[Congressional Record Volume 152, Number 42 (Wednesday, April 5, 2006)]
[House]
[Pages H1482-H1485]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




EXPRESSING SENSE OF CONGRESS THAT SAUDI ARABIA SHOULD FULLY LIVE UP TO 
     WORLD TRADE ORGANIZATION COMMITMENTS AND END BOYCOTT ON ISRAEL

  Mr. SHAW. Mr. Speaker, I move to suspend the rules and agree to the 
concurrent resolution (H. Con. Res. 370) expressing the sense of the 
Congress that Saudi Arabia should fully live up to its World Trade 
Organization commitments and end all aspects of any boycott on Israel.
  The Clerk read as follows:

                            H. Con. Res. 370

       Whereas the United States supported the accession of Saudi 
     Arabia to the World Trade Organization (WTO) in 2005;
       Whereas, as part of the working party report for the 
     accession of Saudia Arabia to the WTO, Saudi Arabia 
     reiterated its commitment to terminate the secondary and 
     tertiary boycotts on Israel;
       Whereas Saudi Arabia also committed not to discriminate 
     against any WTO members and specifically did not invoke the 
     non-application provisions of the WTO Agreement, and thus has 
     rights and obligations to all WTO members, including Israel;
       Whereas, in spite of these commitments to WTO members and 
     United States officials, press reports indicate that an 
     official of the Government of Saudi Arabia has stated that 
     Saudi Arabia has not committed to ending the primary boycott 
     on Israel, which would violate Saudi Arabia's WTO obligations 
     toward Israel;
       Whereas United States Trade Represenative Portman has 
     testified to the Committee on Ways and Means of the House of 
     Representatives that Saudi Arabia's application of the 
     boycott is a ``big concern'' of the United States; that Saudi 
     Arabia did not invoke non-application of WTO commitments to 
     Israel, so that Saudi Arabia is required to provide 
     nondiscriminatory treatment to Israel; and that the United 
     States Trade Representative has received assurances from 
     Saudi Arabia that it will abide by its WTO commitments; and
       Whereas the Organization of the Islamic Conference (OIC) 
     scheduled its ``Ninth Meeting of the Liaison Officers of 
     Islamic Regional Officers for the Boycott of Israel'' for the 
     week of March 13, 2006, at the OIC's headquarters in Saudi 
     Arabia: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That it is the sense of the Congress that--
       (1) Saudi Arabia should maintain and fully live up to its 
     commitments under the World Trade Organization (WTO) and end 
     all aspects of any boycott on Israel; and
       (2) the President, the United States Trade Representative, 
     and the Secretary of State--
       (A) should continue their active involvement on this issue 
     by strongly urging the Government of Saudi Arabia to comply 
     with its WTO obligations; and
       (B) should urge Saudi Arabia to end any boycott on Israel.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Shaw) and the gentleman from Maryland (Mr. Cardin) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida.

[[Page H1483]]

  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  I am delighted to introduce this resolution and support it, which has 
also the support of the gentleman from Maryland (Mr. Cardin) and I 
believe probably is one of the best bipartisan resolutions to come 
before this Congress in a while.
  This resolution would express the sense of the Congress that Saudi 
Arabia should fully live up to its World Trade Organization commitments 
and end all aspects of any boycott on Israel.
  In 2005, the United States supported the accession of Saudi Arabia to 
the World Trade Organization. During this process, Saudi Arabia 
reiterated its commitment to terminate the secondary and tertiary 
boycotts on Israel.
  Additionally, it committed not to discriminate against any World 
Trade Organization members; and specifically, it did not invoke the 
nonapplication provision of the World Trade Organization agreement. 
Because of this, Saudi Arabia has rights and obligation to all the 
World Trade Organization members, including Israel. Given this, we 
should not have to be here today debating this resolution on the floor 
of the House.
  Instead, today Members should be able to praise Saudi Arabia for its 
forward thinking and its upcoming expanded role in the global economy. 
Unfortunately, though, many of my colleagues and I have read press 
reports that an official of the government of Saudi Arabia has stated 
that Saudi Arabia has not committed to ending the primary boycott on 
Israel. This would be a clear violation of its World Trade Organization 
commitments to Israel.
  I am pleased that when United States Trade Representative Rob Portman 
testified before the Ways and Means Committee he stated that Saudi 
Arabia's application of the boycott is a big concern of the United 
States. He also reiterated that Saudi Arabia is required to provide 
nondiscriminatory treatment to Israel. I appreciate Ambassador 
Portman's efforts in this area.
  This resolution would provide further support for the stated position 
of the USTR by establishing that it is the sense of the Congress that 
Saudi Arabia should maintain and fully live up to its commitments under 
the World Trade Organization and end all aspects of any boycott on 
Israel. It also urges the President, the U.S. Trade Representative and 
the Secretary of State to continue their efforts to ensure that this is 
exactly what happens. I ask my colleagues to vote ``aye'' on this 
resolution.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to join the gentleman from Florida (Mr. 
Shaw) in introducing this resolution we are considering today. As Mr. 
Shaw pointed out, last year the United States negotiated a bilateral 
trade agreement with Saudi Arabia which paved its admission into the 
WTO in December.
  A key commitment as part of the United States' agreement with the 
Saudis was that they would not have any further boycott with Israel, 
either primary or secondary. It was also clear that they would not 
invoke the nonapplication provision of the WTO agreement, meaning that 
it agreed it would treat all WTO members, including Israel, equally.
  Yes, the primary responsibility was to eliminate the secondary 
boycott; but in not invoking the nonapplication provision, it agreed to 
treat all WTO countries equally, including Israel. This was a key 
commitment for the United States' approval of an agreement that paved 
the way for the Saudis entering the WTO.
  Unfortunately, the Saudis' action in recent months appears to fly in 
the face of that commitment. In December, Saudi officials were quoted 
in the press as insisting that Saudi Arabia would continue its 
participation in the primary boycott against Israel which prohibits 
imports of Israeli goods. Saudi Arabia's continued participation in the 
boycott conflicts directly with the country's commitment as a WTO 
member to treat all nations in a nondiscriminatory manner.
  What is even more disturbing is that Saudi Arabia has not only 
continued to participate in the boycott, but Saudi Arabia has helped to 
promote it. In March, Saudi Arabia hosted a meeting of the Organization 
of Islamic Conference, an international organization with 57 member 
countries. The purpose of this meeting was to discuss strengthening the 
Arab League boycott against Israel.
  Mr. Speaker, I believe the United States must not stand silently 
while the Saudis disregard the commitments that it made to us and the 
WTO to treat all countries equally. We must insist that the Saudis live 
up to their commitments.
  I urge President Bush, the U.S. Trade Representative and all members 
of the administration to call upon the Saudis to adhere to the 
commitments that they made to us, that they made to the WTO. It is time 
for them to end their boycott against Israel, not just the secondary 
but the primary boycott. I urge my colleagues to support this 
resolution.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHAW. Mr. Speaker, I reserve the balance of my time.
  Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentlewoman from 
Nevada (Ms. Berkley).
  Ms. BERKLEY. Mr. Speaker, I rise in strong support of this resolution 
expressing the sense of Congress that Saudi Arabia should end its 
economic boycott of Israel. I want to personally thank the gentleman 
from Florida (Mr. Shaw) and my very good friend, the gentleman from 
Maryland (Mr. Cardin), for introducing this resolution.
  Mr. Speaker, no one is born knowing how to hate. Hate needs to be 
taught. The Saudi Kingdom, our so-called partner in peace and ally in 
the fight against terrorism, has turned teaching hatred into a 
perverted science and a twisted art form.
  Last year the Bush administration supported Saudi Arabia's accession 
to the World Trade Organization. As a condition of joining the WTO, the 
Saudis agreed to end all boycotts of Israel. Their Foreign Minister 
repeated this pledge to our Secretary of State. Israel is our strongest 
ally in the Middle East. This boycott has hurt Israel's economy since 
its founding in 1948. The Israeli Chamber of Commerce estimates that 
Israeli exports are 10 percent less than they would be without the 
boycott; investment in Israel, 10 percent lower.
  It is no surprise to me that the Saudis have not honored their 
commitment to end the boycott. The reasons to me are painfully 
apparent: anti-Semitism and a hatred for Israel. Saudi Arabia continues 
to be one of the few nations to participate in the boycott when many of 
its neighbors have given up. In 1990, Egypt was the first nation to 
abandon the boycott. Jordan followed in 1995. The Palestinian Authority 
dropped the boycott in 1995 as well. In 1994, several of the gulf 
states abandoned their secondary and tertiary boycotts. In 2005, just 
last year, Bahrain announced it was completely withdrawing from the 
boycott.
  The Saudi government has repeatedly said that Saudi Arabia is not 
anti-Semitic. Oh, really, Mr. Speaker. These are the same Saudis that 
support terrorism, export terrorism, finance terrorism, the same Saudis 
that spew racist and anti-Semitic hatred, and the same Saudis that have 
the worst record on the planet when it comes to religious intolerance 
and discrimination.
  The Saudis say they share our values. Exactly what values do they 
think they share with the United States? They do not value a hate-free 
education for their children. Saudi schoolbooks paint an ugly, 
distorted portrait of a world in which Israel does not exist. The 9/11 
attacks were perpetrated by so-called Zionist conspiracies, and the 
anti-Semitic and fictitious ``Protocols of the Elders of Zion'' is 
taught as actual history. These schoolbooks are the official 
publications of the education ministry.
  They do not value religious freedom and pluralism. Saudi Arabia bans 
all religions except Islam. Saudi Arabia's religious beliefs have even 
gone so far as banning the Barbie doll, calling them Jewish toys that 
are offensive to Islam.
  They couldn't value honesty because last year the Saudi Crown Prince 
told Saudi television that ``Zionists'' were behind the attack at the 
oil facility in Yanbu. The Crown Prince also is

[[Page H1484]]

quoted as saying, ``Our country is targeted. You know who is behind all 
of this. It is Zionism.'' That is dishonest. That is a lie, Mr. 
Speaker.
  The United States Congress, by voting for this resolution, can take a 
strong stand against this type of religious and racial intolerance. 
Congress can take a strong stand on behalf of a fellow democracy and 
our most reliable ally in the Middle East. And Congress can take a 
strong stand to demand that the Saudis live up to their obligations and 
promises, the ones they made in order to get into the WTO with American 
support.
  I urge the Saudis to fulfill their international obligations and 
promises by ending the Israeli boycott. I urge immediate passage of 
this resolution.
  Mr. CARDIN. Mr. Speaker, I yield 2 minutes to the gentleman from 
Illinois (Mr. Davis).
  Mr. DAVIS of Illinois. Mr. Speaker, I thank the gentleman for 
yielding me this time.
  Mr. Speaker, I rise in strong support of H. Res. 370 expressing the 
sense of Congress that Saudi Arabia should fully live up to its World 
Trade Organization commitments and end all aspects of any boycott on 
Israel.
  I take this position because I believe that as we continue to move 
towards resolution of problems and towards peaceful resolution of 
difficulty, we have to begin someplace. I am often reminded of 
something that John Kennedy supposedly said, and that is that peace is 
not found only in treaties, covenants and charters, but in the hearts 
of men, and I imagine if he was around today he would say men and 
women.
  I think that resolution of this boycott would move positively in the 
direction of peace in the Middle East, and so I strongly support this 
resolution.
  Mr. CARDIN. Mr. Speaker, I yield myself the balance of my time.
  Let me just say that this is an important resolution because I think 
all of us believe that for peace in the Middle East it is important to 
open up economic opportunity within the entire region. This 
administration has put a priority on moving forward with free trade 
agreements in the Middle East with the support of both Democrats and 
Republicans. Because we do believe in commerce, there is an opportunity 
for better understanding in that region of the world.
  We have concluded free trade agreements with other countries and we 
have made it clear that the boycott against Israel must be eliminated. 
Not only eliminated, but the country must reach out so there is full 
participation among all of the countries of the region so they all can 
benefit economically from commerce within that region.
  Saudi Arabia is a major country in the Middle East. They need to 
exercise leadership in the Middle East. And in doing that, they must 
join us in our fight against terror and our fight against terrorism. 
They also must join us in making it clear that all countries in the 
Middle East need to be included in economics and commerce. They need to 
eliminate their boycott against Israel.
  We thought we had an understanding when we entered into an agreement 
that led to their accession into the WTO. Clearly the Saudis are not 
living up to that commitment. I think it is extremely important that 
this country make it clear that we cannot tolerate that type of conduct 
by the Saudis. It is time for them to end their boycott against Israel 
and exercise leadership in the Middle East so we can move forward with 
peace in the Middle East. I urge my colleagues to support this 
resolution.
  Mr. Speaker, I yield back the balance of my time.

                              {time}  1245

  Mr. SHAW. Mr. Speaker, this resolution is important beyond just the 
pages of the resolution itself. It is important as to the future of 
world trade. Are we as a member of the World Trade Organization, are we 
going to support the values, the obligations that we have and that 
other nations have to other nations within the World Trade 
Organization?
  We pride ourselves as being a government of laws. This means that we 
have to adhere to our own laws. And also it goes beyond that. We have 
to adhere to our obligations. And our trading partners should also be 
required to do so.
  But this particular one, pinpointing this boycott of Israel, is 
particularly important because through free trade comes understanding. 
It comes the free flow of goods. It also brings about the free flow of 
ideas which brings about understanding, which brings about world peace. 
This is the pathway to world peace, and there is no place it is needed 
more than it is in the Middle East. And our good friend Israel needs 
help with regard to getting along with its neighbors. And this is a 
good step forward.
  So I would ask all Members to support this resolution.
  Mr. LANTOS. Mr. Speaker, I rise in strong support of this bill, and I 
commend my good friends Mr. Shaw and Mr. Cardin for introducing this 
timely and very important resolution.
  Mr. Speaker, after a years-long quest, Saudi Arabia finally acceded 
to membership in the World Trade Organization late last year.
  Unfortunately, the Saudis acceded in letter only--and in a spirit 
utterly contrary to the principles of free trade embodied by that 
organization. Moreover, it now appears that Saudi Arabia, having gained 
accession, has absolutely no intention of implementing even the letter 
of WTO rules.
  As Saudi Arabia has now made clear in the aftermath of its accession, 
it has absolutely no intention of ending its boycott of trade with 
Israel. This is a direct violation of Saudi Arabia's WTO obligations to 
Israel.
  Earlier this month, as if to underscore its disregard for the WTO 
rules to which it is formally committed, Saudi Arabia hosted a 
conference called ``Ninth Meeting of the Liaison Officers of Islamic 
Regional Officers for the Boycott of Israel.''
  Mr. Speaker, there is indeed a mechanism by which a WTO member-state 
can invoke an exception regarding its commitments to another member-
state, but Saudi Arabia did not invoke that exception regarding Israel. 
And it doesn't take a genius to figure out why: The ruling royals no 
doubt thought that, if they invoked that exception, the U.S. Congress 
would persuade the Administration to veto their accession to the WTO.
  So they deceitfully and cynically deceived us into thinking that they 
had taken a dramatic decision to open trade ties with Israel, all the 
while planning to continue their boycott unabated.
  Clearly, USTR thought they had an agreement for an end to the 
boycott. After signing off on Saudi accession in September last year, 
USTR boasted that Saudi membership in the WTO meant that--and I quote 
from a USTR press release--``Saudi Arabia is legally obligated to 
provide most-favored nation treatment to all WTO members, including 
Israel. Any government sanctioned activity on the Boycott would be a 
violation of Saudi Arabia's obligations and subject to dispute 
settlement. This legal obligation cannot be changed.''
  So the Saudis not only deceived the U.S. Congress; they have 
embarrassed the U.S. Trade Representative and left themselves open to 
dispute settlement mechanisms.

  Mr. Speaker, the U.S. helped shepherd Saudi Arabia into the WTO. We 
have a right to expect the Saudis to obey its rules. Most of all, we 
have a right to expect them to honor their commitments to us.
  Mr. Speaker, our Nation has many issues of concern regarding Saudi 
Arabia--including lack of human rights, a benighted educational system, 
and ongoing support for extremist madrasas around the world. 
Nevertheless, this body has every right to expect that the 
Administration will place an extremely high priority on persuading the 
Saudis to fulfill their pledges as WTO members, particularly regarding 
trade with Israel.
  The Saudis, we now see, entered the WTO under false premises. They 
must put this situation aright once and for all. They must end their 
boycott of Israel without delay, and the Administration should not let 
Saudi rulers have a moment's rest until they comply.
  Mr. Speaker, I strongly support this resolution, and I urge all my 
colleagues to do likewise.
  Mr. ANDREWS. Mr. Speaker, after 12 years of difficult negotiation, 
Saudi Arabia joined the World Trade Organization last November. This 
was good news--the Saudi government has the potential to further join 
the world community as a responsible actor on the world stage, and the 
Saudi economy is a large one that will benefit from international 
trade, as will the U.S. in turn from increased commerce with the Arab 
nation. However, the Saudis are yet again missing a unique opportunity 
to reform, blinded by an irrational hatred of their neighbor, Israel.
  This is part of a larger fabric of unacceptable behavior on the part 
of Saudi Arabia, which seeks greater ties with the West while 
maintaining its autocratic and anti-democratic policies. State-
sponsored Saudi TV regularly broadcasts not just anti-Israeli 
diatribes, but

[[Page H1485]]

anti-American propaganda as well, further encouraging the attitudes 
that lead to terrorism. The fact that Saudi nationals continue to 
significantly fund international terrorism, as reported this week by 
the U.S. Treasury Department, means that Saudis have a long way to go 
to match their anti-terror rhetoric with their actions. As I have in 
the past, I once again call on Saudi leader Prince Faisal to take 
responsibility for his government's actions which promote hatred and 
the repercussions it has on Saudi Arabia's relations with other 
countries.
  As President Carter said in 1977, the Israeli boycott ``goes to the 
heart of free trade among nations,'' and is clearly unacceptable from a 
member of the World Trade Organization. This boycott, in place since 
the founding of Israel in 1945, has no place in the modern, globalized 
world. Recognizing this, several Gulf States are withdrawing from the 
boycott, and gaining both political and economic benefits. In the face 
of these events, Saudi Arabia's recalcitrance is all the more puzzling.
  Mr. Speaker, Saudi Arabia has reportedly agreed to end the secondary 
and tertiary aspects of the anti-Israeli boycott, but is stopping short 
of allowing direct trade with its neighbor. Such half-measures are 
clearly not acceptable. All World Trade Organization members must treat 
all other members equally. According to diplomats, Saudi Arabia 
affirmed this principle with respect to Israel before being admitted to 
the WTO. Today's resolution expresses the sense of Congress that Saudi 
Arabia must live up to its commitments as a member of the World Trade 
Organization and end its boycott against Israel. I strongly urge my 
colleagues to support this resolution.
  Mrs. MALONEY. Mr. Speaker, I rise in strong support of H. Con. Res. 
370, a resolution that calls on Saudi Arabia to end its boycott of 
Israel.
  In 2005, Saudi Arabia pledged to the United States that it would end 
its boycott of Israel as part of its accession to the World Trade 
Organization. Foreign Minister Saud al-Faisal assured Secretary of 
State Condoleezza Rice that Saudi Arabia would follow all WTO rules, 
including the anti-boycott provisions and specifically pledged to 
dismantle the secondary and tertiary elements of the boycott against 
Israel during negotiations for WTO accession. However, shortly after 
joining the WTO in December, a Saudi official stated unequivocally that 
the boycott would be maintained.
  Mr. Speaker, this blatant disregard for the terms of agreement must 
be addressed. We must force an end to the Saudi boycott on Israel which 
has been going on far too long.
  I have been fighting the Israel boycott since I came to Congress. In 
1993, I introduced H.R. 1407, the Arab Boycott Arm Sales Prohibition 
Act, a version of which was signed into law in September 1993. Thirteen 
years ago we talked about the harm the Arab boycott was causing--that 
it is a blatantly discriminatory practice which is contrary to free 
trade. It is now 2006 and we are still trying to end the boycott.
  Mr. Speaker, I urge this Administration to continue to take a strong 
position against the Saudi boycott on Israel. It undermines our efforts 
in the Middle East to bring peace, stability and prosperity and it runs 
contrary to the obligations of membership in the WTO.


                             General Leave

  Mr. SHAW. Mr. Speaker, I ask unanimous consent that all Members have 
5 legislative days in which to revise and extend their remarks and 
include extraneous material on the subject of the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. SHAW. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Shaw) that the House suspend the rules and 
agree to the concurrent resolution, H. Con. Res. 370.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the concurrent resolution was 
agreed to.
  A motion to reconsider was laid on the table.

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