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