Canadian Press is saying the federal food inspection agency has backed off a decision to deny Israeli wine access to markets here because the grapes were grown in the west bank. The wine, made by the Psagot and Shiloh wineries, is labelled Product of Israel. The agency has now explained that it had not fully considered the Canada-Israel Free Trade Agreement when dealing with the matter. Under the agreement, Israel refers to any territory where the country’s customs laws are applied. The reversal also comes after vigorous complaints from Jewish groups and the embassy of Israel.