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Tenney calls on Treasury to weigh anti-boycott penalties for U.K., countries sanctioning Israeli settlements

In a letter obtained by JI, the New York Republican asked Bessent to review whether the U.K. and other countries' trade restrictions on Israeli settlement goods merit inclusion on the department's international boycott list

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Rep. Claudia Tenney speaks as at the House Committee on Foreign Affairs on March 10, 2021 in Washington, DC.

Rep. Claudia Tenney (R-NY) urged the Trump administration on Wednesday to review whether the United Kingdom and other countries imposing trade restrictions and additional sanctions on Israeli settlements places those countries in violation of U.S. anti-boycott laws — and to consider whether the effort merits a response from the United States.

Tenney sent a letter, obtained by Jewish Insider, to Treasury Secretary Scott Bessent asking him to review whether these countries’ targeting of West Bank settlements meets the criteria for being included on the Treasury Department’s international boycott list. She also asked Bessent to assess the implications of these trade restrictions for American businesses. 

The New York lawmaker cited the anti-boycott provisions in the U.S. tax code, specifically noting how Section 999(a)(3) “reflects the United States’ bipartisan commitment to opposing foreign boycotts against friendly nations, particularly those aimed at Israel.”

“Under this law, the Treasury Department is required to maintain a list of countries that condition commercial participation on compliance with an unsanctioned international boycott,” Tenney wrote. “Inclusion on this list imposes specific tax reporting requirements and potential penalties for U.S. individuals and businesses engaged in certain activities in those countries.”

Tenney’s letter comes after U.K. Foreign Secretary Ed Miliband unveiled a sweeping new sanctions regime targeting Israeli settlements. France, Canada, Denmark, Finland, Iceland and Poland also announced plans to implement similar sanctions or support in a joint statement on Tuesday with Ireland, Spain, the Netherlands, Norway and Belgium, which have already taken similar measures. 

“All of these efforts are part of a broader effort aligned with the global Boycott, Divestment, and Sanctions (BDS) movement, which seeks to economically isolate Israel,” Tenney wrote. “Such policies not only promote economic discrimination, but also create legal uncertainty for U.S. companies operating in these countries.”

Tenney urged Bessent to “examine expeditiously whether these growing policies by European countries require or may require participation in or encouragement of an international boycott within the meaning of Section 999(a)(3). If the criteria are met, then these countries should be added to the boycott list without delay to ensure that U.S. companies are informed of their reporting obligations and protected from unintended legal exposure.”

“The United States must send a clear signal that efforts to economically isolate Israel will carry consequences, and that U.S. law designed to combat such discrimination will be enforced,” Tenney wrote. 

The Treasury Department did not respond to JI’s request for comment.

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