Netanyahu rejects warning

JERUSALEM - Prime Minister Benjamin Netanyahu on Sunday dismissed warnings by U.S. Secretary of State John Kerry that Israel could be targeted by a growing boycott campaign if peace talks with the Palestinians failed.

Netanyahu tried to reassure Israelis, saying any boycott attempts were immoral, unjust, and "will not achieve their goal," while two government ministers accused Kerry of unfair pressure tactics and not standing by Israel.

Kerry's comments and the aggrieved Israeli response led the main TV news shows Sunday, signaling a growing concern here that the world will use economic pressure to extract concessions.

A Palestinian-led campaign of boycott, divestment, and sanctions, launched in 2005, was long considered by Israel as a minor nuisance. However, recent warnings by Europe and by Israel's own finance minister about potential damage from a widening boycott have raised the level of concern.

At the same time, a small but growing number of European businesses and pension funds cut ties with Israeli firms linked to settlements in the West Bank and east Jerusalem, war-won lands the Palestinians want for a state. Over the weekend, Denmark's largest bank, Danske Bank, blacklisted Israel's Bank Hapoalim because of links to settlement activity.

Kerry is expected to present a framework for a peace deal in coming weeks. Anticipating resistance from Netanyahu and Palestinian President Mahmoud Abbas, he has spelled out the risks if they say no to his plan.

Israel will likely suffer harsher international repercussions than the Palestinians if the talks collapse, said Israeli analyst Yossi Alpher. "The Palestinians are the underdog, they can get away with a lot more by refusing Kerry than we can get away with," he said. "Politically, it will isolate Israel."