Australian trade with Arabs countries threatened

Palestinian ambassador in Australia warned that Australian trade relations with the Arab world would be damaged as a result of its decision to abandon the labelling of East Jerusalem as occupied territories.

In statements to AFP, Ambassador Ezzat Abdel-Hady said that the “provocative and useless” decision could lead to negative ramifications on joint trade with the Arab world.

“Everything depends on the response of the Australian government to protests in the Arab world,” he added.

The volume of trade between Australia and the Middle East is worth billions of dollars. Australia exports grain and meat, while Qatar and Jordan are considered important markets for Australian sheep.

Deputy Australian Prime Minister Warren Truss said in a press conference that his country “wants to safeguard its trade with [Arab] countries, and will do all that is necessary for that goal.”

18 foreign consulates, including the consulates of Indonesia, Egypt and Saudi Arabia have lodged official complaints with the Australian foreign ministry.

Abdelhady is scheduled to meet with Australian foreign minister next week for talks on the crisis.

Last week, the Australian government decided to lift the “occupied” label from East Jerusalem, which triggered the anger of Palestinians.

Prime Minister Tony Abbott justified the decision, saying that East Jerusalem is “a disputed territory.”

On the other hand, Israeli Prime Minister Benjamin Netanyahu praised the decision as “interesting and brave.”

Israel occupied and annexed the Arab-majority eastern part of Jerusalem in June 1967.

Israel considers Jerusalem as its “undivided and eternal” capital. However, the international community has not recognised the annexation of occupied East Jerusalem, which Palestinians seek to announce as the capital of their future state.

Approximately 200,000 Israelis live in settlements in East Jerusalem along-side 300,000 Palestinians.