Espionage and Property Theft Triggers Call to Suspend Israeli Access to U.S. Market

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Mon Apr 20, 2009 11:55am EDT

Espionage and Property Theft Triggers Call to Suspend Israeli Access to U.S.
Market

WASHINGTON, April 20 /PRNewswire-USNewswire/ -- A major legal filing urges the
United States Trade Representative (USTR) to suspend preferential Israeli
access to the U.S. market.

In 1983 the Israeli Prime Minister and American Israel Public Affairs
Committee (American Israel Public Affairs Committee) lobbied the Reagan
administration for preferential Israeli access to the U.S. market.  In spite
of overwhelming opposition from U.S. agricultural, industrial and citizens
groups over Israel's weak protection for intellectual property rights, the
U.S.-Israel Free Trade Area was signed into law in 1985.  

Intellectual property violations tainted negotiations of the agreement in 1984
when the FBI discovered that AIPAC obtained a copy of the secret report
"Probable Economic Effect of Providing Duty Free Treatment for U.S. Imports
from Israel, Investigation No. 332-180."  The still classified 300 page report
was compiled from business confidential market share, cost, and other closely
held information solicited by the International Trade Commission for USTR use
in negotiations.

Throughout the 1980s and 1990s U.S. counterintelligence agencies uncovered
Israeli networks illicitly acquiring and transferring intellectual property on
U.S. weapons systems.  Purloined intellectual property for missiles, imaging
technology and other weapons was subsequently incorporated into Israeli
manufactured systems.   Some Israeli systems were exported to rogue regimes
and rivals American manufacturers avoided under U.S. arms export prohibitions.

For each of the past three years the Israeli Ministry of Health and
pharmaceutical manufacturers have been placed on USTR watch lists for
practices that cost U.S. manufacturers billions of dollars.  But calls for
warranted enforcement of trade rules have generated no results.  Worse,
proceeds from ballooning Israeli cut diamond exports to the U.S. have been
used to finance illegal West Bank settlements in contravention of Obama
administration policy.

According to IRmep director Grant F. Smith, "This fatally flawed agreement
didn't simply facilitate intellectual property theft costing U.S. industries
billions of dollars.  It is the product of intellectual property theft."

A downloadable copy of the 92 page the USTR filing to suspend the U.S.-Israel
trade agreement under Section 301 of the Trade Act of 1974 is now available at
http://www.IRmep.org.  The Washington, DC-based Institute for Research: Middle
Eastern Policy is an independent nonprofit that studies U.S. policy
formulation toward the Middle East.  IRmep's Center for Policy & Law
Enforcement examines how balanced and vigorous law enforcement can improve
trade, economic development and America's international standing.

SOURCE  Institute for Research: Middle Eastern Policy

Grant Smith of Institute for Research: Middle Eastern Policy, +1-202-342-7325
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