The European Union on Tuesday rejected the U.S.’ so-called Middle East peace plan, saying the initiative “departs from internationally agreed parameters” for a peaceful resolution to the Israeli-Palestinian conflict.

“To build a just and lasting peace, the unresolved final status issues must be decided through direct negotiations between both parties. This includes notably the issues related to borders, the status of Jerusalem, security and the refugee question,” said Josep Borrel, the EU foreign policy chief, in a statement.

Last week, Trump unveiled a controversial plan, also known as the so-called Deal of the Century, to end one of the longest running disputes in the Middle East.

He proposed an independent Palestinian state but with the recognition of Israeli sovereignty over West Bank and Jerusalem as Israel's "undivided capital".

The so-called peace plan unilaterally annuls previous UN resolutions on the Palestinian issue and suggests giving Israel almost everything it demanded.

The initiative was heavily criticized for being biased towards Israel.

Borrell stressed EU’s commitment to “a negotiated two-state solution, based on 1967 lines, with equivalent land swaps”, that must be agreed by Israel and an “independent, democratic, contiguous, sovereign and viable State of Palestine”.

Borrell also expressed concerns over “the prospect of annexation of the Jordan Valley and other parts of the West Bank”, and warned to challenge any steps towards annexation.

The EU doesn’t recognize Israel’s sovereignty over the territories occupied since 1967.

Turkish Foreign Minister Mevlut Cavusoglu earlier slammed the so-called peace plan as an effort to "justify Israeli occupation and annexation of Jerusalem and the West Bank".

The Organization of Islamic Cooperation unanimously rejected the initiative on Monday.

Borrell will travel to Washington next week.