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.

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SUMMARY
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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.

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WAITING FOR THE PRESIDENT'S SIGNATURE
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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.

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TAKING STOCK
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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.

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PROMOTING THE FTA
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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.

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ACTION REQUESTS
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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