Nestle added to blacklist of Arab boycott
Swiss food giant Nestle has been added to the Arab League list of firms to be boycotted because of operations in Israel, officials said. But, according to Reuters a source said the decision was likely to be ignored by most member states.
The Damascus-based Arab League Central Boycott Office (CBO) has informed Nestle that it was added to the list during a meeting in Damascus in May "because it maintains a branch in Israel," according to Syrian representative Mohamad Ajami.
Ajami, who conveyed Nestle was given a one-year period to "regulate its situation" by ceasing operations in Israel, confirmed that Syria had decided to comply with the CBO decision. But other Arab League member states – where Nestle maintains a presence-have decided not to abide by the decision.
Nestle began investment in Israel in 1995 by buying 10% of Israeli food maker
Osem Investments, allowing Nestlé to sell its products in Israel, including Nescafé, Perrier, Carnation, Smarties and KitKat.. Two years later Nestle increased its ownership to 50.1% giving it the controlling share. A January 2002 agreement between the Swiss and Israeli governments to avoid double taxation for Swiss companies that produce in Israel and sell in Europe led Nestle to announce in September 2002 vast expansion in Israel that will pour $80 million more into the Israeli economy.
© 2006 Mena Report (www.menareport.com)