The news that a company based in the United Arab Emirates will be operating several seaports in the US has ignited a political firestorm. Democrats, sensing an issue they could turn to their advantage, raced to denounce President Bush even faster (and louder) than usual. However, there's no substance to their attacks. What surprises me is how many Republicans allowed themselves to be stampeded into a sort of knee-jerk, xenophobic isolationism, just to prevent Democrats from getting to the "right" of them on a national security issue in an election year.

Dubai Ports World bought the British company that held a contract to manage six US ports. Many US ports are managed by companies based in foreign countries. DPW doesn't exactly appear to be a front organisation for terrorists, having many Americans among its top leadership. More important, the UAE has been a solid ally in the War on Terror. They have provided vital information to the United States, and allowed us to base ships, troops and planes in their country. The government has worked hard to crack down on terrorist movements and financing.
 
Dubai is one of the few progressive states in the Middle East, having worked to build a real economic infrastructure not based entirely on oil. It was the first Middle Eastern country to sign up with the Container Security Initiative, which places American customs agents in foreign ports to screen cargo bound for the US. This hasn't made the UAE government very popular with its neighbors, or even with some segments of its own population. The UAE has risked much to be allied with the United States.

Yet the demands to block the sale are deafening, and are entirely based on the fact that they are -- gasp! -- Arabs. Is treating allies with fear and suspicion based on race the best way to win friends and influence people in that part of the world? Will that attitude help us win the War on Terror?

The most common misperception seems to be that Dubai Ports World would handle port security. The catchphrase du jour is, "this is like letting the fox guard the henhouse." In fact, no foreign company handles security in any US port, and nothing would change in that regard. Not that port security is anything to crow about now, of course... only between about 2% and 5% of incoming shipping containers are currently physically examined after reaching our shores. (The key is to examine them before they get here.) If we actually put known terrorists in direct charge of security, the situation could hardly get worse. Those who bluster about the impact on security should direct their efforts towards building some security to be worried about.

Some argue that terrorists could learn how our ports operate by getting jobs there. Any reasonable person would instantly realise that there is nothing preventing terrorists from getting jobs in those ports now. US regulations require US citizenship or resident alien status, as well as a background check, for jobs with any kind of security access. That, too, will not change. Others fear that terrorists would use the Dubai-managed ports to sneak into the country. Why do that, when they can simply walk across the border from Canada or Mexico, which millions do without hindrance every year?

There is no evidence to indicate that DPW has any ties to terror groups, aside from being based in the Middle East. Critics point to the fact that one of the 9/11 hijackers was born in the UAE. The fact is that you can hardly point to a country that has zero ties to terrorism. For instance, a British company is currently managing the ports in question. Richard Reid, the "shoe bomber," was born in London. The terrorists who blew up several trains and a bus on 7 July 2005 were natural-born British citizens. Yet there has been no outcry against British companies managing American transportation assets.

And that's what it comes down to -- a knee-jerk reaction to an Arab company. Funny how the Left is suddenly all in favor of racial profiling, isn't it? Should every company in the Middle East be banned from doing business in the US? Should companies run or owned by Arabs be excluded from the US, or all companies based in Muslim countries? When did we start basing business decisions on racial and religious discrimination? That's not how Americans operate. And that's not the message we need to send the world. Kicking the UAE in the face would damage US credibility at a time and in a place we need it the most.

It would be different if all foreign companies were equally excluded from managing US infrastructure. That would at least be fair to everyone. Maybe we should exclude all government-owned companies... but that would cut out many European and all Chinese companies as well. Economic isolationism will not work, nor is it in our best interests. 

Perhaps the best answer would be to invest more than words in transportation and border security, rather than sacrificing needed allies on the altar of paranoia.

24 Feb 06 UPDATE: Larry Kudlow says, "Call It What It Is: Islamophobia."

7 Mar 06 UPDATE: As I said, virtually no port security to worry about. According to an ABCNews story:

The two ports handle millions of tons of cargo, with scores of cruise ships passing through each year. Truckers who transport much of the cargo are issued ID cards, which give them access to all areas of the port.

ABC News has learned that the cards, given to thousands of truckers by the Port Authority of New York and New Jersey, were issued with virtually no background checks. The Department of Homeland Security recently investigated the New York and New Jersey ports, and found stunning gaps in security.

The new DHS report, obtained by ABC News, shows that of the 9,000 truckers checked, nearly half had evidence of criminal records. More than 500 held bogus driver's licenses, leaving officials unsure of their real identities.