British Prime Minister Andy Burnham's plans to impose tougher sanctions on illegal Israeli settlements in the occupied West Bank have deepened divisions within the governing Labour Party, local media reported Tuesday.
More than 140 Labour lawmakers, roughly a third of the parliamentary party, have signed a letter calling on the government to ban trade with Israeli settlements, according to The Times.
Supporters are also preparing to submit a motion at Labour's annual conference next month. Burnham is expected to announce his position before the gathering to prevent the issue from overshadowing his first party conference as leader.
Labour Friends of Israel, however, warned that distinguishing settlement products from other Israeli goods would be "practically impossible" and that the measure could become a de facto boycott of Israel.
The group said it strongly opposed Israeli settlements and supported "calibrated" action against extremist settlers and settler organizations, but argued that a trade ban could harm Britain's national interests, the British Jewish community, and Palestinian workers.
Burnham wants Britain to adopt a "far more robust" stance than his predecessor, Keir Starmer, in response to Israel's plans to construct around 1,200 additional settler homes, the newspaper reported, citing a senior government source.
The measures under consideration reportedly include a ban on trade with Israeli settlements and sanctions against individuals involved in settlement activity.
Officials have also warned of difficulties in separating products originating in settlements from those produced within Israel's internationally recognized borders. They said legitimate Israeli businesses and Palestinian companies operating in the occupied territories could also be affected.
Foreign Secretary Ed Miliband has said Israel's E1 settlement project would effectively divide the occupied West Bank and eliminate prospects for a two-state solution.
The Israeli government recently issued construction tenders for the project, drawing condemnation from Britain and several other countries.
In a joint statement last week, international leaders said the E1 project would "drive a wedge through the West Bank," undermine Palestinian territorial continuity, and further diminish prospects for a two-state solution.