Rawabi, as seen from Ateret
Rawabi, as seen from AteretOrit Flint

About 20 Israeli firms have signed contracts with a new Palestinian Authority city-in-the-making, in which they agree not to use products manufactured by Israeli companies in Judea, Samaria, northern/southern/eastern Jerusalem and the Golan Heights.  

The PA is building the new city, called Rawabi, at a furious pace in Samaria. The contracts between the Rawabi administration and the Israeli suppliers are believed to total tens of billions of dollars.
IDF Radio reported that the Israeli suppliers of the city's construction administration have agreed not to use products that are defined as "Products of the Territories." This definition includes all land that is outside Israel's narrow-waistline 1949 ceasefire lines, famously dubbed the "Auschwitz borders" by former Foreign Minister Abba Eban. 
The contracts determine that "the company is responsible for making sure that all of the products and services do not originate in the Israeli settlements."
MK Danny Danon (Likud) said Tuesday that he intends to propose a new law that would fine any company signing a contract with a body that boycotts Israeli-made products. The fines would be equal to the value of the contract signed.
The Land of Israel Lobby, headed by Ze'ev Elkin (Likud) and Aryeh Eldad (National Union) intend to propose a bill that would ban such companies from participating in government tenders and working with state companies.
"This is shameful and shocking collaboration with Palestinian economic terrorism," the lobby stated. Companies that signed the agreement "sold their Zionist souls for a deal with the enemy," is added. 
Orit Strook of the Human Rights in Yesha organization called the contracts "discrimination of the most shameful kind" and called on the government to announce it would cut off all business ties with firms that cooperate with "such anti-Semitic discrimination." 
The PA has expressed hope that construction of Rawabi would boost the boycott of Israel by giving Arabs employment. The access roads to the city and its proximity to Jewish communities are some of the other problems raised by its construction.