Islamic nations furious over the Abbott government's policy shift on Israeli settlements have warned they could boycott Australian farm exports if the stance is not reversed.
Fury over the Abbott government's usage of the term 'occupied' to describe Israeli settlements could lead to Aust farm exports being boycotted.
The government last week ruled out using the term 'occupied' to describe Israeli settlements in East Jerusalem, deeming the term pejorative and unhelpful to the peace process in the Middle East.
That has prompted an outcry from Islamic countries, who have written to Foreign Minister Julie Bishop demanding an explanation why this controversial decision was made without consultation.
Palestine's senior diplomat in Australia described the move as 'unprecedented' and warned Australia had isolated itself on the world stage by backing 'illegal' settlements.
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