JERUSALEM (AP) — The U.S. State Department says it’s “deeply concerned” by a new EU requirement for businesses to label products from Israeli settlements in the occupied West Bank.

The statement came in response to Tuesday’s ruling by the EU Court of Justice that settlement products must provide an "indication of that provenance" to better inform consumers.

The State Department said Wednesday that the ruling encourages the BDS movement, a Palestinian-led campaign that promotes boycotts, divestment and sanctions against Israel. It said the U.S. “unequivocally opposes” any efforts to “economically pressure, isolate, or otherwise delegitimize Israel.”

The EU says it opposes the boycott movement but that settlement goods cannot say “Made in Israel.” The EU, along with the Palestinians and most of the international community, consider Israeli settlements on occupied lands as illegal.