19 USC 4452 - United States-Israel trade and commercial enhancement

U.S Code last checked for updates: Apr 30, 2025

§ 4452.

United States-Israel trade and commercial enhancement

(a)

Findings

Congress finds the following:

(1)

Israel is America’s dependable, democratic ally in the Middle East—an area of paramount strategic importance to the United States.

(2)

The United States-Israel Free Trade Agreement formed the modern foundation of the bilateral commercial relationship between the two countries and was the first such agreement signed by the United States with a foreign country.

(3)

The United States-Israel Free Trade Agreement has been instrumental in expanding commerce and the strategic relationship between the United States and Israel.

(4)

More than $45,000,000,000 in goods and services is traded annually between the two countries, in addition to roughly $10,000,000,000 in United States foreign direct investment in Israel.

(5)

The United States continues to look for and find new opportunities to enhance cooperation with Israel, including through the enactment of the United States-Israel Enhanced Security Cooperation Act of 2012 (Public Law 112–150; 22 U.S.C. 8601 et seq.) and the United States-Israel Strategic Partnership Act of 2014 (Public Law 113–296; 128 Stat. 4075).

(6)

It has been the policy of the United States Government to combat all elements of the Arab League Boycott of Israel by—

(A)

public statements of Administration officials;

(B)

enactment of relevant sections of the Export Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as continued in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)), including sections to ensure foreign persons comply with applicable reporting requirements relating to the Boycott;

(C)

enactment of the Tax Reform Act of 1976 (Public Law 94–455; 90 Stat. 1520) that denies certain tax benefits to entities abiding by the Boycott;

(D)

ensuring through free trade agreements with Bahrain and Oman that such countries no longer participate in the Boycott; and

(E)

ensuring as a condition of membership in the World Trade Organization that Saudi Arabia no longer enforces the secondary or tertiary elements of the Boycott.

(b)

Statements of policy

Congress—

(1)

supports the strengthening of economic cooperation between the United States and Israel and recognizes the tremendous strategic, economic, and technological value of cooperation with Israel;

(2)

recognizes the benefit of cooperation with Israel to United States companies, including by improving American competitiveness in global markets;

(3)

recognizes the importance of trade and commercial relations to the pursuit and sustainability of peace, and supports efforts to bring together the United States, Israel, the Palestinian territories, and others in enhanced commerce;

(4)

opposes politically motivated actions that penalize or otherwise limit commercial relations specifically with Israel, such as boycotts of, divestment from, or sanctions against Israel;

(5)

notes that boycotts of, divestment from, and sanctions against Israel by governments, governmental bodies, quasi-governmental bodies, international organizations, and other such entities are contrary to principle of nondiscrimination under the GATT 1994 (as defined in section 3501(1)(B) of this title);

(6)

encourages the inclusion of politically motivated actions that penalize or otherwise limit commercial relations specifically with Israel such as boycotts of, divestment from, or sanctions against Israel as a topic of discussion at the U.S.-Israel Joint Economic Development Group (JEDG) to support the strengthening of the United States-Israel commercial relationship and combat any commercial discrimination against Israel; and

(7)

supports efforts to prevent investigations or prosecutions by governments or international organizations of United States persons solely on the basis of such persons doing business with Israel, with Israeli entities, or in any territory controlled by Israel.

(c)

Principal trade negotiating objectives of the United States

(1)

Commercial partnerships

Among the principal trade negotiating objectives of the United States for proposed trade agreements with foreign countries regarding commercial partnerships are the following:

(A)

To discourage actions by potential trading partners that directly or indirectly prejudice or otherwise discourage commercial activity solely between the United States and Israel.

(B)

To discourage politically motivated boycotts of, divestment from, and sanctions against Israel and to seek the elimination of politically motivated nontariff barriers on Israeli goods, services, or other commerce imposed on Israel.

(C)

To seek the elimination of state-sponsored unsanctioned foreign boycotts of Israel, or compliance with the Arab League Boycott of Israel, by prospective trading partners.

(2)

Effective date

(d)

Report on politically motivated acts of boycott of, divestment from, and sanctions against Israel

(1)

In general

(2)

Matters to be included

The report required by paragraph (1) shall include the following:

(A)

A description of the establishment of barriers to trade, including nontariff barriers, investment, or commerce by foreign countries or international organizations against United States persons operating or doing business in Israel, with Israeli entities, or in Israeli-controlled territories.

(B)

A description of specific steps being taken by the United States to encourage foreign countries and international organizations to cease creating such barriers and to dismantle measures already in place, and an assessment of the effectiveness of such steps.

(C)

A description of specific steps being taken by the United States to prevent investigations or prosecutions by governments or international organizations of United States persons solely on the basis of such persons doing business with Israel, with Israeli entities, or in Israeli-controlled territories.

(D)

Decisions by foreign persons, including corporate entities and state-affiliated financial institutions, that limit or prohibit economic relations with Israel or persons doing business in Israel or in any territory controlled by Israel.

(e)

Certain foreign judgments against United States persons

(f)

Definitions

In this section:

(1)

Boycott of, divestment from, and sanctions against Israel

(2)

Domestic court

(3)

Foreign court

(4)

Foreign judgment

(5)

Foreign person

The term “foreign person” means—

(A)

an individual who is not a United States person or an alien lawfully admitted for permanent residence into the United States; or

(B)

a corporation, partnership, or other nongovernmental entity which is not a United States person.

(6)

Person

(A)

In general

The term “person” means—

(i)

a natural person;

(ii)

a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and

(iii)

any successor to any entity described in clause (ii).

(B)

Application to governmental entities

(7)

United States person

The term “United States person” means—

(A)

a natural person who is a national of the United States (as defined in section 1101(a)(22) of title 8); or

(B)

a corporation or other legal entity that is organized under the laws of the United States, any State or territory thereof, or the District of Columbia, if natural persons described in subparagraph (A) own, directly or indirectly, more than 50 percent of the outstanding capital stock or other beneficial interest in such legal entity.

(Pub. L. 114–125, title IX, § 909, Feb. 24, 2016, 130 Stat. 236.)

cite as: 19 USC 4452