Divestment (2004)

Today's cartoon is only six years old. I came across it but did not remember doing it. And I was struck by the point it made. Especially in light of the growing BDS movement. I decided to do some research. Here's what I found.

"During the mid-1970's the United States adopted two laws that seek to counteract the participation of U.S. citizens in other nation's economic boycotts or embargoes. These "antiboycott" laws are the 1977 amendments to the Export Administration Act (EAA) and the Ribicoff Amendment to the 1976 Tax Reform Act (TRA), [which is found in Section 999 of the Internal Revenue Code]."

Primary impact:

The Arab League boycott of Israel is the principal foreign economic boycott that U.S. companies must be concerned with today. The antiboycott laws, however, apply to all boycotts that are unsanctioned by the United States.

Who is covered by the laws?

The antiboycott provisions of the Export Administration Regulations (EAR) apply to all "U.S. persons," defined to include individuals and companies located in the United States and their foreign affiliates. These persons are subject to the law when their activities relate to the sale, purchase, or transfer of goods or services between the United States and a foreign country. This covers U.S. exports and imports, financing, forwarding and shipping, and certain other transactions that may take place wholly offshore. -more

* * * So is the cartoon correct? Are they getting away with possibly illegal secondary boycotts by calling them divestments?