The Palestinian government announced yesterday that it is enforcing a boycott of goods made in Israel's West Bank settlements and has confiscated more than $1 million in merchandise from shops and companies. Israeli products, including those made in settlements, are commonplace in the West Bank, either for lack of a Palestinian-made alternative or because consumers prefer them to local goods. As a result, previous Palestinian efforts to stem consumption of Israeli-made goods have failed.

The confiscation of settlement products, which began in November, marked the most serious government effort to date to enforce a boycott. Palestinians consider Israel's continued settlement expansion as the biggest obstacle to eventual independence and say Israel's recent pledge to curtail construction is insufficient.

About 300,000 Israelis live in West Bank settlements and another 180,000 in east Jerusalem, land the Palestinians seek for their state.

Israeli Foreign Ministry spokesman Yigal Palmor said a boycott is counterproductive. "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.