I 

111TH CONGRESS 

1ST SESSION H. R. 4046 

To enhance the reporting requirements on the status of the Arab League 

trade boycott of Israel and other trade boycotts of Israel. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 6, 2009 

Ms. BERKLEY (for herself, Mr. WEINER, Mrs. MYRICK, and Ms. ROSLEHTINEN) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To enhance the reporting requirements on the status of 

the Arab League trade boycott of Israel and other trade 

boycotts of Israel. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. FINDINGS. 

4 Congress finds the following: 

5 (1) The Arab League’s trade boycott of the 

6 State of Israel is inconsistent with World Trade Or7 ganization’s (WTO) principle of nondiscrimination. 


PWALKER on DSK8KYBLC1PROD with BILLS
2 

•HR 4046 IH

1 (2) Trade boycotts of the State of Israel are a 

2 barrier to better relations between Israel and nations 

3 of the Arab League. 

4 (3) It has been the long-standing policy of the 

5 United States to oppose the enforcement of trade 

6 boycotts of Israel. 

7 (4) Many members of the World Trade Organi8 zation continue to enforce the primary trade boycott 

9 of the State of Israel. Other WTO members continue 

10 to enforce the secondary and tertiary trade boycott 

11 of the State of Israel. 

12 (5) Taxpayers are required to report requests to 

13 participate in or cooperate with an international boy14 cott. Section 999 of the Internal Revenue Code of 

15 1986 requires the Secretary of the Treasury to keep 

16 a list of countries which require or may require par17 ticipation in, or cooperation with, a trade boycott of 

18 Israel. Currently, the list of countries which require 

19 or may require participation in a trade boycott of 

20 Israel includes Kuwait, Lebanon, Libya, Qatar, 

21 Saudi Arabia, Syria, the United Arab Emirates, and 

22 the Republic of Yemen. 

23 (6) In 2005, during negotiations for the acces24 sion of the Kingdom of Saudi Arabia to the World 

25 Trade Organization (WTO), the United States reVerDate Nov 24 2008 19:40 Nov 07, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4046.IH H4046

PWALKER on DSK8KYBLC1PROD with BILLS
3 

•HR 4046 IH

1 ceived assurances from the Kingdom of Saudi Ara2 bia that, upon accession, ‘‘WTO rules will apply be3 tween Saudi Arabia and all current members’’ which 

4 includes Israel. Further, the United States received 

5 assurances that ‘‘Saudi Arabia is legally obligated to 

6 provide most-favored nation treatment to all WTO 

7 Members, including Israel. Any government sanc8 tioned activity on the Boycott [of Israel] would be 

9 a violation of Saudi Arabia’s obligations and subject 

10 to dispute settlement. This legal obligation cannot be 

11 changed.’’. 

12 (7) The United States Trade Representative re13 ports annually on the Arab League’s trade boycott 

14 of Israel under the National Trade Estimate report 

15 but that reporting on trade boycotts of Israel can be 

16 improved through additional reporting requirements. 

17 (8) Greater transparency and more comprehen18 sive reporting will assist United States taxpayers in 

19 complying with United States law and policy regard20 ing trade boycotts of Israel. 

21 (9) Improved reporting will enhance efforts to 

22 end all trade boycotts of Israel and allow progress 

23 on ending such boycotts to be better measured. 

24 (10) Taking steps to improve transparency with 

25 respect to the boycott of Israel can serve the United 


PWALKER on DSK8KYBLC1PROD with BILLS
4 

•HR 4046 IH

1 States goal of the elimination of the trade boycott of 

2 Israel. Fostering increased trade and investment ties 

3 between Israel and the countries of the greater Mid4 dle East can encourage stronger ties and greater un5 derstanding among the peoples of the Middle East. 

6 SEC. 2. STATEMENT OF POLICY. 

7 Congress reaffirms its opposition to trade boycotts of 

8 Israel and calls on the President to take stronger steps 

9 to end all trade boycotts of Israel. 

10 SEC. 3. NATIONAL TRADE ESTIMATE REPORTING REQUIRE11 MENT. 

12 Section 181(b) of the Trade Act of 1974 (19 U.S.C. 

13 2241(b)) is amended by adding at the end the following: 

14 ‘‘(4) REPORT ON THE BOYCOTT OF ISRAEL.— 

15 ‘‘(A) IN GENERAL.—The United States 

16 Trade Representative shall include in each re17 port submitted under paragraph (1) a list of 

18 each country that participates in any trade boy19 cott of Israel. With respect to each country 

20 identified as participating in a formal or infor21 mal trade boycott of the State of Israel, the 

22 United States Trade Representative shall report 

23 on a country-specific basis the following: 

24 ‘‘(i) Whether the country is a partici25 pant in the Arab League boycott or any 


PWALKER on DSK8KYBLC1PROD with BILLS
5 

•HR 4046 IH

1 other boycott of Israel including any boy2 cott sponsored by the Arab League or the 

3 Organization of Islamic Conference. 

4 ‘‘(ii) Whether any officials of the boy5 cotting country have attended any Arab 

6 League or Organization of the Islamic 

7 Conference boycott meetings in any official 

8 or unofficial capacity during the year pre9 ceding the submission of the report. 

10 ‘‘(iii) Whether the boycotting country 

11 maintains a government office with respon12 sibility for enforcement of a boycott of 

13 Israel. 

14 ‘‘(iv) Whether the boycotting country 

15 has laws enforcing a boycott of Israel or 

16 otherwise prohibiting Israeli origin goods 

17 from entering its territories and a sum18 mary of those laws. 

19 ‘‘(v) Whether the boycotting country 

20 has recently changed its domestic boycott 

21 laws or regulations with respect to either 

22 strengthening or eliminating the boycott. 

23 ‘‘(vi) Whether a country’s laws or 

24 practices with respect to a boycott of Israel 

25 are of a nature that they may lead a taxVerDate Nov 24 2008 19:40 Nov 07, 2009 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4046.IH H4046

PWALKER on DSK8KYBLC1PROD with BILLS
6 

•HR 4046 IH

1 payer to reasonably conclude that the tax2 payer would be required to report a re3 quest to participate in or cooperate with 

4 the boycott to the Secretary of the Treas5 ury pursuant to section 999 of the Internal 

6 Revenue Code of 1986. 

7 ‘‘(vii) Whether a country encourages 

8 or otherwise condones, through govern9 ment-sponsored actions, an unofficial boy10 cott of goods of Israeli origin, including 

11 consumer marketing campaigns directed 

12 against the purchase of goods of Israeli or13 igin. 

14 ‘‘(viii) Whether a country’s formal or 

15 informal boycott practices have had an 

16 identifiable impact on United States ex17 ports of goods that have Israeli content. 

18 ‘‘(ix) Whether a country’s formal or 

19 informal boycott practices have had an 

20 identifiable impact on United States busi21 nesses with operations or investments in 

22 Israel. 

23 ‘‘(B) OTHER INFORMATION.—The United 

24 States Trade Representative shall include in the 

25 National Trade Estimate a report on any steps 


PWALKER on DSK8KYBLC1PROD with BILLS
7 

•HR 4046 IH

1 taken by the United States at the World Trade 

2 Organization or other international fora to end 

3 the trade boycott of the State of Israel.’’. 

Æ 


PWALKER on DSK8KYBLC1PROD with BILLS