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LONDON -- The United Kingdom on Tuesday banned trade with Israeli settlements in the occupied West Bank, where it says "settler terrorists" are carrying out "ethnic cleansing" of Palestinians, in a significant toughening of Britain's stance toward a longtime ally.
France and Canada announced they would take similar action in an attempt to prevent expanding settlements and growing violence from making it impossible to establish a future Palestinian state.
Israel responded angrily and said it would close the British consulate in Jerusalem.
Foreign Secretary Ed Miliband said the U.K. will ban imports of all goods from the settlements and bar companies from providing services for the settlements, including financing, construction, infrastructure, real estate and advertising.
"I do not believe the British people want us supporting the occupation by accepting products from settlements in our shops and supermarkets," Miliband said.
In a joint statement, British Prime Minister Andy Burnham, French President Emmanuel Macron and Canadian Prime Minister Mark Carney said settlement expansion and settler violence in the West Bank "pose a direct and urgent threat" to the two-state solution. They said they decided to act "before it is too late."
The economic impact is likely to be limited, since the settlements produce only a small amount of largely agricultural exports. But the move is a symbolic expression of displeasure with Israel by some of its closest allies, and it offers a new sign of the Israeli government's growing isolation as a result of the Gaza war.
Miliband said that he feels "a deep sense of shame about what has unfolded in Palestine under the eyes of the international community."
"We will not acquiesce in the destruction of the two-state solution," he said.
Israeli Foreign Minister Gideon Sa'ar condemned the "despicable" move. He said Israel would expel U.K. representatives from a joint military center monitoring the Gaza ceasefire and end U.K. training of the Palestinian Authority's security forces in the West Bank. In addition, Israel barred entry to a dozen British lawmakers and other U.K. citizens whom Sa'ar said were "involved in antisemitic and anti-Israel activity."
Settlements have expanded
Under the ultranationalist government of Israeli Prime Minister Benjamin Netanyahu, settlement construction in the West Bank -- seized by Israel in the 1967 Mideast war -- has surged. Netanyahu's government views the West Bank as the biblical and historical homeland of the Jewish people and is opposed to the creation of a Palestinian state.
The international community overwhelmingly considers such construction to be illegal. Britain and other countries have voiced particular concern about the E1 settlement project approved by Israel, which would effectively cut the territory in two.
There have been marked increases in attacks by settlers on Palestinians, evictions from Palestinian towns, Israeli military operations and checkpoints that choke freedom of movement, as well as several Palestinian attacks on Israelis.
"The British government agrees that there is ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists," Miliband said. He said there had been "houses bulldozed, roads and public infrastructure destroyed, families displaced from their homes."
The ban on trade will be in place in six to nine months, Miliband said. He said Denmark, Finland, Iceland, Poland, Portugal and Sweden have pledged to "support further action."
The Netherlands, Ireland, Belgium, Spain and Norway have either banned goods from settlements or are in the process of doing so, he said.
Miliband also tightened Britain's embargo on weapons sales to Israel for use in Gaza to include arms "that materially contribute to the occupation" of Palestinian territories.
UK recognition of Palestinian state
Britain recognized Palestinian statehood last year in an attempt to revive dwindling efforts to achieve a two-state solution.
In a change of Britain's position, Miliband said Tuesday that the U.K. regards Israel's occupation of the West Bank, and not just the settlements, as illegal.
The new position is likely to be welcomed by many Labour voters and lawmakers, who have urged the government to go further in sanctioning Israel and supporting the Palestinians.
But some expressed concern that the sanctions could boost support for Netanyahu, who is facing a tough battle for reelection in October, or lead to attacks on British Jews. The U.K.'s chief rabbi, Ephraim Mirvis, said it was "a dark day for British Jews."
Opposition Conservative Party foreign affairs spokesman Tom Tugendhat said that "turning Israel into a pariah will risk sectarian division in our own country and risk a further rise in antisemitic violence on our own streets."