----- In 1977, Congress prohibited U.S. companies from cooperating with the Arab boycott. When President Carter signed the law, he said the "issue goes to the very heart of free trade among nations" and that it was designed to "end the divisive effects on American life of foreign boycotts aimed at Jewish members of our society." -----
I've seen a number of things like this over the years. While sometimes laws like that are designed to keep US companies from boycotting Israel or South Africa or Burma or black people, and sometimes even enforced, that's usually not the real purpose (unlike laws _requiring_ US companies to boycott Cuba or Iraq or France), just as the Foreign Corrupt Practices Act laws that forbid US companies from bribing foreign officials usually aren't intended to hunt down corrupt US companies.
The main purpose is to give US companies leverage against
foreign governments that want to demand that they boycott Israel or pay bribes, etc.
when the US companies *don't* want to cooperate.
Without those laws, there are conversations like
Sheikh Y: I'll only buy your jets if you don't also sell them to Israel
and also pay me $10m under the table and fire all your Jews.
US Company A: Can't do that, we've got a big contract with Israel,
and our budget for bribes is only $2m, maybe we can stretch to 3?
Sheikh Y: Bah! US Company B makes good jets, and they haven't sold one to Israel,
and their budget for bribes is $20M.
US Company A: Hey, Congresscritter X, can you cut foreign aid to Sheikh Y?
With the anti-boycott and FCPA laws, the conversations go like
Sheikh Y: I'll only buy your jets if you don't also sell them to Israel
and also pay me $10m under the table and fire all your Jews.
US Company A: Sorry, US law doesn't let us do either one, and
won't let our competitor US company B cooperate with you either,
so none of us will boycott Israel, and the biggest gratuity
we're allowed to offer is a bottle of Scotch.
It's buy it from us or buy it from the French,
and we've got Super-Death-6 Missiles and they don't.
Sheikh Y: Bah! Alcohol is illegal here, you infidels! Make it a case of MacAllan 25,
and you'll have to use my nephew's shipping company to deliver the jets
and bribe your Congresscritter to increase our foreign aid.
US Company A: Good. We can write that much up so it doesn't look like a bribe,
and Congresscritter X usually charges only $100K per vote and
might be extra-greatful if you ship him some Cuban cigars.
Sorry about the Israel bit, but we really can't do that.
