Wednesday’s move is to help European consumers differentiate between products originating from Israel and those originating from the occupied territories.

Relations between Israel and the EU have soured as the country was quick to denounce the 28-nation bloc’s decision as “discriminatory” and damaging to peace efforts with Palestinians.

“The European Union should be ashamed of itself,” Israeli Prime Minister Benjamin Netanyahu said in Washington on Wednesday, adding: “We do not accept the fact that Europe is labeling the side being attacked by terrorist acts.”

While EU foreign ministers decided in 2012 to label products made in occupied Palestinian territories, Brussels has delayed the guidelines. The U.K., Belgium and Denmark are already labeling goods produced from settlements.

The European Union has repeatedly called for a two-state solution to the Israeli-Palestinian conflict and the European Parliament voted for a non-binding resolution calling for recognition of Palestine as a state on last December.