[Congressional Record Volume 152, Number 44 (Friday, April 7, 2006)]
[Extensions of Remarks]
[Page E566]
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

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                               speech of

                          HON. HENRY A. WAXMAN

                             of california

                    in the house of representatives

                        Wednesday, April 5, 2006

  Mr. WAXMAN. Mr. Speaker, the Arab boycott against Israel is one of 
the worst vestiges of the Arab League's campaign to isolate and destroy 
Israel.
  Originating shortly after Israel's founding in 1948, the embargo's 
objective was to squeeze the fledgling Jewish state out of existence 
AND punish its allies. Israel's astonishing economic growth despite 
these constraints ultimately dulled the impact. Enforcement also 
declined after Egypt and Jordan signed peace treaties with Israel. 
However, the boycott continues to be a shameless exercise in blackmail. 
Support for the policy is unfortunately still widely popular in most 
Arab nations.
  Saudi Arabia, for its part, has been among the most vocal instigators 
rallying support for the boycott's continuation. Despite agreeing to 
provide Most Favored Nation status to all member states, including 
Israel, upon joining the WTO in November, Saudi Arabia continues to be 
a hub of boycott activity. In December, a Saudi official emphatically 
stated that the boycott would be maintained, and in March, the Saudi 
government hosted a meeting of the Organization of the Islamic 
Conference aimed at continuing the embargo.
  Unfortunately, Saudi Arabia's inconsistent track record is somewhat 
common among our Arab trading partners. In October 2005, just one month 
after Bahrain signed a Free Trade Agreement (FTA) with the United 
States, the Bahraini parliament voted to reject its government's 
decision to lift the anti-Israel embargo.
  Likewise, the United Arab Emirates, which is currently negotiating an 
FTA with the United States, has kept the policy in place. The issue 
recently got attention when it was revealed that a Dubai company 
seeking to take over operations in six U.S. ports complied with the 
boycott. It was revealed that the Department of Commerce's Office of 
Antiboycott Compliance had fined several U.S. companies in the last 
year for abiding by UAE's boycott rules.
  Oman, which has an FTA now pending before Congress, opened a trade 
mission with Israel in 1996, but closed the office several years later 
in response to anti-Israel demonstrations.
  The international trading system is designed not only to promote 
prosperity but to foster peaceful relations between nations. The United 
States has invested a great deal of time and effort in negotiating new 
trade pacts in the Middle East to build stronger ties between our 
countries and among our regional partners. But it is not acceptable to 
continue along this path if Israel is to be left out.
  Israel is a valuable economic partner of the United States and a 
strategic ally. It would be a tactical error, a moral blunder, and a 
departure from our own anti-boycott laws, to continue expanding our 
trade ties with countries like Saudi Arabia that refuse to abide by 
their commitments on this issue.
  I urge my colleagues to support this measure and take a firm stand to 
put an end to Saudi Arabia's duplicitous actions.

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