The Yesha Council on Tuesday morning responded harshly to a new Palestinian Authority campaign distributing a list of banned Israeli companies.

"This is an act of hostility with all intents and purposes on the part of the Palestinian Authority and its leaders, and it must be answered immediately and decisively just like any other act of hospitality," the settlers' body said in a statement.

"This is a clear violation of the Paris Protocol which regulates the economic relations between Israel and the Palestinian Authority. Israel must use the Palestinian Authority's funds in its possession to compensate the boycotted factories."

The Yesha Council urged Prime Minister Benjamin Netanyahu to declare that he would not take part in the proximity talks with Palestinian Prime Minister Salam Fayyad, who the settlers say is leading "economic terror" against Israel.

The Council added that Israel must not allow Palestinian exports and imports until the boycott is canceled.

$15,000 fine for dealing with products

In the coming days, every Palestinian home in the West Bank will receive a detailed list of 500 products the PA has decided to boycott. The campaign against Israeli products is backed by a recently passed law entailing prison sentences and fines.

The new law states that anyone who deals in products produced in settlements will be imprisoned for two to five years and pay a fine of up to $15,000. Those who import settlement products into the Palestinian territories are threatened with three to six years, fines of up to $3,000, and the confiscation of their licenses and vehicles.

The campaign, which sees itself as spearheading the PA's non-violent resistance, plans to administer brochures to each home in an attempt to educate Palestinians on which products are no longer allowed. The Palestinian prime minister himself burnt products produced in settlements several months ago.

The products included in the brochure include Mey Eden products from "the occupied Golan Heights", Shamir Salads, Bagel Bagel, Zuriel dairy products, Super Drink, Betili, Carmel Carpets and Rav Bariach products produced in the settlement of Barkan, Gazoz products manufactured in Mishor Adumim and Ahava cosmetics produced in Mitzpe Shalem.