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Joining in the Arab boycott of Israel is Illegal
November 11, 2002
Boycott Watch research reveals illegal boycott activity
Boycott Watch has conducted a study of the Arab boycott of Israel to determine merit, and came to a stunning revelation: US anti-boycott laws specifically forbid people in the US from joining into the Arab League boycott of Israel.
The antiboycott laws were adopted to encourage, and in specified cases, require U.S. firms to refuse to participate in foreign boycotts that the United States does not sanction. They have the effect of preventing U.S. firms from being used to implement foreign policies of other nations which run counter to U.S. policy.
The antiboycott laws specifically refer to boycotts involving foreign governments against another foreign government and participation of people in the US in those boycotts. This law does not apply to vast majority of boycotts, such as boycotts established in the US against US companies, products or services.
The Arab League boycott of Israel is the principal foreign economic boycott that U.S. companies must be concerned with today. The antiboycott laws, however, apply to all boycotts imposed by foreign countries that are unsanctioned by the United States.
The antiboycott provisions of the Export Administration Regulations (EAR) apply to all "U.S. persons," defined to include individuals and companies located in the United States and their foreign affiliates. These persons are subject to the law when their activities relate to the sale, purchase, or transfer of goods or services (including information) within the United States or between the U.S. and a foreign country. This covers U.S. exports and imports, financing, forwarding and shipping, and certain other transactions that may take place wholly offshore.
As such, Boycott Watch has concluded that the individuals and companies participating in the Arab League boycott of Israel are committing felonies as defined by the provisions in the law.
Based upon US law, Boycott Watch has concluded that taking part in or promoting Arab League boycott of Israel is against the best interests of the United States and is also a felony. As Americans, we strongly discourage participation in the Arab League boycott of Israel and specifically recommend the purchase of Israel goods and services to counter the illegal boycott by supporters of the Arab League.
Source: Department of Commerce
US Antiboycott Compliance Laws against unsanctioned foreign boycotts
© 2005 Divestment Watch