Israel has reacted angrily to a move by South Africa which will see all goods produced in Israeli settlements to be labelled as from the “Occupied Palestinian Territories”, and has summoned the South African ambassador to explain decision.

The move was slammed as "totally unacceptable" and "blatant discrimination" by Israel, who said,

"Such exclusion and discrimination bring to mind ideas of racist nature which the government of South Africa, more than any other, should have wholly rejected."

But South Africa defended the step, stating it conformed with their existing policy on the issue, with government spokesman Jimmy Manyi stating,

"This is in line with South Africa's stance that recognises the 1948 borders delineated by the United Nations and does not recognise occupied territories beyond these borders as being part of the state of Israel".

South African trade and industry minister, Rob Davies also added that the labelling would help "South Africans who do not support Israel, but who do support the Palestinians, to identify those products".

Relations between the two countries have been strained, with South Africa's deputy foreign minister Ebrahim Ebrahim “discouraging” South Africans to visit Israel, commenting,

"Israel is an occupier country which is oppressing Palestine, so it's not proper for South Africans to associate with Israel,"

“We discourage people from going there except if it has to do with the peace process."

Last year, Archbishop Desmond Tutu also called for a South African Opeara company to cancel a tour of Israel, likening the treatment of Palestinians to South Africa’s Apartheid era.