This article is more than 6 years old

This article is more than 6 years old

Australia could be hit with trade sanctions over the Abbott’s government’s decision to stop calling East Jerusalem “occupied”, a term used in United Nations resolutions and supported in votes by the Australian government.

The policy change – first revealed by the attorney general, George Brandis, in a Senate estimates hearing – was restated by Tony Abbott overnight in the US. His comments came hours after the representatives of 18 nations, including Indonesia, protested against the policy change to the Australian Department of Foreign Affairs and Trade.



“It is important, as far as you can, not to use loaded terms, not to use pejorative terms, not to use terms which suggest that matters have been prejudged, and that is a freighted term,” said Abbott.



“The truth is they're disputed territories.”



The head of the General Delegation of Palestine to Australia, Izzat Abdulhadi, said the decision would “unfortunately” influence trade between Australia and the Arab world.



“I'm afraid this will really cast a lot of shadows, negative shadows, over relations between Australia and the Arab world, and there will be a sort of negative consequences,” Abdulhadi told ABC radio.

“We need Australia to change this position again to be more compatible with international law and United Nations resolutions.”



National Farmers’ Federation president Brent Finlay called for “sensibilities to prevail”, given trade with the Middle East was based on long-term relationships.



Australian agricultural exports to the Arab League’s 22 member states are estimated to be worth $3.5bn while total Australian exports to Indonesia last year were worth $4.7bn.



“We are very concerned about it and we are working closely with the agriculture minister. It is an unfortunate hiccup,” Finlay said.



Agriculture minister, Barnaby Joyce, said he would be concentrating on getting agricultural products moving.

“I will leave all that wondrous stuff on foreign affairs to those who are on a vastly better pay scale and smarter than I am," Joyce said.

“My job is to make sure we get product moving.”



In 2004, the international court of justice ruled the West Bank was “occupied”. Successive Australian governments have accepted the use of the term.



That shifted last week when Brandis told estimates it was “unhelpful” to refer to historic events when describing these areas, given the ongoing Middle East peace process.



"The description of East Jerusalem as 'occupied' east Jerusalem is a term freighted with pejorative implications, which is neither appropriate nor useful," Brandis said. "It should not and will not be the practice of the Australian government to describe areas of negotiation in such judgmental language."



The shift has drawn praise for the government from the Israeli prime minister, Binyamin Netanyahu, who welcomed the Australian statement on Sunday.

“To say this sharply and with such clarity and, I would say, courage, is refreshing given the chorus of hypocrisy and ignorance,” Netanyahu said. “Ignorance not only of ancient history, but of recent and current history. What has really happened here? Who invaded who? Who occupied what? What is subject to negotiation? What is the area in dispute?

“These are new things. I certainly appreciate this stand by the Australian government and I am certain that all those who want to see an agreement here based on peace, justice and truth – and it is impossible to build peace based on historic lies – would agree.”

Dfat is expected to make a statement on the issue on Friday.

