Front Page	E-mail PagePrint Version

Congressional bloc claims pact would be a threat to US security

WASHINGTON, DC - 07/19/06 - A free-trade agreement with Oman up for a vote in the House of Representatives this week has provisions that could jeopardize US port security, according to a five high-ranking Republican and Democrat congressmen.

In a press release issued yesterday, the House members said the proposed agreement pact had an "outlandish provision" that would allow companies such as Dubai Ports World to "drag the US before a UN or World Bank tribunal" to demand compensation if Washington blocked it from acquiring and operating US ports.

UAE-based Dubai Ports World had to abandon its planned purchase of terminal operation rights at major US ports earlier this year after it ignited a political firestorm in the US.

The efforts to squash the free trade pact is being led by Rep. John Murtha (D-Pennsylvania, a member of the House Defense Appropriations subcommittee and an outspoken critic of US policy in the Middle East.

Among those joining Murtha in issuing the release was Rep. Walter Jones (R-North Carolina), a senior Republican member of the Armed Services Committee.

Both Murtha and Jones have a history of voting against free trade agreements (FTAs) on the grounds that they cost American jobs.

"It's bad enough that we're asked to support agreements that would shift more jobs overseas ... but it is simply unacceptable to ask Congress to support legislation that would essentially undermine the security of our nation," said Rep. Michael Michaud (D-Maine), who supports the action against the pact.

Supporters of the Oman trade agreement called the issue raised by Murtha and the other lawmakers a "red herring."

The pact still allows the US to block proposed transactions it believes are a threat to national security, Rep. Phil English (R-Pennsylvania) and two other lawmakers said in a letter to their House colleagues.

The Office of the US Trade Representative (USTR) acknowledged the Oman pact would allow an Omani company to perform such "landside" port functions as the operation and maintenance of docks, the loading and unloading of vessels, and ship cleaning.

But, the USTR said, all US trade agreements include an "essential security" article that allows the president to block any business deal the US believes raises security concerns.
 
"Under that article, nothing in an agreement can prevent us from applying measures that we consider necessary for the protection of our essential security interests," the USTR said.
 
Earlier this week, the Congressional Research Service (CRS) said it was "unlikely" Dubai Ports World or any company would be able to establish a shell company in Oman under the pact in order to acquire US port operations.

House Republicans have scheduled a vote on the agreement with Oman by Friday.
 
A similar pact with Bahrain sailed through the House last year by a vote of 327-95 with broad bipartisan support.

Go back, or read the latest Front Page stories:

Korea, US Free Trade Pact ''Possible'' by Early 2007

WASHINGTON, DC – 10/25/06 – A free trade pact between the US and South Korea could become a reality by early 2007, says chief US negotiator Wendy Cutler at the opening of this week’s fourth round of talks between the two countries; since the two sides launched FTA negotiations in February they have reported little progress even though they postponed consideration of the most politically sensitive issues, such as US access to the Korean rice market.