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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4046 Introduced in House (IH)]

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. Ros-
  Lehtinen) 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.

    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.

    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.''.
                                 <all>
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