As opposition to Dubai Ports World’s (DP World) impending takeover of six U.S. port facilities grew among Republicans, as well as Democrats, the company on March 9 announced its decision to back out of the deal. DP World is owned by the government of the United Arab Emirates and operates ports in many countries.

While Democratic senators such as Hillary Clinton and Charles Schumer from New York led the anti-Dubai campaign, threatening to introduce legislation to “ban companies owned by foreign governments from controlling operations at U.S. ports,” more and more Republicans joined in.

On March 8 the House Appropriations Committee voted 62-2 to reject any deal allowing DP World to take over port operations in Baltimore; Miami; New Orleans; New York; Newark, New Jersey; and Philadelphia.

Bush threatened to veto legislation that would block the deal, but that didn’t have much of an effect. When his press secretary, Scott McClellan, refused to repeat the veto threat March 9, the New York Times said he “appeared to signal that the White House was backing away from its position.”

“In the case of the port deal, the political considerations are clearly paramount for Republicans,” said the Times, referring to the November congressional elections.

DP World had taken over a British-based company’s port operations, which included those in the U.S. cities. On March 9, the company’s top executive, Edward Bilkey, announced that the company would “transfer fully” the U.S. part of its acquisition to a still unnamed company based in the United States. “This should make the issue go away,” said Senate majority leader William Frist, with a sigh.  
 
 
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