The EU has warned Saudi Arabia that trade-based reprisals against Denmark over the publication of caricatures of Mohammed would be taken “very seriously”.

The publication of the cartoons of the Prophet in a Danish newspaper has resulted in tension between Denmark and some Muslim countries, including Saudi Arabia.

Many muslims have called for a boycott of Danish goods to protest against the caricatures, which they claim are disrespectful. 

EU trade commissioner Peter Mandelson met with the Saudi minister of state in Davos on Sunday and made it clear that any boycott of Danish goods would be unacceptable.

“Any boycott of Danish goods would be seen as a boycott of European goods," said Mandelson's spokesman.

Brussels also warned that the EU would take the case to the WTO if there was any evidence that the calls for the boycott had been backed by Saudi officials.

The Saudi minister insisted his government had not encouraged any boycott, but asked for an apology from the Danish government.

The Danes have repeatedly stressed their opposition to racism in any form in a bid to defuse the situation.

But they have not condemned the publication of the caricatures, arguing that the right to free speech is one of the fundamental principles of the EU.

A spokesman for the European commission backed this stance.

“A public debate on the pros and cons of the views expressed is the right form of reaction in a democratic and pluralistic society, and pressure not to exercise these freedoms is unacceptable,” he said.

Nearly four months after the caricatures were first published, the dispute continues to escalate. Last week Denmark recalled its ambassador to Saudi Arabia, while Libya has closed its embassy in Copenhagen.

“Because the Danish media had continued to show disrespect to the Prophet Mohammed and because the Danish government failed to take any responsible action on that, Libya decided to close its embassy in Copenhagen,” the Libyan Foreign Ministry said in a statement.

Meanwhile, there were demonstrations on Monday outside the European commission offices in Gaza, where protestors demanded an apology from Demark and said Danish citizens would be prevented from entering the Gaza strip.

Islamic tradition bars any depiction of the Prophet, even respectful ones, out of concern that such images could lead to idolatry. 

But despite the EU’s official stance on the freedom of speech, there are nonetheless concerns that such images could provoke racism.

Last December, justice commissioner Franco Frattini said his personal opinion was that the cartoons should not have been published as they could potentially lead to islamophobia.