Cabinet has approved the trade and industry department's notice requiring products emanating from the "Israeli occupied territories" (IOT) to be labelled as such.

This was to prevent consumers "being led to believe that such goods come from Israel", government spokesman Jimmy Manyi told reporters on Wednesday, following Cabinet's regular fortnightly meeting.

"This is in line with South Africa's stance that recognises the 1948 borders delineated by the United Nations and does not recognise occupied territories beyond these borders as being part of the state of Israel," Manyi said.

The decision has been welcomed in some quarters, but has drawn much criticism, with government being accused of applying double standards regarding Israel.