Protectionist Dream; Free Market Nightmare

One of the risks of the Dubai/ports deal might well play out very soon in the U.S. economy. Recently another Dubai acquisition has drawn scrutiny from the U.S. Congress - this time a Dubai private equity firm's purchase of Doncasters, a British aerospace manufacturer that provides parts to U.S. aircraft.

Even if there were legitimate security questions regarding the ports deal, protectionist members of Congress (and friends of labor unions) now have a perfect (and maybe even popular) excuse to turn down very standard acqusitions in the name of national security. While the headlines are true that Doncasters provides critical engine components to both commercial and military aircraft, the same can be said of thousands of other foreign companies.

I hope that Congress and the media will be responsible in separating national security interests from protectionist rhetoric in future business deals. Otherwise there might be a retrenchment from global capitalism, which is not good for Americans or the rest of the world.