The European Court of Justice has ruled that goods produced in the illegal Israeli settlements in the West Bank cannot be considered Israeli and therefore cannot benefit from trade privileges and should be subject to import duty.

Brita, the German-based international drinks company, wanted to declare produce imported from the West Bank as suitable for preferential EU duties treatment. A similar German court ruling on the origin of these goods, had been appealed by Brita through the European Court, which handed down its extensive ruling yesterday.

The Court also noted that, under the EU-Israel Agreement, Israeli authorities are obliged to provide sufficient information to allow the real origin of products to be determined. Wine, cosmetics and computer products are also produced in West Bank settlements.

"The ruling means that goods produced in West Bank settlements and East Jerusalem cannot be used by Israeli companies to benefit from EU-Israeli trade agreements.

"The European Court of Justice has maintained a clear legal distinction beween Israel and the Palestinian territories. This clarity is welcome and the court's ruling is binding on all 27 member states.

"On foot of this decision, Ireland must now insist that all goods imported into Ireland from Israel are supported by documentation which clarifies their origin - even where goods may only have been partly produced in an illegal settlement." In 2008, there were 579 companies exporting from Israel to Ireland, including machinery and electrical goods. The exports were valued at $100 million.

"The Palestinians have long argued that Israeli goods, made in the so-called settlements, should not receive trade privileges from the EU. This ruling is a vindication of their argument and one which, as chair of the European Parliament delegation to Palestine, I welcome"