According to the findings, settlement-origin produce is entering Europe under “Israeli” labeling, allowing it to benefit from preferential trade arrangements that are intended only for goods produced within Israel’s internationally recognized borders.

Under existing trade rules, Israeli exports to the EU and UK may qualify for reduced tariffs, but products originating from settlements in occupied territories are not eligible, as they are considered illegal under international law.

The report raises concerns over transparency in supply chains and enforcement of trade regulations related to settlement products.