An Arkansas law that bars state contractors from engaging in Israel boycotts was upheld Wednesday by a U.S. appeals court, dealing a major setback to supporters of the anti-Semitic Boycott, Divestment, and Sanctions (BDS) movement. Arkansas’s anti-BDS law—which bars state contractors from waging economic warfare on Israel—”does not violate the First Amendment,” the court concluded, rejecting arguments from activists that banning state contractors from engaging in Israel boycotts violates their free speech rights. BDS supporters across America have tried to frame the debate as a free speech issue. The Arkansas decision sets a precedent that these arguments are bunk because...