Jack, this is based on a Jerusalem Post reading of events, which you are entitled to believe if you so choose. Ethical Consumer has a different perspective:

In late July Jean-Claude Willem, Mayor of Seclin in French, lost his case in the European court of human rights. He was appealing a French court decision, made in 2002, to fine him 1,000 Euros for imposing a boycott of Israeli goods in government run institutions in his town. He had wanted his municipality to stop trading with the Israeli state over its treatment of Palestinians in the occupied territories. However the French state took exception because it claimed that it discriminated on grounds of nationality and only the state had the power to boycott another state.

The European court ruled in favour of the French court saying the Mayor “was not entitled to take the place of the governmental authorities by declaring an embargo on products from a foreign country.” The court did not rule however that it is illegal or discriminatory for individuals to boycott Israeli goods or that it was illegal for the French state to boycott Israeli goods, as has been reported by some sections of the press.

Source: http://www.ethicalconsumer.org/Boycotts/latestboycottnews.aspx

Israelis adapt, overcome, think outside the box. To get things into perspective–most consumers are ALREADY boycotting Israeli products, Israel is the most unpopular brand name after Iran. And still… not a dent in the Israeli economy.

That’s to say nothing of the fact that boycotting Israeli goods has been ruled discriminatory and illegal by the European Court of Human Rights.