The Attorney-General addressed Senate estimates earlier this month, where he told the committee that the term “occupied” would not be used as it carried pejorative implications and was neither appropriate nor useful.
Mr Brandis has since addressed the media on his remarks, saying his remarks “did not represent a policy change”.
His parliamentary colleagues have echoed his comments, including Liberal member for Reid Craig Laundy, who this morning stated that if you see armed Israeli soldiers in East Jerusalem it would appear that the territory is “occupied”.
Their comments follow meeting last week between Arab and Islamic ambassadors and Foreign Minister Julie Bishop, who met with representatives to stress there had been no policy change.
Eighteen diplomats from countries including Egypt, Saudi Arabia and Indonesia have protested and warned of possible trade sanctions on exports that account for billions of dollars annually.
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