Binyamin Netanyahu's government is facing a disconcerting prospect due to the success of the boycott, divestment, and sanctions (BDS) campaign against it. Several European countries have begun to boycott Israeli companies located in the occupied territories of the West Bank, East Jerusalem and Syria's Golan Heights. Recent statements by US Secretary of State John Kerry gave a boost to the campaign, as he warned Israel that a “de-legitimisation” campaign awaited it unless it made peace with the Palestinians. As Washington warned Israel of impending isolation, the Netanyahu government began discussing ways of tackling the boycott. In July, the EU passed a decision banning cooperation with Israeli government or private bodies working in the occupied territories. The EU also pledged to cut off funding to any Israeli organisation transacting with businesses in Israel's illegal settlements. In recent months, dozens of European companies, banks and investment companies began severing their links with Israeli companies and banks operating in the settlements. Abdallah Al-Afranji, adviser to the Palestinian president on international relations, said that EU companies signing contracts with Israeli counterparts now introduce a provision banning goods produced in the settlements from entering European markets. This provision also applies to the occupied Golan Heights. Europe, Al-Afrangi added, is determined to block Israel creating a new reality in the West Bank that may undermine the chances of peace, or the formation of a viable Palestinian state. The most important aspect of the BDS campaign, Al-Afranji pointed out, is the voluntary work by many American and European groups that speak to the media and explain the reasons for such action. European public opinion is becoming more supportive of Palestinian rights, and even Germany is becoming more aware of the need to seek just peace in this part of the world, the Palestinian official remarked. A recent German opinion poll shows that more than 70 per cent of Germans are in favour of creating a Palestinian state. In Israel, a public opinion poll reported in The Jerusalem Post last Saturday shows that 67 per cent of Israelis fear that the economic boycott will harm their families in one way or another. Israeli economists say that Israel may lose up to $20 billion because of the boycott. Nearly 30 per cent of companies in Israel will be affected and more than 110, 000 jobs may be lost as a result. The crunch is already felt in the West Bank, where 70 factories have closed down, after reporting losses of nearly $40 million. Jamaal Al-Khodari is president of the People's Committee to Confront the Blockade in Gaza. He said that the boycott is a natural outcome of Israel's practices in the Palestinian territories and its violation of international law. Al-Khodari, who is a member of the Palestinian Legislative Council, said that the boycott is undermining Israel's international standing. Speaking at a conference in Munich earlier this month, US Secretary of State John Kerry warned that Israel's failure to make peace with the Palestinians would increase its international isolation. Israeli Home Front Defence Minister Gilad Erdan lashed out at Kerry, accusing him of encouraging the boycott of Israel. Speaking to Israel's public radio, Erdan said that Washington was “pressuring the wrong side”, and should have been advising the Palestinians to show more flexibility instead. Israeli Finance Minister Yair Lapid, meanwhile, admitted that the failure to make peace with the Palestinians would undermine the economy. He expected losses of up to $3 billion annually if Europe presses ahead with the boycott. Netanyahu reacted to the boycott defiantly. The day after Kerry spoke about the boycott, the Israeli prime minister said that attempts to impose boycotts on Israel are “immoral and unjust”. But sources close to the prime minister note that he is worried about the BDS campaign. Economy Minitser Naftali Bennett, leader of the right wing Jewish Home Party (Habayit Hayehudi) also lambasted the Americans. “We expect our friends in the world to stand by our side against anti-Semitic boycott efforts, and not be their trumpet,” he stated. Netanyahu held a closed meeting with top aides last Sunday to discuss the boycott. According to media reports, Strategic Affairs Minister Yuval Steinitz, speaking during the meeting, proposed a public relations campaign aimed at organisations calling for the boycott of Israel. Meanwhile, the Israeli Foreign Ministry advised a “case by case” approach to boycotts.
