United States-Israel Trade and Commercial Enhancement Act

Summary: United States-Israel Trade and Commercial Enhancement Act This bill states that among the principal U.S. trade negotiating objectives for trade agreements with foreign countries regarding commercial partnerships are to:   discourage actions by potential trading partners that discourage commercial activity solely between the United States and Israel;  discourage politically motivated actions to boycott, divest from, or sanction Israel and to seek the elimination of politically motivated non-tariff barriers on Israeli commerce; and  seek the elimination of state-sponsored unsanctioned foreign boycotts against Israel or compliance with the Arab League Boycott of Israel.  The President is directed to report annually to Congress on politically motivated acts of boycott, divestment from, and sanctions against Israel. The Securities Exchange Act of 1934 is amended to require a foreign issuer traded on the U.S. stock market to disclose in its quarterly or annual report:   whether the issuer has discriminated against doing business with Israel in the last calendar year;  whether the issuer has been advised by a foreign government or a non-member state of the United Nations (U.N.) to discriminate against doing business with Israel, entities owned or controlled by Israel, or entities operating in Israel or Israeli-controlled territory; and  any instances where the issuer has learned that a person, foreign government, or a non-member state of the U.N. is boycotting the issuer, divesting itself of an ownership interest in the issuer, or placing sanctions on the issuer because of the issuer's relationship with Israel.  No U.S. court may recognize or enforce any judgment by a foreign court against a U.S. person carrying out business operations in Israel or in any territory controlled by Israel, and on which is based a determination by the foreign court that the location in Israel, or in any territory controlled by Israel, of the facilities at which the business operations are carried out is sufficient to constitute a violation of law.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Israel Trade and 
Commercial Enhancement Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Israel is America's dependable, democratic ally in the 
        Middle East--an area of paramount strategic importance to the 
        United States.
            (2) The United States-Israel Free Trade Agreement formed 
        the modern foundation of the bilateral commercial relationship 
        between the two countries and was the first such agreement 
        signed by the United States with a foreign country.
            (3) The United States-Israel Free Trade Agreement has been 
        instrumental in expanding commerce and the strategic 
        relationship between the United States and Israel.
            (4) More than $45 billion in goods and services is traded 
        annually between the two countries in addition to roughly $10 
        billion in United States foreign direct investment in Israel.
            (5) The United States continues to look for and find new 
        opportunities to enhance cooperation with Israel, including 
        through the enactment of the United States-Israel Enhanced 
        Security Cooperation Act of 2012 (Public Law 112-150) and the 
        United States-Israel Strategic Partnership Act of 2014 (Public 
        Law 113-296).
            (6) It has been the policy of the United States Government 
        to combat all elements of the Arab League Boycott of Israel 
        by--
                    (A) public statements of Administration officials;
                    (B) enactment of relevant sections of the Export 
                Administration Act of 1979 (as continued in effect 
                pursuant to the International Emergency Economic Powers 
                Act), including sections to ensure foreign persons 
                comply with applicable reporting requirements relating 
                to the boycott;
                    (C) enactment of the 1976 Tax Reform Act (Public 
                Law 94-455) that denies certain tax benefits to 
                entities abiding by the boycott;
                    (D) ensuring through free trade agreements with 
                Bahrain and Oman that such countries no longer 
                participate in the boycott; and
                    (E) ensuring as a condition of membership in the 
                World Trade Organization that Saudi Arabia no longer 
                enforces the secondary or tertiary elements of the 
                boycott.

SEC. 3. STATEMENTS OF POLICY.

    Congress--
            (1) supports the strengthening of United States-Israel 
        economic cooperation and recognizes the tremendous strategic, 
        economic, and technological value of cooperation with Israel;
            (2) recognizes the benefit of cooperation with Israel to 
        United States companies, including by improving American 
        competitiveness in global markets;
            (3) recognizes the importance of trade and commercial 
        relations to the pursuit and sustainability of peace, and 
        supports efforts to bring together the United States, Israel, 
        the Palestinian territories, and others in enhanced commerce;
            (4) opposes politically motivated actions that penalize or 
        otherwise limit commercial relations specifically with Israel 
        such as boycotts, divestment or sanctions;
            (5) notes that the boycott, divestment, and sanctioning of 
        Israel by governments, governmental bodies, quasi-governmental 
        bodies, international organizations, and other such entities is 
        contrary to the General Agreement on Tariffs and Trade (GATT) 
        principle of non-discrimination;
            (6) encourages the inclusion of politically motivated 
        actions that penalize or otherwise limit commercial relations 
        specifically with Israel such as boycotts, divestment from, or 
        sanctions against Israel as a topic of discussion at the U.S.-
        Israel Joint Economic Development Group (JEDG) and other areas 
        to support the strengthening of the United States-Israel 
        commercial relationship and combat any commercial 
        discrimination against Israel;
            (7) supports efforts to prevent investigations or 
        prosecutions by governments or international organizations of 
        United States persons on the sole basis of such persons doing 
        business with Israel, with Israeli entities, or in Israeli-
        controlled territories; and
            (8) supports American States examining a company's 
        promotion or compliance with unsanctioned boycotts, divestment 
        from, or sanctions against Israel as part of its consideration 
        in awarding grants and contracts and supports the divestment of 
        State assets from companies that support or promote actions to 
        boycott, divest from, or sanction Israel.

SEC. 4. PRINCIPAL TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES.

    (a) Commercial Partnerships.--Among the principal trade negotiating 
objectives of the United States for proposed trade agreements with 
foreign countries regarding commercial partnerships are the following:
            (1) To discourage actions by potential trading partners 
        that directly or indirectly prejudice or otherwise discourage 
        commercial activity solely between the United States and 
        Israel.
            (2) To discourage politically motivated actions to boycott, 
        divest from, or sanction Israel and to seek the elimination of 
        politically motivated non-tariff barriers on Israeli goods, 
        services, or other commerce imposed on the State of Israel.
            (3) To seek the elimination of state-sponsored unsanctioned 
        foreign boycotts against Israel or compliance with the Arab 
        League Boycott of Israel by prospective trading partners.
    (b) Effective Date.--This section takes effect on the date of the 
enactment of this Act and applies with respect to negotiations 
commenced before, on, or after the date of the enactment of this Act.

SEC. 5. REPORT ON POLITICALLY MOTIVATED ACTS OF BOYCOTT, DIVESTMENT 
              FROM, AND SANCTIONS AGAINST ISRAEL.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the President shall 
submit to Congress a report on politically motivated acts of boycott, 
divestment from, and sanctions against Israel.
    (b) Matters To Be Included.--The report required by subsection (a) 
shall include the following:
            (1) A description of the establishment of barriers to 
        trade, including non-tariff barriers, investment, or commerce 
        by foreign countries or international organizations against 
        United States persons operating or doing business in Israel, 
        with Israeli entities, or in Israeli-controlled territories.
            (2) A description of specific steps being taken by the 
        United States to encourage foreign countries and international 
        organizations to cease creating such barriers and to dismantle 
        measures already in place and an assessment of the 
        effectiveness of such steps.
            (3) A description of specific steps being taken by the 
        United States to prevent investigations or prosecutions by 
        governments or international organizations of United States 
        persons on the sole basis of such persons doing business with 
        Israel, with Israeli entities, or in Israeli-controlled 
        territories.
            (4) Decisions by foreign persons, including corporate 
        entities and state-affiliated financial institutions, that 
        limit or prohibit economic relations with Israel or persons 
        doing business in Israel or in Israeli controlled territories.

SEC. 6. ISRAEL TRADE AND COMMERCE BOYCOTT REPORTING.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended by adding at the end the following:
    ``(s) Israel Trade and Commerce Boycott Reporting.--
            ``(1) In general.--Each foreign issuer required to file an 
        annual or quarterly report under subsection (a) shall disclose 
        in that report--
                    ``(A) whether the issuer has discriminated against 
                doing business with Israel in the last calendar year 
                and in such cases an issuer shall provide a description 
                of the discrimination.
                    ``(B) whether the issuer has been advised by a 
                foreign government or a non-member state of the United 
                Nations to discriminate against doing business with 
                Israel, entities owned or controlled by the government 
                of Israel, or entities operating in Israel or Israeli-
                controlled territory; and
                    ``(C) any instances where the issuer has learned 
                that a person, foreign government, or a non-member 
                state of the United Nations is boycotting the issuer, 
                divesting themselves of an ownership interest in the 
                issuer, or placing sanctions on the issuer because of 
                the issuer's relationship with Israel, entities owned 
                or controlled by the government of Israel, or entities 
                operating in Israel or Israeli-controlled territory.
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) Foreign issuer.--The term `foreign issuer' 
                means an issuer that is not incorporated in the United 
                States.
                    ``(B) Non-member states of the united nations.--The 
                term `non-member states of the United Nations' has the 
                meaning given such term by the United Nations.''.

SEC. 7. FOREIGN JUDGMENTS AGAINST UNITED STATES PERSONS.

    No court in the United States may recognize or enforce any judgment 
which is entered by a foreign court against a United States person 
carrying out business operations in Israel or in any territory 
controlled by Israel and on which is based a determination by the 
foreign court that the location in Israel, or in any territory 
controlled by Israel, of the facilities at which the business 
operations are carried out is sufficient to constitute a violation of 
law.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) Boycott, divestment from, and sanctions against 
        israel.--The term ``boycott, divestment from, and sanctions 
        against Israel'' means actions by states, non-member states of 
        the United Nations, international organizations, or affiliated 
        agencies of international organizations that are politically 
        motivated and are intended to penalize or otherwise limit 
        commercial relations specifically with Israel or persons doing 
        business in Israel or in Israeli-controlled territories.
            (2) Foreign person.--The term ``foreign person'' means--
                    (A) any natural person who is not lawfully admitted 
                for permanent residence (as defined in section 
                101(a)(20) of the Immigration and Nationality Act (8 
                U.S.C. 1101(a)(20)) or who is not a protected 
                individual (as defined in section 274B(a)(3) of such 
                Act (8 U.S.C. 1324b(a)(3)); and
                    (B) any foreign corporation, business association, 
                partnership, trust, society or any other entity or 
                group that is not incorporated or organized to do 
                business in the United States, as well as any 
                international organization, foreign government and any 
                agency or subdivision of foreign government, including 
                a diplomatic mission.
            (3) Person.--
                    (A) In general.--The term ``person'' means--
                            (i) a natural person;
                            (ii) a corporation, business association, 
                        partnership, society, trust, financial 
                        institution, insurer, underwriter, guarantor, 
                        and any other business organization, any other 
                        nongovernmental entity, organization, or group, 
                        and any governmental entity operating as a 
                        business enterprise; and
                            (iii) any successor to any entity described 
                        in clause (ii).
                    (B) Application to governmental entities.--The term 
                ``person'' does not include a government or 
                governmental entity that is not operating as a business 
                enterprise.
            (4) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a national of the 
                United States (as defined in section 101(a)(22) of the 
                Immigration and Nationality Act (8 U.S.C. 1101(a)(22)); 
                and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.