An Arab economic boycott was imposed on the Yishuv soon after the founding of the Arab League (League of Arab States) in 1945 and maintained by the Arab states against Israel since the establishment of the state. The boycott had primary, secondary, and tertiary applications and was part of the Arab effort designed to weaken and ultimately destroy Israel. Until 1950, the boycott barred Arab businesses from dealing with Israel. After April 1950, foreign shippers carrying goods or immigrants (see ALIYA) to Israel were warned that they were subject to blacklisting in Arab states and would be denied access to Arab port facilities. Later, firms represented in Israel were added to the boycott list. Implementation of the boycott regulations by the Arab states varied substantially from country to country and from time to time. In the 1970s, the U.S. Congress adopted legislation outlawing compliance by businesses in the United States with the boycott. Egypt, since 1979, openly deals with Israel, and some trade takes place unofficially and informally between Israel and other Arab partners. The secondary and tertiary applications of the boycott were formally suspended by the Gulf Cooperation Council in the early 1990s, but the primary political boycott remained formally in effect.
See also Arab-Israeli Conflict.
Historical Dictionary of Israel. Bernard Reich David H. Goldberg. Edited by Jon Woronoff..