[Congressional Record Volume 152, Number 93 (Monday, July 17, 2006)]
[House]
[Pages H5254-H5260]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   THE U.S.-OMAN FREE TRADE AGREEMENT

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 4, 2005, the gentleman from Pennsylvania (Mr. English) is 
recognized for 60 minutes as the designee of the majority leader.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, tonight we rise at a time 
when people all over the world are watching the Middle East, are 
watching the bombs that have lit up both Israel and Lebanon, are 
watching the troop movements and are hoping earnestly for peace.

                              {time}  2015

  Certainly the support of Israel is going to be loudly and 
consistently articulated in this Chamber this week, but we also have an 
opportunity to do something substantive, to improve our engagement with 
the Middle East in the coming week.
  This week, we have an opportunity to vote on a substantive agreement 
which will bring one of the nations of the Middle East closer to the 
United States, promote economic opportunity and integration in the 
region, and lay the groundwork, in my view, for closer ties between the 
United States and some of our key partners in the Middle East and one 
in particular.
  With that in mind, Mr. Speaker, I rise tonight as cochairman of the 
Middle East Economic Partnership Caucus, and I expect to be joined by a 
couple of my other cochairmen, to talk tonight about the benefits of 
the U.S.-Oman Free Trade Agreement, which we expect to be voted on in 
the House this week.
  At a time when there is great instability in the Middle East, at a 
time when we are concerned on how the Middle East affects our homeland 
security, at a time when we want to do something positive to create 
economic opportunities in a region where the lack of them has spawned 
terrorism, this is a small, but important, opportunity.
  The Middle East, we believe, is increasingly becoming economically 
integrated with the West, and if we want to fight the root causes of 
terrorism, we should be encouraging that. It is critical that now, more 
than ever, we encourage this integration to promote closer ties, 
democracy and social liberalization through a process of economic 
interaction and close cooperation.
  In recent years, America's dialogue in the Middle East has been 
deepened by the addition of bilateral and, ultimately, strongly 
bipartisan free trade agreements, first with Israel, then with Jordan, 
then with Morocco and, most recently, with Bahrain.
  The U.S.-Oman FTA, slated for a vote in the House Chamber this 
Thursday, largely builds off of the successful model that was set by 
the U.S.-Bahrain FTA, further supporting openness and stronger ties 
between the U.S. and the Middle East and the Maghreb regions.
  Over the past year, Oman has clearly demonstrated a powerful 
commitment to this agreement and closer relations with the West, both 
in terms of its political will and institutional resources, making 
significant strides in improving its labor practices and opening its 
markets and being accountable for intellectual property issues and 
cracking down on intellectual property violations.
  In numerous communications with our U.S. trade Representative, Omani 
leaders have promised to take a number of concrete steps by October 31, 
2006, to build on the strong labor reforms already implemented, and in 
my view, as a member of the Trade Subcommittee who has closely followed 
this process, Oman has come further than virtually any other country we 
have ever engaged in this manner in dealing with core labor issues. 
Their commitment shows Oman's determination to address all concerns, 
while respecting the rule of law and its legislative processes.
  In addition, all of these commitments are fully verifiable because 
Oman has agreed to have all of them reviewed under the FTA's labor 
consultation mechanism. The U.S.-Oman Free Trade Agreement provides one 
of the highest degrees of market access of any U.S. free trade 
agreement to date and accounts for a substantial market access across 
Oman's entire services regime.
  This agreement will make 100 percent of U.S. imports and exports and 
consumer and industrial goods duty free on the day the agreement enters 
into force. It also provides duty free treatment to 87 percent of our 
agricultural exports from day one. In terms of being accountable for 
intellectual property rights violations, Oman has agreed to criminal 
standards for copyright infringement and stronger remedies and 
penalties. It will increase criminal and civil protection against 
unlawful encoding of satellite TV signals and criminalize end-use 
piracy, providing strong

[[Page H5255]]

deterrence against piracy and counterfeiting.
  This is just a small sample of some of the benefits of the U.S.-Oman 
FTA, and this agreement is far more important than the small market 
that Oman would suggest.
  We recognize that Oman is a small place. It is probably the 
equivalent, in terms of purchasing power comparability, of entering 
into a free trade agreement with our own North Dakota, but it is 
extremely significant because it is a part of a much larger Middle East 
puzzle. It is part of a region that we expect, in coming years, to 
build much closer ties with, and the Oman agreement, as it has been 
laid out and as their government has agreed to embrace, is a very 
strong model for going forward with future agreements in this region.
  The U.S.-Oman FTA is, after all, a comprehensive and high-standard 
agreement. High standards are provided for including comprehensive 
protection for intellectual property rights, government procurement 
transparency, and trade facilitation. Developing a high-quality FTA 
with Oman will establish a high standard for all of the other Gulf 
Cooperation Council Members and set a very high standard for them to 
meet.
  Consequentially, the FTA represents a significant benefit to U.S. 
trade that extends well beyond those benefits that currently exist in 
Oman. The FTA establishes a secure, predictable, legal framework for 
U.S. investors in Oman and includes high-standard legal protection for 
their model on U.S. legal principles, such as substantive due process 
and the ability to comment on proposed laws and regulations.
  Mr. Speaker, the FTA also creates and expands opportunities for U.S. 
goods and services. This FTA will broaden and strengthen the bilateral, 
commercial relationship between the United States and Oman beyond the 
approximately $748 million generated in two-way trade during 2004. One 
hundred percent of this bilateral trade in consumer and industrial 
products will become duty free under this agreement.
  The U.S.-Oman FTA will build upon the trade and investment framework 
agreement signed between our two countries on July 7, 2004, and will 
spur continued growth of U.S. direct investment which in 2003 was $358 
million, a substantial increase over the previous year. In addition, 
the FTA will increase the competitiveness of U.S. exporters and service 
providers in the Omani market, providing for an increased market share 
for U.S. manufacturers and service providers. In 2004, U.S. goods 
exports were $330 million, up 2.3 percent from 2003.
  Oman, in my view, is a likely market for U.S. oil and gas equipment 
and services, transportation equipment, water and environmental 
technology, medical equipment, electrical and mechanical equipment, 
power generation and transmission equipment and services, 
telecommunications equipment and services, franchising, and U.S. 
poultry and beef. In each of these areas, we potentially will get a leg 
up on our foreign competition.
  At the same time, Mr. Speaker, the FTA will encourage greater 
political and economic reforms. It is worth remembering that in 1997 
Omani laws were enacted guaranteeing Omani women equal rights in both 
education and employment. Women have the right to vote and run for 
office in consultation council elections, which are held every 4 years.
  In 1992, in an attempt to balance growth on its non-oil sector with 
concern for its natural resources, Oman developed a national 
conservation strategy, which was subsequently approved by the Council 
of Ministers and spells out the need and procedures for incorporating 
environmental considerations in the development plans.

  In 1994, Oman became a member of the International Labor 
Organization, the ILO, and has satisfied various labor-related 
accession requirements for membership to the WTO.
  In 2003, it is worth noting the government adopted its first 
comprehensive labor law that allows workers the right of association 
and to pursue labor disputes in court. That law abolished the 1973 
prohibition on the right to strike. This is a radical move in a part of 
the Arab world where labor rights is increasingly an important 
movement.
  The U.S.-Oman FTA advances modernization programs, implemented by 
Sultan Qaboos. In accordance with its accession to the WTO in 2000, 
Oman announced its intention to eliminate mandatory shelf life 
standards for shelf stable foods and to adopt internationally 
recognized CODEC standards for the labeling of prepackaged foods.
  Additionally, as part of its WTO accession, Oman has adopted 
derogations to the Gulf Cooperation Council patent law to comply with 
its obligations under the TRIPS agreement, and has committed itself to 
begin negotiations to join the WTO agreement on government procurement.
  In 2004, Oman removed its temporary ban on imports of U.S. poultry 
and poultry products, moving ahead of some of our other trading 
partners.
  We need to recognize, Mr. Speaker, this agreement also provides 
support for an important strategic ally in the war on terrorism. This, 
I think, is as strong a reason to support this agreement as any.
  The United States has maintained relations with the sultanate since 
the early years of American independence, and that friendship has grown 
over time. Oman supported the 1979 Camp David Accords and was one of 
three Arab League states that did not break relations with Egypt after 
signing the Egyptian-Israeli Peace Treaty in 1979.
  In April of 1994, Oman hosted the plenary meeting of the Water 
Working Group of the peace process, the first gulf state to do so.
  Oman occupies a strategic position on the Strait of Hormuz at the 
entrance to the Persian Gulf. Following the Iranian revolution and the 
Soviet invasion of Afghanistan, Oman was the very first of the gulf 
states to formalize defense ties with the U.S. Oman has been a party 
with the U.S. to a military cooperation agreement since 1980, which was 
recently renewed in 2000. May I say, Mr. Speaker, when I joined a 
delegation that went to Oman just a year ago, I was very impressed by 
the commitment of Sultan Qaboos, as he articulated it to us, to 
continue and to strengthen this relationship.
  It is worth noting that the Oman-U.S. Facilities Access Agreement has 
provided crucial support to the protection of Kuwaiti tankers in 1987. 
In 1988, during the Persian Gulf crisis, Oman assisted the U.N. 
coalition effort. Military bases in Oman were used in 2001 by U.S. 
coalition forces involved in ground raids against both the Taliban and 
Afghanistan and against Osama bin Laden.
  The U.S.-Oman FTA, in other words, in my view at least, is a key 
building block toward building a broader set of economic relationships 
in the Middle East that can encourage economic growth. It is consistent 
with the 9/11 Commission's observation and recommendation, and here I 
quote: ``that the U.S. Government has announced the goal of working 
toward a Middle East trade area. A comprehensive U.S. strategy to 
counterterrorism should include economic policies that encourage 
development, more open societies and opportunities for people to 
improve the lives of their families and to enhance prospects for their 
children's future.''
  This important statement by the 9/11 Commission I think is consistent 
with moving forward this week to approve this Oman FTA.

                              {time}  2030

  Mr. Speaker, in assessing the impact of the Oman FTA, I have done a 
lot of research and I have tried to, I think, come up with an honest 
assessment of how this free trade agreement will affect our balance of 
trade.
  As the Speaker well knows, I have spoken here many times about my 
concern about our large trade imbalance, about the fact that we are 
running a record trade deficit, and I am happy to say that my research 
suggests that the U.S.-Oman FTA will be a move in the right direction, 
if adopted. This FTA builds upon a well-established and receptive 
market for U.S. goods and services.
  In 2005, U.S. exports were $593,000,000, up significantly from 2004. 
And again, I would note that 100 percent of bilateral trade in consumer 
and industrial products will become duty-free effective immediately on 
passage of this agreement, creating a substantial market in that part 
of the Middle East for our exports beyond what we have already.
  Additionally, this FTA benefits key U.S. export and service sectors 
such as

[[Page H5256]]

the banking, securities, audio visual, express delivery, 
telecommunications, computer and related services, distribution, health 
care, insurance, construction, architecture and engineering sectors.
  This agreement, as I have noted before, also contains tough 
intellectual property rights provisions to enforce strict antipiracy 
and counterfeiting laws. While we continue to call for an ambitious 
outcome of the negotiations of the WTO-Doha Development Round, we also 
recognize that it is important that we go forward with bilateral 
agreements such as the Oman agreement.
  The passage of this FTA would send a strong signal to the world that 
the U.S. is going to continue to be a leader on trade policy, and that 
we were committed to opening a very important additional beachhead in 
the Middle East.
  I think that when I talk to people in northwestern Pennsylvania, an 
area where we export a lot of manufactured goods, people want to know 
if this or any other new FTA has the potential to create future trade 
imbalances. I think it is particularly instructive that the U.S. 
International Trade Commission has done a study of the Oman FTA, and I 
would like to read from a part of the executive summary.
  The finding of the ITC was as follows: The U.S.-Oman FTA will likely 
have a small but positive impact on the U.S. economy. The benefits will 
likely be moderated by the relatively small size of Oman's economy and 
Oman's share of U.S. trade. Oman accounted for less than .5 percent of 
total U.S. goods trade in 2004. The trade and welfare effects of tariff 
elimination on trade and goods will likely be negligible, reflecting 
not only the small volume of trade between the United States and Oman, 
but also the low tariffs on current bilateral trade. Tariff 
liberalization under the FTA will likely have little effect on the U.S. 
economy, industry and consumers because U.S. imports of most goods from 
Oman already enter duty-free or at low duty rates. Tariff 
liberalization will likely have a greater effect on U.S. imports of 
apparel from Oman, albeit from a small and diminished 2005 base. As 
such, the expected increase in U.S. apparel imports from Oman will be 
small in absolute value and quantity terms. In addition, the resulting 
increased annual levels of U.S. apparel imports from Oman will likely 
remain below the 2004 level of U.S. apparel imports from Oman. Most of 
the expected growth in U.S. apparel imports from Oman will likely 
displace U.S. apparel imports from other countries rather than domestic 
production.
  Continuing, the FTA will likely increase export opportunities for 
U.S. firms when Oman immediately removes its uniform tariff of 5 
percent ad valorem on U.S. goods and as it phases out its other tariffs 
on U.S. goods. The 5 percent tariff applied to 91 percent of U.S. 
exports to Oman in 2004. These exports consist mostly of machinery, 
transportation equipment, and measuring instruments. The FTA will also 
likely increase opportunities for U.S. providers of services through 
improved market access and greater regulatory transparency. For 
example, the FTA will liberalize provisions affecting trade in 
insurance services as well as banking and securities services such as 
asset management services.
  So I think the point here, Mr. Speaker, is that this is a great 
opportunity for us, not a great threat, but is also an opportunity, I 
think, for closer economic engagements in the Middle East.
  With that, I would like to yield to the gentleman from Wisconsin, Mr. 
Ryan, who is cochairman of our caucus, for such time as he may consume.
  Mr. RYAN of Wisconsin. I thank the gentleman for yielding. I just 
want to congratulate the gentleman for all his leadership on this 
issue. And I too want to come to the floor of the House of 
Representatives to talk about how important this Oman trade agreement 
really is and how it fits in the whole scheme of things with respect to 
our strategy for the Middle East.
  Now, a lot of people are paying attention to the Middle East. We 
watched over the weekend all of the awful things that are happening in 
Israel and southern Lebanon, and we realize that if we are to win the 
war on terror, we have to look at a short-term strategy and a long-term 
strategy. And when I think about the things we want to accomplish with 
the Middle East and with moderate Arab countries, democracy. Democracy 
and freedom and individual rights are the ultimate, the ultimate weapon 
against terrorism. When a young person grows up into a closed society 
with no opportunity to reach his or her destiny or his aspirations or 
dreams, they are going to be more susceptible to the likes of al Qaeda. 
They are going to be more susceptible to joining into some kind of a 
perverted ideology that can convince a young man or a young woman to 
strap on a suicide belt and go into a pizza parlor and blow themselves 
up. But people growing up in free societies, in democracies, are people 
who have a chance to reach their aspirations, to channel their energies 
to better themselves and their families. By growing up in a free 
society, that is how we can ultimately make sure that our children 
aren't fighting the war on terror that we are fighting, aren't 
confronting the kind of awful terrorism we are confronting.

  Why does anything that I just said have anything to do with the Oman 
trade agreement? Well, here, Mr. Speaker, is what it has to do with the 
Oman trade agreement. With these trade agreements, we don't get just 
lower tariffs for corn and soybeans and cars and plastics; with these 
trade agreements, we get good government. With these trade agreements, 
we get these countries who voluntarily change their rules and their 
laws to be more free and open to their own people. By engaging in a 
trade agreement with the United States of America, a country in the 
Middle East such as Oman, embraces the rule of law, embraces 
enforceable contracts, individual rights.
  Let me just go through a few of the things that Oman has agreed to as 
a consequence and as a part of this free trade agreement.
  Political reforms. Oman has enacted reforms to increase public 
participation in government, extending voting rights for its consultive 
council to all citizens over the age of 21, and appointing women to key 
positions in its government, including the first female Ambassador from 
an Arab country appointed to serve in the United States. Oman is a 
leader in women's rights. Oman is a leader in suffrage so that women 
are treated more equally in the Arab gulf.
  Economic reforms. Oman has enacted broad economic reforms to open 
itself to trade and investment and provide opportunities to its 
citizens. In fact, the economic freedom of the world 2005 ranks Oman 17 
of 127 countries analyzed in terms of economic freedom. They are the 
second highest ranking among all countries in the proposed Middle East 
free trade area.
  Labor reforms. This is where a lot of progress has been made. Oman 
has unilaterally, across all labor laws, through decrees and 
commitments, upgraded their labor standards for their workers, for 
their employees, for their citizens to at least the ILO core standards. 
This is the strongest labor agreement, trade agreement, we have ever 
had with the free trade agreements with the United States.
  Mr. ENGLISH of Pennsylvania. Will the gentleman yield for a moment on 
that point?
  Mr. RYAN of Wisconsin. I would be happy to yield.
  Mr. ENGLISH of Pennsylvania. Because the gentleman really was, on the 
floor, our leading not only advocate for but expert on the Bahrain FTA, 
comparing this free trade agreement and the commitment the government 
has made on top of it at a time certain, to the agreement made by 
Bahrain, how does this compare in strength?
  Mr. RYAN of Wisconsin. This exceeds the Bahrain agreement because, 
like Bahrain, Oman agreed not only to the core ILO, International Labor 
Organization standards and worker rights, but with the Bahrain 
agreement, Bahrain simply agreed to introduce legislation to their 
Parliament and then try to pass the legislation, upgrading their labor 
standards.
  Oman went beyond that. Oman agreed to decree, to put these into law. 
So not only, with Bahrain we got the promise to propose legislation; in 
Oman we got the law. We got the changes. Changes are taking place right 
now as we speak. Some changes took place last week. All of the labor 
standard increases will take place by October 30 of this year. So the 
fact is with Oman, because of the negotiations of the free trade 
agreement, we are rising the tide of worker rights. We are

[[Page H5257]]

rising the quality and openness of this society. We are looking at an 
ally who has been a tremendous ally in the war on terror. They have 
ended their Israeli boycotts. They have opened up and are opening up 
trade with Israel. They are giving women unprecedented rights relative 
to other Arab countries. And all of this is being done because of trade 
agreements.
  We didn't send a division of soldiers to Oman. We didn't parachute 
the 82nd Airborne into Oman. We didn't fire a bullet. We didn't put a 
boot on the ground. We engaged in trade negotiations and trade 
agreements, and this democratization, this openness, this free economic 
model, is being embraced by the Omanis because of these trade 
agreements.
  So what we are accomplishing here is the single most important aspect 
of our war on terror, the single most important aspect of making sure 
that our children are safe from a world of terror when they reach our 
age group, when they come of age; and that is, making the Middle East 
more free, more democratic, more open, so that young people growing up 
in these countries will have opportunities to pursue their dreams, to 
pursue their aspirations, to determine the direction of their own 
lives.
  That, in a nutshell is why these agreements are so important in the 
Middle East. That is why this particular agreement with Oman is so 
important to pass because of all of the wonderful things they are doing 
to help their own countrymen, to open up their society, to liberalize 
their economy, to give people individual rights in their economy so 
they can reach those dreams, all with an agreement that is in our best 
interest economically.
  It is good for our jobs. We will sell more of American-made 
equipment. We will sell more American-made agricultural products. We 
will get more jobs out of the deal, and they will get closer to a much 
more open society. That, Mr. Speaker, is what I call a win-win 
situation. That is why I think it is so important that we take all of 
these wonderful reforms that they have enacted and pass the rest of 
these into law by implementing this Oman Free Trade Agreement, because 
it is good for Omanis, it is good for Americans, and it is, most 
importantly, good for keeping democracy alive in the Middle East, 
keeping freedom alive, and keeping terrorism at bay.
  Mr. ENGLISH of Pennsylvania. Will the gentleman yield again?
  Mr. RYAN of Wisconsin. I would be happy to.
  Mr. ENGLISH of Pennsylvania. On that point, I think it is important 
that the listeners and our colleagues understand some of the labor 
standards that are being implemented here. We are talking about a 
commitment by Oman to strengthen collective bargaining laws, to protect 
the right to strike, to ensure the reinstatement of wrongly dismissed 
workers, to allow multiple union federations, to ensure adequate 
penalties for antiunion discrimination, to end the government 
involvement in union activity and to do things like strengthen efforts 
against child labor that have been such a blight in that region.
  Oman, at a stroke, is taking a real leadership role in moving forward 
in this area that is going to set this up as a modernizing government 
and as a modernizing society that really is going to be a good example 
in the region. And I wonder if the gentleman agrees with me that this 
breakthrough by Oman is something not only important for us to sustain 
in terms of our economic opportunities, but also, I think, fulfills 
part of our role as a liberalizing force in the world and setting the 
right sort of example in the Middle East.

                              {time}  2045

  Mr. RYAN of Wisconsin. I will. And if the gentleman will yield, I 
just want to read a quote from the 9/11 Commission report which talked 
about these FTAs, and the 9/11 Commission which revealed what should 
America do to win the war on terrorism to make Americans safer again. 
They said a ``comprehensive U.S. strategy should include economic 
policies that encourage development, more open societies and 
opportunities for people to improve the lives of their families and 
enhance the prospects of their children.'' That is why we should engage 
in these FTAs, these free trade agreements in the Middle East.
  This new breakthrough from Oman on all these higher labor standards 
that they are raising is precedent setting. It does encourage its 
neighbors just like Bahrain is now engaging in. It encourages their 
neighbors to increase not only their standards of labor for their 
citizens but to increase their citizens' access to prosperity, access 
to opportunity, access to bettering their lives for themselves. That is 
what is accomplished by seeing this dialogue take place. That is what 
is accomplished when we as Americans engage in mutual economic 
agreements like this.
  The thing that also impresses me with the Oman Free Trade Agreement, 
just like we had with Bahrain and Morocco and others, is our 
governments are getting to know each other much better. Because we are 
involved in a global war on terrorism, it inevitably involves a strong 
level of dialogue between the United States Government and the United 
States Congress and the governments and the leaders of those countries. 
But what we are lacking is human-to-human interaction, people-to-people 
interaction, understanding of the American people, of the citizens of 
Oman, the citizens of Bahrain, the citizens of Middle Eastern 
countries.
  That is what trade accomplishes. Trade brings people together. Trade 
brings people into engaging in mutually beneficial endeavors, the 
people of America, farmers, manufacturers. We make tractors, Case 
Construction Equipment in Racine, Wisconsin. We sell cheese. We grow 
corn and soybeans, General Motors cars. We want our people to go to 
these countries and understand them, know them, sell them their 
products and have people-to-people interaction. And if we have people-
to-people interaction through trade, through business agreements, 
through business arrangements, then we have better understanding of one 
another. And better understanding of one another, better friendships 
will bridge the gaps between cultures. That will help us fundamentally 
understand what is going on in the Middle East, and it will help them 
understand us.
  My biggest fear is that people in the Arab world, they call it the 
infamous ``Arab Street,'' that they will look at al Jazeera or VH1 or 
some distorted lens of what Americans stand for, of who Americans are, 
of what American culture is, and that is how they will frame their 
opinions. That is not what I want them to think America is all about. 
What I hope people in the Arab world think America is all about is by 
meeting an American, is by meeting somebody from America who can engage 
in an agreement of mutual economic behavior, who can engage in trade, 
who can sell corn and soybeans and things like that.
  That is how we help bridge this gap, bring understanding of each 
other, and work together to fighting the war on terror. By bringing 
moderate Muslim countries in allegiance with us and growing our 
alliances and growing our strategic allies, we will help defeat the 
terrorists. The minority of Islamic fundamentalists in this part of the 
world that seek to do them and us harm, we can work together and defeat 
that. And what the best consequence of it at the end of the day is 
people become more prosperous. There are more jobs created at both 
sides of the ocean, both sides of the equation.
  That is why I think this is such an important trade agreement, and 
that is why this is an important part of our continuing efforts to 
increase ties and economic engagement with countries in the Middle 
East. And this is, of all things, one of the most successful foreign-
policy tools we have at our disposal, and it is a sign of respect. It 
shows these countries, Oman in particular, that we respect them. We 
respect their people. We respect their leaders. We respect the reforms 
that they are implementing to give their people more freedom. That is a 
sign of respect, and I think with respect you get better understanding, 
better allies, and better strategic alliances, and that is all to the 
good.
  I just want to thank the gentleman from Pennsylvania for having this 
hour to discuss this. We will be voting on this in a couple of days, 
and this is yet again a very, very important piece of our foreign 
policy and our economic policy to create more jobs here and to make us 
more safe. And I just want to

[[Page H5258]]

thank the gentleman for having this discussion tonight.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I want to thank the 
gentleman for coming forward and so vividly presenting on the floor a 
positive vision of how we can engage the Middle East, how we can help 
them create opportunities, and how we can offer a positive agenda for 
fighting Islamofascism by getting at its root causes, by creating 
economic opportunities for young Arab men, by creating economic 
opportunities for these communities at a time when, in lieu of those 
opportunities, increasingly they turn to a dark vision of the world.
  I think tonight, as the skies are lit up in Lebanon and over Israel, 
it is important for us to be able to offer a different approach for 
engaging those countries and for ultimately bringing them into the 
economic mainstream. I thank the gentleman for his extraordinary 
remarks.
  Mr. RYAN of Wisconsin. If the gentleman will yield further.
  Mr. ENGLISH of Pennsylvania. I will yield, and I believe we have 
another speaker as well.
  Mr. RYAN of Wisconsin. I think it is important to note the bipartisan 
nature of these agreements in the past. We had the best vote count of 
this session of Congress on a trade agreement in the last Bahraini Free 
Trade Agreement. We passed with large bipartisan votes the Moroccan 
Free Trade Agreement. We passed with great bipartisan votes the 
Jordanian Free Trade Agreement. The Oman Free Trade Agreement already 
passed with a very large bipartisan vote in the other body, the Senate.
  We, hopefully, will continue to pass these things with good 
bipartisan agreements because in this sense it is very important that 
as we go overseas on an issue that is so important that we speak with 
one voice, as Democrats and as Republicans, that we make these 
bipartisan. And I am very pleased with the fact that Congress has for 
large measure treated these important Middle East free trade agreements 
on a bipartisan basis. Our caucus includes three Republican cochairmen 
and three Democrat cochairmen. So I do believe that we will see support 
from the other side of the aisle. I do not know how big it will be, but 
it is very important that we speak with one voice, saying it is not 
just the Republicans who want to do this, it is not just the Democrats. 
It is that the Americans want to engage in trade with the Middle East 
countries we are talking about. We want to support their efforts to 
modernize, their efforts to open, to liberalize their economies. And 
that to me is a very important signal.
  I see that we have been joined by the gentlewoman from Connecticut.
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I am most grateful and 
delighted that a strong advocate of trade and fair trade has joined us 
tonight to speak out on the Oman Free Trade Agreement.
  I yield to the gentlewoman from Connecticut (Mrs. Johnson) on this 
point.
  Mrs. JOHNSON of Connecticut. Mr. Speaker, I thank the gentleman from 
Pennsylvania for yielding.
  And I am delighted to be here on the floor with two of my colleagues 
who have been tremendous advocates of this free trade agreement and of 
the concept of free trade, the principle of free trade internationally 
and in our country.
  I want to make two general points. I am sorry that I wasn't able to 
be here earlier, and I do not want to repeat what my colleagues have 
said. But there are two important overall points that I want to make 
that, even if you have made them, are worth thinking again about.
  First is why free trade is important. Retirees simply do not, by 
definition, buy enough consumer goods to drive an economy our size. We 
are accustomed to a standard of living that is, frankly, the highest in 
the world. Our children expect to grow up and participate as adults in 
an economy that is thriving, in well-paying jobs that can provide them 
with a standard of living that my generation has enjoyed. Yet as the 
number of retirees explodes and the number of young people in the 
workforce contracts, our own Nation cannot provide the demand for goods 
that can produce the overall gross national product that will assure 
the standard of living we are accustomed to. So future generations are 
going to be more dependent on trade than we have been, and we must open 
markets for their goods.
  The American population will not be able to buy the amount of stuff 
that would drive an economy that can produce the standard of living 
that we have enjoyed. So if we do not have consumers around the world, 
and, remember, the great majority of consumers are outside the United 
States, if we do not cultivate them, if they do not open their markets 
to our products, then we cannot sustain the level of economic well-
being, the standard of living to which we have been accustomed, and we 
thereby disadvantage our children.
  This small agreement with one small country will allow consumer and 
industrial goods to enter that country 100 percent duty free. One 
hundred percent duty free. And agricultural products will enter 87 
percent duty free and over 10 years reach 100 percent duty free. This 
is a small market, but we are making these agreements with country 
after country after country. And most startling, our exports are 
growing most rapidly and the majority of our growth in export goods is 
with those countries that we have negotiated trade agreements with. 
Now, that stands to reason because if you sell your goods into a 
country where there is no duty, they are going to do better than if you 
sell them into a country where there is a 20 percent, 30 percent, 40 
percent, 50 percent duty that pushes that price right up.
  So in the big picture, our children, our grandchildren cannot do well 
unless we lay the foundation by opening markets for American products 
all across the world. So our economic well-being depends on free trade 
agreements. Those free trade agreements, and the gentlemen here on the 
floor with me tonight have been strong advocates of fair trade 
agreements, these free trade agreements address labor standards, 
environmental standards. We are the only Nation in the whole world that 
pushes those issues in the negotiation of trade agreements with other 
countries, and we are reaching new standards as we move forward and 
gain more experience.
  Now we do not just require labor standards. We help nations build 
institutions to enforce those standards. So we look at do you have a 
department of labor. We look at does the department of labor have 
sufficient staff to enforce the law. We look at do the regulations take 
seriously the responsibility of enforcement. And we literally help 
nations not only understand how labor standards help them deliver the 
benefits of world trading to all in their society, but we help them 
understand that just having the standards to support all their people 
is not enough.
  You do have to be able to enforce those standards. You do have to be 
able to take action against the exploitive employer. So these trade 
agreements are good for our kids. They are good for peoples of the 
world.
  And that brings me to my second major point. Our security depends on 
agreements like that we have negotiated with Oman. The 9/11 Commission 
report cited our Middle Eastern free trade agreements and call for 
action on ``a comprehensive U.S. strategy that should include economic 
policies that encourage development, more open societies, and 
opportunities for people to improve the lives of their families and 
enhance the prospects of their children's future.'' In other words, the 
9/11 report was saying if you do not address the causes that are 
creating terrorism and the willingness to be terrorists in other 
societies, you cannot solve the problem.
  And I want to just conclude by saying how very impressed I was when 
Ways and Means Committee members a little less than 2 years ago made a 
trip to the Middle Eastern nations that were interested in trade 
agreements and whose other trading agreements were about to expire.

                              {time}  2100

  We knew that they would need to think about this in advance 
carefully.
  We know that participating in trade agreements means other countries 
have to modernize their law to meet high international standards. We 
knew it would take time, and we wanted to be sure to alert these other 
countries to the challenges that lay ahead for them in negotiating 
these free trade agreements and to the enormous benefits that would 
accrue to their people

[[Page H5259]]

in not only the present but future generations.
  I must say, I was extremely impressed with the Sultan of Oman. He 
understood exactly what this was going to mean to his people. He is one 
of the Middle East leaders who understands that oil is a limited 
resource and he must prepare a broader base for economic success for 
his people in his own country, and he is doing some of the work in the 
more advanced areas of desalinization, thinking about the importance of 
water to his people and the demand in the world economy, particularly 
in the Middle East, for potable water.
  He is a very forward-looking man. He is very committed to 
participation in the political process by women as well as men. He has 
appointed successful women to his top council. They do things slightly 
differently because they are coming from a different path, but he was 
very proud to have started worker committees. That was his initiative, 
because he knows workers have to have a better voice. They have to be 
free to talk about the problems, to work with management, to work with 
owners for everyone's success.
  In this agreement, he has moved light years ahead, looking at the 
labor laws of other countries, understanding what it is going to take 
to provide the kind of support and protection that working people need 
in order for the benefits of trade to affect the lives, the quality of 
lives, the hopes and dreams, the opportunities of all the people in 
each society.
  So when you look at not only the way this agreement opens markets and 
what that means for our people, when you look at what this means for 
our security as this great friend of ours, for over 170 years, and a 
leader in the region in economic and governance reforms, what they 
accomplish by moving forward into new thinking and new institutions to 
modernize their economy, all embodied in this trade agreement, you know 
it means not only greater prosperity for his country and for our 
country, it means greater peace for the world.
  Free trade is about peace and prosperity. It must be fair trade. It 
must help all take part in the benefits of the trade agreement.
  This is a remarkable agreement, and I very much appreciate the two 
gentlemen on the floor here, Mr. Ryan of Wisconsin and Mr. English of 
Pennsylvania, for their diligent participation in all the consultative 
processes, because Congress is a part of developing these free trade 
agreements, that make these agreements possible. Your knowledge and 
expertise is truly a great service that you have given this country and 
that you have given our friend, Oman.
  Mr. ENGLISH of Pennsylvania. Madam Speaker, I would simply like to 
thank the gentlelady for her extraordinary and insightful comments in 
capsulizing the very powerful argument for passing this free trade 
agreement and ultimately recognizing the key role of Oman in that 
region.
  I would be happy to yield to the gentleman from Wisconsin if he would 
like to make concluding remarks, and then I would like to make a 
further contribution, with the inspiration of the gentlelady from 
Connecticut.
  Mr. RYAN of Wisconsin. I thank the gentleman for yielding. I want to 
draw off the inspiration I just received from the gentlelady from 
Connecticut's comments.
  As I listened to her give this excellent overview of not only the 
benefits of these trade agreements, but of this one in particular, of 
all the work that the Omanis have gone through to bring this up into 
shape, to increase their worker rights, to increase their transparency, 
to increase their participation in women's rights, I just couldn't help 
but thinking, What if we don't pass this? What if we say no? What if we 
here in the House of Representatives this week say, that is not good 
enough, sorry, no, to the Omanis?
  The Omanis are taking a risk in their neighborhood. They are choosing 
whether or not to go down the path of the Iranians and the Syrians and 
others like that, or to go down the path of openness, of freedom, to be 
an ally with the U.S. in fighting the war on terror and giving people 
freedom.
  What if we say no to that? I just cannot imagine the consequences of 
us working with this ally of ours, getting them to agree to all of 
these enormous amounts of reforms and concessions to make this trade 
agreement work, and then only to say no. That, in my opinion, Madam 
Speaker, would be a tragedy.
  It would be a tragic mistake to say to this country, this ally, these 
people whom we have the utmost amount of respect for, to say, sorry, 
partisan politics. It is an election year. Didn't mean to have you as 
collateral damage, but no. That to me would be an outright tragedy if 
that happened.
  So I want to conclude on a high note, and that high note is just as 
we helped lift the tide of freedom and economic engagement and economic 
freedom in Morocco, in Israel, in Jordan, in Bahrain, so too do I think 
we will do this in Oman this week. And all of that is going to increase 
U.S. jobs. Yes, it is going to help us sell more products to the 
region. But, most importantly, it is going to help the people in these 
countries have a better life. It is going to help them be more free. 
And that is going to help make sure that my children, my kids, who are 
4, 3, and 1 year old, make sure that they live in a peaceful America, 
that they don't have to fight the fight against terror that we are 
right now engaged in. That is what this means to me when I put my card 
in the voting machine and vote on this agreement in a couple of days.
  That is why this is so dearly important. That is why this is not just 
your rank-and-file trade agreement for widgets and corn and dairy or 
whatever. That is why this is an important trade agreement.
  I really encourage all of my colleagues, put the partisan blinders 
aside for that day and vote with America, vote for your kids, vote for 
good economics and vote for freedom in the Middle East.
  Madam Speaker, with that, I would be happy to conclude and say thank 
you to the gentleman from Pennsylvania, Mr. English, for all your 
leadership on this issue. Thank you for hosting this discussion 
tonight. I think it has been very helpful. I just look forward to 
making sure this actually occurs, I think on Thursday when we do this.
  Mr. ENGLISH of Pennsylvania. Madam Speaker, I thank the gentleman.
  With that, I want to thank the gentleman again for his leadership on 
this issue, his vision and his commitment to building closer ties 
between the United States and the Middle East region.
  The gentleman raised the very important question of not only the 
substance of the Oman agreement, but also its symbolism, because I 
think there will clearly be consequences to not passing the Oman FTA, 
if that were to happen in the House.
  Oman, as the gentlelady noted, has been a steadfast ally of the 
United States for over 170 years. Oman has been a hugely valuable 
partner on the war on terror and has hosted U.S. soldiers and permitted 
the U.S. to use Oman as a critical launch site for ongoing operations 
in Afghanistan. Oman has embarked on what is clearly a large-scale, if 
not unprecedented, reform effort.
  In terms of labor rights, worker safety, women's rights, Oman has 
shown tremendous commitment to improving these standards for both Omani 
workers, as well as the large number of expat workers currently working 
in Oman. They have a large number of guest workers, and this is part of 
their initiative.
  Reforms in the area of labor have been commendable, even exceeding 
the level of commitment made by Bahrain as they entered into FTA with 
us. Were the Oman FTA not to receive the support of a wide majority of 
Congress, it would send tonight absolutely the wrong signal, not only 
to Oman, but to the entire Middle East region at a very sensitive 
moment. Passage of the FTA is not only in the commercial and political 
interests of the United States, it is also necessary to support the 
reforms in Oman and to deliver an important shot in the arm to 
stability in the Middle East region.
  It is clear that despite turmoil within the Middle East, Oman has 
risen to become a regional leader, improving its labor standards, 
opening its markets and being accountable for intellectual property 
rights violations, among others.

[[Page H5260]]

  Furthermore, our pact with Oman solidifies the strong U.S.-Oman 
alliance in the global war on terror. We listened tonight to the 
recommendation of the 9/11 Commission, and also we have the March 2006 
National Security Strategy specifically citing the need to advance 
trade and economic liberalization in the Persian Gulf region as a key 
part of a comprehensive U.S. strategy to bolster security, to fight 
terrorism and to oppose Islama-fascism. However, America's influence in 
the region has to be measured by more than projected military might. If 
we are going to help anchor the Middle East in the modern world, we 
clearly must reduce conflict in the region by promoting growth and 
opportunity.
  As the gentleman from Wisconsin said tonight, the U.S.-Oman FTA is a 
win-win policy that only builds upon our country's goal of 
strengthening economic relations and increasing trade, fair trade, with 
our partners in the Middle East. By strengthening our ties with the key 
strategic ally committed to trade liberalization and economic reform, 
the U.S.-Oman FTA will demonstrate to other countries in the region the 
benefits of free and open rules-based trade and engagement with the 
United States.
  I hope that come Thursday, my colleagues on a bipartisan basis, as 
the gentleman put it, will put aside their partisan blinders and 
consider supporting this trade pact when it reaches the floor. A 
``yes'' vote means yet another step on the long road to expanding new 
economic opportunity for both of our regions.

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