Question

Under the Antiboycott Law, U.S. companies are forbidden to participate in any unauthorized foreign boycott. Which of the following situations brought about the Antiboycott Law in the U.S.? A. The boycott of Cuba by the U.S. B. The boycott of South Africa by the world community C. The boycott of Israel by the Arab League. D. The boycott of China by the United States. E. The boycott of the U.S. by the U.S.S.R. (the wheat embargo).

Answer 1

Answer: C - Arab League Boycott of Israel

Explanation: Following the Nixon Administration's aid to Israel for the "Yom Kippur War" (or Fourth Arab-Israeli War), the nine Arab members of OPEC, Egypt, and Syria refused to sell crude oil to the US and other nations - which lead to the 1973 Oil Crisis. This was a contributing factor to the inflation and stagnation of the mid 1970's.

Leveraging anti-Arab sentiment, pro-Israeli groups lobbied the US Congress. As a result, the Internal Revenue Code was updated by the Ribicoff Amendment, of the '1976 Tax Reform Act', which established boycott-related prohibitions and tax-related reporting requirements.

The following year, the Carter Administration signed the 'Export Administration Amendments of 1977', which established new, broad based, boycott-related prohibitions and reporting requirements.

'The Anti-Boycott Act of 2018' (Part II of the 'Export Control Reform Act of 2018') provides the current statutory basis for OFFICE OF ANTIBOYCOTT COMPLIANCE’s (part of the Dept of Commerce) boycott-related administration and enforcement, as well as increased penalties for non-compliance.