US-Oman Free Trade Agreement Implementation Act -

[Breeze54]

June 28, 2006

S. 3569, the United States-Oman Free Trade Agreement Implementation Act

http://democrats.senate.gov/dpc/dpc-new.cfm?doc_name=lb-109-2-92

Summary and Background

S. 3569, the United States-Oman Free Trade Agreement Implementation Act (the “Oman Act”), as reported by the Senate Finance Committee, would implement the United States-Oman Free Trade Agreement (the “Agreement” or the “FTA”). In 2003, President Bush announced his intent to pursue Free Trade Agreements with Oman, the United Arab Emirates (“UAE”), and other Middle Eastern nations, and to establish a Middle East Free Trade Area (“MEFTA”) by 2013, as part of its strategy to promote democratic and economic reforms in the region. The United States has already implemented Free Trade Agreements with Jordan, Morocco, and Bahrain.

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Labor

As in other FTAs, the labor chapter does not require the parties to have labor laws that meet basic, internationally-recognized standards; the parties only agree to “strive to ensure” that their labor laws are consistent with internationally recognized labor rights. Where parties fail to effectively enforce their labor laws (whatever those laws happen to be), they may be subject to dispute settlement provisions as outlined in the Agreement. The dispute settlement provisions for labor and environment issues are distinct from those applicable to other provisions of the Agreement – generally involving longer time lines and using fines rather than suspension of benefits as the penalty.

The Agreement also establishes a Labor Cooperation Mechanism, which facilitates cooperation on fundamental worker rights and their effective application, working conditions, and other relevant issues.

Oman has ratified the International Labor Organization’s (“ILO”) Convention 29 on forced labor, Convention 182 on the worst forms of child labor, Convention 105 on the abolition of forced labor, and Convention 183 on the minimum age of employment. Oman has ratified the United Nations Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women and Children. Oman also has a U.S.-funded technical assistance program with the ILO.

Omani workers had no representation prior to the 2003 labor law, which created worker representative committees. Oman and the USTR argue that these serve similar purposes as unions, but others have pointed out that management serves on the representative committees. About 30 representative committees had been formed as of May 2006, according to the United States Embassy in Oman. The law also provides for dispute settlement between employers and employees, fines for violations of the law, maximum working hours, and equal treatment for women. Labor issues are discussed more fully below in the section entitled, “Other Considerations.”

Labor. (“Other Considerations”)

A number of Democrats have raised concerns about Oman’s labor laws. Until 2003, unions were outlawed in Oman. Starting in 2003, Oman allowed worker representation committees, which Oman maintains serve similar functions to unions. House Democrats have argued that in various areas – both in law and enforcement – Oman’s laws do not meet the basic “core” standards established by the International Labor Organization. Specifically, concerns have been raised about the role of management in the representation committees, whether there is a right to strike in practice and in law, whether there is a right to engage in collective bargaining in practice and in law, and whether there are adequate protections for foreign workers. USTR and the Government of Oman maintain that in law and in practice, Oman’s labor standards do meet ILO minimums. Oman has agreed to make additional changes to its laws in October of this year. Negotiations with House Democrats had been ongoing but are unresolved as of the date of this document.

:redbox: In addition, the Bush Administration stripped out a Conrad/Bingaman/Kerry amendment adopted unanimously (on a recorded vote) by the Senate Finance Committee. The amendment would have prohibited any goods made with slave labor, forced labor, or labor that had been subject to human trafficking from benefiting from the preferential access provided for in the FTA. The genesis for this amendment was a report alleging that companies in Jordan were importing workers from Bangladesh, Pakistan, and other poor countries, taking away their passports, working them 80-100 hours per week, paying them inadequately if at all, and subjecting them to physical intimidation and in some cases violence. The report alleged that many of these workers actually paid recruiters thousands of dollars to get these “good jobs” and so could not leave until they had earned enough money to pay off their debts.

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Proponents and Opponents

Supporters of the Oman FTA include the Business Roundtable, the U.S. Chamber of Commerce,
the National Association of Manufacturers, and the Emergency Committee for American Trade.

The FTA is opposed by 400 organizations, including all of the leading labor unions.
Other opponents include faith-based organizations such as the Presbyterian Church USA and the
United Methodist Church. Environmental groups such as the Defenders of Wildlife, Friends of the
Earth, Sierra Club, and the Western Organization of Resource Councils also oppose the Oman FTA.

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U.S.-Oman Free Trade Agreement Implementation - Key Vote (How all members voted)

http://www.votesmart.org/issue_keyvote_member.php?cs_id=V3902

IL - Jr Senator Barack H. Obama - Democrat - Y

NY - Jr Senator Hillary Rodham Clinton - Democrat - Y

AZ - Sr Senator John S. McCain - Republican -Y

:wtf: They both voted FOR this?