[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1671 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 1671
To enhance the reporting requirements on the status of the Arab League
trade boycott of Israel and other trade boycotts of Israel.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 15, 2009
Mr. Graham (for himself and Mr. Schumer) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To enhance the reporting requirements on the status of the Arab League
trade boycott of Israel and other trade boycotts of Israel.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FINDINGS.
Congress finds the following:
(1) The Arab League's trade boycott of the State of Israel
is inconsistent with World Trade Organization's (WTO) principle
of nondiscrimination.
(2) Trade boycotts of the State of Israel are a barrier to
better relations between Israel and nations of the Arab League.
(3) It has been the long-standing policy of the United
States to oppose the enforcement of trade boycotts of Israel.
(4) Many members of the World Trade Organization continue
to enforce the primary trade boycott of the State of Israel.
Other WTO members continue to enforce the secondary and
tertiary trade boycott of the State of Israel.
(5) Taxpayers are required to report requests to
participate in or cooperate with an international boycott.
Section 999 of the Internal Revenue Code of 1986 requires the
Secretary of the Treasury to keep a list of countries which
require or may require participation in, or cooperation with, a
trade boycott of Israel. Currently, the list of countries which
require or may require participation in a trade boycott of
Israel includes Kuwait, Lebanon, Libya, Qatar, Saudi Arabia,
Syria, the United Arab Emirates, and the Republic of Yemen.
(6) In 2005, during negotiations for the accession of the
Kingdom of Saudi Arabia to the World Trade Organization (WTO),
the United States received assurances from the Kingdom of Saudi
Arabia that, upon accession, ``WTO rules will apply between
Saudi Arabia and all current members'' which includes Israel.
Further, the United States received assurances that ``Saudi
Arabia is legally obligated to provide most-favored nation
treatment to all WTO Members, including Israel. Any government
sanctioned activity on the Boycott [of Israel] would be a
violation of Saudi Arabia's obligations and subject to dispute
settlement. This legal obligation cannot be changed.''.
(7) The United States Trade Representative reports annually
on the Arab League's trade boycott of Israel under the National
Trade Estimate report but that reporting on trade boycotts of
Israel can be improved through additional reporting
requirements.
(8) Greater transparency and more comprehensive reporting
will assist United States taxpayers in complying with United
States law and policy regarding trade boycotts of Israel.
(9) Improved reporting will enhance efforts to end all
trade boycotts of Israel and allow progress on ending such
boycotts to be better measured.
(10) Taking steps to improve transparency with respect to
the boycott of Israel can serve the United States goal of the
elimination of the trade boycott of Israel. Fostering increased
trade and investment ties between Israel and the countries of
the greater Middle East can encourage stronger ties and greater
understanding among the peoples of the Middle East.
SEC. 2. STATEMENT OF POLICY.
Congress reaffirms its opposition to trade boycotts of Israel and
calls on the President to take stronger steps to end all trade boycotts
of Israel.
SEC. 3. NATIONAL TRADE ESTIMATE REPORTING REQUIREMENT.
(a) Section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241(b)) is
amended by adding at the end the following:
``(4) Report on the boycott of israel.--
``(A) In general.--The United States Trade
Representative shall include in each report submitted
under paragraph (1), a list of each country that
participates in any trade boycott of Israel. With
respect to each country identified as participating in
a formal or informal trade boycott of the State of
Israel, the United States Trade Representative shall
report on a country-specific basis the following:
``(i) Whether the country is a participant
in the Arab League boycott or any other boycott
of Israel including any boycott sponsored by
the Arab League or the Organization of Islamic
Conference.
``(ii) Whether any officials of the
boycotting country have attended any Arab
League or Organization of the Islamic
Conference boycott meetings in any official or
unofficial capacity during the year preceding
the submission of the report.
``(iii) Whether the boycotting country
maintains a government office with
responsibility for enforcement of a boycott of
Israel.
``(iv) Whether the boycotting country has
laws enforcing a boycott of Israel or otherwise
prohibiting Israeli origin goods from entering
its territories and a summary of those laws.
``(v) Whether the boycotting country has
recently changed its domestic boycott laws or
regulations with respect to either
strengthening or eliminating the boycott.
``(vi) Whether a country's laws or
practices with respect to a boycott of Israel
are of a nature that they may lead a taxpayer
to reasonably conclude that the taxpayer would
be required to report a request to participate
in or cooperate with the boycott to the
Secretary of the Treasury pursuant to section
999 of the Internal Revenue Code of 1986.
``(vii) Whether a country encourages or
otherwise condones, through government-
sponsored actions, an unofficial boycott of
goods of Israeli origin, including consumer
marketing campaigns directed against the
purchase of goods of Israeli origin.
``(viii) Whether a country's formal or
informal boycott practices have had an
identifiable impact on United States exports of
goods that have Israeli content.
``(ix) Whether a country's formal or
informal boycott practices have had an
identifiable impact on United States businesses
with operations or investments in Israel.
``(B) Other information.--The United States Trade
Representative shall include in the National Trade
Estimate, a report on any steps taken by the United
States at the World Trade Organization or other
international fora to end the trade boycott of the
State of Israel.''.
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