Settlement Business Owners Unfazed by Boycott Surge After SodaStream Feud

Some See Threat If BDS Fervor Spreads in Europe

By Ben Sales

Published February 04, 2014.
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(JTA) — Of the 200,000 wine bottles Yakov Burg produced last year, 16,000 went to Europe. The possibility of a boycott and repeated rumblings that Europe is planning to label goods produced in the settlements could decrease that number, but Burg isn’t worried.

The CEO of Psagot Winery, which is located in a settlement of the same name in the hills of the central West Bank, Burg prides himself on running a Jewish-owned business in the West Bank, even welcoming groups of Christian Zionists who want to volunteer during the harvest.

The winery’s location, though, also makes it a prime target for boycotts aimed at goods produced in the settlements.

“There are a lot of places that won’t buy the wine, so of course there’s damage,” Burg told JTA. “It doesn’t scare me. We need to fight the boycott, not just do what they want.”

The effort to boycotts goods produced in the West Bank, long an objective of anti-Israel activists and some Jewish critics of the Israeli occupation, has achieved some notable victories in recent weeks.

Last month, PGGM, the largest Dutch pension fund, announced it was divesting from five Israeli banks because of their involvement in financing Israeli settlements. That was followed by an announcement that Denmark’s Danske Bank was blacklisting Israel’s Bank Hapoalim over its settlement activity. Sweden’s Nordea Bank has asked two other Israeli banks for more information about their activities in the settlements.

In the United States, settlement goods were in the news recently after actress Scarlett Johansson came under fire for representing SodaStream, an Israeli company that produces home soda machines at a factory in the West Bank.

And in Europe, the United Kingdom and the Netherlands already label goods made in the settlements, and the European Union has threatened repeatedly to take the labeling continent-wide. U.S. Secretary of State John Kerry warned last week that Israel could face even greater boycott pressure if peace talks with the Palestinians collapse.

But several CEOs of companies that operate factories in the settlements acknowledged that while boycotts could hurt sales, they don’t yet represent a serious threat to business.

Yehuda Cohen, CEO of the plastics company Lipski, which has a factory in the northern West Bank Barkan industrial park, says sales dropped 17 percent in 2010 when local Palestinians started boycotting his products. His company has since recovered, growing by 18 percent last year.


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