MEDIA REACTION: A/USTR NOVELLI'S VISIT TO THE UAE TO

UNCLAS SECTION 01 OF 02 ABU DHABI 001297

SIPDIS

STATE FOR NEA/ARP; NEA/PPD; NEA/RA; INR/R/MR; PA;
INR/NESA; INR/B; IIP/G/NEA-SA
WHITE HOUSE FOR PRESS OFFICE; NSC
SECDEF FOR OASD/PA
USCINCCENT FOR POLAD
LONDON FOR GOLDRICH; ALSO FOR MOC
PARIS FOR ZEYA

E.O. 12958: N/A
TAGS: OIIP KMDR TC
SUBJECT: MEDIA REACTION: A/USTR NOVELLI'S VISIT TO THE UAE TO
NEGOTIATE FTA, MARCH 8-10



1. SUMMARY: ALL LOCAL ELECTRONIC AND PRINT MEDIA PROMINENTLY
COVERED ASSISTANT USTR CATHERINE NOVELLI'S MARCH 8-10 VISIT TO
THE UAE TO NEGOTIATE THE FTA. ABU DHABI PA ARRANGED A PRESS
ROUNDTABLE WITH FOURTEEN LOCAL AND REGIONAL PRINT MEDIA, IN
ADDITION TO ONE-ON-ONE TELEVISION INTERVIEWS WITH ABU DHABI TV,
DUBAI TV, AL ARABIYA AND MBC. SEPARATE BRIEFING WAS HELD WITH
SENIOR EDITORS FROM AL KHALEEJ AND GULF NEWS. HER MEETINGS WITH
OFFICIALS AND ARTICLES WITH PHOTOGRAPHS FROM THE PRESS ROUNTABLE
AND THE ONE-ON-ONE INTERVIEWS WERE PUBLISHED ON FRONT PAGES IN
ALL ENGLISH AND ARABIC LOCAL AND REGIONAL NEWSPAPERS. THE ONE-ON-
ONE TV INTERVIEWS WERE BROADCAST MORE THAN ONCE THROUGHOUT THE
THREE DAY VISIT. END OF NEGOTIATION JOINT PRESS CONFERENCE
GENERATED STORIES AND PHOTOGRAPHS IN ALL DAILIES. END SUMMARY.


2. DURING HER VISIT TO THE UAE, A/USTR NOVELLI GAVE ONE-ON-ONE
TELEVISION INTERVIEWS TO ABU DHABI TV ON MARCH 8, DUBAI TV, AL
ARABIYA AND MBC ON MARCH 9. ABU DHABI TV AND DUBAI TV CARRIED
THE INTERVIEW IN THEIR TWO MAIN EVENING NEWS CASTS. AL ARABIYA
AND MBC CARRIED THE INTERVIEW THREE TO FOUR TIMES IN THEIR MAIN
NEWS CASTS.


3. DURING THE PRESS ROUNDTABLE ON MARCH 8, A/USTR WAS ASKED
ABOUT THE BENEFITS OF THE FTA AND SAUDI OPPOSITION TO THE
BILATERAL AGREEMENT. SHE ASSERTED THERE WERE NO POLITICAL PRE-
CONDITIONS IMPOSED ON THE UAE AND ANSWERED QUESTIONS ABOUT
WHETHER THE UAE WOULD BE COMPELLED TO EASE THE BOYCOTT OF ISRAEL.
ARTICLES APPEARED ON MARCH 9-10, 2005.


4. THE GULF NEWS (ENGLISH, CIRCULATION 95,000) FRONT PAGE
ARTICLE WAS TITLED "BILATERAL FREE TRADE PACTS WILL BENEFIT GCC,
SAYS U.S." THE ARTICLE STRESSED THAT THE U.S. SUPPORTS THE GCC
BUT WILL CONCLUDE FREE TRADE AGREEMENTS ON A BILATERAL BASIS WITH
THE MEMBER STATES. THE ARTICLE NOTED NOVELLI'S COMMENTS THAT THE
FTA AGREEMENTS ARE COMPLEMENTARY TO THE GCC AGREEMENT. THE
ARTICLE ALSO NOTED THAT NOVELLI STATED THAT SIGNING THE FTA "WILL
NOT COMPEL THE UAE TO EASE THE BOYCOTT OF ISRAEL."


5. KHALEEJ TIMES (ENGLISH, CIRCULATION 70,000) FRONT PAGE
ARTICLE ENTITLED, " TREATY NOT TO THREATEN OTHER GCC COUNTRIES.
THE ARTICLE NOTED THAT NOVELLI DID NOT EXPECT THE NEGOTIATIONS TO
FACE SERIOUS OBSTACLES, AND SHE WAS QUOTED, "AND IF WE DO, THERE
ARE NO HITCHES THAT CANNOT BE OVERCOME."


6. AL ITTIHAD (ARABIC, CIRCULATION 65,000) FRONT PAGE ARTICLE
ENTITLED "THE U.S. DENIES IMPOSING ANY POLITICAL TERMS AS PART OF
FTA. THE UAE ENDEAVORS TO CONCLUDE A BALANCED AGREEMENT." THE
ARTICLE QUOTED NOVELLI, "WASHINGTON CONSIDERS THE AGREEMENT AN
EXCELLENT OPPORTUNITY TO EXPAND COMMERCIAL TIES."


7. AL BAYAN (ARABIC, CIRCULATION 90,000) FRONT PAGE ARTICLE
ENTITLED "LIFTING ISRAEL'S BOYCOTT IS NOT A SUBJECT OF DISCUSSION
IN THE FTA TALKS." HALF PAGE ARTICLE IN THE BUSINESS SECTION
NOTED THAT HEAD OF THE U.S. DELEGATION POINTED OUT THAT THE FIRST
ROUND OF NEGOTIATIONS IN THE UAE IS AN IMPORTNMAT STEP TOWARDS
FREE TRADE IN THE MIDDLE EAST.


8. AL KHALEEJ (ARABIC, CIRCULATION 85,000) FULL PAGE ARTICLE
ENTITLED "THE FREE TRADE AGREEMENT DOES NOT OBLIGATE THE UAE TO
ANY POLITICAL CONDITIONS." A/USTR REITERATED HER NATION'S
CONCERN ABOUT THE INTEGRATION OF THE GCC COUNTRIES AS A POLITICAL
AND ECONOMIC ENTITY. A/USTR NOTED THE FTA'S ECONOMIC ADVANTAGES
FOR THE UAE. THE ARTICLE QUOTED NOVELLI, "THIS AGREEMENT IS A
CHANCE TO BROADEN THE ECONOMIC, TRADE AND INVESTMENT TIES."


9. THE IN DEPTH DISCUSSION WITH "AL KHALEEJ" AND "GULF NEWS"
SENIOR EDITORS RESULTED IN ARTICLES ON MARCH 10. "AL KHALEEJ"
PUBLISHED HALF PAGE ARTICLE IN THE BUSINESS SECTION WITH
HEADLINES OF THE ARTICLE ON THE FIRST PAGE. THE "GULF NEWS"
ARTICLE WAS A FIRST PAGE ARTICLE.


10. "Al Khaleej" Front-page headline read: "The Senior U.S.
negotiator tells Al-Khaleej: `We do not intend to implement our
laws in the UAE'." The newspaper carried a headline on page one
of the Business Supplement: "Cathy Novelli, the senior American
negotiator tells "Al-Khaleej": "We do not aim to implement our
laws in the UAE, but demand transparency." Points covered in the
articles directly addressed local fears about US intentions in
pursuing an FTA.
-- Novelli, "the UAE would be capable of playing a distinctive
role in world economy having succeeded, in a such a short period
of time, in achieving huge economic gains for its national
economy, the best in the whole region."
-- "The UAE is expected to attract more direct American
investments following the signing of the FTA, noting that
American direct investments in the UAE are $ 1.4 billion now, and
this is expected to increase sharply during the next few years."
-- The U.S. does not aim to impose its regulations in the UAE,
but expects that UAE laws are comparable to similar international
regulations, and transparent.
-- Discussions about labor laws in the UAE are focused on
ensuring that those laws are compatible with international
standards, not specifically American laws.
-- The agreement does not give American companies a priority for
contracts, but guarantees them fair and just evaluation.
-- The agreement does not qualify American companies for
privileges provided to the national (UAE) companies, as this is
an internal issue and not part of the discussions.
-- The U.S. expects its companies to operate in the UAE without a
(local) sponsor and to sell their commodities without an agent
and this right is guaranteed for the UAE companies seeking to
operate in the U.S. markets. She said these are general terms
applicable in all our foreign agreements. Companies must decide
whom the local distributor or the agent is, but must not become
hostage to one person because they want to develop their
business. If the local agent does not suit them they should be
able to look for an alternative. " I believe that local agents
have invested huge amounts to develop their business and most
American companies want to maintain their regional partners."
-- American companies like to operate in countries that have
sound regulatory and legislative infrastructure; investment
requires guarantees and transparency. "We hope our banks will
come and establish branches here and become capable of doing
business, however these banks must get UAE approval and meet all
the local conditions and laws. If American banks want to open
branches here they must adhere to local regulations including
those regarding human resources.


11. "Gulf News" front page headlined "Trade agreement by the end
of the year," and the subtitle was "UAE and U.S. laws must meet
international standards." A/USTR told the Gulf News that she
sees no obstacles to signing the FTA with the UAE. She added:
"We are not saying that you have to change your law in accordance
with the US demand. But it is necessary to see different laws in
both countries in compliance with the international laws both
countries have signed." A/USTR Novelli also noted that
developments in the UAE have made the market attractive for
companies from all around the world. She explained that US trade
with Jordan has increased fivefold after signing the agreement
and noted: "I believe the UAE will benefit even greater (than
Jordan) since the economy here is highly prepared for such a
move."


12. Joint press conference which concluded the round of
negotiations resulted in upbeat articles and photos in all
papers. Selected titles:
Khaleej Times: UAE-USA FTA talks `flexible'
Al Bayan: Second round will be in May: Positive spirit prevails
in the FTA talks with the US
Gulf Today: FTA talks end on upbeat note
ALBRIGHT