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OTTAWA — The Canadian Food Inspection Agency is backtracking after a decision that wines produced in the West Bank and other occupied areas should not be labelled as products of Israel.

The CFIA acknowledged its mistake after the Israeli government said in a statement to the National Post Thursday it opposed Canada’s “politicization” of a labelling issue.

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“We did not fully consider the Canada-Israel Free Trade Agreement (CIFTA),” the statement reads. “These wines adhere to the Agreement and therefore we can confirm that the products in question can be sold as currently labelled.”

According to the Liquor Control Board of Ontario (LCBO), the CFIA had notified wine-sellers last week it is unacceptable to declare Israel as the country of origin for wine products that aren’t produced within Israel’s formal borders.

Israeli officials in Canada appeared unhappy. “Israel supports free trade and objects to its politicization. We are currently in touch with the Canadian authorities and are discussing this matter,” said Itay Tavor, the head of public diplomacy at Israel’s embassy in Ottawa.