House Passes Resolution on Saudi Boycott of Israel

House Passes Resolution on Saudi Boycott of Israel

In yet another interesting twist on the role of the WTO to address volatile political issues, the House of Representatives last week passed a resolution calling on Saudi Arabia to live up to its WTO commitments by ending the economic boycott of Israel. H. Con. Res. 370 provides:

That it is the sense of the Congress that–(1) Saudi Arabia should maintain and fully live up to its commitments under the World Trade Organization (WTO) and end all aspects of any boycott on Israel; and (2) the President, the United States Trade Representative, and the Secretary of State–(A) should continue their active involvement on this issue by strongly urging the Government of Saudi Arabia to comply with its WTO obligations; and (B) should urge Saudi Arabia to end any boycott on Israel.

By way of background, a primary boycott such as the one Saudi Arabia imposes on Israel would run afoul of basic MFN obligations under the WTO. Absent a special exception, a Member State is prohibited from imposing such a boycott. As part of the negotiations for admission to the WTO, the United States secured from Saudi Arabia a commitment to end its economic boycott against Israel. Following its admission to the WTO in November, there continue to be signs suggesting that Saudi Arabia is not living up to those commitments. According to the trade press, Saudi Arabia stated in December that “although secondary boycotts against other WTO members who do business with Israel would be lifted, the primary ban on goods and services from Israel itself would remain in place.” Moreover, as noted here, the Organization of the Islamic Conference recently held the “Ninth Meeting of the Liaison Officers of Islamic Regional Officers for the Boycott of Israel” at the OIC’s headquarters in Saudi Arabia.

Of course, the real remedy for a Saudi violation of its MFN obligations would be for Israel to bring a WTO case against Saudi Arabia. Israeli authorities have indicated a willingness to bring such a case in the near future.

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Patrick S. O'Donnell
Patrick S. O'Donnell

And what are the reasons for the Saudi regime’s economic boycott of Israel? Might the following have something to do with it? Palestine, Israel and the Arab-Israeli Conflict: A Primer Middle East Research and Information Project (MERIP) By Joel Beinin and Lisa Hajjar [I’ve selected only a small portion from this primer] Invasion and Occupation Israel’s military response to the uprising escalated in intensity and scale throughout 2001 into 2002 following the election of Ariel Sharon. Israeli operations increasingly targeted the infrastructure of the PA and its police and security forces and eroded the boundaries separating PA-ruled areas from areas of full Israeli military control. The Israel Defense Forces (IDF) carried out armed incursions into PA-controlled areas, bulldozed Palestinian houses and crops, conducted systematic assassinations of key Fatah and Hamas militants and rocketed PA police stations from F-16 warplanes. Following several suicide bombings in early December, Ariel Sharon declared that Arafat and the PA were no longer partners for negotiations and placed Arafat under virtual house arrest in Ramallah. The IDF began a series of deeper military incursions into PA-controlled areas, repositioned tanks and troops to new positions and conducted mass arrests. The growing Israeli military encirclement of and penetration… Read more »