[Congressional Record (Bound Edition), Volume 152 (2006), Part 4] [House] [Pages 4958-4961] [From the U.S. Government Publishing Office, www.gpo.gov]EXPRESSING SENSE OF CONGRESS THAT SAUDI ARABIA SHOULD FULLY LIVE UP TO WORLD TRADE ORGANIZATION COMMITMENTS AND END BOYCOTT ON ISRAEL Mr. SHAW. Mr. Speaker, I move to suspend the rules and agree to the concurrent resolution (H. Con. Res. 370) expressing the sense of the Congress that Saudi Arabia should fully live up to its World Trade Organization commitments and end all aspects of any boycott on Israel. The Clerk read as follows: H. Con. Res. 370 Whereas the United States supported the accession of Saudi Arabia to the World Trade Organization (WTO) in 2005; Whereas, as part of the working party report for the accession of Saudia Arabia to the WTO, Saudi Arabia reiterated its commitment to terminate the secondary and tertiary boycotts on Israel; Whereas Saudi Arabia also committed not to discriminate against any WTO members and specifically did not invoke the non-application provisions of the WTO Agreement, and thus has rights and obligations to all WTO members, including Israel; Whereas, in spite of these commitments to WTO members and United States officials, press reports indicate that an official of the Government of Saudi Arabia has stated that Saudi Arabia has not committed to ending the primary boycott on Israel, which would violate Saudi Arabia's WTO obligations toward Israel; Whereas United States Trade Repre- senative Portman has testified to the Committee on Ways and Means of the House of Representatives that Saudi Arabia's application of the boycott is a ``big concern'' of the United States; that Saudi Arabia did not invoke non-application of WTO commitments to Israel, so that Saudi Arabia is required to provide nondiscriminatory treatment to Israel; and that the United States Trade Representative has received assurances from Saudi Arabia that it will abide by its WTO commitments; and Whereas the Organization of the Islamic Conference (OIC) scheduled its ``Ninth Meeting of the Liaison Officers of Islamic Regional Officers for the Boycott of Israel'' for the week of March 13, 2006, at the OIC's headquarters in Saudi Arabia: Now, therefore, be it [[Page 4959]] Resolved by the House of Representatives (the Senate concurring), That it is the sense of the Congress that-- (1) Saudi Arabia should maintain and fully live up to its commitments under the World Trade Organization (WTO) and end all aspects of any boycott on Israel; and (2) the President, the United States Trade Representative, and the Secretary of State-- (A) should continue their active involvement on this issue by strongly urging the Government of Saudi Arabia to comply with its WTO obligations; and (B) should urge Saudi Arabia to end any boycott on Israel. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Florida (Mr. Shaw) and the gentleman from Maryland (Mr. Cardin) each will control 20 minutes. The Chair recognizes the gentleman from Florida. Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume. I am delighted to introduce this resolution and support it, which has also the support of the gentleman from Maryland (Mr. Cardin) and I believe probably is one of the best bipartisan resolutions to come before this Congress in a while. This resolution would express the sense of the Congress that Saudi Arabia should fully live up to its World Trade Organization commitments and end all aspects of any boycott on Israel. In 2005, the United States supported the accession of Saudi Arabia to the World Trade Organization. During this process, Saudi Arabia reiterated its commitment to terminate the secondary and tertiary boycotts on Israel. Additionally, it committed not to discriminate against any World Trade Organization members; and specifically, it did not invoke the nonapplication provision of the World Trade Organization agreement. Because of this, Saudi Arabia has rights and obligation to all the World Trade Organization members, including Israel. Given this, we should not have to be here today debating this resolution on the floor of the House. Instead, today Members should be able to praise Saudi Arabia for its forward thinking and its upcoming expanded role in the global economy. Unfortunately, though, many of my colleagues and I have read press reports that an official of the government of Saudi Arabia has stated that Saudi Arabia has not committed to ending the primary boycott on Israel. This would be a clear violation of its World Trade Organization commitments to Israel. I am pleased that when United States Trade Representative Rob Portman testified before the Ways and Means Committee he stated that Saudi Arabia's application of the boycott is a big concern of the United States. He also reiterated that Saudi Arabia is required to provide nondiscriminatory treatment to Israel. I appreciate Ambassador Portman's efforts in this area. This resolution would provide further support for the stated position of the USTR by establishing that it is the sense of the Congress that Saudi Arabia should maintain and fully live up to its commitments under the World Trade Organization and end all aspects of any boycott on Israel. It also urges the President, the U.S. Trade Representative and the Secretary of State to continue their efforts to ensure that this is exactly what happens. I ask my colleagues to vote ``aye'' on this resolution. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I am pleased to join the gentleman from Florida (Mr. Shaw) in introducing this resolution we are considering today. As Mr. Shaw pointed out, last year the United States negotiated a bilateral trade agreement with Saudi Arabia which paved its admission into the WTO in December. A key commitment as part of the United States' agreement with the Saudis was that they would not have any further boycott with Israel, either primary or secondary. It was also clear that they would not invoke the nonapplication provision of the WTO agreement, meaning that it agreed it would treat all WTO members, including Israel, equally. Yes, the primary responsibility was to eliminate the secondary boycott; but in not invoking the nonapplication provision, it agreed to treat all WTO countries equally, including Israel. This was a key commitment for the United States' approval of an agreement that paved the way for the Saudis entering the WTO. Unfortunately, the Saudis' action in recent months appears to fly in the face of that commitment. In December, Saudi officials were quoted in the press as insisting that Saudi Arabia would continue its participation in the primary boycott against Israel which prohibits imports of Israeli goods. Saudi Arabia's continued participation in the boycott conflicts directly with the country's commitment as a WTO member to treat all nations in a nondiscriminatory manner. What is even more disturbing is that Saudi Arabia has not only continued to participate in the boycott, but Saudi Arabia has helped to promote it. In March, Saudi Arabia hosted a meeting of the Organization of Islamic Conference, an international organization with 57 member countries. The purpose of this meeting was to discuss strengthening the Arab League boycott against Israel. Mr. Speaker, I believe the United States must not stand silently while the Saudis disregard the commitments that it made to us and the WTO to treat all countries equally. We must insist that the Saudis live up to their commitments. I urge President Bush, the U.S. Trade Representative and all members of the administration to call upon the Saudis to adhere to the commitments that they made to us, that they made to the WTO. It is time for them to end their boycott against Israel, not just the secondary but the primary boycott. I urge my colleagues to support this resolution. Mr. Speaker, I reserve the balance of my time. Mr. SHAW. Mr. Speaker, I reserve the balance of my time. Mr. CARDIN. Mr. Speaker, I yield 5 minutes to the gentlewoman from Nevada (Ms. Berkley). Ms. BERKLEY. Mr. Speaker, I rise in strong support of this resolution expressing the sense of Congress that Saudi Arabia should end its economic boycott of Israel. I want to personally thank the gentleman from Florida (Mr. Shaw) and my very good friend, the gentleman from Maryland (Mr. Cardin), for introducing this resolution. Mr. Speaker, no one is born knowing how to hate. Hate needs to be taught. The Saudi Kingdom, our so-called partner in peace and ally in the fight against terrorism, has turned teaching hatred into a perverted science and a twisted art form. Last year the Bush administration supported Saudi Arabia's accession to the World Trade Organization. As a condition of joining the WTO, the Saudis agreed to end all boycotts of Israel. Their Foreign Minister repeated this pledge to our Secretary of State. Israel is our strongest ally in the Middle East. This boycott has hurt Israel's economy since its founding in 1948. The Israeli Chamber of Commerce estimates that Israeli exports are 10 percent less than they would be without the boycott; investment in Israel, 10 percent lower. It is no surprise to me that the Saudis have not honored their commitment to end the boycott. The reasons to me are painfully apparent: anti-Semitism and a hatred for Israel. Saudi Arabia continues to be one of the few nations to participate in the boycott when many of its neighbors have given up. In 1990, Egypt was the first nation to abandon the boycott. Jordan followed in 1995. The Palestinian Authority dropped the boycott in 1995 as well. In 1994, several of the gulf states abandoned their secondary and tertiary boycotts. In 2005, just last year, Bahrain announced it was completely withdrawing from the boycott. The Saudi government has repeatedly said that Saudi Arabia is not anti-Semitic. Oh, really, Mr. Speaker. These are the same Saudis that support terrorism, export terrorism, finance terrorism, the same Saudis that spew racist and anti-Semitic hatred, and the same Saudis that have the worst record on the planet when it comes to religious intolerance and discrimination. [[Page 4960]] The Saudis say they share our values. Exactly what values do they think they share with the United States? They do not value a hate-free education for their children. Saudi schoolbooks paint an ugly, distorted portrait of a world in which Israel does not exist. The 9/11 attacks were perpetrated by so-called Zionist conspiracies, and the anti-Semitic and fictitious ``Protocols of the Elders of Zion'' is taught as actual history. These schoolbooks are the official publications of the education ministry. They do not value religious freedom and pluralism. Saudi Arabia bans all religions except Islam. Saudi Arabia's religious beliefs have even gone so far as banning the Barbie doll, calling them Jewish toys that are offensive to Islam. They couldn't value honesty because last year the Saudi Crown Prince told Saudi television that ``Zionists'' were behind the attack at the oil facility in Yanbu. The Crown Prince also is quoted as saying, ``Our country is targeted. You know who is behind all of this. It is Zionism.'' That is dishonest. That is a lie, Mr. Speaker. The United States Congress, by voting for this resolution, can take a strong stand against this type of religious and racial intolerance. Congress can take a strong stand on behalf of a fellow democracy and our most reliable ally in the Middle East. And Congress can take a strong stand to demand that the Saudis live up to their obligations and promises, the ones they made in order to get into the WTO with American support. I urge the Saudis to fulfill their international obligations and promises by ending the Israeli boycott. I urge immediate passage of this resolution. Mr. CARDIN. Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Davis). Mr. DAVIS of Illinois. Mr. Speaker, I thank the gentleman for yielding me this time. Mr. Speaker, I rise in strong support of H. Res. 370 expressing the sense of Congress that Saudi Arabia should fully live up to its World Trade Organization commitments and end all aspects of any boycott on Israel. I take this position because I believe that as we continue to move towards resolution of problems and towards peaceful resolution of difficulty, we have to begin someplace. I am often reminded of something that John Kennedy supposedly said, and that is that peace is not found only in treaties, covenants and charters, but in the hearts of men, and I imagine if he was around today he would say men and women. I think that resolution of this boycott would move positively in the direction of peace in the Middle East, and so I strongly support this resolution. Mr. CARDIN. Mr. Speaker, I yield myself the balance of my time. Let me just say that this is an important resolution because I think all of us believe that for peace in the Middle East it is important to open up economic opportunity within the entire region. This administration has put a priority on moving forward with free trade agreements in the Middle East with the support of both Democrats and Republicans. Because we do believe in commerce, there is an opportunity for better understanding in that region of the world. We have concluded free trade agreements with other countries and we have made it clear that the boycott against Israel must be eliminated. Not only eliminated, but the country must reach out so there is full participation among all of the countries of the region so they all can benefit economically from commerce within that region. Saudi Arabia is a major country in the Middle East. They need to exercise leadership in the Middle East. And in doing that, they must join us in our fight against terror and our fight against terrorism. They also must join us in making it clear that all countries in the Middle East need to be included in economics and commerce. They need to eliminate their boycott against Israel. We thought we had an understanding when we entered into an agreement that led to their accession into the WTO. Clearly the Saudis are not living up to that commitment. I think it is extremely important that this country make it clear that we cannot tolerate that type of conduct by the Saudis. It is time for them to end their boycott against Israel and exercise leadership in the Middle East so we can move forward with peace in the Middle East. I urge my colleagues to support this resolution. Mr. Speaker, I yield back the balance of my time. {time} 1245 Mr. SHAW. Mr. Speaker, this resolution is important beyond just the pages of the resolution itself. It is important as to the future of world trade. Are we as a member of the World Trade Organization, are we going to support the values, the obligations that we have and that other nations have to other nations within the World Trade Organization? We pride ourselves as being a government of laws. This means that we have to adhere to our own laws. And also it goes beyond that. We have to adhere to our obligations. And our trading partners should also be required to do so. But this particular one, pinpointing this boycott of Israel, is particularly important because through free trade comes understanding. It comes the free flow of goods. It also brings about the free flow of ideas which brings about understanding, which brings about world peace. This is the pathway to world peace, and there is no place it is needed more than it is in the Middle East. And our good friend Israel needs help with regard to getting along with its neighbors. And this is a good step forward. So I would ask all Members to support this resolution. Mr. LANTOS. Mr. Speaker, I rise in strong support of this bill, and I commend my good friends Mr. Shaw and Mr. Cardin for introducing this timely and very important resolution. Mr. Speaker, after a years-long quest, Saudi Arabia finally acceded to membership in the World Trade Organization late last year. Unfortunately, the Saudis acceded in letter only--and in a spirit utterly contrary to the principles of free trade embodied by that organization. Moreover, it now appears that Saudi Arabia, having gained accession, has absolutely no intention of implementing even the letter of WTO rules. As Saudi Arabia has now made clear in the aftermath of its accession, it has absolutely no intention of ending its boycott of trade with Israel. This is a direct violation of Saudi Arabia's WTO obligations to Israel. Earlier this month, as if to underscore its disregard for the WTO rules to which it is formally committed, Saudi Arabia hosted a conference called ``Ninth Meeting of the Liaison Officers of Islamic Regional Officers for the Boycott of Israel.'' Mr. Speaker, there is indeed a mechanism by which a WTO member-state can invoke an exception regarding its commitments to another member- state, but Saudi Arabia did not invoke that exception regarding Israel. And it doesn't take a genius to figure out why: The ruling royals no doubt thought that, if they invoked that exception, the U.S. Congress would persuade the Administration to veto their accession to the WTO. So they deceitfully and cynically deceived us into thinking that they had taken a dramatic decision to open trade ties with Israel, all the while planning to continue their boycott unabated. Clearly, USTR thought they had an agreement for an end to the boycott. After signing off on Saudi accession in September last year, USTR boasted that Saudi membership in the WTO meant that--and I quote from a USTR press release--``Saudi Arabia is legally obligated to provide most-favored nation treatment to all WTO members, including Israel. Any government sanctioned activity on the Boycott would be a violation of Saudi Arabia's obligations and subject to dispute settlement. This legal obligation cannot be changed.'' So the Saudis not only deceived the U.S. Congress; they have embarrassed the U.S. Trade Representative and left themselves open to dispute settlement mechanisms. Mr. Speaker, the U.S. helped shepherd Saudi Arabia into the WTO. We have a right to expect the Saudis to obey its rules. Most of all, we have a right to expect them to honor their commitments to us. Mr. Speaker, our Nation has many issues of concern regarding Saudi Arabia--including lack of human rights, a benighted educational system, and ongoing support for extremist [[Page 4961]] madrasas around the world. Nevertheless, this body has every right to expect that the Administration will place an extremely high priority on persuading the Saudis to fulfill their pledges as WTO members, particularly regarding trade with Israel. The Saudis, we now see, entered the WTO under false premises. They must put this situation aright once and for all. They must end their boycott of Israel without delay, and the Administration should not let Saudi rulers have a moment's rest until they comply. Mr. Speaker, I strongly support this resolution, and I urge all my colleagues to do likewise. Mr. ANDREWS. Mr. Speaker, after 12 years of difficult negotiation, Saudi Arabia joined the World Trade Organization last November. This was good news--the Saudi government has the potential to further join the world community as a responsible actor on the world stage, and the Saudi economy is a large one that will benefit from international trade, as will the U.S. in turn from increased commerce with the Arab nation. However, the Saudis are yet again missing a unique opportunity to reform, blinded by an irrational hatred of their neighbor, Israel. This is part of a larger fabric of unacceptable behavior on the part of Saudi Arabia, which seeks greater ties with the West while maintaining its autocratic and anti-democratic policies. State- sponsored Saudi TV regularly broadcasts not just anti-Israeli diatribes, but anti-American propaganda as well, further encouraging the attitudes that lead to terrorism. The fact that Saudi nationals continue to significantly fund international terrorism, as reported this week by the U.S. Treasury Department, means that Saudis have a long way to go to match their anti-terror rhetoric with their actions. As I have in the past, I once again call on Saudi leader Prince Faisal to take responsibility for his government's actions which promote hatred and the repercussions it has on Saudi Arabia's relations with other countries. As President Carter said in 1977, the Israeli boycott ``goes to the heart of free trade among nations,'' and is clearly unacceptable from a member of the World Trade Organization. This boycott, in place since the founding of Israel in 1945, has no place in the modern, globalized world. Recognizing this, several Gulf States are withdrawing from the boycott, and gaining both political and economic benefits. In the face of these events, Saudi Arabia's recalcitrance is all the more puzzling. Mr. Speaker, Saudi Arabia has reportedly agreed to end the secondary and tertiary aspects of the anti-Israeli boycott, but is stopping short of allowing direct trade with its neighbor. Such half-measures are clearly not acceptable. All World Trade Organization members must treat all other members equally. According to diplomats, Saudi Arabia affirmed this principle with respect to Israel before being admitted to the WTO. Today's resolution expresses the sense of Congress that Saudi Arabia must live up to its commitments as a member of the World Trade Organization and end its boycott against Israel. I strongly urge my colleagues to support this resolution. Mrs. MALONEY. Mr. Speaker, I rise in strong support of H. Con. Res. 370, a resolution that calls on Saudi Arabia to end its boycott of Israel. In 2005, Saudi Arabia pledged to the United States that it would end its boycott of Israel as part of its accession to the World Trade Organization. Foreign Minister Saud al-Faisal assured Secretary of State Condoleezza Rice that Saudi Arabia would follow all WTO rules, including the anti-boycott provisions and specifically pledged to dismantle the secondary and tertiary elements of the boycott against Israel during negotiations for WTO accession. However, shortly after joining the WTO in December, a Saudi official stated unequivocally that the boycott would be maintained. Mr. Speaker, this blatant disregard for the terms of agreement must be addressed. We must force an end to the Saudi boycott on Israel which has been going on far too long. I have been fighting the Israel boycott since I came to Congress. In 1993, I introduced H.R. 1407, the Arab Boycott Arm Sales Prohibition Act, a version of which was signed into law in September 1993. Thirteen years ago we talked about the harm the Arab boycott was causing--that it is a blatantly discriminatory practice which is contrary to free trade. It is now 2006 and we are still trying to end the boycott. Mr. Speaker, I urge this Administration to continue to take a strong position against the Saudi boycott on Israel. It undermines our efforts in the Middle East to bring peace, stability and prosperity and it runs contrary to the obligations of membership in the WTO. Mr. WAXMAN. Mr. Speaker, the Arab boycott against Israel is one of the worst vestiges of the Arab League's campaign to isolate and destroy Israel. Originating shortly after Israel's founding in 1948, the embargo's objective was to squeeze the fledgling Jewish state out of existence AND punish its allies. Israel's astonishing economic growth despite these constraints ultimately dulled the impact. Enforcement also declined after Egypt and Jordan signed peace treaties with Israel. However, the boycott continues to be a shameless exercise in blackmail. Support for the policy is unfortunately still widely popular in most Arab nations. Saudi Arabia, for its part, has been among the most vocal instigators rallying support for the boycott's continuation. Despite agreeing to provide Most Favored Nation status to all member states, including Israel, upon joining the WTO in November, Saudi Arabia continues to be a hub of boycott activity. In December, a Saudi official emphatically stated that the boycott would be maintained, and in March, the Saudi government hosted a meeting of the Organization of the Islamic Conference aimed at continuing the embargo. Unfortunately, Saudi Arabia's inconsistent track record is somewhat common among our Arab trading partners. In October 2005, just one month after Bahrain signed a Free Trade Agreement (FTA) with the United States, the Bahraini parliament voted to reject its government's decision to lift the anti-Israel embargo. Likewise, the United Arab Emirates, which is currently negotiating an FTA with the United States, has kept the policy in place. The issue recently got attention when it was revealed that a Dubai company seeking to take over operations in six U.S. ports complied with the boycott. It was revealed that the Department of Commerce's Office of Antiboycott Compliance had fined several U.S. companies in the last year for abiding by UAE's boycott rules. Oman, which has an FTA now pending before Congress, opened a trade mission with Israel in 1996, but closed the office several years later in response to anti-Israel demonstrations. The international trading system is designed not only to promote prosperity but to foster peaceful relations between nations. The United States has invested a great deal of time and effort in negotiating new trade pacts in the Middle East to build stronger ties between our countries and among our regional partners. But it is not acceptable to continue along this path if Israel is to be left out. Israel is a valuable economic partner of the United States and a strategic ally. It would be a tactical error, a moral blunder, and a departure from our own anti-boycott laws, to continue expanding our trade ties with countries like Saudi Arabia that refuse to abide by their commitments on this issue. I urge my colleagues to support this measure and take a firm stand to put an end to Saudi Arabia's duplicitous actions. General Leave Mr. SHAW. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days in which to revise and extend their remarks and include extraneous material on the subject of the bill under consideration. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Florida? There was no objection. Mr. SHAW. Mr. Speaker, I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Florida (Mr. Shaw) that the House suspend the rules and agree to the concurrent resolution, H. Con. Res. 370. The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the concurrent resolution was agreed to. A motion to reconsider was laid on the table. ____________________