1.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.
2.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.
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)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)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.
.