Paris published guidelines on enforcing European Union (EU) regulations on produce from the West Bank, including annexed east Jerusalem, which the international community considers occupied Palestinian land, and the Golan Heights, which Israel seized from Syria in 1967.
The EU ruled that products from Israeli settlements should be clearly labelled a year ago, but France is the first member state to enforce the decision, which sparked a diplomatic crisis with Israel at the time.
An advisory notice on the French Government website said: "Under international law the Golan Heights and the West Bank, including east Jerusalem, are not part of Israel."
It said labelling goods simply as "from the West Bank" or "from Golan Heights" without providing more details is "not acceptable". Instead goods must be clearly marked as coming from an "Israeli settlement," when that is the case, to avoid "the risk of misleading the consumer".
The Israeli Foreign Ministry responded by saying it "regrets that France, which actually has a law against boycotts, is advancing measures that can be interpreted as encouraging radical elements and the movement to boycott Israel".
It accused France of a "double standard" by focusing on Israel and "ignoring the other 200 territorial disputes around the world", the Local reported.
In November 2015, the EU infuriated Israel by adopting a motion declaring that products from settlements would have to be labelled as such across the bloc. The country suspended some co-operation with the union and a minister called the decision "disguised anti-Semitism".
European diplomats admitted in private that the strength of the Israeli response made many member states wary of issuing their own specific guidelines, the Local reported.
Hugh Lovatt, Israel coordinator at the European Council on Foreign Relations think tank, told the news site France was the first member state to act on the EU decision.
Mr Lovatt said France's frustration in recent months at Israel's refusal to attend a Paris-led peace conference, together with Israel's continued expansion of the settlements, could have motivated the move.
He added there had also been concerted action by French civil society and lawmakers.
The Israeli–Palestinian conflict intensifies
The Israeli–Palestinian conflict intensifies
Medics evacuate a wounded man from the scene of an attack in Jerusalem. A Palestinian rammed a vehicle into a bus stop then got out and started stabbing people before he was shot dead
Israeli ZAKA emergency response members carry the body of an Israeli at the scene of a shooting attack in Jerusalem. A pair of Palestinian men boarded a bus in Jerusalem and began shooting and stabbing passengers, while another assailant rammed a car into a bus station before stabbing bystanders, in near-simultaneous attacks that escalated a month long wave of violence
Palestinians throw molotov cocktail during clashes with Israeli troops near Ramallah, West Bank. Recent days have seen a series of stabbing attacks in Israel and the West Bank that have wounded several Israelis
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A wounded Palestinian boy and his father hold hands at a hospital after their house was brought down by an Israeli air strike in Gaza
Palestinians look on after a protester is shot by Israelis soldiers during clashes at the Howara checkpoint near the West Bank city of Nablus
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Undercover Israeli soldiers detain a Palestinian in Ramallah
Palestinian youth burn tyres during clashes with Israeli soldiers close to the Jewish settlement of Bet El, in the West Bank city of Ramallah, after Israel barred Palestinians from Jerusalem's Old City as tensions mounted following attacks that killed two Israelis and wounded a child
"The question is whether other member states follow the French example," he said. "EU states tend to act like a herd so yesterday's move may lead others to follow suit."
The guidelines come after Paris attempted to organise an international peace conference, in a bid to kickstart the Israeli-Palestinian peace process, which stalled in early 2014.
Israel refused to take part, saying an agreement should only be negotiated bilaterally between the two sides.Reuse content