Mission & Name
US Foreign Policy (Dr. El-Najjar's Articles)
US Companies Move to Suspend US-Israel Trade
By Grant Smith
IRmep, March 24, 2010
Washington, DC. US industry and worker stakeholders will
for the second time seek an immediate suspension of Israeli trade
preferences granted under the 1985 US-Israel Free Trade Area.
Declassified FBI files released on the Internet last week confirmed for the
first time that the American Israel Public Affairs Committee (AIPAC) and the
Israeli Ministry of Economics colluded and obtained confidential private
business information and trade secrets of US industries opposed to the
In February of 1984 the US
International Trade Commission (ITC) solicited the data under strict secrecy
provisions from US industries concerned about reducing US tariffs and quotas
on Israeli goods. It was compiled into an ITC report called "The
Probable Economic Effect of Providing Duty-Free Treatment for Imports from
Israel. Investigation No. 332-180", the report is still classified.
According to publicly released FBI criminal investigation files, the
Israeli Minister of Economics secretly obtained and passed the classified
report to the American Israel Public Affairs Committee.
lobbyist made an illicit copy of the stolen document after AIPAC's executive
director was ordered to return it to the US Trade Representative.
The Washington Post reported that "some of the proprietary information,
moreever, could help Israeli businesses competing with US companies."
In April of 2009 stakeholders from 37 states filed a 93 page Section 301
petition with the US Trade Representative over endemic Israeli violations of
US pharmaceutical patents, the use of diamond sales in the US to finance
illegal West Bank settlement construction and decades of targeted theft of
proprietary US national defense technologies. Israeli exports of
diamonds and other precious objects to the US totaled $5.7 billion in 2009.
its 2010 Trade Policy Agenda on enforcement activities the Obama
administration "decided not to initiate an investigation in response to the
 petition on several grounds, including that the issues raised in the
petition would be addressed more effectively through the established Special
These other processes
have clearly failed, making suspension in 2010 urgent according to Grant F.
Smith, director of the IRmep. "The recent US criminal indictments of
Ben-Ami Kadish and Stewart Nozette over alleged economic related espionage
underscore how Israeli intellectual property violations continue to subvert
American wealth creation. The crimes alleged in the newly declassified
FBI files are a direct assault not only on the Trade Act of 1974 but rule of
law itself. They will be 'Exhibit A' in IRmep's expanded second USTR
legal filing calling for the immediate suspension of Israel's trade
The trade agreement locks many US products of export
quantity out of the Israeli market. The US-Israel trade pact delivered
an $80 billion dollar cumulative deficit (adjusted for inflation) to the US
since enacted. In contrast, other bilateral agreements with such
countries as Singapore and Morocco actually produced more than $86 billion
in total trade surpluses to the US in 2009 alone.
interested in publicly or privately supporting the second USTR filing or
seeking disgorgement via civil action should contact the Institute for
Research: Middle Eastern Policy, Inc. in Washington at 202-342-7325, via fax
at 202-318-8009 or email at firstname.lastname@example.org
. IRmep is a private nonprofit that studies how warranted law
enforcement and civil action can improve U.S. Middle East policy.
Institute for Research: Middle Eastern Policy, Inc.