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On 27th April 2012 the Co-op issued the following statement:

The Co-operative and the illegal Israeli settlements
Since 2009, The Co-operative Group has operated a Human Rights and Trade Policy, which establishes the exceptional circumstances under which we will withdraw all trade from a particular state, area or settlement.

One such circumstance is where there is a broad international consensus that the status of a settlement is illegal.

There are only two examples of such settlements: the Israeli settlements in the Palestinian Occupied Territories and the Moroccan settlements in Western Sahara.

On this basis, our policy has previously been not to source any produce or own-brand product from the Israeli settlements (or from Moroccan settlements). Since its adoption, this position has been underpinned by a rigorous monitoring process.

On the 25th April, The Co-operative’s Board determined that, going forward, we will additionally no longer engage with any supplier of produce known to be sourcing from the Israeli settlements. This decision will impact four suppliers*, and circa £350,000 of trade.

In reaching this decision the Board was mindful of the additional costs involved in the tracing and auditing of all produce supplied by these businesses.

In line with the Board’s decision, we have audited our supply chain and identified a small number of businesses that we can no longer source from, as there is evidence that they source from the settlements.

This position is not a boycott of Israeli businesses, and we continue to have supply agreements with some twenty Israeli suppliers that do not source from the settlements, a number of which may benefit from a transfer of trade.

We will also continue to actively work to increase trade links with Palestinian businesses in the Occupied Territories.

* The four suppliers are Agrexco, Arava Export Growers, Adafresh and Mehadrin

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I am writing to express my support and appreciation of your decision to extend the Human Rights and Trade policy to include trade with "any supplier of produce known to be sourcing from the Israeli settlements".

In 2009 the introduction of the Ethical Trading policy and the subsequent ban on Israeli settlement produce was believed to be an effective international measure to encourage Israel to stop violating International Law and to provide the opportunity for the development of Palestinian agricultural trade. Sadly however the opposite has happened: settlements & colonial outposts are increasing at an alarming rate; Palestinian land & water resources continue to be stolen for the benefit of the settler farms & towns; Palestinian workers – including children – are being exploited in the Jordan Valley and Palestinian agricultural trade is deliberately harmed by Israel's practices.

Therefore the Co-operative Group's recognition of these 'facts on the ground' in Palestine are to be welcomed, together with this policy remedy which will send a message to all  companies complicit in Israel's illegal occupation project that their actions will not be tolerated and that the Co-operative upholds it's ethical commitments in deeds as well as words.

As the UK's fifth largest food retailer, with an international reputation for ethical trade, the Co-op leads the way in delivering a sustainable and ethical shopping experience for customers and it is to be hoped that your leadership on this issue of corporate complicity with illegal activity in the Occupied Territories can be a wake-up call to other retailers who continue to sell produce grown and traded as a result of Israel's illegal colonial policies.