Boycotts in Mandatory Palestine As part of the Arab opposition to the increasing Jewish presence in Mandatory Palestine, some Arab leaders sought to orchestrate
anti-Jewish boycotts from 1922. Another, stricter boycott was imposed on Jewish businesses following the riots that called on all of Arabs in the region to abide by its terms. The Arab Executive Committee of the
Syrian-Palestinian Congress called for a boycott of Jewish businesses in 1933, and in 1934 the Arab Labor Federation conducted a boycott as well as an organized picketing of Jewish businesses. In 1936, the Palestinian Arab leadership called on another boycott and threatened those who did not respect the boycott with violence. However, this boycott was unsuccessful as Jewish lawyers, physicians, and hospitals were too heavily integrated into Palestinian society.
First Arab League boycott On 2 December 1945, the newly formed Arab League, then comprising six members, issued its first call for an economic boycott of the Jewish community of Palestine. The declaration urged all Arab states (not just members) to prohibit the products and usage of the products of Jewish industry in Palestine. The declaration read: In 1946, the Arab League established the Permanent Boycott Committee, based in Cairo, Egypt. After the
Partition Plan of Palestine into Arab and Jewish states was adopted by the United Nations General Assembly on 29 November 1947, efforts to apply the boycott were intensified. However, the boycott was unsuccessful, as noted in the first annual report of the Boycott Committee, and trade between Palestine (the vast majority by Jews) and Arab states neighboring Palestine continued to thrive. Following the
Israeli declaration of independence on 14 May 1948, the Permanent Boycott Committee ceased to function upon the outbreak of war between Israel and surrounding Arab States on 15 May 1948, and the Arab League repeated its calls for a ban on all financial and commercial transactions with Palestinian Jews, boycotting the newly formed State of Israel. The Arab League cut off postal, telegraphic, and radio communications with Israel, and Arab states imposed a land, sea, and air
blockade on the fledgling state. The Boycott Committee moved to Damascus, Syria in 1949, and called upon Arab states to set up national boycott offices. Later measures adopted by the Committee included requiring those selling goods to Arab states to provide a certificate of origin to prove the goods were not manufactured by Palestinian Jews, the allocation of 50% of the value of goods confiscated in this manner to customs officials, the prohibition by Arabs of the use of Jewish banks, insurance companies, contractors, and transport in Palestine. Member states of the Arab League began implementing these resolutions through legal and administrative measures.
Egypt boycott Israeli goods, shipped through Alexandria, Port Suez and Port Said, were
confiscated by Egyptian inspectors. A prize court established in Alexandria in 1949 authorized the seizure of cargo ships destined for Israel. In 1950, regulations were promulgated to allow the search of ships and aircraft and the seizure of Israeli-bound goods found within. On 6 February 1950,
King Farouk of Egypt issued a decree under which manifests and cargoes of ships could be searched to ensure that no "war contraband" was present on vessels bound directly or indirectly for Israel. War contraband included arms, munitions, and war material. However, article 10 additionally stipulated that other goods were to be considered "contraband" and were to be treated as war material — ships, chemicals, motor vehicles, money, gold, and fuel of any kind. At the time 90% of Israeli oil was supplied by Iran and imported through the
Straits of Tiran. To prevent Iranian oil from entering Israel, Egypt blockaded the Straits of Tiran and the
Gulf of Aqaba. Oil tankers proceeding through the Suez Canal were required to submit documentation to guarantee none of their cargo would arrive at an Israeli port. To enforce the policy of denying strategic goods to Israel, the decree authorized the use of force against any ship attempting to avoid search, including live gunfire, to make it submit to inspection. If a ship were to subsequently allow a search and reveal that they were not carrying any "contraband", the ship would be allowed to continue its voyage. However, if the ship resisted a search by force, it would be considered to have violated its neutrality. For this "hostile act", ships were to be seized and their cargo impounded even if they were not found to possess any "contraband". Ships found or suspected to transgress the Egyptian shipping practices delineated in this decree were blacklisted by Egypt and denied free use of the Suez Canal. The decree of February 1950 signaled a shift in the policy of the Arab League. The boycott's immediate purpose had originally been to prevent direct Arab trade with Israel (called a primary boycott). With this decree the boycott was expanded to the interruption of international trade with Israel (a secondary boycott). On 8 April 1950, the Arab League Council embraced this shift, approving a decision by its political committee to the effect that all ships carrying goods or immigrants to Israel were to be blacklisted. In mid-1950, the governments of Britain, Norway, and the United States lodged a complaint with Egypt about some of their tankers being blacklisted and barred from using the Suez Canal. On 1 September 1951, after ships destined for Eilat had been stopped at the entrance of the Gulf of Aqaba, Israel went to the United Nations, demanding Egypt terminate its restrictions on navigation through international waterways in adherence to the 1949 Armistice and to Security Council resolutions prohibiting further hostilities between the Arab states and Israel. The United Nations Security Council issued a resolution which condemned the Egyptian practice as an "abuse of the exercise of the right of visit, search and seizure." The UNSC resolution was ignored by Egypt. On 28 November 1953, Egypt increased expanded its list of "contraband" to include "foodstuffs and all other commodities likely to strengthen the potential of the Zionists in Palestine in any way whatsoever." Boycotts were almost exclusively applied against specific individuals and firms in third countries, and very rarely against the countries themselves, excluding a few short-lived boycotts of countries in the early 1950s. A plan was made by the Arab League in 1952 to boycott the
Federal Republic of Germany after it signed the
Reparations Agreement with Israel, which would provide Israel with restitution for the
slave labor of Jews during
the Holocaust and compensate for losses in Jewish livelihood and property that was stolen due to Nazi persecution and genocide. The Arab League strongly opposed the agreement, but its threats to boycott West Germany were never carried out due to economic considerations—the Arab League would be impacted far more negatively by losing trade with West Germany than vice versa. Similarly, at its second meeting on the boycott in 1953, the Arab League proposed a wide range of restrictions on trade with
Cyprus, which had become a hub of illicit Arab-Israeli trade. The restrictions were greatly relaxed due to international criticism of the boycott of an entire state not involved in the Arab-Israeli conflict, but they were not eliminated. The boycott of third parties (secondary boycott) originally applied solely to funds and strategic commodities. By 1953 the Arab boycott was a well-established feature of international trade relations, and becoming more brazen. In early 1953 the first reports were released about Arab attempts to make American and European airlines boycott Israel by refusing to service Israelis or land in Israel, or at a minimum to not invest in Israel. This tertiary boycott marked another fundamental shift in boycott policy wherein Arab states would pressure third party states to agree to boycott Israel. However, these rudimentary efforts were unsuccessful and the airline boycotts remained isolated to the Arab world. On 11 December 1954 the Arab League Council passed
Resolution 849, approving the Unified Law on the Boycott of Israel. The provisions of this resolution, implemented in legislation by most member states over the following year, formalized the application of the boycott in the Arab States uniformly. The resolution contained new recommendations prohibiting Arab entities and individuals from dealing with agencies of persons working for Israel, and with foreign companies and organizations with interests, agencies, or branches in Israel. The export of Arab goods to countries to be re-exported to Israel was criminalized with a penalty of large fines and hard labor.
Further intensification of the boycott and international capitulation to tertiary boycotts In the mid-1950s boycott activities intensified, and gained a new and highly powerful ally — the Soviet Union. During Israel's early years it was seen by the USSR as a potential ally due to the significant socialist aspirations advocated by its founders and applied in its conception. The Soviet Union was one of the first countries to recognize Israel
de jure upon its establishment in 1948. However, as Israel's democratic nature became evident and its ties with Western states were solidified, the Soviet Union would view Israel as an enemy in the West vs. East dichotomy of the
Cold War. Instead, the Soviet Union would form an alliance with the revolutionary Arab regimes, Egypt, Syria, Yemen, Sudan, and later in the decade Iraq, united in anti-American and anti-Israel political objectives. The clout of the Soviet Union gave the boycott new international legitimacy and guaranteed anti-boycott resolutions a veto at the UN Security Council. The tertiary boycott, formerly ignored as an affront to international trade relations, became enforceable through the sheer political and economic power of the Soviet Union. In 1958, Air France capitulated to Arab League demands after being denied overflight and landing rights in Arab states for eighteen months due to its alleged investment in Israeli development projects. With the success of the first tertiary boycott the Arab League became increasingly demanding of uninvolved states to adhere to its boycott of Israel. In 1958 the boycott was expanded to prohibit all goods exported from a third state identical to goods imported by the state from Israel, including goods produced with Israeli raw materials or components. In the same year, ships visiting an Arab port and an Israeli port within the same trip were blacklisted.
Height of the boycott — the Oil Crisis The Arab boycott of Israel escalated with the 1973 oil crisis, when the members of the
Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of nine
Arab members of
OPEC plus Egypt and Syria) announced an oil
embargo in October 1973, following the American
resupply of arms to Israel during the 1973
Yom Kippur War. The OAPEC embargo targeted
Canada,
Japan, the
Netherlands, the
United Kingdom and the United States. OAPEC threatened to cut oil production 5% monthly "until the Israeli forces are completely evacuated from all the Arab territories occupied in the June 1967 war...." The embargo lasted for about five months before it was lifted in March 1974, though its aftereffects were to continue.
Weakening of the boycott , the
Cooperation Council for the Arab States of the Gulf (GCC) states, ended their participation in the Arab boycott against Israel, and declared that total elimination of the boycott is a necessary step for peace and economic development in the region. A number of companies found ways of bypassing the boycott and managed to trade with both Israel and the Arab world. For example, some firms that did business with Arab countries officially complied with the boycott, but in practice subcontracted their trade with Israel to companies already blacklisted by the Arab states, while others did business with Israel through divisions or affiliates whose links to the company were disguised. Others strove to cultivate good personal relationships with Arab leaders, who would allow them to trade with Israel without economic repercussions in their own countries as a favor. Some firms placed on the blacklist managed to lobby or buy their way off it. Israel responded to the boycott by creating its own blacklist of firms that respected the boycott, and circulated them around the world to encourage Jewish-owned businesses to avoid dealing with them. In addition, Israel supporters in some Western countries managed to get anti-boycott laws passed, but they typically went unenforced everywhere except the United States. As the boycott was relaxed (or rather, not as stringently enforced) starting in the late 1980s and early 1990s, many companies which previously stayed out of the Israeli market had entered it, e.g.
McDonald's and
Nestlé. In 1985, the ban was lifted on Ford, which had been in place since the company had opened an assembly plant in Israel, and
Colgate-Palmolive, although five other companies were added to the blacklist.
Toyota began selling cars in Israel in 1991, although it claimed that it had never complied with the boycott, arguing that it did not have the resources to sell cars in the country.
Military non-cooperation The Arab League boycott of Israel extends to military and security non-cooperation. For example, before the
Gulf War (1990–91) the United States sought to form a military coalition that included Arab countries to confront
Saddam Husein’s Iraq following his invasion of Kuwait. During the war, Iraq fired many
Scud missiles potentially containing poison gas at Israel, which caused considerable distress and damage in Israel, hoping to provoke an Israeli military response. The Iraqi government hoped that Arab states would withdraw from the coalition, as they would be reluctant to fight alongside Israel. US President
Bush pressured Israeli Prime Minister
Yitzhak Shamir not to retaliate and withdraw Israeli jets, fearing that if Israel attacked Iraq, the other Arab countries would either desert the coalition or join Iraq. It was also feared that if Israel used Syrian or Jordanian airspace to attack Iraq, they would intervene in the war on Iraq's side or attack Israel. ==Contemporary boycott==