The European Union is requiring Israel to identify products that are made in disputed territory and sold in Europe.

The EU says the rule will clarify existing regulations. It drew immediate criticism from the Israeli government and U.S. senators. Less than 1 percent of Israeli products sold in European countries come from disputed territory, according to the European Union. Israel said the EU action will help those organizing a boycott of Israeli products.

“Europe should be ashamed of itself,” said Israeli Prime Minister Benjamin Netanyahu. “It took an immoral decision. Of the hundreds of territorial conflicts around the world, it chose to single out Israel and Israel alone.”

But Netanyahu said the Israeli economy is strong enough “to weather this” EU action. The Palestine Liberation Organization praised the EU decision.

“We welcome this decision and consider it a significant move toward a total boycott of Israeli settlements.