GOP House Panel Votes to Block Ports Deal

In a congressional election-year repudiation of President Bush, a House panel dominated by Republicans voted overwhelmingly Wednesday to block a Dubai-owned firm from taking control of some U.S port operations. Democrats clamored for a vote in the Senate, too.

By 62-2, the House Appropriations Committee voted to bar DP World, run by the government of Dubai in the United Arab Emirates, from holding leases or contracts at U.S. ports. The landslide vote was the strongest signal yet that more than three weeks of White House efforts to stunt congressional opposition to the deal have not been successful.

Bush has promised to veto any such measure passed by Congress. But there is widespread public opposition to the deal and the GOP fears losing its advantage on the issue of national security in this fall's elections.

The White House said the president's position was unchanged.

Source: Associated Press

 

I will have to disagree with you Ken, I think it's a good thing that they are blocking this deal that is nothing more than a step to push through MEFTA by the administration.

I was against NAFTA and CAFTA and I am against the FTAA and MEFTA!!

 

NEW YORK (FORTUNE) - So the Dubai ports deal is done, a United Arab Emirates-owned company has backed down, and CNN anchor (and deal opponent) Lou Dobbs is going to have to find something else to talk about. But the after-effects are likely to be felt in boardrooms across America as well as on Capitol Hill and in Arab capitals from Riyadh to Bahrain and Cairo.

That's because while the decision Thursday by Dubai-based DP World to complete its takeover of the U.K.'s P&O while transferring or selling the U.S. operations may placate opponents on Capitol Hill, it's likely to worry major American exporters such as Boeing (Research), GE (Research) and other companies that see growing opportunity in the oil and money-rich Gulf.

Our members are very concerned about what the failure of this deal means," says Bill Reinsch, president of the National Foreign Trade Council, a Washington trade association that represents large U.S. multi-nationals. "They haven't wanted to be visible but they're very concerned about the signals the U.S. is sending out."

Indeed, The Hill, a Washington newspaper that covers Congress, reported that Dubai's royal family is "furious at the hostility both Republicans and Democrats on Capitol Hill have shown toward the deal."

And with Boeing hoping to land a major order for its new 787 Dreamliner with Dubai-based airline Emirates down the road, the stakes are high. Elsewhere in the region, the UAE's Etihad Airways has already ordered more than $1 billion worth of 777s, and Egyptair and Royal Jordanian are longtime Boeing buyers.

"These are important customers for us in an important, growing market," says Boeing spokesman John Dern. "We are with these customers all the time. We haven't seen any impact at this point, and have no indication there will be an impact." Dern wouldn't say whether Boeing execs have specifically discussed the ports controversy with potential customers, but he notes that "we're certainly monitoring the situation."

Don't expect news of any public threats or cancelled orders to come from the Gulf in the coming days or weeks. "That's out of character for the Gulf states," says Reinsch. "It's more likely they'll just act, and suddenly a deal is off."

Source: http://money.cnn.com/2006/03/10/news/international/pluggedin_fortune/?cnn=yes

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