UAE MAY PHASE OUT VALUE BASED CONSULAR TRANSACTIONS

UNCLAS ABU DHABI 001446 SENSITIVE SIPDIS STATE FOR NEA/ARP AND EEB STATE PLEASE PASS USTR (HIRSCH, BUNTIN) E.O. 12958: N/A TAGS: ETRD ECON EFIN PGOV AE SUBJECT: UAE MAY PHASE OUT VALUE BASED CONSULAR TRANSACTIONS REF: STATE 109713 ¶1. (SBU) On December 23, EconOff discussed the UAE's consular transactions policy (reftel) with Ministry of Foreign Trade Director of WTO Department Juma Al Kait. Al Kait said that the UAE is aware of the U.S.-Uganda WTO proposal and that other GCC members had eliminated their fees. He added that the issue had been raised in the UAE's 2006 Trade Policy Review. ¶2. (SBU) Al Kait said the UAE is not prepared to eliminate consular transactions, which represent a significant source of revenue for the federal government. The UAE is currently reviewing its policy, specifically a proposal to eliminate value-based fees associated with consular transactions. He said the UAE is considering applying a "reasonable" set fee for consularization in exchange for the service provided, as this is allowable under GATT Article VIII. However, no decision has been taken yet, and Al Kait could not predict how long the proposal would be under consideration. OLSON