CAGW Says ''No'' to NOPEC

2008-05-21 23:31:42 -

www.cagw.org - Citizens Against Government Waste (CAGW) today decried the passage of H.R. 6074, The Gas Price Relief for Consumers Act of 2008, better known as NOPEC. The measure was approved in the House by a vote of 324 to 84.

"This is yet another fruitless attempt to convince taxpayers and consumers into thinking that Congress is 'doing something'

to lower gas prices," declared CAGW President Tom Schatz. "It will do nothing to affect the price of fuel and, if it becomes law, could even raise costs."

H.R. 6074 would amend the Sherman Act and make it illegal for any foreign state to act collectively with another foreign state to limit production, control the price of any petroleum product, or restrain trade for any petroleum product when "such action has a direct, substantial, and reasonably foreseeable affect on the market, supply, price, or distribution of oil, natural gas, or other petroleum product in the United States." It would authorize the Justice Department to bring an enforcement action and file an antitrust lawsuit in any federal court against the Organization of Petroleum Exporting Countries (OPEC).

"Because this legislation changes the Sherman Antitrust Act, it should have been deliberated in the Judiciary Committee. Instead, it was considered under the suspension rules in which amendments cannot be offered and voted on," continued Schatz. "No doubt, if H.R. 6074 becomes law, it will be challenged under the World Trade Organization rules that will open up other problems for the nation. Furthermore, if a country is found guilty of colluding to set prices and refuses to stop, how will the law be enforced? Will the U.S. impose trade sanctions or take more drastic action?"

"Congress has only itself to blame for much of the energy woes we are seeing today," concluded Schatz. "Congressional policies of the last 30 years have made the United States more dependent on OPEC countries for the nation's energy needs. The best way to reduce energy prices over the long term is to allow more domestic production, not to pass foolish laws that will do nothing to make the nation less reliant on foreign energy markets."

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

CAGW
Leslie K. Paige, 202-467-5334
or
Alexa Moutevelis, 202-467-5318