UAEG ARTICULATES POSITION ON GATS, TRIPS, AND NAMA

C O N F I D E N T I A L ABU DHABI 001267 SIPDIS STATE FOR NEA/ARP, NEA/RA AND EB/TPP/MTA/IPC STATE PASS USTR - KALVAREZ AND JBUNTIN AMEMBASSY TUNIS - HOLD FSI FOR OLIVER JOHN USDOC FOR USPTO USDOC FOR 4250/DOC/MAC/ONE/CLOUSTAUNAU GENEVA PASS USTR E.O. 12958: DECL: 03/17/08 TAGS: PREL KIPR ETRD TC SUBJECT: UAEG ARTICULATES POSITION ON GATS, TRIPS, AND NAMA REFS: A) STATE 50753 B) STATE 26895 C) STATE 19378 ¶1. (U) Classified by DCM Richard Albright for reasons 1.5 (b) and (d). ¶2. (C) Summary and comment: Following his return from the WTO services negotiations in Geneva, UAE Ministry of Economy Director of WTO Affairs (and head of the UAE's delegation) Saeed Al-Nasibi confirmed to Econoff on March 15 that the UAE will submit an initial offer on services commitments -- but not by March 31 -- and is unlikely to consider liberalization of service sectors in the near future. Al-Nasibi also said that the UAEG would not support recent U.S. proposals on Paragraph 6 of the Doha Declaration on Public HEALTH and Non-Agricultural Market Access (NAMA). Although Al- Nasibi articulated clearly the UAEG's position on these issues, he and his staff could benefit from a better understanding of our proposals and how they factor into the dynamics of WTO negotiations. End summary and comment. UAE Will Not Open Services Sectors -------------- ¶3. (C) Al-Nasibi confirmed that the UAE will submit an initial GATS offer on services commitments, but "like almost everyone else in the WTO," will not meet the March 31 deadline. Our interlocutor acknowledged the benefits of liberalization of services (per ref A),but said that the UAE is not ready for foreign competition. Despite calls for liberalization from business-minded Dubai, Al-Nasibi intimated that conservative elements within the Abu Dhabi Government opposed any moves to open most services sectors. He speculated that financial services would be the first area the UAEG would eventually open to foreigners. No Support For U.S. Moratorium On TRIPs... -------------- ¶4. (C) Al-Nasibi also confirmed that the UAE would not add its name to the list of countries to voluntarily "opt out" of the compulsory licensing mechanism should a public HEALTH crisis arise (ref B). He noted that any solution under the Doha Declaration should be made available to all WTO members regardless of their development status; the UAE is not poor in terms of revenue, but has a great need to develop its domestic manufacturing capabilities. Al-Nasibi also said that the U.S. definition of "public HEALTH crisis" is too narrow, and the UAEG should be allowed to determine its own public HEALTH situation and make vital medicines available to all. The UAE position -- which is congruent with the EU proposal on Paragraph 6, according to Al-Nasibi -- is that WTO Members should consult with the World HEALTH Organization to find a permanent solution. ...Or The U.S. Proposal On NAMA -------------- ¶5. (C) In response to the U.S. proposal on non-agricultural market access submitted to the WTO in December (ref C), Al-Nasibi complained that the timetable for the reduction of tariffs to 5 percent by 2010, and elimination of tariffs by 2015, was entirely too long. The UAE already has an applied external tariff of 5 percent and is willing to reduce that further through multilateral negotiations and in conjunction with the GCC Customs Union. While the UAEG supports the spirit of our proposal, Al-Nasibi said they could not support the current language and favor a more aggressive timetable for the elimination of non-agricultural tariffs. Wahba