The European Union is preparing new guidelines that would require Israel to label products made in West Bank settlements if they are exported to the 28-nation bloc, EU officials said Tuesday.

The move is the latest sign of international discontent with Israeli construction of settlements on occupied lands claimed by the Palestinians. And while the work is expected to take weeks, it comes as a grassroots movement promoting boycotts, divestment and sanctions against Israel is gaining steam.

Israeli officials reject the European labeling plan, saying it would amount to a type of boycott and would discourage the Palestinians from pursuing peace talks.