Dangerous Liaisons II NORWEGIAN TIES TO THE ISRAELI OCCUPATION © Norwegian Union of Municipal PRINT CHIEF PUBLISHER FRONT PAGE IMAGE and General Employees and Norwegian Union of Municipal and Norwegian Union of Municipal Ammar Awad/Reuters/NTB Norwegian People's Aid 2016 General Employees and General Employees and scanpix of Banksy graffiti on the Norwegian People's Aid wall Dangerous Liaisons II – Norwegian The use of citations and quotes ties to the Israeli occupation from this report is encouraged. CHIEF EDITOR This is the second report in the Kathrine Raadim "Dangerous Liaisons" series. The report was originally written Please cite as follows: "Norwegian Head of International The first report, "Dangerous in Norwegian and published in Union of Municipal and General Development Liaisons – Norwegian ties to the September 2015. The English Employees and Norwegian Norwegian People's Aid Israeli occupation" (Dangerous translation, published in June People's Aid. Dangerous Liaisons Liaisons I), was written by 2016, includes some necessary II – Norwegian ties to the Israeli PRINCIPAL AUTHOR Ingeborg Moa and Martin Holter updates occupation, 2016" Ingvild Skogvold and published in 2012. LAYOUT TRANSLATION Siste Skrik Kommunikasjon AS Amesto Translations 2 DANGEROUS LIAISONS II – NORWEGIAN TIES TO THE ISRAELI OCCUPATION Border police standing in front of Palestinians waiting to cross the Qalandiya checkpoint to attend Friday prayer at the Al Aqsa mosque in Jerusalem, June 2013. (Photo: Active Stills) Contents Foreword 4 Summary and recommendations 5 1. Introduction – purpose 8 2. Limitations, definitions and methodology 12 3. Background 16 4. States' duty to uphold international law and protect human rights 32 5. Investments 42 6. Trade 66 7. Institutional and business collaboration 82 Literature and references 90 ANNEX I List of companies in which SPU has invested and that contribute to the occupation through their activities 93 ANNEX II Norwegian banks and fund managers: Ethics and transparency 97 THANKS ANNEX III We would like to thank everyone who Map showing Israeli settlements on the West Bank has contributed information, reviews and 102 feedback, as well as the companies and public agencies that have entered into Endnotes 104 dialogue with us while working on this report. We would like to express special thanks to the Israeli organisation Who Profits. Large parts of this report have been dependent on their thorough documentation of the role of commercial operations in the continued occupation of Palestinian land. DANGEROUS LIAISONS II – NORWEGIAN TIES TO THE ISRAELI OCCUPATION 3 Foreword The first Dangerous Liaisons report was This report is a result of the collaboration published by the Norwegian Union of between the Norwegian Union of Municipal and General Employees and Municipal and General Employees and Norwegian People's Aid in 2012. This Norwegian People's Aid in support of was the first time anyone had presented Palestinians in the Middle East. extensive and thorough documentation of the various types of Norwegian The collaboration has now entered its connections to the Israeli occupation. second national congress period since 2009. Our two organisations aim to Much has happened since but it is, ensure that Norwegian authorities, unfortunately, just as necessary to keep businesses and organisations neither a close eye on this issue in 2015 as it was directly nor indirectly contribute to the three years ago. Among other things, occupation and Israel's repeated Mette Nord our joint savings in the Norwegian violation of UN resolutions and Government Pension Fund Global (SPU) international conventions. are still invested in an extensive range of companies that contribute to the Norwegian contributions to the violations of international law and brutal occupation were brought to light in occupation of the Palestinian territories. Dangerous Liaisons I. Our aim is for Dangerous Liaisons II to strengthen the We can reference a number of specific work to cut all Norwegian ties to the breakthroughs since Dangerous Israeli occupation. Liaisons I was published. Many of the political recommendations from the previous report are unfortunately just as relevant today. Norway is unfortunately no role model when it comes to political interventions to end Mette Nord the Israeli occupation and violations President, Norwegian Union of of international law. Until now, 21 Municipal and General Employees European countries have beaten Norway Liv Tørres to the post and made recommendations that discourage financial relations with Israeli settlements that violate international law. It is high time for our Liv Tørres government to follow suit. Secretary General, Norwegian People's Aid 4 DANGEROUS LIAISONS II – NORWEGIAN TIES TO THE ISRAELI OCCUPATION Summary and recommendations This is the second report in the concerning financial relationships that Private Norwegian banks and fund "Dangerous Liaisons" series published by support illegal settlements. So far, managers and Norwegian municipalities the Norwegian Union of Municipal and 21 European countries have published have also invested in several of these General Employees and Norwegian recommendations warning businesses 13 companies. Our investigation of the People's Aid. The aim of the series of against the financial, legal and four largest municipalities in Norway reports is to contribute to the reduction reputational consequences of entering shows that there is a need for more of Norwegian support to the occupation. into collaborations that support Israeli active ethical management, both of the The report follows up on the findings settlements. The Norwegian Union of municipalities' own investments and of and recommendations in "Dangerous Municipal and General Employees and investments from public occupational Liaisons – Norwegian ties to the Israeli Norwegian People's Aid believes that pension managers. occupation" (Dangerous Liaisons I) Norway should follow suit and make from 2012. similar recommendations. In Chapter 5.1.4 we take a closer look at SPU's investments in Israeli government The report found that Norwegian It is also necessary to ensure that public bonds, which in practice constitute an authorities and companies are involved, sector entities take human rights into unconditional loan to the Israeli through financial investments and trade, account in their procurement practices. government. These investments have in operations that contribute to Israel's In Chapter 4.3 we will take a closer look increased significantly in recent years. violations of international law and at the Norwegian tax deduction scheme The Norwegian Union of Municipal and human rights through the occupation of for donations to charitable organisations. General Employees and Norwegian the West Bank and Gaza Strip. It also We recommend that the authorities People's Aid believe that ethical highlighted how groups in Norway ensure that organisations that contribute guidelines should be implemented for directly support the occupation through to the violations of international law are investments in government bonds. money transfers to individual excluded from this scheme and are not settlements. permitted to rejoin. The chapter on trade demonstrates that products that have been manufactured in Dangerous Liaisons II provides up-to- Chapter 5 looks at Norwegian the occupied territories and products date information about Norwegian trade Government Pension Fund Global (SPU) from companies with production facilities with and investments in companies that investments, private Norwegian banks in settlements are sold in Norway. contribute to the violations of and fund managers and the four largest This contributes financially to the Israeli international law and human rights Norwegian municipalities. SPU has settlements and such trade should through the occupation of Palestine. invested in 41 companies with operations therefore be stopped. It has also been that can be linked to the occupation. 13 of proven that fruit and vegetable producers We will also look at two new areas: these are companies that we consider to in Israel incorrectly label goods from Norwegian municipalities' investments be involved in especially severe violations settlements to give the impression that and Norwegian-Israeli institutional and of law that contravene the SPU these have been produced in Israel. business collaborations that support the guidelines. violation of law in occupied Palestinian We recommend that Norwegian territories. These are Heidelberg Cement, Cemex, retailers cease trading with companies Hewlett-Packard, Motorola, Alstom, that have production facilities in Israeli In Chapter 4 we will take a closer look at Caterpillar, G4S, Bank Hapoalim, Bank settlements. We will also look at the the Norwegian authorities' duty to Leumi, Dexia Group, First International regulations and practices for labelling protect human rights. Norwegian Bank of Israel, Israel Discount Bank and and customs clearance of goods from authorities have no clear policy Mizrahi Tefahot Bank. the settlements. The regulations are DANGEROUS LIAISONS II – NORWEGIAN TIES TO THE ISRAELI OCCUPATION 5 SUMMARY AND RECOMMENDATIONS complicated and Israel forces liability onto the importing countries. Main findings In Chapter 7 we will show examples of Norwegian-Israeli institutional and • From 2011 to 2014, Norwegian government investments in Israeli government bonds have become 40 times larger – from NOK business collaborations that support the 199 million to NOK