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