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"A European court ruled Thursday that Israeli goods produced in the Palestinian territories cannot benefit from EU trade privileges, in a politically sensitive judgement centring on Jewish settlements.
In its decision, the Luxembourg-based European Court of Justice maintained a clear legal distinction between Israel and the Palestinian territories, regardless of whether the Jewish state controls any of those areas.
The case concerns German drinks filter and dispenser company Brita which had sought to import drinks makers and syrups from Israeli producer Soda-Club, made at a site in Mishor Adumin in the West Bank, to the east of Jerusalem.
Brita contested a German court decision which refused the goods preferential duties treatment as the products were made in the Israeli-occupied territories.
The EU court in Luxembourg upheld that decision, ruling that "products originating in the West Bank do not fall within the territorial scope of the European Community-Israel agreement and do not therefore qualify for preferential treatment under that agreement."
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