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DetDeterminationClinton · D Quiet signal

Presidential Determination

Suspending Prohibitions on Certain Sales and Leases Under the Anti-Economic Discrimination Act of 1994

President Clinton issued a determination suspending prohibitions on U.S. sales and leases to certain countries under the Anti-Economic Discrimination Act of 1994. Countries certified as not enforcing the Arab boycott of Israel received permanent exemptions, while others received temporary suspensions until May 1, 1996, including Lebanon on national security grounds.

Federal Register Open PDF 60 FR 22245

Impact dates

  1. Suspension of section 564(a) for Algeria, Bahrain, Bangladesh, Jordan, Kuwait, Mauritania, Oman, Qatar, Saudi Arabia, UAE expires

  2. Suspension of section 564(a) for Lebanon on national security grounds expires

  3. Report to Congressional committees

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Other industrialOil & gasDefense primesAerospaceBanking & finance

Mechanisms

Licensing

Role pressure

  • ProtectiveDomestic producer — U.S. firms can now sell/lease to suspended countries without Anti-Economic Discrimination Act penalties, expanding market access
  • MixedImporter — U.S. firms importing from or through these countries face reduced legal risk but must still monitor boycott compliance requests
  • ProtectiveTrading-partner exporter — Listed countries regain access to U.S. sales and leases previously prohibited

Geographies

USOTHER

Exposure dates

  • — Suspension of section 564(a) for Lebanon on national security grounds expires

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MEADSYAirbusAAPLAppleBACBank of AmericaBLKBlackRockBABoeingCATCaterpillarLNGCheniere EnergyCVXChevronCOPConocoPhillipsXOMExxon MobilFCXFreeport-McMoRanGEGE AerospaceGEVGE VernovaGDGeneral DynamicsGSGoldman SachsHONHoneywellHSBCHSBCJPMJPMorgan ChaseLMTLockheed MartinNOCNorthrop GrummanRTXRTXSHELShellSPYSPDR S&P 500 ETF

Confidence: high · Policy alerts

Key directives

  • Certify ten countries as not maintaining Arab boycott compliance requests
  • Suspend section 564(a) prohibitions for ten countries until May 1, 1996
  • Suspend section 564(a) prohibitions for Lebanon until May 1, 1996 on national security grounds
  • Report determination to appropriate Congressional committees
  • Publish determination in Federal Register

Who is ordered

Timeline

Immediate

  • Suspensions take effect upon determination (May 1, 1995)
  • Certifications for non-boycott countries become effective

Near term (90d)

  • Report to Congressional committees required

Long term

  • Temporary suspensions expire May 1, 1996 unless extended
  • Potential review of Lebanon's status on national security grounds

Risks & tensions

  • Lebanon singled out with national security rationale rather than national interest, suggesting ongoing terrorism or foreign policy concerns
  • Temporary nature of suspensions for most Arab states creates policy uncertainty for U.S. exporters
  • Certification process may be challenged if evidence of boycott enforcement emerges
  • Balances anti-boycott objectives with pragmatic trade and diplomatic relationships
Presidential Determination: Suspending Prohibitions on Certain Sales and Leases Under the Anti-Economic Discrimination Act of 1994 · Executive Orders