WHAT DOES ISRAEL BOYCOTT LAW ABOLISHMENT MEAN?
Individuals, companies in UAE may enter into agreements with Israelis and residents in Israel
Afortnight after the announcement of the peace accord with Israel, President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued a Federal Decree — Law no. 04 of 2020, abolishing the Federal Law no. 15 of 1972 regarding boycott of Israel. The move provides for free movement of people and goods between UAE and Israel. The decree comes as part of the UAE’s efforts to expand diplomatic and commercial cooperation with Israel, and by laying out a road map towards launching joint cooperation, leading to bilateral relations by stimulating economic growth and promoting technological innovation, WAM reported.
Following the abolition of the Israel Boycott Law, individuals and companies in the UAE may enter into agreements with bodies or individuals residing in Israel or belonging to it by their nationality, in terms of commercial, financial operations, or any other dealings of any nature.
Based on the decree, it will be permissible to enter, exchange or possess Israeli goods and products of all kinds in the UAE and trade in them.
Why the law was legislated
The abrogated law on boycotting Israel was in response to “the recommendations of the Secretariat of the League of Arab States, to the member states, to include in their legislation a unified law for boycotting Israel that would complete the documentary series of collective Arab measures to confront the imminent Zionist threat,” the 1972 law said.
That law prohibited any trade dealing with bodies and persons residing in Israel or who belong to it by their nationality or working for it or for its interest, thereby prohibiting dealing in Israeli goods or products, commodities, and other movable values.
Offenders faced imprisonment for no less than three years and not exceeding 10 years and a fine, not exceeding seven thousand Bahraini dinars, as the UAE currency was yet to be issued. In all cases, the annulled law provided for confiscation of goods and the means of transport used if their owners were aware of the crime.
The abolished law also provided for rewarding law enforcement officials with 20 per cent of the value of the confiscated goods.
Boycott of Israel by Arab countries
Arab countries started since 1948 issuing Boycott of Israel laws, based on a strategy adopted by the Arab League and its member states to boycott economic and other relations between Arabs and the Arab states, on the one hand, and Israel, on the other hand. The strategy was aimed at stopping all trade with Israel. A secondary boycott was later imposed, to boycott non-Israeli companies that do business with Israel, and later a tertiary boycott involved the blacklisting of firms that do business with other companies that do business with Israel.
The Arab boycott was formally declared by the newly formed Arab League Council on December 2, 1945. All Arab “institutions, organisations, merchants, commission agents and individuals” were called upon “to refuse to deal in, distribute, or consume Zionist products or manufactured goods.”
The objective
The objective of the boycott has been to isolate Israel from its neighbours and the international community, as well as to deny it trade that might be used to augment its military and economic strength. Israel’s capacity to reach its full economic potential was hindered for decades by the actions of Great Britain, Japan and other countries that cooperated with the boycott. It has undoubtedly enhanced Israel’s isolation and separated the Jewish State from its most natural markets, but the boycott failed to undermine Israel’s economy to the degree intended.
US fights boycott of Israel
In 1977, the US Congress prohibited American companies from cooperating with the Arab boycott of Israel. When President Carter signed the law, he said the “issue goes to the very heart of free trade among nations” and that it was designed to “end the divisive effects on American life of foreign boycotts aimed at Jewish members of our society.”
The Arab League threatened to take a decisive stand against the new law, which was regarded as part of “a campaign of hysterical laws and bills, which Israel and Zionist world are trying not only to enforce on the US; but also in some countries of Western Europe.”
Contrary to claims that the bill would lead to a drastic reduction in American trade with the Arab world, imports and exports increased substantially. Broader diplomatic and cultural relations also improved. Nevertheless, certain US companies were blacklisted for their relations with Israel.
Withdrawing secondary boycott
On September 30, 1994, the six Gulf Cooperation Council states announced they would no longer support the secondary boycott barring trade with companies doing business with Israel, but US companies continued as of 2007 to receive requests to cooperate with the boycott from GCC countries. At a meeting in Taba, Egypt, February 7-8, 1995, Egyptian, American, Jordanian and Palestinian trade officials signed a joint document — the Taba Declaration-supporting “all efforts to end the boycott of Israel.”
Since the signing of peace agreements between Israel and the PLO and Jordan, the boycott has gradually crumbled. The Arab League was forced to cancel several boycott meetings called by the Syrian hosts because of opposition from countries such as Kuwait, Morocco and Tunisia. The primary boycott — prohibiting direct relations between Arab countries and Israel — has slowly cracked as nations like Qatar, Oman and Morocco have negotiated deals with Israel.
In April 2004, representatives from 19 Arab countries met for the 72nd conference Bureau for Boycotting Israel to discuss tightening the boycott. The four-day meeting considered blacklisting new companies that do business with the Jewish state. Mauritania, Egypt and Jordan stayed away from the meeting.
It will now be permissible to exchange or possess Israeli goods and products of all kinds in the UAE and trade in them.
Since the signing of peace agreements between Israel and the PLO and Jordan, the boycott has gradually crumbled.
Free trade agreement negotiations
In late 2005, Saudi Arabia was required to cease its boycott of Israel as a condition of joining the World Trade Organisation. After initially saying that it would do so, the Saudi government announced it would maintain its first-degree boycott of Israeli products. The government said it agreed to lift the second and third degree boycott in accordance with an earlier Gulf Cooperation Council decision rather than the demands of the WTO.
In June 2006, the Saudi ambassador admitted his country still enforced the boycott in violation of promises made earlier to the Bush administration and the Saudis participated in the 2007 boycott conference.
During free trade agreement negotiations with Bahrain, Oman and the UAE, the status of the boycott was an issue of concern and the countries agreed not to comply with the boycott.
Representatives from only 14 Arab countries attended the biannual conference of the Arab League’s Bureau for Boycotting Israel in Syria in April 2007.
Mauritania, Egypt, Jordan, Bahrain and Oman were among the nations that were absent. Those that did participate included the Palestinian Authority, Lebanon, Saudi Arabia and Iraq.