Arab League boycott of Israel

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The Arab League boycott of Israel is a systematic[1] effort by Arab League member states to isolate Israel economically to prevent Arab states and discourage non-Arabs from providing support to Israel and adding to Israel's economic and military strength.[2]

While small-scale Arab boycotts of Zionist institutions and Jewish businesses began before Israel's founding as a modern state, an official organized boycott was only adopted by the Arab League after the 1948 Arab-Israeli War. The implementation of the boycott has varied over time among member states with a number of member states of the Arab League no longer enforcing the boycott.

Egypt (1979), the Palestinian Authority (1993), and Jordan (1994) signed peace treaties or agreements that ended their participation in the boycott of Israel. Mauritania, which never applied the boycott, established diplomatic relations with Israel in 1999. Algeria, Morocco, and Tunisia do not enforce the boycott.[3]

In 1994, following the Oslo Peace Accords, the Cooperation Council for the Arab States of the Gulf (GCC) states, ended their participation in the Arab boycott against Israel.[4] The move prompted a surge of investment in Israel, and resulted in the initiation of joint cooperation projects between Israel and Arab countries.[4] In 1996, the GCC states recognized that total elimination of the boycott is a necessary step for peace and economic development in the region.[3]

While in its heyday, the Arab boycott had a moderate negative impact on Israel’'s economy and development, but’ also had significant negative effect on economic welfare in participating Arab countries, as the result of a deterioration in the foreign direct investment climate in the Arab world, and reduction in the volume of trade.[4] In present days, the boycott is sporadically applied and ambiguously enforced, and therefore, no longer has significant effect on the Israeli or Arab economies.[3]

Ad hoc boycott attempts of Jewish businesses

Arab boycotts of Jewish interests started as early as 1922,[5] 26 years before the establishment of Israel. The original boycott forswore with any Jewish owned business operating in the British Mandate of Palestine. Palestinian Arabs "who were found to have broken the boycott ... were physically attacked by their brethren and their merchandise damaged" when Palestinian Arabs rioted in Jerusalem in 1929.[6] Another, stricter boycott was imposed on Jewish businesses in following the riots that called on all of the Arabs in the region to abide by its terms. The Arab Executive Committee of the Syrian-Palestinian Congress called for a boycott of Jewish businesses in 1933 and in 1934, the Arab Labor Federation conducted a boycott as well as an organized picketing of Jewish businesses. In 1936, the Palestinian Arab leadership called on another boycott and threatened those who did not respect the boycott with violence, however, this boycott was unsuccessful as Jewish lawyers, physicians, and hospitals were too heavily integrated into Palestinian society.[5]

Aiming to counter the Zionist enterprise in Palestine economically, on December 2, 1945, the newly formed Arab League Council declared a formal boycott: "Jewish products and manufactured [goods] in Palestine shall be [considered] undesirable in the Arab countries; to permit them to enter the Arab countries would lead to the realization of the Zionist political objectives. ... every State of the League should, before January 1, 1946, take measures which they consider fit and which will be in conformity with the principles of administration and legislation therein, such as making use of import balances in this respect in order to prevent these products and manufactured [goods] from entering [these] countries regardless of whether they have come from Palestine or by any other route."[7] The secretary of the League declared that the Jews of Arab states would not be effected.[8] While the boycott was officially against Jewish products, Arab products from Palestine were also boycotted. Palestinian Arabs' complaints to the Arab Higher Committee and the Arab League as well as Palestinian Jews' complaints to the British about the application of the boycott mostly fell on deaf ears.[5]

Organized boycott of Israel

Officially, the Arab League boycott covers three areas:[5]

  • Products and services that originate in Israel (referred to as the primary boycott and still enforced in many Arab states)
  • Businesses in non-Arab countries that do business with Israel (the secondary boycott)
  • Businesses shipped or flown to Israeli ports (the tertiary boycott)

At one point the boycott was observed by the entire Arab League. Today, only Lebanon and Syria adhere to it stringently. The boycott list was maintained by a special office within the Arab League called the "Central Boycott Office." Each participating Arab League state had its own national office. The Central Boycott Office has always been headquartered in Damascus, although there was no meeting of the coordinating committee from 1993 to 2002 due to the fact there was no quorum.

The secondary boycott threatened companies outside the Arab world "from investing in Israel, building plants, granting franchises, or any cooperation beyond trade. Companies that violated the instructions of the boycott offices were blacklisted."[5] The products of foreign artists, filmmakers, and musicians are also boycotted if they are considered to be too close to Israel.

Passport restrictions

In addition to goods and businesses, some countries refuse entry to travelers using an Israeli passport or with any Israeli stamp in their passport. The stamp may be a visa stamp, or a stamp on entry or departure. It can also include a stamp of another country which indicates that the person has entered Israel. For example, if an Egyptian departure stamp is used in any passport at the Taba Crossing, that is an indication that the person entered Israel.

Countries with restrictions in place

Legend:
  Israel
  Countries that reject passports from Israel
  Countries that reject passports from Israel and any other passport which contain Israeli stamps or visas
Country Israeli passport Israeli stamps or any other indication of a connection with Israel
 Algeria Admission refused[9]
N/A
 Bangladesh Admission refused[10]
N/A
 Brunei Admission refused[11]
N/A
 Djibouti Admission refused[12]
N/A
 Iran Admission refused[13] Admission refused[14]
 Iraq Admission refused[15] Admission refused[16]
 Kuwait Admission refused[17] Admission occasionally refused[18]
 Lebanon Admission refused[19] Admission refused[20]
 Libya Admission refused[21] Admission refused[22]
 Malaysia Admission refused unless holding a letter of approval from the Ministry of Home Affairs[23]
N/A
 Oman Admission refused[24] Admission occasionally refused[25]
 Pakistan Admission refused[26]
N/A
 Qatar
N/A
Admission occasionally refused[27]
 Saudi Arabia Admission refused[28] Admission refused[29]
 Sudan Admission refused[30] Admission refused[31]
 Syria Admission refused[32] Admission refused[33]
 Tunisia Admission refused[34] Admission occasionally refused[35]
 United Arab Emirates Admission refused[36]
N/A
 Yemen Admission refused[37] Admission refused[38]

Economic effects

Although it cannot be estimated to what extent the boycott hurt Israel's economy, the boycott cannot be said to have affected it to the extent the Arabs intended.[5] Israel's economy has performed relatively well since 1948, achieving a higher GDP per capita than that of all Arab countries except for the oil-rich gulf states of Kuwait and Qatar. The boycott nevertheless has undoubtedly harmed Israel to some extent. The Israeli Chamber of Commerce estimates that with the boycott Israeli exports are 10 percent less than they would be without the boycott and investment in Israel likewise 10 percent lower.

Arab states suffer economically from the boycott as well. In its report on the cost of conflict in the Middle East, Strategic Foresight Group estimates that Arab states lost an opportunity to export $10 billion worth of goods to Israel between 2000-2010. Moreover, the Arab states of the Persian Gulf and Iran together stand to lose $30 billion as the opportunity cost of not exporting oil to Israel in the second half of the decade.[39]

Because of the boycott, certain products which were ubiquitous elsewhere in the world, such as Pepsi, McDonald's and most Japanese cars were not to be found in Israel until the boycott began waning in the late 1980s. A similar situation existed in the Arab world which boycotted the products of companies that were selling in Israel as in the case of Coca-Cola, Ford and Revlon.[40]

Despite the boycott, Israeli goods often do make it to Arab markets in boycott countries. Typically, the Israeli goods are sent to a third country and then reshipped to an Arab state. Cyprus is the greatest transshipment point. In 2001, Cyprus imported $164 million in Israeli goods, but only exported $ 27.5 million to Israel. It is probable that the bulk of that enormous Israeli trade surplus ends up in the Arab world.[citation needed] Naturally, Israeli products are not heavily boycotted in the Palestinian territories and often make it into the larger Arab world through the Palestinians.[5]

Weakening of the boycott

Following the Oslo Peace Accords, the Cooperation Council for the Arab States of the Gulf (GCC) states, ended their participation in the Arab boycott against Israel, and declared that total elimination of the boycott is a necessary step for peace and economic development in the region.

In 1977 the United States Congress passed a law that then-President Jimmy Carter signed, and according to which fines would be levied on American companies which cooperate with the boycott. For the surveillance after the implementation of this law, an office called the "Office of Antiboycott Compliance" was opened in the United States as part of the US Department of Commerce. Despite the fines, there were some American companies (like McDonald's) which preferred to pay the fine than break the boycott and endanger loss of business with the Arab world.

Today, most Arab states, Syria being the exception, no longer attempt to enforce the secondary or tertiary boycotts. As the boycott was relaxed (or rather, not as stringently enforced) starting in the late 1980s and early 1990s, many companies which previously stayed out of the Israeli market had entered it, e.g. McDonald's and Nestlé. In 1985, the ban was lifted on Ford, which had been in place since the company had opened an assembly plant in Israel, and Colgate-Palmolive, although five other companies were added to the blacklist.[41] Toyota began selling cars in Israel in 1991, although it claimed that it had never complied with the boycott, arguing that it did not have the resources to sell cars in the country.[42]

Egypt was the first nation to abandon the boycott, doing so in 1980. Jordan followed in 1995. The Palestinian Authority likewise agreed not to abide by the boycott in 1995. In 1994 several of the Arab states of the Persian Gulf abandoned the secondary and tertiary boycotts. The period also saw "low-level diplomatic relations" between Israel and Morocco, Mauritania, Oman, and Qatar.[5]

In 1994, following the Oslo Peace Accords, the Cooperation Council for the Arab States of the Gulf (GCC) states, ended their participation in the Arab boycott against Israel.[4] The move prompted a surge of investment in Israel, and resulted in the initiation of joint cooperation projects between Israel and Arab countries.[4] In 1996, the GCC states recognized that total elimination of the boycott is a necessary step for peace and economic development in the region.[3]

Though not an Arab state, Iran attempts to enforce the secondary and tertiary boycotts.[citation needed]

Mauritania, which never applied the boycott, established diplomatic relations with Israel in 1999. Algeria, Morocco, and Tunisia do not enforce the boycott.[3]

Recent events

During the al-Aqsa Intifada there were calls for a renewal of the boycott and the boycott council finally met again. However, these meetings came to nothing. In 2005, shortly after the Gaza disengagement, Bahrain announced that it was completely withdrawing from the boycott. The withdrawal of Bahrain from the boycott was in order to ease the approval of free trade agreements between Bahrain and the United States. The decision to leave the boycott sparked harsh criticism of this move by the Bahraini public, and on October 11 the Bahraini parliament voted for a non-binding resolution asking for Bahrain to return to participating in the boycott.

In 2005, Saudi Arabia announced the end of its ban on Israeli goods and services, mostly due to its application to the World Trade Organization, where it is illegal for one member country to ban trade with another. However, as of summer 2006 Saudi boycott was not cancelled. [43] [44] [45]

On May 16, 2006, after four-day conference of the Arab Boycott Bureau in Damascus, Syria, a "source close to the conference" reported that "the majority of Arab countries are evading the boycott, notably the [Persian] Gulf states and especially Saudi Arabia. ... The boycott deteriorated a lot, regressed and even almost collapsed... We should not lie on each other, because the boycott is quasi... paralyzed." [46]

However, reporting by the Jerusalem Post has found that many countries and entities are still enforcing aspects of the boycott, including the UAE and its Dubai Ports World firm,[47] and the Sultanate of Oman.[48]

In November, 2006, The Jerusalem Post reported that "According to material compiled by the US Department of Commerce's Bureau of Industry and Security, ... Arab states made a total of 201 boycott-related requests in all of 2005, or fewer than 17 per month. By contrast, US firms have reported receiving 120 boycott-related requests in just the first six months of this year, for an average of 20 per month, marking an increase of nearly 20 percent over the rate recorded last year." and "it appears that at least seven Arab countries, including ostensible US allies such as Bahrain, the United Arab Emirates (UAE), Kuwait and Iraq, are enforcing the terms of the Arab boycott more energetically this year than in 2005. At the top of the list is the UAE, which made 40 boycott-related requests during the period of January to June, followed by Syria, with 20."[49]

Foreign reactions to the boycott

The United States adopted two anti-boycott laws that seek to counteract the participation of U.S. citizens in other nation's economic boycotts or embargoes (although these laws do not restrict the ability to engage in disinvestment campaigns.) These laws are the 1977 amendments to the Export Administration Act (EAA) and the Ribicoff Amendment to the 1976 Tax Reform Act (TRA).[50] 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, and prohibit them to participate in unsanctioned boycotts against other nations, punishable by fines of up to $50,000 or five times the value of the exports involved[51] or jail term of up to 10 years.[52]

Conduct that may be penalized under the TRA and/or prohibited under the EAR includes:

  • Agreements to refuse or actual refusal to do business with or in Israel or with blacklisted companies.
  • Agreements to discriminate or actual discrimination against other persons based on race, religion, sex, national origin or nationality.
  • Agreements to furnish or actual furnishing of information about business relationships with or in Israel or with blacklisted companies.
  • Agreements to furnish or actual furnishing of information about the race, religion, sex, or national origin of another person.

Of all the Western countries, only the United Kingdom has not passed legislation against the Arab boycott. Despite this, many companies in Western nations practice some degree of compliance with the boycott.[5]

Japan was the industrialized nation that complied most with the boycott. As a result, Israel–Japan relations have been limited until the 1990s.[5]

See also

References

  1. ^ Hill, Amelia. "Steven Spielberg was target of Arab League boycott, WikiLeaks cable shows." guardian.co.uk. 17 December 2010. 12 July 2011.
  2. ^ Turck, Nancy (April 1977). "The Arab Boycott of Israel". Foreign Affairs (Council on Foreign Relations) 55 (3): 472–493. doi:10.2307/20039682. JSTOR 20039682. 
  3. ^ a b c d e  This article incorporates public domain material from the Congressional Research Service document "Arab League Boycott of Israel.".
  4. ^ a b c d e Joyce Shems Sharon. The Arab Boycott Against Israel and Its Unintended Impact on Arab Economic Walfare. May 2003.
  5. ^ a b c d e f g h i j Feiler, Gil. "Arab Boycott." The Continuum Political Encyclopedia of the Middle East. Ed. Avraham Sela. New York: Continuum, 2002. pp. 54-57
  6. ^ Feiler, Gil. "From boycott to economic cooperation ...." Google Books. 2 September 2009.
  7. ^ Christopher C. Joyner (1984). "The transnational boycott as economic coercion in international law: policy, place, and practice". Vanderbilt Journal of International Law 17 (2): 206–286. 
  8. ^ "Arabs prepared for counter-boycott". Palestine Post. December 5, 1945. "We shall always draw the keenest distinction between Zionists and Jews." 
  9. ^ "Visa Information for Algeria: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  10. ^ "Visa Information for Bangladesh: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  11. ^ "Visa Information for Brunei Darussalam: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  12. ^ "Visa Information for Djibouti: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  13. ^ "Visa Information for Djibouti: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  14. ^ [1]
  15. ^ "Visa Information for Iraq: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  16. ^ [2]
  17. ^ "Visa Information for Kuwait: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  18. ^ [3]
  19. ^ "Visa Information for Lebanon: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  20. ^ [4]
  21. ^ "Visa Information for Libyan Arab Jamahiriya: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  22. ^ [5]
  23. ^ "Visa Information for Malaysia: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  24. ^ "Visa Information for Oman: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  25. ^ [6]
  26. ^ "Visa Information for Pakistan: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  27. ^ [7]
  28. ^ "Visa Information for Saudi Arabia: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  29. ^ [8]
  30. ^ "Visa Information for Sudan: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  31. ^ [9]
  32. ^ "Visa Information for Syrian Arab Republic: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  33. ^ [10]
  34. ^ "Visa Information for Kuwait: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  35. ^ [11]
  36. ^ "Visa Information for United Arab Emirates: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  37. ^ "Visa Information for Yemen: Holders of Normal Passports from Israel". Timatic. International Air Transport Association (IATA). 
  38. ^ [12]
  39. ^ [13] Cost of Conflict in the Middle East report by Strategic Foresight Group, January 2009
  40. ^ 'Foreign Firms Yielding To Arab Boycott Of Israel', The Milwaukee Journal - February 24, 1975
  41. ^ Arabs End Boycott of 2 U.S. Firms but Blacklist 5 Others, Los Angeles Times, July 19, 1985
  42. ^ Toyota to Sell Cars in Israel, Officials Say, The New York Times, April 11, 1991
  43. ^ Saudi Arabia Continues Boycott of Israel By David Krusch. Jewish Virtual Library. August 2, 2006
  44. ^ Saudi Ambassador Says Trade Boycott of Israel Will Not End By ELI LAKE. New York Sun June 21, 2006
  45. ^ Arab League Boycott of Israel PDF (42.1 KiB) CRS Report for Congress by Martin A. Weiss. Order Code RS22424. April 19, 2006
  46. ^ Arabs evading economic boycott of Israel
  47. ^ Dubai ports firm enforces Israel boycott by Michael Freund (The Jerusalem Post) February 28, 2006, Updated March 7, 2006. Accessed July 21, 2006
  48. ^ Boycott of Israel still in effect, Omani official tells ’Post’ by Michael Freund (The Jerusalem Post) June 8, 2006. Accessed July 21, 2006
  49. ^ Arab states step up anti-Israel activity by Michael Freund (The Jerusalem Post) Nov. 2, 2006
  50. ^ Bracewell & Giuliani LLP (19 December 2011). "Boycotts and Business in the Middle East: A Reminder of U.S. Anti-Boycott Laws". The National Law Review. Retrieved 31 January 2012. 
  51. ^ "Office of Antiboycott Compliance". U.S. Bureau of Industry and Security. 
  52. ^ Impact of U.S. Policy on the Arab League Boycott of Israel by Adam B. Cordover

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