United States-Oman Free Trade Agreement ImplementationAct

UNITED STATES-OMAN FREE TRADE AGREEMENT IMPLEMENTATION ACT -- (Senate - September 15, 2006)

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Mr. GRASSLEY. Mr. President, I would like to dispel claims being put forward by some that the U.S.-Oman Free Trade Agreement will threaten U.S. national security. These critics of the agreement claim that it will give foreign port operators an absolute right to establish or acquire operations to run port facilities in the United States. They contend that, in this way, the U.S.-Oman Free Trade Agreement could harm our national security. These claims are just plain wrong.

First of all, the U.S.-Oman Free Trade Agreement provides no new rights for Omanis or others to supply port related services in the United States. Omani companies are presently able to supply such services. The Oman agreement simply mirrors current U.S. law. So it is incorrect for anyone to claim that this trade agreement creates new rights for Omanis or others to contract with U.S. port owners to perform port services.

In addition, U.S.--law specifically the Exon-Florio amendment to the Defense Production Act of 1950--authorizes the President to block foreign investment that would threaten our national security, including investments in port operations. The President delegates the authority to monitor and review foreign investments to the Committee on Foreign Investment in the United States, or CFIUS. This free-trade agreement will not change the process of CFIUS in reviewing proposed investment in the United States. Thus, if the President determines that the investments of Oman or other countries in port services in the United States will threaten our national security, U.S. law provides that he can block such investments. The U.S.-Oman Free Trade Agreement in no way changes this existing law.

Moreover, the U.S.-Oman Free Trade Agreement at article 21.2 contains a ``national security'' exception. This article provides that nothing in the agreement can prevent the United States from taking any action that we consider necessary to protect our essential security interests. This exception is self-judging, which means that solely the United States can decide what constitutes our essential security interests. Contrary to the claims of some critics, neither an investor-state arbitration tribunal nor a dispute settlement panel has the authority to second-guess what the United States determines to be in its essential security interest. After all, once the United States invokes the national security exemption, there's nothing for a tribunal or panel to review.

So it is clear that the U.S.-Oman Free Trade Agreement doesn't diminish the right of the United States to determine whether to block any foreign investment in our country, including in port services. It is also clear that the Oman trade agreement doesn't create any new rights for Oman to supply port related services in the United States. Anyone who says otherwise is ignoring the facts.

The U.S.-Oman Free Trade Agreement will benefit the United States. It will not pose security threats for the United States. If it did, I wouldn't be supporting it. I urge my colleagues to vote for H.R. 5684, the U.S.-Oman Free Trade Agreement Implementation Act.

I yield the floor.

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