Identifier
Created
Classification
Origin
09ABUDHABI234
2009-03-10 07:11:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:
UAE OPEN TO COMPROMISE ON GCC CUSTOMS UNION WTO
how-toVZCZCXRO4798 RR RUEHDE RUEHDH RUEHDIR DE RUEHAD #0234 0690711 ZNR UUUUU ZZH R 100711Z MAR 09 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 2231 INFO RUEHZM/GCC COLLECTIVE RUEHGV/USMISSION GENEVA 0630
UNCLAS ABU DHABI 000234
SENSITIVE
SIPDIS
STATE FOR NEA/ARP (MASILKO) AND NEA/RA (SCOVITCH)
STATE PLEASE PASS USTR (BUNTIN, MORROW)
GENEVA FOR SHUB
E.O. 12958: N/A
TAGS: ETRD PREL USTR AE
SUBJECT: UAE OPEN TO COMPROMISE ON GCC CUSTOMS UNION WTO
NOTIFICATION
REF: STATE 19377
UNCLAS ABU DHABI 000234
SENSITIVE
SIPDIS
STATE FOR NEA/ARP (MASILKO) AND NEA/RA (SCOVITCH)
STATE PLEASE PASS USTR (BUNTIN, MORROW)
GENEVA FOR SHUB
E.O. 12958: N/A
TAGS: ETRD PREL USTR AE
SUBJECT: UAE OPEN TO COMPROMISE ON GCC CUSTOMS UNION WTO
NOTIFICATION
REF: STATE 19377
1. (U) This cable contains an action request in para 3.
2. (SBU) On March 10, EconOff discussed reftel concerns about the
WTO notification of the GCC Customs Union under the Enabling Clause
with Ministry of Foreign Trade Director of Trade Negotiations and
WTO Department Juma al Kait. Al Kait argued that it was the right
of any developing country to use the Enabling Clause, rather than
GATT Article XXIV. While agreeing that Saudi Arabia was in
violation of its WTO accession commitments, al Kait said it was the
UAE's "right" as a developing country to notify under the Enabling
Clause.
3. (SBU) Al Kait argued that the GCC common external tariff was not
contrary to GATT Article II, as GCC tariff rates do not exceed the
UAE's WTO tariff bindings. He explained that the UAE's tariff
bindings were initially 15 percent, and declined to approximately
6.5 percent in 2006. Conceding that he could be mistaken, he asked
for further information about how the USG believes the GCC Customs
Union violates the UAE's WTO tariff bindings. ACTION REQUEST: Post
asks that USTR provide additional details on this matter before
March 12 (see below).
4. (SBU) However, al Kait concluded by saying that the UAE did not
"have a problem" with switching the notification to Article XXIV.
He said that GCC officials would have a coordination meeting on the
subject on March 12 and that he was willing to find a compromise
solution. Al Kait suggested US and GCC officials plan to meet to
discuss US concerns in advance of the March 13 CTR meeting, perhaps
the afternoon of March 12. (Note: Al Kait said that such a meeting
could be arranged through Obaid Al Kindi at the UAE Mission in
Geneva. End Note.) Al Kait added that he would also review the
Mercosur notification, as it might be relevant to the GCC situation.
OLSON
SENSITIVE
SIPDIS
STATE FOR NEA/ARP (MASILKO) AND NEA/RA (SCOVITCH)
STATE PLEASE PASS USTR (BUNTIN, MORROW)
GENEVA FOR SHUB
E.O. 12958: N/A
TAGS: ETRD PREL USTR AE
SUBJECT: UAE OPEN TO COMPROMISE ON GCC CUSTOMS UNION WTO
NOTIFICATION
REF: STATE 19377
1. (U) This cable contains an action request in para 3.
2. (SBU) On March 10, EconOff discussed reftel concerns about the
WTO notification of the GCC Customs Union under the Enabling Clause
with Ministry of Foreign Trade Director of Trade Negotiations and
WTO Department Juma al Kait. Al Kait argued that it was the right
of any developing country to use the Enabling Clause, rather than
GATT Article XXIV. While agreeing that Saudi Arabia was in
violation of its WTO accession commitments, al Kait said it was the
UAE's "right" as a developing country to notify under the Enabling
Clause.
3. (SBU) Al Kait argued that the GCC common external tariff was not
contrary to GATT Article II, as GCC tariff rates do not exceed the
UAE's WTO tariff bindings. He explained that the UAE's tariff
bindings were initially 15 percent, and declined to approximately
6.5 percent in 2006. Conceding that he could be mistaken, he asked
for further information about how the USG believes the GCC Customs
Union violates the UAE's WTO tariff bindings. ACTION REQUEST: Post
asks that USTR provide additional details on this matter before
March 12 (see below).
4. (SBU) However, al Kait concluded by saying that the UAE did not
"have a problem" with switching the notification to Article XXIV.
He said that GCC officials would have a coordination meeting on the
subject on March 12 and that he was willing to find a compromise
solution. Al Kait suggested US and GCC officials plan to meet to
discuss US concerns in advance of the March 13 CTR meeting, perhaps
the afternoon of March 12. (Note: Al Kait said that such a meeting
could be arranged through Obaid Al Kindi at the UAE Mission in
Geneva. End Note.) Al Kait added that he would also review the
Mercosur notification, as it might be relevant to the GCC situation.
OLSON