Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

A red blend named for Pompeo at the winery he visited today in a West Bank settlement. Photo: Emmanuel Dunand/AFP via Getty

After visiting a winery in the Jewish settlement of Psagot in the West Bank, Secretary of State Mike Pompeo announced a new policy on Thursday of allowing products from the settlements to be labeled as “made in Israel."

Why it matters: The policy announced by Pompeo is more radical than the Israeli government's policy regarding the settlements. It signals U.S. recognition of de facto Israeli annexation of much of the West Bank and seems to be a violation of the spirit of the “Abraham Accords” and the recent UAE-Israel peace treaty, under which Israel agreed to suspend its annexation plans.

Behind the scenes: The move was pushed by Pompeo and U.S. Ambassador to Israel David Friedman. It's unclear if the White House approved or even knew the announcement was coming.

The big picture: While the rest of the world views the settlements as illegal under international law and not as part of Israel, the Trump administration has taken several steps intended to legitimize them and blur the differentiation between Israel and the West Bank. Pompeo was the first ever secretary of state to visit the settlements.

Driving the news: Pompeo met this morning with Israeli Prime Minister Benjamin Netanyahu in Jerusalem and briefed him on the change in policy.

  • He also announced that the State Department would regard organizations that promote boycott, divestment and sanctions against Israel or against areas controlled by Israel — like the West Bank settlements — as anti-Semitic.

The state of play:

  • Pompeo said the new policy recognizes that producers in the settlements operate within the economic and administrative framework of Israel. They will be required to mark goods as “made in Israel” when exporting to the United States.  
  • According to the new policy, goods from areas of the West Bank where the Palestinian Authority maintains relevant authorities shall be marked as "West Bank" products. Goods produced in Gaza will be marked as products of  “Gaza.”  
  • The U.S. will no longer accept “West Bank/Gaza” markings, in recognition that Gaza and the West Bank are politically and administratively separate and should be treated accordingly, Pompeo said.

Background: Since 1967, all previous U.S. administrations had treated the West Bank and Golan Heights as occupied territory and the settlements as illegitimate.

  • In 1995, after the Oslo Accords were signed and the Palestinian Authority was formed, the Clinton administration issued guidelines that required goods from the settlements to be labeled as “made in the West Bank." The guidelines were not really enforced.
  • In 2016, the Obama administration republished the guidelines and warned that labeling settlement goods as “Made in Israel” could lead to fines. This was seen at the time as a diplomatic signal to Israel over settlement expansions.

What to watch: Pompeo's announcement — two months before the end of the Trump presidency —puts another hurdle in place for Biden if, as expected, he seeks to roll back Trump's policies on settlements.

Go deeper

Jan 28, 2021 - World

Israel's chief epidemiologist creates diplomatic incident with UAE

Israeli travelers arrive in Dubai. Photo: Karim Sahib/AFP via Getty Images

A remark by Israel’s chief epidemiologist suggesting the opening of direct flights from Dubai to Tel Aviv had led to COVID-19 deaths in Israel resulted in diplomatic protests from the UAE, Israeli officials tell me.

Why it matters: Direct flights were one of the main fruits of the Israel-UAE peace treaty, and around 130,000 Israeli tourists have taken advantage by flying to Dubai since December.

Updated 3 hours ago - Politics & Policy

Senate action on stimulus bill continues as Dems reach deal on jobless aid

Photo: Alex Wong/Getty Images

Democratic leaders struck an agreement with Sen. Joe Manchin (D-W.V.) on emergency unemployment insurance late Friday, clearing the way for Senate action on President Biden's $1.9 trillion stimulus package to resume after an hours-long delay.

The state of play: The Senate will now work through votes on a series of amendments that are expected to last overnight into early Saturday morning.

Capitol review panel recommends more police, mobile fencing

Photo: Olivier Douliery/AFP via Getty Images

A panel appointed by Congress to review security measures at the Capitol is recommending several changes, including mobile fencing and a bigger Capitol police force, to safeguard the area after a riotous mob breached the building on Jan. 6.

Why it matters: Law enforcement officials have warned there could be new plots to attack the area and target lawmakers, including during a speech President Biden is expected to give to a joint session of Congress.