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WASHINGTON, Mar 11 (AFP): Free-trade talks between the United States and United Arab Emirates Friday fell victim to a political furore among US lawmakers over a UAE company's aborted takeover of US ports.
President George W Bush warned that the controversy could hurt US strategic interests in the Middle East, while Treasury Secretary John Snow said the United States must guard against trade protectionism.
A day after Dubai Ports World said it would cede control of the six ports, sparing the Bush administration a showdown with Congress, officials said the trade negotiations with the Gulf state had been postponed.
No date has been set for the next round of talks, which had been scheduled for next week in the UAE, said Neena Moorjani, spokeswoman for the office of the US Trade Representative.
Meanwhile, President George W Bush said Friday that Congress forcing a United Arab Emirates company to sell its US port operations was sending the wrong message to allies and the move caused immediate trade repercussions.
The United States and the United Arab Emirates have postponed free-trade talks that were due to start next week, amid warnings of trade isolationism.
Bush said he was worried about the diplomatic impact after Dubai Ports World (DP World) was forced to give up control of six US ports.
"I'm concerned about a broader message this issue could send to our friends and allies in the world particularly in the Middle East," Bush said one day after DP World gave in to massive Congress pressure over a Middle East firm controlling US ports.
Bush called the United Arab Emirates "a committed ally in the war on terror. They are a key partner for our military in a critical region. And outside of our own country, Dubai services more of our military ships than any country in the world."
He said the UAE government was sharing intelligence on anti-terrorist activities and to counter nuclear proliferation. "UAE is a valued and strategic partner. I'm committed to strengthening our relationship with UAE and explaining why it's important to Congress and the American people."
DP World acquired the US port interests when it bought British firm Peninsular and Oriental Steam Navigation Co. (P and O).
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