Arlen Specter: “As our economy sinks further into recession, OPEC, which controls about 40 percent of the world oil supplies, has…”

“As our economy sinks further into recession, OPEC, which controls about 40 percent of the world oil supplies, has announced its biggest single production cut ever. As a result, since December 17 when the cartel announced its record production cuts, oil prices have risen 40 percent. For decades, the members of OPEC have conspired to manipulate oil prices by limiting the number of barrels sold. U.S. antitrust laws explicitly prohibit conspiracies in restraint of trade, which include agreements to cut production in an effort to cause prices to rise. Cartel activity by OPEC members clearly violates U.S. antitrust laws. Unfortunately, OPEC members have escaped liability for their antitrust violations. The Foreign Sovereign Immunities Act makes foreign states liable under U.S. law for their commercial activities but not their governmental activities. In International Association of Machinists v. OPEC, a California district court held that OPEC's cartel activity was governmental activity, not commercial activity, and was therefore immune from the antitrust laws. On appeal, the Ninth Circuit affirmed. These court decisions were wrong. Government-owned companies engaged in purely business activities are subject to the antitrust laws. That is why Senator Kohl and myself as well as nine other cosponsors are reintroducing the No Oil Producing and Exporting Cartels Act, or NOPEC.”