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America's 'Made in Israel' policy that you've probably never heard of

Much has been said about the EU's new guidelines for labeling Israeli settlement goods, but the US has had similar rules for decades.

Sen. Rob Portman (R-OH) speaks during the Republican Jewish Coalition Spring Leadership Meeting in Las Vegas, Nevada April 25, 2015. REUTERS/David Becker - RTX1A9CG
Sen. Rob Portman, R-Ohio, speaks during the Republican Jewish Coalition Spring Leadership Meeting in Las Vegas, April 25, 2015. — REUTERS/David Becker

To hear Republicans and not a few Democrats say it, the European Union's recent decision to label West Bank goods is little more than an anti-Semitic ploy to harm Israel.

What none of them will tell you — and few seem to even realize — is that the United States has had similar rules on the books for the past two decades. Now that little-known US labeling policy is poised to become the next battleground as two-state solution champions and hard-line pro-Israel advocates face off over just what it means to be “Made in Israel.”

“There are a number of members of Congress who are interested specifically about how the US rule is or is not being followed,” said Dylan Williams, the vice president of government affairs for the liberal J Street lobbying group. “And, more broadly, how the United States can further sharpen the distinction in US law and policy between Israel and the territories.”

At issue is 1995 guidance — still in force today — from the Treasury Department that requires goods from the West Bank or Gaza Strip to be labeled as such. The guidance, which was last updated in 1997, applies to the 1985 trade pact with Israel and was meant in part to boost support for the fledgling Palestinian Authority created by the Oslo Accord.

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