Flurry of bills would restrict port control

By William E. Gibson

Washington Bureau Chief

 

March 2, 2006

 

WASHINGTON · Alarmed about Arab control of seaport operations in Miami and five other cities, South Florida members of Congress proposed legislation on Wednesday that would ban foreign governments from managing U.S. ports.

 

A flurry of legislation on Capitol Hill signaled swift action to try to prevent Dubai Ports World, a company controlled by the United Arab Emirates, from taking over partial management of the six ports. A federal commission has approved the deal, but a public uproar prompted the company to agree to a 45-day review by President Bush.

 

The bills introduced Wednesday go well beyond the Dubai deal to address national security concerns about port management by China, Singapore and other countries.

 

"We were careful not to just zero in on this one transaction," U.S. Rep. Clay Shaw, R-Fort Lauderdale, told reporters on Capitol Hill. "We are concerned about the whole question of foreign operators doing business here in the United States."

 

Shaw, chairman of the House trade subcommittee, said the flap could complicate U.S. efforts to encourage foreign trade and investment. "It's not going to be a positive effect, that's for sure. But we are still going forward, negotiating a free-trade agreement with the UAE."

 

Shaw's bill would not block foreign-based corporations from managing U.S. ports, which would disrupt current operations in Miami and elsewhere. It focuses on companies controlled by foreign governments.

 

The bill's impact on Dubai depends on when it would be enacted and when and whether the deal is completed.

 

A similar bill sponsored by U.S. Rep. Debbie Wasserman Schultz, D-Weston, would block the Dubai deal while preventing takeovers from any company controlled by foreign governments. Her bill is identical to one introduced in the Senate by Hillary Rodham Clinton of New York, Bob Menendez of New Jersey and Bill Nelson of Florida.

 

Only 6 percent of cargo entering U.S. ports is screened, forcing the nation to rely on port operators, Wasserman Schultz said. "We simply cannot allow these operators to answer to a foreign government."

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