The Foreign Ministry on Saturday condemned Norway's decision to label goods produced in Judea and Samaria, east Jerusalem, and the Golan Heights.
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Oslo announced Saturday that it would implement a 2019 ruling of a top European court calling on EU countries to mark Israeli food products manufactured in West Bank settlements.
The decision will apply to foodstuffs and other products, as Oslo stated it only recognizes Israeli sovereignty within the pre-1967 borders.
In 2020, Norway's parliament rejected a motion to label imported Israeli products manufactured in Judea and Samaria. The bill was presented by left-wing parties, including the Norwegian Labor Party, but was voted down by the coalition parties and other non-affiliated parties in the Oslo legislature.
"This is a decision that will not contribute to the promotion of Israeli-Palestinian relations," the Foreign Ministry said in a statement.
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"It will adversely affect the bilateral relations between Israel and Norway and impact the relevance of Norway's role in the advancement of Israeli-Palestinian relations."
According to the 2019 ruling by the European Court of Justice, when products come from an Israeli settlement in Judea and Samaria, their labels must provide an "indication of that provenance" so that consumers can make "informed choices" when they shop.
The EU rejects the Judea and Samaria settlement enterprise, saying it undermines the hopes for a two-state solution. Israel maintains that such labeling is unfair and discriminatory and says other countries involved in disputes over land are not similarly sanctioned.
i24NEWS contributed to this report.