Anti-boycott

HR 1907, the Trade Facilitation and Trade Enforcement Act of 2015, is an anti-boycott bill opposing boycotts for Palestinian rights and encouraging states to adopt anti-boycott laws. It directs the President to report annually on BDS efforts to Congress, including on the specific steps the United States is taking to discourage other countries or international organizations from establishing barriers to trade with Israel or its illegal settlements. 

The bill amends the Securities Exchange Act of 1934 to require foreign issuers traded on the stock market to disclose whether they participated in economic boycotts of Israel or entities operating in Israel or territories it controls in the last calendar year. 

Finally, the bill states that no U.S. court may recognize or enforce any foreign judgments against U.S. persons that are based on a finding that conducting business in Israel or Israeli-controlled territories violates the law. Related legislation: HR 644 (passed), S 1269.

HR 2146 includes the Trade Promotion Authority or Bipartisan Congressional Trade Priorities and Accountability Act of 2015. This anti-boycott law states that discouraging boycotts for Palestinian rights is a principal objective for the United States in negotiating with foreign countries in the Transatlantic Trade and Investment Partnership (TTIP). Similarly, the United States will “seek the elimination of politically motivated nontariff barriers” imposed on goods from Israel or its illegal settlements. Earlier versions of this and related bills had included affirmative reporting requirements and provisions calling for state anti-boycott legislation. Subsequent to the passage of HR 2146, the Obama Administration reiterated the U.S. government’s position not to support Israel’s settlements or pursue policies that legitimize them. Related legislation: S 995, HR 1890, HR 1314 (relevant amendments were removed prior to the bill’s passage).

S 1269, the Trade Facilitation and Trade Enforcement Act of 2015, is an anti-boycott bill opposing boycotts for Palestinian rights and encouraging states to adopt anti-boycott laws. Related legislation: HR 644 (passed), HR 1907.

HR 2645 is an anti-boycott bill that prohibits the Thrift Savings Fund, a retirement fund for federal employees, from investing “in any company that boycotts Israel.” The bill defines a boycott of Israel as “actions that are politically motivated and are intended to penalize, inflict economic harm on, or otherwise limit commercial relations with Israel or companies based in Israel or territories controlled by Israel,” thereby including boycotts of illegal Israeli settlements. The bill penalizes constitutionally protected political boycotts that companies may engage in.

S 2531, the Combating BDS Act of 2016, is an anti-boycott bill that purports to authorize state and local legislation prohibiting state investments in or state contracts with entities that engage in boycott, divestment, and sanctions campaigns for Palestinian rights. The bill claims that such measures are not preempted by federal law and defines BDS activities to include boycotts of Israel and persons doing business in Israel or its illegal settlements. Activists and civil liberties groups raised concerns that the legislation would chill constitutionally protected political expression in support of Palestinian rights. Related legislation: HR 4514.

HR 4514, the Combating BDS Act of 2016, is an anti-boycott bill that purports to authorize state and local legislation prohibiting state investments in or state contracts with entities that engage in boycott, divestment, and sanctions campaigns for Palestinian rights. The bill claims that such measures are not preempted by federal law and defines BDS activities to include boycotts of Israel and persons doing business in Israel or its illegal settlements. Activists and civil liberties groups raised concerns that the legislation would chill constitutionally protected political expression in support of Palestinian rights. Related legislation: S 2531.

S 3465, titled the Protecting Israel Against Economic Discrimination Act of 2016, is an anti-boycott bill that criminalizes participation in boycotts of Israel and its illegal settlements. The bill amends the Export Administration Act of 1979 (EAA), which prohibited boycotts “fostered or imposed” by a foreign country and specifically the Arab League boycott. S 3465 expands the EAA to prohibit U.S. individuals and entities from complying with or supporting boycotts for Palestinian rights fostered or imposed by international governmental organizations, such as the European Union or the United Nations. In March 2016, the U.N. Human Rights Council passed a resolution calling for the establishment of a database of companies contributing to Israel’s illegal settlements. The bill claims such accountability efforts constitute prohibited activities under the Act. Violations are subject to civil penalties of $250,000 and criminal penalties of up to $1 million and up to 20 years in prison. 

The bill conflates coercive commercial boycotts—like the Arab League boycott where U.S. companies were forced to boycott Israel as a condition of doing business with other foreign parties—with constitutionally protected political expression in support of Palestinian rights. 

The bill also amends the Export-Import Bank Act of 1945 to include “politically motivated” economic activity against Israel as a reason for denying credit applications for the export of goods and services between the U.S. and foreign countries. Related legislation: HR 6298.

HR 6298, titled the Protecting Israel Against Economic Discrimination Act of 2016, is an anti-boycott bill that criminalizes participation in boycotts of Israel and its illegal settlements. The bill amends the Export Administration Act of 1979 (EAA), which prohibited boycotts “fostered or imposed” by a foreign country and specifically the Arab League boycott. HR 6298 expands the EAA to prohibit U.S. individuals and entities from complying with or supporting boycotts for Palestinian rights fostered or imposed by international governmental organizations, such as the European Union or the United Nations. In March 2016, the U.N. Human Rights Council passed a resolution calling for the establishment of a database of companies contributing to Israel’s illegal settlements. The bill claims such accountability efforts constitute prohibited activities under the Act. Violations are subject to civil penalties of $250,000 and criminal penalties of up to $1 million and up to 20 years in prison. 

The bill conflates coercive commercial boycotts—like the Arab League boycott where U.S. companies were forced to boycott Israel as a condition of doing business with other foreign parties—with constitutionally protected political expression in support of Palestinian rights. 

The bill also amends the Export-Import Bank Act of 1945 to include “politically motivated” economic activity against Israel as a reason for denying credit applications for the export of goods and services between the U.S. and foreign countries. 

S 170, titled the Combating BDS Act of 2017, is an anti-boycott bill that purports to authorize state and local legislation prohibiting state investments in or state contracts with entities that engage in boycott, divestment, and sanctions campaigns for Palestinian rights. The bill claims that such measures are not preempted by federal law and defines BDS activities to include boycotts of Israel and persons doing business in Israel or its illegal settlements. Previous versions of the Combating BDS Act (HR 4514, S 2531) failed after activists, media, and civil liberties groups raised concerns that the legislation would chill constitutionally protected political expression in support of Palestinian rights. Related legislation: HR 2856.

S 720, titled the Israel Anti-Boycott Act (IABA), is an anti-boycott bill that criminalizes participation in boycotts of Israel and its illegal settlements. The bill amends the Export Administration Act of 1979 (EAA), which prohibited boycotts “fostered or imposed” by a foreign country and specifically the Arab League boycott. S 720 expands the EAA to prohibit U.S. individuals and entities from complying with or supporting boycotts for Palestinian rights fostered or imposed by international governmental organizations, such as the European Union or the United Nations. In March 2016, the U.N. Human Rights Council passed a resolution calling for the establishment of a database of companies contributing to Israel’s illegal settlements. Under the IABA, such accountability efforts, as well as supporting or furnishing information for these efforts, constitute prohibited activities. Violations are subject to civil penalties of $250,000 and criminal penalties of up to $1 million and up to 20 years in prison. 

The bill conflates coercive commercial boycotts—like the Arab League boycott where U.S. companies were forced to boycott Israel as a condition of doing business with other foreign parties—with constitutionally protected political expression in support of Palestinian rights. The bill also amends the Export-Import Bank Act of 1945 to include “politically motivated” economic activity against Israel as a reason for denying credit applications for the export of goods and services between the U.S. and foreign countries.

In response to criticism from activists and civil liberties groups, the bill was amended to remove the jail time provisions, but the changes fail to address the underlying constitutional concerns raised by targeting political boycotts with criminal penalties. Similar legislation introduced in the previous Congress (HR 6298, S 3465) also failed. Related legislation: HR 1697.