OMANI MINISTER OF COMMERCE AND INDUSTRY: AL BOYCOTT,

UNCLAS SECTION 01 OF 02 MUSCAT 001085 SIPDIS NEA/ARP PLEASE PASS TO JASON BUNTIN, USTR, AND JOSH REITZE, ADVOCACY CENTER, DEPARTMENT OF COMMERCE. E.O. 12958: N/A TAGS: ECIN ECON EINV ETRD PGOV MU SUBJECT: OMANI MINISTER OF COMMERCE AND INDUSTRY: AL BOYCOTT, ADVOCACY, FTA, WTO REF: A) STATE 120272; B) STATE 123787 ¶1. (SBU) SUMMARY: On December 9, the Ambassador met with Maqbool bin Ali bin Sultan, Omani Minister of Commerce and Industry and a close advisor to the Sultan. The meeting was primarily an introductory call, although several substantive issues were addressed, including the upcoming U.S. - Oman Free Trade Agreement (FTA) Joint Committee Session, Bechtel's bid on Muscat International Airport construction, and reports of Omani entities attempting to enforce the Arab League Boycott. END SUMMARY. ¶2. (SBU) FTA: After introductory pleasantries, Minister Maqbool said that the MOCI was looking into the USTR's proposed dates for the FTA Joint Committee Session and would have an answer for the Embassy within the week (MOCI later confirmed February 7 and 8 as dates for the Joint Committee Session). Regarding outstanding FTA issues, Maqbool agreed that they should be addressed in the Joint Committee. However, he went on to explain Oman's difficult position with, at times, conflicting obligations to the Gulf Cooperation Council (GCC) and the FTA. As to transshipment out of the other GCC members into Oman, Maqbool said that it is complicated when other GCC members are part of the transshipment process, particularly citing the UAE. He then went to explain that current policy is to encourage exporters to ship directly to Omani ports. ¶3. (SBU) ADVOCACY: As part of the Embassy's advocacy strategy regarding the Bechtel bid on improvements to Muscat International Airport worth an approximate $2.1 billion, the Ambassador engaged Minister Maqbool. Maqbool was familiar with Bechtel, glowingly referring to the Aluminum Smelter they built in the Sultanate. The Ambassador emphasized how pleased the U.S. is with the transparency of the bid process thus far, how successful Bechtel has been in building airports in the Middle East in the past, and how awarding Bechtel the contract cannot help but increase commercial ties between the U.S. and Oman. Minister Maqbool listened actively to the Ambassador's points. ¶4. (SBU) ARAB LEAGUE BOYCOTT: The Ambassador also raised the issue of occasional Omani enforcement of the Arab League Boycott (reftel A). The Ambassador thanked Minister Maqbool for his continued support in eliminating boycott measures and informed him of the recent reports of Omani entities attempting to enforce the Boycott. The information provided to EconOff by NEA/RA listing the incidents of boycott enforcement efforts was distributed to the MOCI officials at the meeting. Maqbool said that the attempts at enforcing the boycott may be attributable to certain "individuals." He stated that he would have MOCI officials investigate the occurrences. ¶5. (SBU) WTO/DOHA: The Ambassador and Maqbool discussed the current status of the WTO Doha negotiations. The Ambassador emphasized the need for a comprehensive agreement and expressed optimism that such an agreement can and will be achieved. Maqbool, who is well versed in Doha/WTO issues, countered that more emphasis and understanding should be directed towards the least developed countries in negotiations. ¶6. (SBU) FTA SUPPORT: Minister Maqbool and the Ambassador concluded the meeting with a discussion about a potential FTA Roadshow. Maqbool said that he hoped to visit three or four cities as part of the Roadshow. The Ambassador encouraged the Roadshow to visit commercial hubs in the mid-West as well as San Francisco, as Minister Maqbool is already familiar with other U.S. cities. Maqbool believes it highly likely that the Roadshow will not take place until September 2010. Embassy also understands that the Minister for National Economy will head the second half of the Omani delegation, also visiting three to four cities. ¶7. (SBU) COMMENT. Maqbool seemed as receptive as ever to engage with the U.S. and eager to participate in FTA-related activities, such as the Joint Committee Session and an FTA Roadshow. He also appears to be well-acquainted with the intermittent incidents of Omani enforcement of the Arab League Boycott, which he attributes MUSCAT 00001085 002 OF 002 to the actions of individuals and not to the policy of the Omani government. END COMMENT. Schmierer