By Alexander Cornwell and Rami Amichay
TEL AVIV/PSAGOT, West Bank, Sept 9 (Reuters) - Israel has given Britain 30 days to close its East Jerusalem consulate in response to sanctions on goods from settlements, a measure Britain's leader said on Wednesday was needed to "stand against injustice" in the occupied West Bank.
In the West Bank, where Israeli settlements have eaten into territory Palestinians seek for a state, settler business owners said the sanctions — announced on Tuesday by Britain, France
and Canada — would dent their revenues and at least one said they could force him to close his date farm.
The sanctions are among the strongest collective actions taken by Western countries that Israel once counted as close allies, highlighting its growing isolation over the war in Gaza and expansion of settlements in occupied territory.
ISRAEL SETS DEADLINE FOR BRITAIN TO CLOSE CONSULATE
Two Israeli officials and two other sources familiar with the matter said London had been given 30 days to close its East Jerusalem consulate, which represents Britain in Jerusalem, the West Bank and Gaza on Palestinian issues.
Israel has also barred 12 British politicians from visiting the country, told British officials and diplomats in the West Bank and a Gaza coordination centre in Israel to leave, and said Britain can no longer train Palestinian security forces in the West Bank.
It has not yet announced actions against France or Canada, which joined Britain in saying they would halt trade with settlements, or against nine other countries that endorsed the UK sanctions.
Although the UK sanctions were widely anticipated, Israeli parliamentary opposition leader Yair Lapid said on Tuesday that "no one knew" the other countries were going to endorse the move.
Speaking before Britain's parliament, Prime Minister Andy Burnham said Britain had long endorsed the two-state solution for the Israeli-Palestinian conflict, but that words needed to be backed by action.
"We will always stand with the underdog and take what action we can to support them," he said.
There has so far been a muted response from the United States, with Secretary of State Marco Rubio saying Washington did not want to see "anything destabilising" in the West Bank while declining to specifically comment on the UK sanctions.
The U.S. ambassador to Israel, Mike Huckabee, a staunch supporter of Israel, has condemned the sanctions and accused the British government of "Jew hate". U.S. President Donald Trump has not commented on the move.
Israeli leaders have described the sanctions as "morally distorted". Gideon Sa'ar, Israel's foreign minister, accused the UK of "blatant interference in the affairs of a sovereign state and its electoral process". Israel is due to hold a general election on October 27.
'IF I CAN'T SELL TO EUROPE, I NEED TO CLOSE THE BUSINESS'
Much of the world views Israel's settlements as illegal under international law. Prime Minister Benjamin Netanyahu's government has overseen a rapid expansion of small settler outposts, some of which have perpetrated violence against Palestinians.
Israel rejects the assertion that the settlements are illegal, viewing the West Bank as disputed territory to which it holds biblical ties.
Diplomats widely regard the sanctions as an important but symbolic step, with goods from Israeli settlements making up only a fraction of Israel's exports.
Still, Israelis working in West Bank settler agriculture businesses told Reuters the sanctions would bar their products from important markets in Europe.
Yaakov Berg, head of the Psagot Winery near the Palestinian city of Ramallah, said Britain made up a big market for the winery, which exports around 60% of its wine. Israeli and Palestinian rights groups say the winery was established on privately owned Palestinian land.
Berg said the sanctions were a reflection of antisemitic hate, something Britain and others reject.
"Sometimes you suffer. Sometimes you lose some money. That's okay with us. We are not going to change the truth and who we are because of a few dollars," Berg said.
In Kibbutz Almog, a Jordan Valley settlement south of the Palestinian town of Jericho, one of the area's many settler date farmers, 59-year-old Moses Gazi, said the sanctions could end up hurting the many Palestinians he employs on his farm.
"If I can't sell my dates to Europe, I need to close the business. I close the business, each of (the Palestinian workers) has something like three, four, five kids. What are they going to do?" he said.
(Reporting by Alexander Cornwell; Additional reporting by Paul Sandle in London; Writing by Angus McDowall and Rami Ayyub; Editing by Michael Perry and Aidan Lewis)
