In an interview with Israel's channel 2, Andersen said enforcement agencies and private sector companies would take steps towards boycotting Israel if peace negotiations fail.
Andersen reiterated that Israel's building of settlements in the West Bank has caused some EU pension companies to cut off relations and boycott Israel.
Sweden and Denmark's largest banks – Swedish Nordea Bank and Danske Bank – announced last week that they would boycott Israeli banks because they operate on Palestinian territories.
Andersen's comments come a few days after US Secretary of State John Kerry warned against any boycotts of Israel.