnership with an Israeli water company which supplies Israeli towns and Jewish settlements in the occupied West Bank.
“PGGM recently decided to no longer invest in five Israeli banks,” said the company, which manages about 153 billion euros ($208 billion) in funds. “The reason for this was their involvement in financing Israeli settlements in occupied Palestinian territories.”
PGGM said there was “a concern, as the settlements in the Palestinian territories are considered illegal under humanitarian law”, and regarded by international observers as an “important obstacle to a peaceful [two-state] solution of the Israel-Palestinian conflict”.
Senior Palestinian official Hanan Ashrawi commended PGGM for “translating its corporate social responsibility policy into practise”.
“Steps by corporations such as PGGM, as well as practical measures that European governments have been taking, finally make Israel realise that it is not above the law,” she said in a statement.
