Identifier
Created
Classification
Origin
05MUSCAT150
2005-01-26 13:14:00
UNCLASSIFIED
Embassy Muscat
Cable title:  

FTA PREPARATION: MEPI-FUNDED SEMINAR DRAWS LARGE

Tags:  ETRD BEXP KMPI EFIN EINV ECON PREL MU 
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UNCLAS E F T O SECTION 01 OF 02 MUSCAT 000150 

SIPDIS

SENSITIVE/NOFORN

STATE FOR EB/TPP, EB/IFD, NEA/PI (SFRANCESKI),NEA/ARPI
STATE PLEASE PASS USTR/JBUNTIN
ABU DHABI FOR MEPI/HWECHSEL AND MHOPKINS
USDOC FOR 4520/ITA/MAC/AMESA/OME/MTALAAT

E.O. 12958: DECL: 01/26/2015
TAGS: ETRD BEXP KMPI EFIN EINV ECON PREL MU
SUBJECT: FTA PREPARATION: MEPI-FUNDED SEMINAR DRAWS LARGE
CROWD


Classified By: Ambassador Richard L. Baltimore, III.
Reasons: 1.4 (b) and (d).

-------
Summary
-------

UNCLAS E F T O SECTION 01 OF 02 MUSCAT 000150

SIPDIS

SENSITIVE/NOFORN

STATE FOR EB/TPP, EB/IFD, NEA/PI (SFRANCESKI),NEA/ARPI
STATE PLEASE PASS USTR/JBUNTIN
ABU DHABI FOR MEPI/HWECHSEL AND MHOPKINS
USDOC FOR 4520/ITA/MAC/AMESA/OME/MTALAAT

E.O. 12958: DECL: 01/26/2015
TAGS: ETRD BEXP KMPI EFIN EINV ECON PREL MU
SUBJECT: FTA PREPARATION: MEPI-FUNDED SEMINAR DRAWS LARGE
CROWD


Classified By: Ambassador Richard L. Baltimore, III.
Reasons: 1.4 (b) and (d).

--------------
Summary
--------------


1. (SBU/NF) A recent MEPI-funded seminar in Muscat on Trade
in Services attracted over 75 participants from a dozen Omani
government agencies as well as the private sector. The
highly interactive two-day event revealed several areas of
concern leading up to the March opening of free trade
agreement (FTA) talks, i.e. telecommunications, investment,
and developing a strong legal team within the government for
FTA purposes. Some of the participants believed that Bahrain
had not negotiated aggressively enough, to the detriment of
future FTA seekers such as Oman. End Summary.


2. (U) On January 8-9, the Omani Ministry of Commerce and
Industry (MoCI) hosted a successful two-day seminar on Trade
in Services as part of the Middle East Partnership
Initiative's trade technical assistance program. Renowned
consulting firm Booz Allen Hamilton (BAH) carried out the
seminar in cooperation with the Embassy and MoCI.
Approximately 75 participants from over a dozen government
agencies and the private sector attended the workshop, which
provided an overview of the services, financial services,
telecommunications, and investment chapters of bilateral free
trade agreements (FTAs) negotiated by the United States.

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Broad Swathe of Questions
--------------


3. (SBU/NF) Remarkably for a seminar of this nature, the
participants (many of whom hold mid-to-senior level positions
in their agencies) stayed for the entire program; several
officials even believed a longer program would have been
useful to review the highly technical nature of FTA services
chapters. Another notable quality of this training was its
interactivity; the participants did not hesitate to ask
numerous technical questions, particularly on
telecommunications and investment. Other questions broached
possible negotiating positions, to which the BAH trainers
responded "that's up to the two governments to decide." A
number of queries had a protectionist bent, most notably in
the telecommunications area. A representative from the
Education Ministry wanted to know what other countries were
including in their educational exemptions. The Ministry of
Health is seeking foreign direct investment in hospitals,
which indicates another probable area of interest to the
Omanis. On the investment chapter, real estate was also
raised as a big Omani concern, especially allowing Americans
the right to own property on par with Omani nationals.

--------------
Lessons from Bahrain
--------------


4. (SBU/NF) Some participants conveyed the impression that
Bahrain essentially "signed on the dotted line" and did not
really negotiate with the USG, which puts Oman at a relative
disadvantage coming on the heels of the Bahrain agreement.
Essentially, these participants wanted to know if Oman truly
has latitude for discussion or if there is to be no deviation
from the Bahraini model.

--------------
Comment
--------------


5. (SBU/NF) This MEPI activity was very successful in
boosting the Omani government's FTA readiness. Overall, the
Omani participants seemed committed and involved, and ready
to do their homework. Based on an informal readout from the
BAH trainers afterwards, Oman will need additional work in
the telecommunications and legal areas in advance of the FTA
negotiations. Moreover, Omani officials have not developed
any sort of internal matrix regarding probable legislative
changes that will be necessary in order to meet FTA
baselines. Nevertheless, BAH informally assessed that the
Omani government's preparations for FTA negotiations appear
further along than Bahrain had been at a similar stage. We
will continue our extensive set of consultations, including
the coordination of digital videoconferences and
teleconferences on issues such as telecommunications and
intellectual property rights, in order to achieve greater
preparedness for the March opening of FTA talks in Muscat.
BALTIMORE