U.S. warns Israel of sanctions

WASHINGTON Ñ The United States is warning that Israel may soon come under sanctions that would affect the transfer of U.S. technology to the Jewish state.

U.S. officials said Israel has ignored repeated appeals to adhere to international agreements that concern intellectual property and other business practices. Such violations, they said, would affect U.S. trade Ñ particularly in the high-tech sector Ñ with Israel.

Such a warning has been relayed by U.S. ambassador to Israel Martin Indyk, Middle East Newsline reported. Indyk said Israel's reputation has been declining because of its failure to adhere to international trade standards.

"IsraelÕs international economic reputation is suffering because of weak law enforcement and other inadequacies that Israelis and their government should not tolerate," Indyk told an Israeli business forum last month.

Israel appears on several lists of countries that fail to meet international business standards.One is the priority watch list by the U.S. Trade Representative office. For the third year in a row, Washington has determined that Israel has failed to stop the widespread pirating of music, computer software films and pharmaceutical products in violation of intellectual property rights.

"Sooner or later, and I suspect sooner, this lack of IPR enforcement is going to negatively impact industries like the high-tech sector that are key to IsraelÕs economic future," Indyk said.

Another list Israelis appears on is that of countries that fail to cooperate in the prevention of illegal money-laundering. Israel is also expected to appear on a new State Department list of countries that fail to stop the criminal trafficking in people.

U.S. diplomats have urged the business community to lobby the government to enforce Israeli laws that ensure the battle against copyright theft and money-laundering.

Egypt also appears on the money-laundering list, a move which could endanger the expansion of trade with Washington. In Cairo, Egyptian officials said the government would introduce legislation that would crack down on such practices.

Officials said the government has ordered official agencies and banks to adopt new regulations against money-laundering.