On the February 28 edition of Fox News' Special Report with Brit Hume, Fox News correspondent Major Garrett reported that "[t]he head" of Dubai Ports World [DPW] said he “didn't know” that the United Arab Emirates (UAE) enforces a trade embargo with Israel. DPW, which is owned by the government of Dubai, a UAE member state, struck a controversial deal with the Bush administration to assume operations at six major U.S. ports. In fact, DPW's retiring chief operating officer Edward H. Bilkey was aware of the embargo and confirmed as much at a February 28 Senate Commerce Committee hearing.

From the February 28 edition of Special Report:

GARRETT: One other issue arose today. The United Arab Emirates enforces a trade embargo against Israel. The head of Dubai Ports World said he didn't know that, but lawmakers now do, and they don't like it one bit.

In fact, as the Los Angeles Times reported on March 1, at a February 28 Senate Commerce Committee hearing, Bilkey “confirmed that the same UAE-owned holding company that owns Dubai Ports World also owns a Dubai customs office that enforces the nation's participation in an Arab League boycott of products made in Israel.” The New York Times further reported on March 1 that Bilkey initially denied that DPW was “involved in matters of state-to-state policy,” but, when pressed, eventually confirmed that the boycott was being enforced.

From the March 1 New York Times article:

At a hearing of the Senate Commerce Committee, Edward H. Bilkey, the chief operating officer of Dubai Ports World, was pressed by several Democrats about Dubai's position on the Arab boycott of Israel, following up on a report in The Jerusalem Post that said the holding company that controls Dubai Ports participated in the boycott.

Mr. Bilkey first said the company was not involved in matters of state-to-state policy. Under questioning, he conceded that he believed the boycott was in force at company ports in Dubai.

However, he added later: “The largest Israeli shipping company is one of our largest clients. We serve everyone in many of our terminals around the world.”

The participation in the boycott against Israel by DPW's parent company would apparently be illegal if it were a U.S. company. A March 1 United Press International article noted: “It has been illegal since 1977 for U.S. companies to comply with the boycott, by agreeing not to do business with Israel, or by certifying that their products do not contain any Israeli materials.” UPI further noted that in 2005 “two firms were fined for issuing certifications 'in connection with requests by entities in the United Arab Emirates to support the Arab League boycott of Israel,' according to a Commerce Department official authorized to speak to the media.”

Sen. John Kerry (D-MA) was quoted in The New York Times March 1 article saying: “This boycott not only violates at least the spirit of U.S. law ... it is inconsistent with everything we believe in as Americans.” UPI quoted a spokesman for Sen. Bill Nelson (D-FL) saying that the “spirit and intent of the law” were at stake, and "[t]he reason it is illegal (to comply) is because we oppose the boycott."