Position on settlements unchanged: Joyce

Islamic nations have demanded Australia explain changes to their policy on Israeli settlements. Source: AAP

THE Abbott government is confident it will keep selling livestock to the Middle East despite a threat from Islamic countries to boycott Australia's lucrative farm exports.

ISLAMIC nations are furious at the government's refusal to call Israeli settlements in East Jerusalem "occupied", and want to know why this controversial policy change was made without any consultation.

A group of ambassadors from Islamic countries - including key cattle and sheep export markets - have warned they could block Australian farm exports to the Middle East if the position isn't reversed.The move would be disastrous for Australian farmers and could jeopardise the government's efforts to break into new export markets in Saudi Arabia and Iran.But Agriculture Minister Barnaby Joyce said Australia enjoyed strong trade relations with Middle East nations, which were keen to continue purchasing high-quality agricultural products."I hope that they accept that I've got no intentions of trying to diminish that relationship," he told Sky News on Friday."I'll do everything in my power to make sure the trade keeps going."He also understood the government's position on settlements hadn't changed, but admitted foreign affairs was "all vastly too complicated for me".Since being elected in September, the government has restarted the live export trade to Egypt and Bahrain and made serious headway toward expanding ties with Saudi Arabia.Mr Joyce also hopes to overturn a 40-year ban on live animal exports to Iran.But those nations were among a delegation of 18 countries to demand a meeting with the government this week to voice their concerns about the shift in language on Israeli settlements.Ambassadors from the United Arab Emirates, Kuwait and Jordan - all top cattle and sheep markets - were also among the disgruntled envoys.They warned that the Arab League and the Organisation of Islamic Cooperation would discuss the option of boycotting Australian farm products at their meetings later this month.Palestinian Delegation Ambassador Izzat Abdulhadi said all options were on the table until the government's policy was clarified."We want to see a written response from the foreign minister," he told AAP.The government insists its policy on settlements hasn't changed, and they remain committed to boosting agricultural trade with Arab nations.Australia Arab Chamber of Commerce spokeswoman Suzannah Moss-Wright said such clear bias undermined Australia's credibility in both diplomatic and trade circles.It puts at risk business relationships with Arab countries worth $15 billion a year."Our Arab friends do not expect us to turn our back on friendship with Israel, but they do expect us to be balanced and to avoid provocative actions," she said.

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