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The proximity talks have kicked off, but it seems as though the Palestinian and the Israeli sides are only growing farther apart. Referring to the Palestinianboycott of West Bank settlement goods, Prime MinisterBenjamin Netanyahu said Monday, "It is unacceptable that the Palestinians are waging an economic war against us with the sense that everything is allowed. We must show the world in which direction they are facing."

Netanyahu, who spoke during theLikud faction meeting in the Knesset, said, "The Palestinians have made efforts to block us from beingaccepted into the OECD despite the proximity talks and a number of gestures we have made towards them." "Israel strives for economic peace. We have removed checkpoints; we have made life easier; we are always taking action to advance the Palestinian economic. Despite all this, the Palestinian side is opposed to economic peace and is take steps that ultimately hurt them. This also refers to the economic boycott they are spearheading and the pollution of our water sources," said Netanyahu.

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