All Goblins strongly dislike fighting Elves of any kind, partly because of the dire reputation of these formidable troops, but also Elves are haughty, unnatural and 'stink funny', which is more than enough to unnerve such a cowardly race and incite unreasoning fear in them.
Source: Warhammer Armies Project: Unofficial 9th Edition (v2.2)
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Models with this special rule treat models from Warhammer: High Elves, Dark Elves and Wood Elves rule as having the Fear special rule.