Thread: RIPPLES from Dubai outward

What will the Dubai debacle cost us?
Now the deal is done, it's time for American companies to face the economic consequences of politicians' public statements.
By Nelson D. Schwartz, FORTUNE Europe editor
March 10, 2006: 10:50 AM EST


NEW YORK (FORTUNE) - So the Dubai ports deal is done, a United Arab Emirates-owned company has backed down, and CNN anchor (and deal opponent) Lou Dobbs is going to have to find something else to talk about. But the after-effects are likely to be felt in boardrooms across America as well as on Capitol Hill and in Arab capitals from Riyadh to Bahrain and Cairo.

That's because while the decision Thursday by Dubai-based DP World to complete its takeover of the U.K.'s P&O while transferring or selling the U.S. operations may placate opponents on Capitol Hill, it's likely to worry major American exporters such as Boeing (Research), GE (Research) and other companies that see growing opportunity in the oil and money-rich Gulf.

Does anyone out there believe in globalization?
The dispute over whether a Dubai company should be able to operate U.S. ports is only the tip of the (xenophobic) iceberg. Read the column

"Our members are very concerned about what the failure of this deal means," says Bill Reinsch, president of the National Foreign Trade Council, a Washington trade association that represents large U.S. multi-nationals. "They haven't wanted to be visible but they're very concerned about the signals the U.S. is sending out."

Indeed, The Hill, a Washington newspaper that covers Congress, reported that Dubai's royal family is "furious at the hostility both Republicans and Democrats on Capitol Hill have shown toward the deal."

And with Boeing hoping to land a major order for its new 787 Dreamliner with Dubai-based airline Emirates down the road, the stakes are high. Elsewhere in the region, the UAE's Etihad Airways has already ordered more than $1 billion worth of 777s, and Egyptair and Royal Jordanian are longtime Boeing buyers.

"These are important customers for us in an important, growing market," says Boeing spokesman John Dern. "We are with these customers all the time. We haven't seen any impact at this point, and have no indication there will be an impact." Dern wouldn't say whether Boeing execs have specifically discussed the ports controversy with potential customers, but he notes that "we're certainly monitoring the situation."

Don't expect news of any public threats or cancelled orders to come from the Gulf in the coming days or weeks. "That's out of character for the Gulf states," says Reinsch. "It's more likely they'll just act, and suddenly a deal is off."

Reinsch adds he that the doesn't think opponents of the deal on Capitol Hill gave much thought to the possibility that blocking the deal could boomerang and end up hurting U.S. companies. "It's the law of unintended consequences," he says.

The biggest loser in the short-term, according to Reinsch, is the Bush administration, which has been trying to create a Middle East free trade zone modeled on NAFTA that would extend trade privileges with the United States to countries from North Africa all the way to Iraq by 2013.

Jordan and Morocco have already signed deals with the United States, and Bahrain and Oman are in the final stages of negotiations. "These countries are not without resources and they can't help but react negatively when they're thrust into this."

Now that DP World has given up, the action will likely move behind closed doors, far away from the media attention that made the controversy such a hot topic, especially on the cable gab-fests (including those on CNN, the parent of CNNMoney.com).

Companies like Boeing are likely to work their contacts in the region, and try to patch things up. And former Bush administration economist and American Enterprise Institute Fellow Phillip Swagel says the Gulf states should send emissaries to meet with outspoken port deal opponents like New York Senators Chuck Schumer and Hillary Clinton and explain to them the economic power of the Gulf region.

Not a bad idea but whether Schumer, Clinton and other politicians understand the economic consequences of their public statements, rather than the political benefits, is another matter.

http://money.cnn.com/2006/03/10/news/in ... /index.htm

Now that DP World has given up, the action will likely move behind closed doors, far away from the media attention that made the controversy such a hot topic, especially on the cable gab-fests (including those on CNN, the parent of CNNMoney.com).

Now isn't that just like an elite globalist ? He doesn't think the American people (or any worker from around the world, probably ), should have a right to know what is happening in their country. The "elite" shall make our decisions for US, so that our time is free to work for them.

We have something to be glad of though. This guy works and lives in Europe. Let's hope he stays there.

Europe, if he's an American, we apologize.

Originally Posted by JuniusJnr

What will the Dubai debacle cost us?

Dubai's royal family is "furious at the hostility both Republicans and Democrats on Capitol Hill have shown toward the deal."

Too freakin' bad! We have to do what is right for America, not Dubai!!

When are these idiots going to get that through their heads!?!

This glogalization stuff was sold to us that it would enable the rest of the world to have their standards of living rise to be like ours, but what is happening in reality is, our standard of living is lowering to meet theirs!!

This globalization is a big failure for us in the U.S. I say we need to stop it, or slow it down big time, and impose tarriffs on all those cheap products getting dumped here by countires that pay their laborers fifty cents a day! Stop this outsourcing garbage and make stuff here again!

I disagree with this writer wholeheartedly. I don't think our national security is a good trade for management of a port facility. I do NOT understand why we have foreign companies operating ANY of our ports.

If we lose some 'business' deals b/c Dubai lost 'face' we'll have to work around that. There's far too much emphasis on 'business' as it is. If they were all that worried about 'business' then they should have made better trade agreements for the last 30 years...and should not be so quick to 'flip off' the fact that much of our job base has been 'outsourced'. Having Americans out of work hasn't bothered them so far...certainly shouldn't bother a European.

It doesn't matter WHAT we do...some European has something critical to say about us. Their jealousy runs deep.

RR

If we lose some 'business' deals b/c Dubai lost 'face' we'll have to work around that.

How true. And it isn't like they don't "lose face" with their conniving ways every day on their own without any help from us. There whole philosophy about business is to screw someone else before they screw you, isn't it?

So what if we lose their business? Who cares? Maybe now that will teach us to be more independent and start making our stuff here. I'd rather pay alittle more to have our stuff made here then to have it made elsewhere by slave laborers at the cost of our economic freedom and national security. Jorge Bush and his foreign minions can go pound sand.

Dman, do I detect anger in your recent posts?
What is this nation coming to when it's citizens display anger? tic dman..tic

We've been patient far too long.

RR

ANGRY WHO'S ANGRY

:

U.S.

That's who !

I couldn't believe that A.H. Bush yesterday, mouthing off about how this makes the US look bad to the rest of the world.

On the morning news they said the cancelation of the deal came from Karl Rove's office and it was seen as an effort to avoid the embarresment for the President when the Congress would overide his first veto.

So, I can't believe his handelers let him mouth off like that all day. It was making me sick. I was just like he was saying "America will be seen as racist toward Arabs." This just proves he and his family have been in bed the the terrorists for a long time.

I didn't see him but I saw a picture of his face on another forum that came from a newspaper somewhere. He looked like he was holding back vomit!

That will teach him to mess with the American people! Like I said, let's keep plugging away at those senators. There are more of them than there are him and they want to be re-elected.

Any word on why that Secretary of the Inferior stepped down? Probably sick of the cloak and dagger games going on up there and didn't want to be the next scapegoat!