OMAN FTA: MINISTER COMMITTED TO JAN

UNCLAS MUSCAT 001223 SIPDIS SENSITIVE SIPDIS STATE FOR NEA/ARP, EB/CBA STATE PASS USTR FOR J.BUNTIN COMMERCE FOR C.OBERG E.O. 12958: N/A TAGS: ETRD ECON BEXP KIPR PREL MU SUBJECT: OMAN FTA: MINISTER COMMITTED TO JAN IMPLEMENTATION, PROMOTION REF: MUSCAT 1155 (U) This is an action message. Please see paragraph 6. -------------- SUMMARY -------------- ¶1. (U) Commerce and Industry Minister Maqbul bin Ali Sultan expressed to the Ambassador his commitment to ensuring that necessary regulations are in place for the U.S.-Oman Free Trade Agreement to take effect on January 1, 2007. He also expressed his government's interest in promoting the FTA through its attendance at the upcoming MEFTA Investment Conference and development of FTA promotional events. End summary. -------------- WAITING FOR THE PRESIDENT'S SIGNATURE -------------- ¶2. (SBU) On August 14, the Ambassador reviewed the status of the U.S.-Oman Free Trade Agreement with Minister of Commerce and Industry Maqbul bin Ali Sultan. The Ambassador reassured Maqbul that the U.S. Senate's upcoming September vote on the FTA was a procedural formality, given that the legislation was classified as a "revenue" bill that had to originate in the House. The Ambassador then asked if Maqbul would be able to attend a possible presidential signing ceremony, should one be arranged. Maqbul responded that he most likely would be able to attend, pending the Sultan's and Cabinet's concurrence. Maqbul further remarked that the only remaining Omani government action was the issuance of a Royal Decree, which would occur once the President signed the bill into law. He noted that with the Sultan's and the Council of Ministers' approval already in hand, there would not be an official signing ceremony in Oman. -------------- TAKING STOCK -------------- ¶3. (SBU) The Ambassador, in expressing the USG's commitment to see the FTA's implementation on January 1, 2007, inquired about Omani efforts to revise those regulations currently not in compliance with FTA standards. Maqbul remarked that the government already has finished updating its corruption statutes, and is working on finalizing updates to its investment and labor codes. On revising intellectual property regulations, Maqbul expressed frustration in working with USTR. He remarked that his Ministry had made it clear early on that it did not have the expertise available to draft FTA-compliant IPR protections. Given USTR's unwillingness to provide a sample draft from which his Ministry could model, Maqbul commented that his Ministry had to turn to the World Intellectual Property Organization (WIPO) for guidance. He acknowledged the comments USTR had sent back regarding the draft copyright regulations, which the Ministry has sent to WIPO for revision, along with a copy of Bahrain's IPR regulations as an example. The Ambassador suggested that both sides may be better served by working together through a meeting of IPR officials either in Muscat or Washington, rather than working through WIPO. Both agreed that all revisions would need to be completed by mid-November. To this end, Maqbul noted that they would hold a late August stock-taking meeting to see what remained outstanding. -------------- PROMOTING THE FTA -------------- ¶4. (SBU) The Ambassador also raised Oman's participation in the Middle East Free Trade Agreement Investment Conference, scheduled for November 2-3 in London. Maqbul noted that those dates would work for him, since he will already be in London to deliver a speech on November 2. The Ambassador further asked for the Minister's thoughts on participation in a multi-state promotional tour of the United States in either the spring or autumn of 2007. Maqbul, in consultation with Minister of National Economy Ahmed bin Abdul Nabi Macki, was very receptive to the idea of leading a delegation with stops in New York, Chicago, Houston, and points to be determined on the West Coast. ¶5. (U) In a follow-on meeting with Omani Center for Investment Promotion and Export Development Executive President Salim al-Ismaily, the Ambassador stressed the importance of the delegation bringing a clearly defined message for the American business community. Ismaily agreed that preparation would be key to a successful tour and inquired about potential partners that could manage the logistics. As a starting point, the Ambassador endeavored to put OCIPED in touch with the National U.S.-Arab Chamber of Commerce and the Business Council for International Understanding. Furthermore, Ismaily expressed interest in working with the Embassy on the logistics of a one-day FTA promotional outreach event in mid-November, with the possibility of conducting an FTA promotional road-show within Oman. -------------- ACTION REQUESTS -------------- ¶6. (U) Action requests. Embassy requests Department assistance in advocating for a Presidential signing ceremony for the FTA legislation. Such a ceremony would highlight the importance of our bilateral relationship and would provide the President an opportunity to showcase a good-news event in the Middle East. On IPR, Embassy requests that USTR either send a team of experts to work directly with Omani officials in revising their regulations according to FTA standards or, alternatively, identify dates when the appropriate Omani officials could meet with IPR counterparts in Washington. GRAPPO