Identifier
Created
Classification
Origin
05ABUDHABI883
2005-02-23 12:06:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:  

EMIRATI PREPARATIONS FOR FTA TALKS CONTINUE

Tags:  ETRD ECON ELAB KBCT TC 
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Diana T Fritz 12/06/2006 02:49:30 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
C O N F I D E N T I A L ABU DHABI 00883

SIPDIS
CXABU:
 ACTION: POL
 INFO: FCS RSO AMB DCM P/M MEPI ECON

DISSEMINATION: POL
CHARGE: PROG

APPROVED: AMB:MJSISON
DRAFTED: ECON:OJOHN
CLEARED: DCM:RALBRIGHT

VZCZCADI597
PP RUEHC RUEHZM RUEHDE RUEHGV RUCPDOC RUEHC
RHEHNSC
DE RUEHAD #0883/01 0541206
ZNY CCCCC ZZH
P 231206Z FEB 05
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 8380
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHDE/AMCONSUL DUBAI PRIORITY 4877
RUEHGV/USMISSION GENEVA
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RHEHNSC/NSC WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000883 

SIPDIS

STATE FOR NEA, NEA/ARPI, NEA/PI
STATE FOR EB, EB/TPP/BTA
STATE PASS USTR FOR DOUG BELL
GENEVA FOR LABOR ATTACH
COMMERCE FOR BIS/NWEANT

E.O. 12958: DECL: 02/23/2015
TAGS: ETRD ECON ELAB KBCT TC
SUBJECT: EMIRATI PREPARATIONS FOR FTA TALKS CONTINUE

REF: ABU DHABI 711

Classified By: Ambassador Michele J. Sison for reasons 1.4 (b and D)

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000883

SIPDIS

STATE FOR NEA, NEA/ARPI, NEA/PI
STATE FOR EB, EB/TPP/BTA
STATE PASS USTR FOR DOUG BELL
GENEVA FOR LABOR ATTACH
COMMERCE FOR BIS/NWEANT

E.O. 12958: DECL: 02/23/2015
TAGS: ETRD ECON ELAB KBCT TC
SUBJECT: EMIRATI PREPARATIONS FOR FTA TALKS CONTINUE

REF: ABU DHABI 711

Classified By: Ambassador Michele J. Sison for reasons 1.4 (b and D)


1. (C) Summary: On February 19 Minister of Economy Sheikha
Lubna Al-Qasimi told Ambassador that she understood that
labor was a potential "show stopper" for the USG on the FTA,
and that the UAE Minister of Information had stressed to the
UAE cabinet that the UAEG needed to push forward with labor
reforms rapidly. She also said that MinState for Finance
Khirbash would have the lead in the negotiations, despite her
co-chair status. Ras Al Khaima Crown Prince and businessman
Sheikh Saud Al-Qasimi complained that the UAEG was not doing
enough to keep businesses informed about the negotiations.
Ambassador passed Sheikha Lubna a list of the 11 Arab League
boycott cases that had been received over the last quarter.
End Summary.

Labor
--------------


2. (C) On February 19, Ambassador met with Minister of
Economy Sheikha Lubna Al-Qasimi to discus the upcoming FTA
talks. Ambassador highlighted labor issues -- and the lack
of an ILO compliant labor law -- as continuing issues of
serious concern for the USG. Sheikha Lubna said that she,
and other UAE cabinet members, understood that labor rights
could be an FTA "show stopper" for the USG. She added that
UAE Information Minster Sheikh Abdullah bin Zayed Al-Nahyan,
who had recently visited Washington and met with Ambassador
Zoellick on the FTA, had taken over 15 minutes of the weekly
cabinet meeting to emphasize that the UAEG needed to push
forward rapidly with labor reforms. She also suggested that
the Ambassador "gently" underscore the labor issue with Abu
Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan and
Dubai Crown Prince Sheikh Mohammed bin Rashid Al-Maktoum.
MinFin A/US Khalid Al-Bustani subsequently told EconChief
that the labor chapter of the draft UAE FTA text was much
"tougher" than that in the other agreements he had reviewed.
EconChief reiterated our concerns that the UAE labor law be

ILO compliant.

FTA Teams
--------------


3. (C) In response to Ambassador's question about the
division of labor between her and Dr. Khirbash, she said that
she saw Dr. Khirbash as playing the leading role. She also
explained that Assistant Undersecretary for Economic Affairs
and International Cooperation Abdulla Al-Saleh would be the
Ministry of Economy's main senior working level coordinator
for the areas for which the Ministry of Economy was
responsible. Ambassador stressed our hope that both sides
would be able to move quickly through non-controversial
topics and then focus on resolving any areas of disagreement.
In a subsequent conversation with EconChief, MinFin A/US
Khalid Al-Bustani expressed his hope that some of the teams
would be able to "close out" their chapters quickly and would
be able to give AUSTR Novelli and MinState Finance Khirbash
an agreed product by the end of the negotiating round. He
noted, however, that the UAEG had only "just" received the
draft negotiating text and was still reviewing it. He added
that the lack of an Arabic text complicated their efforts,
and noted that he had looked for Arabic copies of the FTA's
with Bahrain and Morocco, but without success.

Arab League Boycott
--------------


4. (SBU) Ambassador passed Sheikha Lubna a list of the 11
Arab League boycott cases that had been received over the
last quarter, noting that EconChief had previously passed
them to MinEcon staff; but that she wanted to follow-up to be
sure the issues were resolved expeditiously. Sheikha Lubna
instructed her staff to contact the institutions involved and
inform them that the UAE did not/not apply the secondary and
tertiary boycott. MinEcon A/US Abdulla Al-Saleh confirmed
that he was already working on these cases.

UAE Business Concerns
--------------


5. (C) On February 20, Ambassador met with Ras Al Khaimah
Crown Prince Sheikh Saud bin Sukkur Al Qasimi and with UAE
Finance Minister Sheikh Hamdan bin Rashid Al-Maktoum and
discussed the upcoming FTA. Sheikh Saud, who has interests
in the UAE's largest pharmaceutical, cement, and ceramics
plants, complained that the UAEG was not consulting the Dubai
business community enough, although he understood that the
U.S. side was actively seeking input from the American
business community. Sheikh Hamdan said that he was looking
forward to the upcoming FTA negotiations and to AUSTR
Novelli's interest in meeting with the Dubai business
community.


6. (C) Comment: We have heard other private sector Emiratis
complain about the lack of consultation. Based on our
conversations with UAEG officials, however, the UAEG appears
very conversant with the concerns expressed by the private
sector, including the impact of the FTA on their agency
relationships. We know that Dr. Khirbash has met with
prominent merchant family members and understand that the
Central Bank either has or will send out a questionnaire to
all banks soliciting their input on their concerns. The UAEG
is, however, taking confidentiality seriously. The UAEG has
encrypted the texts and is requiring every recipient to sign
for his or her copy. According to Al-Bustani, the
negotiating committee has also prohibited the negotiators
from commenting to the press in advance of the negotiations.
End Comment
SISON