The European Union's top court ruled on Tuesday that products made in Israeli settlements must be clearly labelled as produced in the Occupied Territories when sold in EU countries. 

In its ruling, the Luxembourg-based European Court of Justice (ECJ) said goods from territories occupied by Israel "must bear the indication of their territory of origin", and that where goods come from an Israeli settlement within that territory, this should also be indicated. Labels, the court said, must not imply that goods produced in the Occupied Territories come from Israel itself.

The judgment stems from a case brought by Psagot Winery and the European Jewish Association against the French government. Psagot Winery, which is based in the Israeli-occupied West Bank, challenged a French law requiring wine labels to state that its products came from Israeli settlements in the Occupied Territories, arguing that this was not in line with EU labelling rules. France's Supreme Court, the Conseil d'Etat, referred the case to the ECJ as the final arbiter of EU law.

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In its ruling, the court concluded that the products could not be labelled "Israel" because labels must "prevent consumers from being misled as to the fact that the State of Israel is present in the territories concerned as an occupying power and not as a sovereign entity".