US condemns UN 'blacklisting' West Bank settlement companies
The resolution was adopted by the Geneva-based assembly last week with 32 members voting in favour, 15 abstaining and no votes against it.
Israel referred to the motion as "blacklisting" settlement companies operating from the West Bank while its main ally accused the council of singling out the Zionist state.
"We continue to unequivocally oppose the very existence of that agenda item and therefore any resolutions...that come from it," US state spokesman John Kirby said on Wednesday.
The motion shows "bias against Israel," he added.
The Palestinian government hailed the motion and called it "a message of hope" for the people of Palestine.
"Israel continues to systematically violate the inalienable rights of the Palestinians while enjoying impunity from the international community," Ibrahim Khreisheh, Palestinian envoy to the UNHRC said.
In a similar move, the EU recently published guidelines on labelling products coming out of the illegal Israeli settlements, much to the dismay of Israeli prime minister Benyamin Netanyahu who feared it may lead to effective boycotting.
Israel occupied the West Bank in 1967 in a move considered illegal under international law.
Since the occupation, over 400,000 Jewish settlers moved into illegal settlements protected by the Israeli forces across the West Bank where 2.5 million Palestinians live.
Israeli forces destroyed at least 450 Palestinian homes since the start of 2016 as the Zionist state continues to build illegal settlements despite international condemnation.