Top issues facing Aust and Israel

TOP ISSUES FACING AUSTRALIA AND ISRAEL

* THE PATH TO PEACE FOR ISRAELIS AND PALESTINIANS

- Fresh doubts have emerged about whether Israelis and Palestinians can end their long conflict by establishing two independent states alongside each other.

- In a major departure from America's long-running support for a two-state solution to the conflict, US President Donald Trump last week said he would be open to a two-state or one-state solution.

- A one-state solution would likely involve the creation of a shared Israeli-Palestinian state covering all of Israel and the West Bank.

- But it's feared Palestinians living in a shared state would not have equal rights with Israelis.

- Prime Minister Malcolm Turnbull has restated Australia's preference for a two-state solution.

- Mr Netanyahu told Israel's parliament earlier this month that while he favoured a two-state solution he didn't believe it was achievable unless Palestinians recognised Israel as a Jewish state and agreed to demilitarise.

- Many members of his coalition government oppose an independent Palestinian state, which would require Israel to relinquish territory in the West Bank.

* ISRAELI SETTLEMENTS

- Israel's recent expansion of settlements on land it occupies in the West Bank has heightened fears about the ability to achieve a two-state solution.

- The UN condemned the settlements as illegal under international law last December.

- Australia and the US were the only nations not to join the chorus of disapproval.

- The settlements spread across land Palestinians hope will form part of their future independent state.

* DIPLOMATIC RECOGNITION FOR PALESTINE

- Senior ALP figures including former prime ministers Bob Hawke and former foreign ministers Bob Carr believe Australia should join the 137 countries who recognise Palestine.

- They argue that Israel's settlement expansion means the world has no alternative.

* IRAN AND AUSTRALIA

- Israel considers Iran as the main threat to regional stability in the Middle East and wants tougher action from the international community to keep its nuclear ambitions in check.

- Australia has begun to restore relations and business ties with Iran after UN sanctions were lifted in 2016.

- Australia also hopes Iran will take back 9000 failed asylum seekers.

* TRADE

- Bi-lateral trade between Australia and Israel is worth about $1.2 billion annually.

- Live animals, aluminium and coal make up the bulk of Australian exports to Israel.

- Israel's main exports to Australia are minerals, pearls and gems.