Palestinian Prime Minister Salam Fayyad on Tuesday took part in a demonstration in which products made in Jewish settlements were burned.
Fayyad and residents of the West Bank town of Salfit threw the products, which were confiscated from Palestinian stores, into a fire.
On Sunday the Palestinian PM said the future Palestinian state will be "free of fences and of settlements."
In a conference held near Ramallah, Fayyad urged the international community to intervene in order to "force Israel to stop ignoring international law and the Palestinians' rights."
Fayyad throws Israeli-made product into fire (Photo: AP)
About a month ago the Palestinians announced a boycott of Israeli products made in the West Bank, stepping up their campaign against Israeli settlements.
Economics Minister Hassan Abu Libdeh said the Western-backed Palestinian government had already confiscated $1 million worth of products, including foods, cosmetics and hardware, and the goal is to eliminate all settlement-made goods from Palestinian store shelves next year.
"Consuming settlements' products is wrong, nationally, economically, politically, and must stop right away," Abu Libdeh told a news conference.
Israeli Foreign Ministry spokesman Yigal Palmor said the Palestinian boycott was counterproductive and would only damage peace prospects.
"I don't think by concentrating their efforts on boycotts they will achieve any of the political goals, if these still include reaching a peace agreement with Israel," Palmor said.
Implementing the boycott is proving to be difficult, as the Palestinian economy is largely based on Israeli manufacturers.
Israel's Histadrut labor federation said a few months ago that a boycott would harm the Palestinians more, as many of them are employed by Israeli factories that are based in the West Bank.