[Congressional Record (Bound Edition), Volume 151 (2005), Part 19]
[House]
[Pages 25301-25303]
[From the U.S. Government Publishing Office, www.gpo.gov]




SUPPORTING THE ACCESSION OF ISRAEL TO THE ORGANIZATION FOR ECONOMIC CO-
                       OPERATION AND DEVELOPMENT

  Ms. ROS-LEHTINEN. Mr. Speaker, I move to suspend the rules and agree 
to the resolution (H. Res. 38) expressing support for the accession of 
Israel to the Organization for Economic Co-operation and Development 
(OECD), as amended.
  The Clerk read as follows:

                               H. Res. 38

       Whereas Israel has been trying to join the Organization for 
     Economic Co-operation and Development (OECD) since 2000, when 
     it met the OECD's membership requirements relating to 
     industrial and per-capita product criteria;
       Whereas in March 2005, OECD Secretary-General Donald 
     Johnston stated that expanding the OECD's membership to 
     include more countries is vital if the group is to remain a 
     forum for discussing global economic policies;
       Whereas in 2004, Israeli Foreign Minister Silvan Shalom and 
     then Finance Minister Binyamin Netanyahu sent a joint letter 
     to the foreign and finance ministers of the 30 member 
     countries of the OECD, stating that Israel's involvement as a 
     non-member country in the OECD's various committees is 
     increasing, and that Israel meets the economic and 
     institutional criteria required to join the OECD;
       Whereas in October 2004, then Israeli Finance Minister 
     Binyamin Netanyahu stated that joining the OECD was of 
     strategic importance for repositioning Israel's economy from 
     an emerging market to a developed one, adding that membership 
     in the OECD would attract foreign investment;
       Whereas in August 2004, the Israel Laboratory Accreditation 
     Authority was invited to become a full member of the OECD 
     Environment Policy Committee, the first committee that Israel 
     has been invited to join as a full member;
       Whereas Israel was asked to take part in the OECD's 
     Insurance and Commerce Committees;
       Whereas in March 2005, Israel was formally accepted as an 
     observer on the OECD's Financial Statistics Committee, 
     allowing experts from the Bank of Israel and Central Bureau 
     of Statistics to participate in the committee's meetings;
       Whereas the World Bank ranks Israel among the 25 countries 
     in which it is easiest to do business;
       Whereas Israel's tax burden, encompassing income and 
     property taxes, customs duties, value-added taxes (VAT) and 
     national insurance, is much lower than in most OECD member 
     countries;
       Whereas membership in the OECD could enhance Israel's 
     status on the global market and within international 
     financial institutions, lowering the risk factor on foreign 
     loans to Israel;
       Whereas Israel's economic and technological standing could 
     potentially benefit OECD member countries in the science and 
     technology, including high-technology, sectors;
       Whereas in 2003, the World Economic Forum ranked Israel 
     20th out of 102 countries in its Growth Competitiveness 
     Index, and the World Economic Forum's Technology Index ranked 
     Israel 9th, before Canada (11th), Norway (13th), Germany 
     (14th), the United Kingdom (16th), and the Netherlands 
     (18th); and
       Whereas Israel is carrying out far reaching economic 
     reforms based on the OECD's recommendations with respect to 
     taxes, labor, competition, capital markets, pension funds, 
     energy, infrastructures, communications, and transport: Now, 
     therefore, be it
       Resolved, That it is the sense of the House of 
     Representatives that--
       (1) Israel shares the commitment to democratic government 
     and the market economy that is the foundation of the 
     Organization for Economic Co-operation and Development 
     (OECD);
       (2) Israel meets the OECD's membership requirements and has 
     been an active participant as a non-member country in various 
     OECD activities, such as adherence to the OECD Declaration on 
     International Investment and Multinational Enterprises; and

[[Page 25302]]

       (3) the United States Government should support and 
     advocate the accession of Israel to the OECD, including 
     through coordination of efforts with Mexico, Great Britain, 
     and other countries supportive of Israel's membership in the 
     OECD.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Florida (Ms. Ros-Lehtinen) and the gentleman from California (Mr. 
Lantos) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Florida (Ms. Ros-Lehtinen).


                             General Leave

  Ms. ROS-LEHTINEN. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on H. Res. 38.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Florida?
  There was no objection.
  Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I first want to thank the leadership for bringing House 
Resolution 38 before the House today. This resolution was unanimously 
adopted by the House International Relations Committee on September 15, 
and it expresses support for the accession of Israel to the 
Organization for Economic Co-operation and Development, the OECD.

                              {time}  1030

  More than 50 years have elapsed since George Marshall's speech at 
Harvard, which led to the Marshall Plan and the creation of the 
Organization for European Economic Co-operation, which is the 
forerunner for the OECD.
  His vision of economic cooperation based on common values and 
policies is now shared by even more countries, which are enjoying 
mutually beneficial relationships for their membership in the OECD.
  Israel has been attempting to join the OECD since the year 2000 when 
it met the organization's industrial and per-capita product criteria. 
Not only could OECD membership enhance Israel's status in the global 
market and within international financial institutions, but also other 
OECD countries could potentially benefit in the science and high tech 
sectors due to Israel's economic and advanced technological standing.
  Israel also shares in the commitment to democratic governance and 
free market principles, and those are the foundations of the OECD. As a 
result, in December of 2004, Israel was invited on an ad hoc basis to 
participate as an observer in discussions of the trade committee of the 
OECD.
  Since then Israel has been asked to take part in the OECD's Insurance 
and Commerce Committees, and in March of this year Israel was formally 
accepted as an observer of the OECD's Financial Statistics Committee.
  As articulated in the resolution before us, Mr. Speaker, Israel meets 
the OECD's membership requirements and has been an active participant 
as a nonmember country in various OECD activities, such as adherence to 
the OECD Declaration on International Investment and Multinational 
Enterprises.
  Mr. Speaker, in the aftermath of Israel's unilateral disengagement 
from the Gaza Strip, Israel needs the support of its staunchest ally, 
the United States, to help expedite the process of achieving full 
membership in all international forums. The United States must make it 
clear to the international community that Israel must be afforded full 
representation in all appropriate agencies and bodies.
  Inclusion of Israel as a full member of the OECD is a positive and 
important first step.
  I strongly urge my colleagues to support this important measure.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume.
  I rise in strong support of this resolution. First, I want to commend 
my dear friend and distinguished colleague from Florida (Ms. Ros-
Lehtinen) for introducing this very important resolution.
  As a matter of fact, Mr. Speaker, this resolution, in a sense, is a 
response to the outrageous statement of the President of Iran calling 
for the extermination of the State of Israel. Israel has more than 
earned the right to full membership in the Organization For Economic 
Co-operation and Development.
  Some foreign policy judgments are difficult to make, but this one 
could not be any easier. Like other OECD states, the State of Israel is 
a democratic, prosperous, free market economy. And by all measures, 
Israel's economy outstrips that of several current members of OECD. For 
example, Israel's per capita income is greater than that of nine of the 
OECD's 30 members. The World Economic Forum's technology index ranks 
Israel in the top 10 nations on the face of this planet, ahead of 
Canada, Germany and the United Kingdom. Recently, Israel was the 
world's third largest software producer, exceeded only by the United 
States and Canada.
  Israel, Mr. Speaker, is already an important institutional 
contributor to the OECD as a nonmember participant. Israel has long 
outgrown its nonmember status.
  In fact, Mr. Speaker, Israel meets every economic, political and 
institutional prerequisite for OECD membership. Its continued omission 
from that body would inevitably call into question the motives of some 
of the OECD members. And I hope we will not face that ugly prospect.
  I urge the administration to support Israeli membership in the OECD 
and to lobby our fellow members to achieve that goal.
  In connection with this resolution, Mr. Speaker, I am compelled to 
return to the outrageous statement of the Iranian President calling for 
wiping Israel off the face of the global map. The President of Iran, in 
making this outrageous statement, has evoked tremendous global outrage 
at his views, and I am very pleased to publicly recognize the decision 
of Secretary General Kofi Annan to cancel his trip to Tehran.
  As you know, Mr. Speaker, I wrote Kofi Annan a strong letter to which 
he responded affirmatively canceling his visit to Iran. I publicly want 
to acknowledge the Secretary General's fine decision and commend him 
for his action.
  Mr. Speaker, I yield 3 minutes to the gentlewoman from Texas (Ms. 
Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the gentleman from 
California (Mr. Lantos) for his continued steadfast leadership on the 
issues of democracy and empowerment, and the gentlewoman from Florida 
(Ms. Ros-Lehtinen) for her insightfulness and the interest of this 
particular legislation.
  I rise as well to give my support to this legislation which provides 
for the encouragement and the support of Israel acceding to the 
Organization For Economic Co-operation and Development. And as I do so, 
might I associate myself with the words of my colleague from California 
and denounce, as well, the words of tyranny and disgrace offered by the 
Iranian President on extinguishing or exterminating both the people and 
the nation of Israel.
  I would think that this particular legislation speaks to rewarding 
those who are advocating for democracy and independence, and that is 
what Israel stands for.
  I would hope in Iran that the good people of Iran, the people who 
believe in freedom, the freedom fighters, those who are supporting the 
enhancement of the working and middle class, who believe in the 
expansion of the intelligentsia, will again speak inside of Iran 
against such devastating language.
  In this instance, the OECD recommends economic democracy, if you 
will, and Israel is already a high-powered and technologically advanced 
society with a thriving economy that will add to the mission of OECD. 
The World Bank ranks Israel among the 25 countries in which it is 
easiest to do business. In 2003 the World Economic Forum ranked Israel 
20th out of 102 countries in its growth competitive index, and the 
World Economic Forum's technology index ranked Israel 9

[[Page 25303]]

before Canada, which is 11; Norway, 13; Germany, 14; the United 
Kingdom, 16; and the Netherlands, 18.
  Israel is carrying out far-reaching economic reforms on the OECD's 
recommendation with respect to taxes, labor, competition, capital 
markets, pension funds, energy, infrastructures, communications and 
transport. And I believe the important aspect of what Israel is doing 
is, in the region, it provides for a stabilizing force of democracy and 
an economic arm of democracy helping its Mid East neighbors to join as 
well along the pathway of democracy and economic improvement. And so I 
believe this is a very important legislative statement for us to move 
forward in encouraging the admission of Israel into the OECD. And as 
well, I think it says again that we are standing alongside of Israel in 
its attempt to embrace all who want to follow the pathway of democracy.
  Might I say that I hope that we will also have this impact on the 
Palestinians as they work toward democracy, and this shared influence 
will impact the region positively.
  Likewise, as I close, let me say that we hope that the President of 
Iran will find his moral compass to cease such horrible and atrocious 
language that would suggest the elimination of a country that promotes 
democracy and cares for its people, like Israel. Israel shares a 
commitment to democratic government and the market economy, and that is 
the foundation of the Organization for Economic Co-operation and 
Development, and this legislation should be passed.
  Mr. Speaker, I rise in support of H. Res. 38, ``Expressing support 
for the accession of Israel to the Organization for Economic Co-
operation and Development (OECD).''
  Since the establishment of the State of Israel in 1948, the Israeli 
economy has been steadily transformed from an economy supported by 
farmers on hillsides to a technologically advanced and services-based 
economy. Trade liberalization, abolition of exchange controls, adoption 
of modern corporate governance rules and intellectual property 
protection enhancement have led to the establishment of a healthy 
economic environment ripe for domestic and foreign investment. 
Encouragement to high-tech industries and a wide network of 
international commitments have reinforced the beneficial effects.
  Israel has been trying to join the Organization for Economic Co-
operation and Development (OECD) since 2000, when it met the OECD's 
membership requirements relating to industrial and per-capita product 
criteria. Membership in the OECD would strengthen Israel's status on 
the global market and within international financial institutions, 
lowering the risk factor on foreign loans to Israel. Israel's economic 
and technological standing could potentially benefit OECD member 
countries in the science and technology, including high-technology, 
sectors.
  Israel is already a high powered, technologically advanced society 
with a thriving economy that will add to the mission of the OECD. The 
World Bank ranks Israel among the 25 countries in which it is easiest 
to do business. In 2003, the World Economic Forum ranked Israel 20th 
out of 102 countries in its Growth Competitiveness Index, and the World 
Economic Forum's Technology Index ranked Israel 9th, before Canada 
(11th), Norway (13th), Germany (14th), the United Kingdom (16th), and 
the Netherlands (18th). Israel is carrying out far reaching economic 
reforms based on the OECD's recommendations with respect to taxes, 
labor, competition, capital markets, pension funds, energy, 
infrastructures, communications, and transport.
  I support H. Res. 38 for the foregoing reasons, and I appeal to my 
colleagues to follow suit.
  Mr. LANTOS. Mr. Speaker, I have no additional requests for time. 
Before yielding back the balance of my time, I would like to make a 
general statement on this very important piece of legislation. 
Unfortunately, the world is filled with rogue states, failed states, 
basket-case states, states that neither politically nor economically 
function in a viable fashion. And to have the President of Iran call 
for the physical extermination of one of the relatively small number of 
democratic, viable, prosperous, civilized societies is the ultimate 
outrage of recent pronouncements by political leaders on the face of 
this planet.
  I commend my colleague from Florida for introducing this important 
resolution, recognizing that Israel is one of the minority of states 
which are democratic, prosperous and civilized.
  I strongly urge all of my colleagues to vote for this resolution.
  Mr. GENE GREEN of Texas. Mr. Speaker, I rise today to offer my 
support for House Resolution 38 and to strongly urge my colleagues to 
support this resolution as well.
  The Organization for Economic Co-operation and Development (OECD) is 
a group of 30 member countries--including the United States--sharing a 
commitment to democratic government and the market economy.
  Its work covers economic and social issues from macroeconomics, to 
trade, education, development and science and innovation.
  Israel has been attempting to join the OECD since 2000, when it met 
the organization's industrial and per-capita product criteria.
  Not only could OECD membership enhance Israel's status in the global 
market and within international financial institutions but also other 
OECD countries could potentially benefit in the science and high-tech 
sectors due to Israel's economic and advanced technological standing.
  Israel also shares the commitment to democratic governance and free 
market principles that are the foundation of the OECD.
  As a result, in December 2004, Israel was invited, on an ad hoc 
basis, to participate as an observer in discussions of the trade 
committee of the OECD and has participated in numerous other OECD 
activities, however it has not been granted full membership.
  House Resolution 38 expresses that the United States supports full 
membership for Israel in the OECD based on its commitment to democracy, 
the market economy, and OECD's principles and mission.
  Mr. Speaker, I fully support Israel's membership in the OECD, and 
urge my colleagues to join me in supporting this resolution.
  Mr. LANTOS. Mr. Speaker, I yield back the balance of my time.
  Ms. ROS-LEHTINEN. Mr. Speaker, I thank the gentleman from California 
(Mr. Lantos) for his help on this resolution as well as the gentleman 
from Illinois (Mr. Hyde).
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  The SPEAKER pro tempore (Mr. Culberson). The question is on the 
motion offered by the gentlewoman from Florida (Ms. Ros-Lehtinen) that 
the House suspend the rules and agree to the resolution, H. Res. 38, as 
amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Ms. ROS-LEHTINEN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this question will 
be postponed.

                          ____________________