British private security contractor G4S announced Wednesday that the company will liquidate its operations in Israel after reporting a steep drop in annual profits. The multinational, which sells services and equipment to Israeli detention centers and West Bank checkpoints, has long been a focus of the BDS movement. But a new U.S. law, signed late last month by President Barack Obama, may complicate the economic shaming campaigns that have been gaining traction around the world.
The stated aim of the Trade Facilitation and Trade Enforcement Act of 2015 is to remove unfair barriers to competitive U.S. trade, but the legislation also includes provisions designed to oppose boycotts and similar economic measures against Israel. While the bill passed without much controversy or coverage in the U.S., Lena Odgaard reports that its implications could mark a change in 50 years of U.S. policy on the Israeli-Palestinian conflict.
“As you see, the line of chairs, we produce more than 2,000 pieces a day,” says Yehuda Cohen, the CEO of Lipski, during a tour of a factory run by the Israeli company that produces plastic products. The factory is located around 10 miles inside the Palestinian West Bank, but labels on the products state ‘Made in Israel.’
“Of course it says ‘Made in Israel,'” says Cohen. “It’s made in Israel.”
Israeli settlements in the West Bank, including the industrial areas, are deemed illegal under international law. Still, they continue to grow and are today home to more than half a million Israelis.
For decades, the U.S. has been a lead broker in Israeli-Palestinian peace negotiations. U.S. administrations have repeatedly condemned Israeli construction in the occupied Palestinian territories. But a new trade bill might set a new precedent for American policy.
On February 24th, President Barack Obama signed a trade bill that doesn’t distinguish between Israeli companies inside its internationally recognized borders and within the occupied West Bank.
“It’s…