UAE NEGOTIATOR BULLISH ON ONGOING FTA NEGOTIATIONS

C O N F I D E N T I A L ABU DHABI 000313 SIPDIS SIPDIS STATE PASS TO USTR E.O. 12958: DECL: 01/30/2016 TAGS: ECON PREL ETRD AE SUBJECT: UAE NEGOTIATOR BULLISH ON ONGOING FTA NEGOTIATIONS REF: A. ABU DHABI 235 ¶B. 05 ABU DAHBI 4306 Classified By: AMBASSADOR MICHELE J.SISON FOR REASONS 1.4 B & D. ¶1. (U) The fourth round of FTA talks between the US and the UAE began January 30 in London. The UAE's lead negotiator, Mohammad Khalfan bin Kharbash, Minister of State for Financial and Industrial Affairs, told UAE English-language daily Gulf News the negotiations have made remarkable progress as some issues including e-commerce, technology and tax waivers are expected to be resolved. "Negotiations have reached an advanced stage," he said. "We have now reached an agreement on tax waivers, and the exchange of commodities will soon take place." Kharbash also reported "good progress on the negotiations during the last three rounds and in continuing contacts between the delegations." In previous rounds, agreements were concluded in the agricultural, labor and the environmental chapters. ¶2. (SBU) This round of FTA talks is focusing on customs agreements, intellectual property, services, telecom, e-trade, financial services, textiles, and government procurement. Kharbash is quoted voicing similar positive comments on progress made in four Arabic dailies as well. Ambassador met with Kharbash on January 25 to discuss the fourth round of negotiations; they agreed on the need to maintain momentum in London (ref A). Kharbash suggested moving the most contentious issue (jurisdiction) to the "political level" so that negotiators could focus on making progress in other areas. He also added that both governments were committed to moving forward on the FTA. Kharbash identified four areas that had proven to be tough: telecom, investments, financial services, and the related issues of jurisdiction, security of assets and taxation. He also said it was important for our respective governments to look at the bigger picture and the practical benefits of an FTA. ¶3. (C) Comment: Kharbash's remarks to the UAE English and Arabic language media reflect an upbeat approach, in contrast to the mood observed just after the October 2005 third round, when UAE Deputy Prime Minister/Minister of State for Foreign Affairs Sheikh Hamdan bin Zayed said he was disturbed by the performance of both sides during the FTA talks on October 7(ref B). End comment. SISON