RSS Feed MEI Podcast
scholarshelves.jpg

We Want Your Help and Your Business - Unless Its Arab

 
MEI Commentary
We Want Your Help and Your Business - Unless Its Arab
March 14, 2006
David Mack

This Perspective originally appeared in the Miami Herald on March 14, 2006.

The decision by the United Arab Emirates' Dubai Ports World to transfer its US operation to a US entity should not come as a surprise. As the company statement reads, it was done in the interest of preserving the ''strong relationship between the UAE and the United States.'' That's what allies do.

Some people are comfortable with the notion that we can rely upon our traditional allies in NATO and elsewhere around the world — ''people more like us'' — to deal with a terrorist problem that threatens all civilized countries. The reality is we are far more likely to find the critical help we need in Dubai or Jakarta than Stockholm or Paris.

The recent visit of Secretary of State Condoleezza Rice to the UAE reinforced the Bush administration's understanding of the richness of US-UAE cooperation in a variety of security-related fields. The list is long -- from port and airfield support for US Navy warships and Air Force assets covering the Afghanistan and Iraq theaters to assistance in combating money laundering. Rice called the UAE a ``good partner in the war on terrorism, a stalwart partner.''

Before 9/11, regulations for the Dubai money markets had many holes. During my tenure as US ambassador to the UAE in the late 1980s, there was potential for strategic cooperation, but much still needed to be done to make it a reality. That has changed.

Today, the US Treasury Department holds up the UAE as a model for other countries to emulate. As for customs enforcement, the authorities in Dubai host US customs agents, providing us an unparalleled ability to inspect suspicious containers before they arrive in US ports. This is another model we hope other countries will adopt, since all the efforts we make at US ports of entry may be too late.

At this point we should start thinking about what we would lose if we were perceived as treating their cooperation with patronizing contempt. The UAE government and private sector leaders I talked to were too polite to hint at retaliation, but we cannot ignore the possibility.

Furor Over Prospective Deal

During my recent visits to Dubai and Abu Dhabi, both US and senior Emiri officials briefed me on the ways the UAE is helping us combat terrorism. There is nothing we have asked of the UAE government since September 2001, and we have asked for a lot, that they have not delivered.

The controversy over the ports deal landed with the thud of a misdirected bomb. The impression was that we had hung out a sign saying, ''Help wanted in the war on terrorism. Arabs need not apply.'' Reluctantly, I had to tell the Emiris that in the current Washington environment, if you put three words together — money, Arabs, and Bush — you guarantee a political firestorm.

They are amazed that US domestic politics could have such a powerful effect on responsible members of Congress. And, they wonder if the facts would make any difference. The furor over the prospective deal with Dubai Ports World also provides some lessons on the reality of US reliance on foreign capital and our double standards on foreign investments. At a time when the Bush administration is pursuing a free trade agreement with the UAE and other Arab markets to open the door for US companies, we are shutting the door to foreign investors at home, using national security as a smoke screen.

Foreign investment in our ports should not be confused with security. Our government, not the terminal managers, always will have the chief responsibility to guarantee port terminal security.

Dispel the Myths

On recent trips to the region, I found much interest in investing in this country. But nervousness over the potential political backlash is causing businessmen to explore other options.

We can use all the foreign capital we can get to help reduce our $700 billion global trade deficit. And we can certainly benefit from the international security support and political goodwill that comes with increasing international commercial cooperation.

It is time to dispel the myths about Arab investment that stir up anxieties and negative attitudes toward our trade partners. Increasing our international commercial cooperation not only provides economic benefits but also strengthens support in the Global War on Terror. The UAE government has acted more quickly and firmly than most in the region. Regardless of how the DP World affair plays out, now is not the time to turn our backs on our friends.

David L. Mack is Vice President of the Middle East Institute. He served as Deputy Assistant Secretary of State for Near Eastern Affairs and US Ambassador to the United Arab Emirates, and also held diplomatic postings in Iraq, Jordan, Jerusalem, Lebanon, Libya, and Tunisia.

Disclaimer: Assertions and opinions in this Commentary are solely those of the above-mentioned author(s) and do not reflect necessarily the views of the Middle East Institute, which expressly does not take positions on Middle East policy.
Save the Date!