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Revision as of 05:34, 26 January 2006 by Wikiliki (talk | contribs)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)The Arab League Boycott is the systematic effort by Arab states to economically isolate Israel by boycotting products and services which originate in Israel (the primary boycott), businesses that operate in Israel (the secondary boycott), and businesses which have relationships with businesses which operate in Israel (the tertiary boycott).
In order to discourage Jewish settlement, the Arab League proclaimed a boycott on December 2, 1945. The original boycott forswore with any Jewish owned business operating in the British Mandate of Palestine. The Arab League declared:
- Jewish products and manufactured goods shall be considered undesirable to the Arab countries. institutions, organizations, merchants, commission agents and individuals upon to refuse to deal in, distribute, or consume Zionist products or manufactured goods."
In addition to goods and businesses, many Arab states refused to allow entrance to anyone who had an Israeli stamp on his or her passport.
Because of the boycott, certain products which were ubiquitous elsewhere in the world, such as Coca-Cola were not to be found in the Arab world. A similar situation existed in Israel as in the case of Pepsi products, which were non-existent in Israel until the boycott began waning in the late 1980's.
Although Israel's economy has performed relatively well since 1948 - giving the nation a much higher standard of living than that known in any Arab country - the boycott undoubtedly has harmed Israel. 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. Trade with Japan and South Korea was particularly affected.
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 transhipment 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.
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, but there was no meeting of the coordinating committee from 1993 to 2002 due to the fact there was no quorum.
In 1977 the Congress of the United States passed a law that the president Jimmy Carter signed on, and according to which fines will be inflicted 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 American trade ministry. Despite the fines, they were American companies (like McDonald's) which prefered to pay the fine than break the boycott and by that to endanger in loss of business with the Arab world.
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 Gulf States abandoned the secondary and tertiary boycotts. 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) in the late 1980's and early 1990's, many companies which previsouly stayed out of the Israeli market had entered it, e.g. McDonald's, Toyota, Nestlé, etc.
Though not an Arab state, Iran attempts to enforce the secondary and tertiary boycotts. Tehran's new international airport was closed for over a year after it was completed when it was publicized that the Turkish company that built the airport had had loose connections with Israel.
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 withdrawing of Bahrain from the boycott was for ease the approval of free trade agreements between Bahrein to the United States. The decision to leave the boycott accepted in a hard criticism in the public in Bahrain, and in October 11 the Bahraini parliament voted in a non-binding voting for returning of Bahrain to participation in the boycott.
With the joining of Saudi Arabia to the World Trade Organization, Saudi Arabia commit to obey to the laws of the organization, including banning on boycott on other members in the organization, including Israel.