Arab League Boycott of Israel
Publication Date: August 2008
Publisher: Library of Congress. Congressional Research Service
Author(s):
Research Area: Economics
Type:
Coverage: Israel
Abstract:
The Arab League, an umbrella organization comprising 23 Middle Eastern and African countries and entities, has maintained an official boycott of Israeli companies and Israeli-made goods since the founding of Israel in 1948. The boycott is administered by the Damascus-based Central Boycott Office, a specialized bureau of the Arab League.
The boycott has three tiers. The primary boycott prohibits citizens of an Arab League member from buying, selling, or entering into a business contract with either the Israeli government or an Israeli citizen. The secondary boycott extends the primary boycott to any entity world-wide that does business in Israel. A blacklist of global firms that engage in business with Israel is maintained by the Central Boycott Office, and disseminated to Arab League members. The tertiary boycott prohibits an Arab League member and its nationals from doing business with a company that deals with companies that have been blacklisted by the Arab League.
The U.S. government has often been at the forefront of international efforts to end the boycott and its enforcement. Despite U.S. efforts, however, many Arab League countries continue to support the boycott's enforcement. U.S. legislative action related to the boycott dates from 1959 and includes multiple statutory provisions expressing U.S. opposition to the boycott, usually in foreign assistance legislation. In 1977, Congress passed laws making it illegal for U.S. companies to cooperate with the boycott and authorizing the imposition of civil and criminal penalties against U.S. violators. U.S. companies are required to report to the Department of Commerce any requests to comply with the Arab League Boycott. In FY2006, U.S. companies submitted 1,291 reports on boycott-related requests. During the same period, penalties for violating U.S. anti-boycott legislation worth $95,950 were levied on nine companies to settle allegations they violated U.S. antiboycott provisions, an increase from five cases and $57,000 in FY2005.
This report provides background information on the boycott and U.S. efforts to end its enforcement. It will be updated as events warrant. More information on Israel is contained in CRS Report RL33476, Israel: Background and Relations with the United States, by Carol Migdalovitz.