The UK banned trade with Israeli settlements in the occupied West Bank on Tuesday.

Foreign Secretary Ed Miliband said the government accuses "settler terrorists" of carrying out "ethnic cleansing" of Palestinians there.

The ban covers imports of goods from settlements and services such as financing, construction, and advertising.

France and Canada said they would take similar action.

The three countries said settlement expansion and settler violence pose a direct threat to a two-state solution.

Israel reacted angrily and said it would close the British consulate in Jerusalem.

The economic impact is likely to be limited, as settlements produce few exports.

But the move is a symbolic rebuke from close allies.

Israel also said it would expel UK representatives from a military center and end UK training of Palestinian security forces.

It barred entry to a dozen British lawmakers.

Miliband said he feels "a deep sense of shame" about events in Palestine.

He said the UK now regards Israel's occupation of the West Bank, not just the settlements, as illegal.

Israel's president called the ban a "grave miscalculation."

The US ambassador to Israel criticized it as discrimination.

Some UK figures warned it could boost support for Israel's prime minister or increase antisemitic attacks.