Kentucky Governor Matt Bevin signed an executive order banning the giving of state contracts to companies participating in campaigns to boycott Israel.
Bevin, a Republican, signed orders at a Thursday ceremony at the Kentucky Capitol with US ambassador Ron Dermer and Israeli Consul General to the Southeastern United States, Judith Varnai Shorer, The Associated Press reported.
The Executive Order 2018-905 is related to "a ban on discriminatory boycotts against Israel and other trade partners in state contracts," said the four-page document.
"The Kentucky Commonwealth firmly rejects the BDS movement and stands firm with Israel," he also stated, referring to the Boycott, Divestment and Sanctions movement against the Jewish state.
Government agencies "may not make contracts" except "include representation by contractors that the contractor is not currently involved, and will not during the contract period be involved in boycotting a person or entity" where Kentucky "can enjoy open trade," the document said.
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Supporters of the BDS movement say it is a non-violent way to support the Palestinian cause. But Bevin called the anti-Semitic movement and "disgusting."
Bevin's office said 25 other states had enacted laws or executive orders to ban the use of state resources to support the BDS movement.
"There should be no question: Boycotting Israel is bad for business, and the majority of countries agree," William Daroff, senior vice president of the North American Jewish Federation, wrote in a statement.
Kentucky exported almost $ 85 million in goods and services to Israel last year, the order said.