Congressional Record, Volume 152 Issue 93 (Monday, July 17, 2006)

[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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