On the right path, more work needed to gain broad congressional support

WASHINGTON -- Ways and Means Trade Subcommittee Ranking Member Benjamin L. Cardin issued the following opening statement during today’s full committee hearing on a potential US-Oman free trade agreement:

“Oman has been a long-standing friend and ally of the United States and I hope we can conclude a free trade agreement, however, I must raise an important concern that prevents me from endorsing the agreement at this time.  The structure of the Oman FTA, like those of other, recent trade agreements, provides that countries must only enforce their own laws when it comes to basic labor standards.  This is the only enforceable provision in the chapter on labor and there is no requirement that countries bring their laws into compliance with internationally recognized standards. 

“When ‘enforce your own laws’ is the model we are using in FTAs, it is important that a country’s labor laws meet basic international standards.  Unfortunately, at this time Oman’s labor laws do not meet these standards.  Last month Oman committed to issue a number of decrees by October 31, to address certain areas in which its laws fall short of basic international standards.  While this is a positive development, a question arises - if we are being asked to vote on this FTA now, why can’t Oman bring its laws into compliance with international standards immediately? 

“I believe Oman’s commitments are an important step in the right direction, however there is more work that needs to be done before we are able to get the kind of bi-partisan support the US-Bahrain FTA had.  The key to broad congressional support for the Bahrain FTA was a detailed agreement reached between our two governments regarding labor laws.  I think we’re on the right path, but there are several steps that must be taken before this agreement can achieve broad congressional support. 

“Finally, Oman currently benefits from the US Generalized System of Preferences, and  because of this, they must be moving towards ILO standards, so I think it’s important that the final agreement reached meet the standards of the Bahrain FTA.  We’re not there yet, but I hope we can get there.” 

Specific commitments made by Bahrain missing from potential US-Oman FTA:

• Bahrain was able to demonstrate how the application of their labor laws was consistent with International Labor Organization (ILO) standards at the time the FTA was considered by Congress.
 
• Bahrain made commitments to formally change all labor laws found inconsistent with ILO standards.
 
• Bahrain made a commitment to introduce these formal changes immediately - before the U.S. House voted on the FTA.
 
• United State Trade Representative Portman sent a letter to the government of Bahrain reflecting a joint agreement between the two countries that Bahrain’s commitments to continue applying its laws in an ILO consistent manner and to formally change its laws into compliance with ILO standards would be considered as “matters arising under the agreement.”  No such commitment has been made by Oman.

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