TRADE AGREEMENT COMPLIANCE AND MONITORING: OMAN

UNCLAS MUSCAT 001423 SIPDIS SIPDIS STATE FOR NEA/ARP, EB/TPP FOR EKOCH STATE PASS USTR FOR JBUNTIN COMMERCE FOR COBERG DUBAI FOR DWILLIAMS E.O. 12958: N/A TAGS: ECON ETRD PREL MU SUBJECT: TRADE AGREEMENT COMPLIANCE AND MONITORING: OMAN REPORT REF: SECSTATE 152063 The Embassy has keyed the following responses to reftel request: ¶A. The Economic/Commercial officer is responsible for monitoring agreements and responding to trade barrier complaints. The Economic/Commercial officer works with the Political/Economic chief, the Agricultural Trade Office (ATO) Director stationed in Dubai, the Deputy Chief of Mission, and the Ambassador in resolving such complaints. ¶B. The Embassy's point of contact is Economic/Commercial officer Brian Grimm, who can be reached at 968-24-698-989, extension 332 or on his mobile at 968-99-459-887. His email address is GrimmBM@state.gov ¶C. The Embassy assisted Washington agencies in resolving two main compliance issues during the calendar year. First, in March 2006, the Embassy received a complaint via ATO Dubai that two U.S. beef shipments had been detained at an Omani port of entry. Econoff confirmed with officials from the Ministry of Agriculture and Fisheries that only one shipment had been detained for lack of documentation, while the other shipment never arrived in Oman. Upon further questioning, these officials confirmed that the Ministry was no longer issuing permits for U.S. beef imports based on USG reports of two BSE cases to the World Organization for Animal Health (OIE). Econoff inquired about the notification procedure, noting that the Embassy had not been informed of the Ministry's decision. One official replied that the Ministry was not obligated under Omani law to notify interested parties of these types of actions in writing. He added that importers generally are kept abreast of the latest developments through their dealings with the Ministry. He further explained that the Ministry would not forecast when it would resume issuing permits. Emboffs then raised this issue with the Minister of Commerce and Industry. The Minister stated that he had spoken with the Agriculture and Fisheries Minister about the restriction on U.S. beef. He reiterated that Oman had not officially banned imports of U.S. beef and had not taken formal action to impose new conditions on such imports. Emboffs replied that imposition of any conditions on the importation of U.S. beef without a scientifically confirmed basis would not be acceptable. During an April follow-on meeting with ATO Dubai Director and Econoff, the Ministry of Agriculture and Fisheries confirmed that no ban on U.S. beef would be imposed. In a late May note verbale, Oman reaffirmed its commitment to permit the importation of U.S. beef. Second, the Embassy worked closely with USTR and the Commerce Department's Office of Anti-boycott Compliance to ensure Oman's non-compliance with the Arab League boycott of Israel. In September 2005, Econoff and USDOC Anti-boycott officials discussed several incidences with the Ministry of Commerce and Industry and those entities which used boycott language in commercial documentation, including Omantel and Sultan Qaboos University. Assurances were received from all parties to remove such language, and the Minister of Commerce and Industry wrote to the US Trade Representative to assure him that Oman did not impose any type of boycott against Israel. In February 2006, the Minister of Commerce and Industry reminded the President of Sultan Qaboos University to remove references to outdated boycott language. In March 2006, the Embassy received several assurances from the Ministry of Foreign Affairs that Oman's participation in the Arab League boycott had been rescinded and that its personnel were instructed not to attend boycott meetings. Consequently, in July 2006, Treasury removed Oman from the list of countries participating in the Arab League boycott of Israel. ¶D. The Embassy maintains close contact with the Ministry of Commerce and Industry, the Omani Center for Investment Promotion and Export Development, the Oman Chamber of Commerce and Industry, the Muscat American Business Council, ATO Dubai, and relevant Washington agencies in the monitoring of trade compliance issues. GRAPPO