Representatives of 13 of the 22 members of the Arab League have called for revival of the Arab boycott against Israel "as a legitimate and peaceful . . . tool" for advancing the peace process.
Among those attending a meeting at the Damascus boycott office were Saudi Arabia and the United Arab Emirates, which strongly advocate the boycott of Israeli companies and foreign companies doing business with Israel.
Jordan and Egypt, the two Arab states which have peace treaties providing for normalisation of diplomatic economic ties with Israel, were absent.
The reactivation of the boycott was proposed by the Arab summit last March. After the peace process was started in 1991, most Arab countries succumbed to US pressure and lifted the boycott on companies doing business with Israel but not on Israeli firms.
This allowed major internationals, such as Coca-Cola and the Ford motor company, to trade in Arab markets from which they had been excluded since the boycott was imposed in 1950.
Mr Ahmad Khazaa, the head of the boycott office, said the measure was designed to "force Israel to implement United Nations resolutions " and did not breach international law "because it is based on self-defence and freedom to choose an economic partner".
The central boycott office is now expected to draw up a list of blacklisted companies, establish liason units in Arab capitals to see that the boycott is observed and set up a website.
Officials estimate that the limited boycott still in force costs Israel $3 billion a year while the overall bill has been $48 billion.
Saudi Arabia's delegate called upon "all Arab states to abide by the boycott rules".
