(MENAFN- Gulf Times) The blockade imposed on Qatar by Saudi Arabia, the UAE, Bahrain and Egypt has catalysed a hostile political climate in the Gulf region and instigated rumours of an impending secondary boycott campaign, the US-Qatar Business Council (USQBC) has said, offering a guide to American businesses on how to deal with the situation and navigate the GCC crisis.
Secondary boycotts in the context of international commerce refer to an attempt by a foreign government to influence the actions of a company operating in another country by exerting economic or political pressure for that company to cease business operations with or within a third country, according to a white paper issued by the USQBC.
In the ongoing Gulf crisis, this scenario refers to foreign governments attempting to exert pressure on American companies to cease business operations with Qatar or Qatari-owned businesses, the council has said. 'Secondary boycotts are against US law, and failure to report secondary boycott requests may result in significant civil/criminal penalties, it stressed.
The white paper serves to educate and inform US businesses on the vital US-Qatar trade relationship, current US anti-boycott laws and applications for the Gulf crisis, navigating potential secondary boycott requests, reporting and disclosure regimes and penalties, and applicable resources and assistance for US businesses.
'As Qatar's largest foreign investor and its single largest source of imports, the US has developed a robust trade relationship with Qatar, with over 120 US companies operating in-country, the white paper noted, highlighting US-Qatar trade relations.
US exports to Qatar include aircraft, machinery, vehicles, optical and medical instruments, and agricultural products. US imports from Qatar include liquefied natural gas, aluminium, fertilisers and sulphur. The US and Qatar have signed a trade and investment framework agreement and host annual bilateral economic and investment dialogues.
Qatar plans to invest $45bn of its sovereign wealth fund in the US by 2021, the white paper states, adding that in 2016, Qatar's purchase of $12bn in F-15 fighters was approved by Congress. Also, Qatar announced an $18bn worth of Boeing commercial jets.
US anti-boycott laws establish the principle that US businesses should not participate in foreign boycotts that are not sanctioned by the US. The laws prevent US companies from engendering themselves to foreign policy objectives that run counter to US interests abroad.
The economic boycott of Qatar has highlighted the relevance of US anti-boycott laws in 2017, the USQBC said. 'There have been rumours circulating that the embargoing bloc will attempt to pressure US businesses to diminish or cease operations with Qatar or Qatari-owned businesses, it explained.
'Secondary boycott demands may not be in the form of enacted laws, but rather in the form of private conversations between foreign businesspersons and their corresponding US counterpart. They may also be referred to directly or indirectly via purchase orders and other export/import forms or requirements.
US law requires American business operators to report such requests to the Department of Commerce's Bureau of Industry and Security's Office of Anti-boycott Compliance (https://www.bis.doc.gov/index.php/enforcement/oac?id=300), the council informed, adding that it would be in discussion with relevant government agencies to ensure that companies had the right resources for reporting secondary boycott requirements.
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