Mar
21

Iraqi Firms Increase Israel Boycott Requests to U.S. Exporters

Posted by Clif Burns at 4:41 pm on March 21, 2007
Category: Anti-Boycott

Boycotting the BoycottAn article in the March 19 edition of the Jerusalem Post reports that Iraqi firms appear to be stepping up their participation in the Arab League Boycott of Israel. The article bases its report on figures contained in the 2006 Annual Report of the Bureau of Industry and Security:

In its recently released annual report for 2006, the US Commerce Department’s Bureau of Industry and Security noted that there had been 31 cases in which the Iraqi government had engaged in restrictive trade practices last year.

In 2005, according to the previous year’s report, there were a total of just eight such cases involving Iraq.

. . .

It was unclear why Iraq began enforcing the Arab boycott of Israel more energetically last year. However, the Iraqi government sent an official representative to take part in the annual meeting of international liaison officers of the Arab League boycott Office in Damascus last May.

The aim of the meeting was to discuss ways of intensifying the trade embargo against the Jewish state.

When the Jerusalem Post contacted the U.S. Embassy in Tel Aviv about this increase, the Embassy only said that it was “disappointed” in this and anticipated that it would raise the issue again with Iraqi officials.

Although it seems likely that Iraqi boycott activity has increased, the BIS reports don’t fully support the figures cited by the Jerusalem Post. First, the BIS tables on Iraqi boycott activity are inconsistent. One table (Appendix E-3) cites 31 reports of boycott activity by Iraq between October 2005 and September 2006 while another (Appendix E-4) shows 26 reports during the same period. The tables do not explain the reason for this inconsistency.

Second, the figures given by BIS are reports of boycott requests, and there may be multiple reports of the same boycott request, e.g., by both the exporter and the freight forwarder. In the 2005 Annual Report, footnote 1 to both Appendix E-3 and Appendix E-4 stated:

All figures are enhanced to the extent that an exporter and one or more other organizations reports on the same transaction.

The 2006 Annual Report contains the footnote number but the footnote text has, inexplicably, gone missing. (Does anyone edit documents at BIS before they are released?) Presumably, however, the footnote was intended to reference the same text as in 2005.

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2 Comments »

  • BIS has cut back on its anti-boycott enforcement so much that it has no-f-g idea how much is really happening.

    Comment by Mike Deal — March 22, 2007 @ 2:00 pm
  • I started my trade compliance career right out of law school in 1991 at OAC. Even in the midst of a recession in which much better pedigreed law grads were waiting tables, I was hired following congressional criticism that antiboycott enforcement was lax — great luck on my part. I think I worked there during the office’s heyday, which included the Baxter and L’Oreal cases. Once Bill Skidmore retired, the office seemed to revert back to a sleepy state. At the time, the office was unique in BXA in that compliance officers pretty much handled cases from cradle to grave, from selecting audit candidates to settling charges, with considerable autonomy. It would be interesting to see another surge in enforcement, but the office seems to be dying by attrition. Have they even hired anyone new since the mid-90s?

    Comment by John Pisa-Relli — March 31, 2007 @ 6:14 am

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