UAE Press Highlight FTA "Progress"

UNCLAS SECTION 01 OF 02 ABU DHABI 000240

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR NEA/ARP, EBB/TPP/BTA
STATE PASS USTR FOR AUSTR DONNELLY AND DOUG BELL
TREASURY FOR AHMED SAEED

E.O. 12958: N/A
TAGS: ETRD EINV PREL AE
SUBJECT: UAE Press Highlight FTA "Progress"


1. (SBU) On February 13, the UAEG issued a press release on the
progress of the free trade agreement negotiations and on the
intention to restart the Trade and Investment Framework Agreement
(TIFA) Council that received extensive UAE press coverage. The
UAEG's press release specifically did not mention the expiration of
the U.S. Trade Promotion Authority (TPA),or the impossibility of
concluding the FTA before expiration of TPA. Unfortunately, based
on the headlines, several of the local papers appear to have gotten
a much more positive impression about the near term prospects of the
FTA than the UAEG may have intended to give.


2. (U) On February 13, the UAEG issued a press statement on the
progress of the free trade agreement negotiations and on the
intention to restart the TIFA council that was covered by all papers
in the UAE. Although the articles all drew from the press release,
many of the headlines were very bullish, including: Al-Itihad
(Arabic) "Notable Progress in E-Commerce and Intellectual Property
Rights Issues: Resumption of the UAE-U.S. Free Trade Negotiations;"
Gulf News (English) "Officials breathe new life into UAE-US FTA:
Parties reviewed progress in London last week, with significant
ground being made." Al-Khaleej's (Arabic) headline was the most
restrained (and accurate): "A meeting in London to discuss the Free
Trade Zone: The UAE and USA Agree to activate the Framework
Agreement to enhance bilateral trade and investment (TIFA)."


3. (U) The UAE's news agency WAM carried a press release in both
English and Arabic. The Arabic press quoted Dr. Kharbash as saying
that the two parties would "activate" the TIFA and that there would
be a meeting this spring to discuss how to expand the TIFA and to
work on achieving progress on trade and investment issues. It noted
that "The two sides reviewed progress achieved in their
negotiations, including notable progress in standardization,
environment, e-commerce, market access, intellectual property, and
textiles." It also said that the parties would focus on a number of
issues in the coming periods including e-commerce and intellectual
property rights. In addition, the release cited the excellent trade
and investment relationship between the U.S. and the UAE, noting
that the UAE is the third largest Arab exporter to the U.S. (second
largest non-oil Arab exporter) and that the U.S. is one of the most
important sources of goods for the UAE after China and Japan. WAM's
English Language press release, contained below, was slightly less
detailed. The English Language Khaleej Times article, had a fairly
complete rendition of the press release.



4. (U) Begin Text of WAM English language press release

Abu Dhabi, Feb 13th,2007(WAM)--Free Trade Talks between the UAE and
the United States have achieved progress in many aspects, notably in
the areas of standards, environment, e-commerce, penetration to
markets and copyrights.

According to a statement issued Monday by the Ministry of Finance
and Industry, the two sides will build on the progress made so far
to clear the rest of the hurdles.

"The two sides have agreed to redouble efforts to resolve the
outstanding issues, notably issues related to digital economy and
other issues that are still impeding the smooth flow of trade
between the two countries", the statement said.

UAE and U.S. officials met in London on Feb. 9th, to review the
progress by the various negotiation teams. At the end of the
meeting, the two sides renewed their commitment to expedite the
talks with the view of ultimately reaching a free trade agreement
and, eventually creation of a free trade zone.
End Text


5. (U) 5. (U) Begin Text of Khaleej Times Article


UAE makes progress in trade talks with U.S.
By a Staff Reporter

Abu Dhabi- Free trade negotiations between the UAE and the United
States have made progress in many aspects, notably in the areas of
standards, environment, e-commerce, market access and copyrights.

According to a statement issued yesterday by Ministry of Finance and
Industry, the two sides will build on the progress made so far to
clear the rest of the hurdles.

"The two sides have agreed to redouble efforts to resolve the
outstanding issues, notably issues related to digital economy and
other issues that are still impeding the smooth flow of trade
between the two countries," the statement said. The two sides also

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agreed to reactivate the Trade and Investment Framework Agreement
(TIFA) and the talks in this regard would take place in spring this
year.

Sheikha Lubna Al Qasimi, Minister of Economy led the UAE team during
the talks held in London on February 9. Dr. Mohammed Khalfan bin
Khirbash, Minister of State for Financial and Industrial Affairs,
and other high-ranking officials also participated in the meeting.


The two sides reviewed the progress on trade talks and renewed their
commitment to expedite the talks with the view of ultimately
reaching a FTA and, eventually creation of a free trade zone.

End Text


6. (SBU) Comment: The UAEG's press release specifically did not
mention the expiration of the U.S. Trade Promotion Authority (TPA),
or the impossibility of concluding the FTA before expiration of TPA.
According to MinFin A/US Khalid Al-Bustani, the UAE decided not to
refer to TPA, "given that this was a U.S. domestic matter."
Unfortunately, based on the headlines, several of the local papers
appear to have gotten a much more positive impression about the near
term prospects of the FTA than the UAEG may have intended to give.

Sison