Schumer of Arabia

by Wall Street Journal

Here's a question for New York Senator Charles Schumer: Why can Arab allies of the United States be trusted to manufacture microprocessors here but not be trusted to manage the commercial activities of US ports? Two years ago the hyperactive Democrat led efforts to block a United Arab Emirates company -- Dubai Ports World -- from operating six US ports. So imagine our surprise to find the Senator at a press conference last week outside of Albany, where he was taking credit for a deal between computer chip maker Advanced Micro Devices and an Abu Dhabi sovereign wealth fund to build a plant in upstate New York. "Bringing AMD to New York is something we worked on long and hard, and I'm glad to see it bear fruit," said Mr. Schumer, who was flanked by former AMD Chairman Hector Ruiz. "I've worked closely with Dr. Ruiz over the last few years to make sure AMD has everything they need to bring this plant to the capital region." Standing nearby was Hillary Clinton, the junior Senator from New York who also opposed the Dubai deal. In 2006, Mr. Schumer said that letting a state-run company from a friendly Arab nation manage port operations was "a homeland security accident waiting to happen." Port security is the responsibility of the Coast Guard and US Customs officials, not port management companies. And the Dubai deal had already been cleared by the Departments of Treasury, Defense and Homeland Security. But thanks to Mr. Schumer's politically motivated alarmism, the deal fell through and Dubai Ports was forced to divest itself of US holdings. Now comes another foreign investment venture from the same Arab nation. Under the plan announced last week, Abu Dhabi's investment fund will own a majority stake in a new corporate entity being spun off from AMD. New York lured the company by offering $1.2 billion in grants and tax breaks to locate in the state. Mr. Schumer's reaction is to not only endorse the deal but also take more credit than he deserves for making it happen. Plans for the plant were first announced in 2006 by AMD and former Governor George Pataki but were stalled due to AMD's recent financial troubles. We're happy to see Mr. Schumer's change of heart about foreign direct investment in the U.S. Economically depressed upstate New York can certainly use the 1,500 jobs that the new facility is expected to create. But the Senator's about-face also exposes the faux outrage of his earlier claim that such investments threaten national security. Mr. Schumer's opposition to Dubai Ports World had everything to do with politics in an election year. Democrats wanted to play to their protectionist base while also appearing to take a tougher stance on homeland security than the Bush Administration. Republicans like New York Representative Peter King, who was looking to distance himself from an unpopular President, were all to willing to go along for the ride. Properly vetted foreign investment in the U.S. should be welcome, not rejected for political reasons. This investment often leads to domestic jobs and economic growth. And in the case of UAE, it's coming from one of America's strongest Middle East allies in the war on terror. Mr. Schumer might keep this in mind going forward, even for deals that don't directly benefit his home state.