GCC WANTS MORE TRADE ENGAGEMENT WITH U.S.

UNCLAS RIYADH 001459 SENSITIVE SIPDIS STATE PASS TO USTR FOR CHRIS WILSON, JASON BUNTIN STATE PASS TO DOC FOR STEVEN GARRETT DEPT FOR NEA/ARP, EEB/TTP/BTA E.O. 12958: N/A TAGS: ETRD KIPR ECON EINV PREL SA SUBJECT: GCC WANTS MORE TRADE ENGAGEMENT WITH U.S. REF: A. RIYADH 1407 ¶B. RIYADH 1425 ¶C. RIYADH 1441 ¶1. (SBU) Summary: In a frank discussion with visiting AUSTR Wilson, GCC Assistant Secretary General Al-Mazrouy called for deepened U.S. trade relations with the GCC. Al-Mazrouy noted progress on trademark and data protection laws, and agreed to address industry concerns over the implementation of new country of origin labeling requirements. Deliberations on biotech labeling continue, and the Gulf Standards Organization welcomed more engagement with the United States. End summary. Bilateral FTAs Frustrate Customs Union -------------- ¶2. (SBU) Gulf Cooperation Council (GCC) Assistant Secretary General for Economic Affairs Mohammed Al-Mazrouy told visiting Assistant U.S. Trade Representative Chris Wilson on October 20 that the GCC was interested in deepening its historical relationship with the United States, and suggested the U.S. pursue a unified free trade agreement (FTA) with the GCC as a whole. Al-Mazrouy said the U.S. FTAs with Bahrain and Oman were making it difficult for the GCC to fully implement its customs union. He said the U.S. and the GCC will need to address inconsistencies between these bilateral FTAs and the GCC customs union at some point. In subsequent meetings with Emboffs, Saudi Finance Minister Ibrahim Al-Assaf and GCC Director General of International Economic Relations Dr. Abdel Aziz Al-Uwaisheg echoed these comments (ref A and C). Al-Mazrouy said the GCC would implement a single currency in "a couple of years." Trademark and Data Protection Laws -------------- ¶3. (SBU) Al-Mazrouy said the GCC was currently reviewing U.S. comments on the trademark law issued by the Supreme Council. A GCC "trade secrets" law to protect research and development data is being drafted by an internal committee and should be ready by the end of 2009, he said. Country of Origin Labeling -------------- ¶4. (SBU) Wilson shared U.S. industry concerns over implementation of the new country of origin requirements, and handed Al-Mazrouy a list of specific questions for clarification. Al-Mazrouy said the country where a good is assembled is the country of origin, and agreed to seek clarification on other questions. Agricultural Issues -------------- ¶5. (SBU) Asked about the role of labeling in biotechnology, the GCC Agricultural Director said they were listening to different views on labeling and would release a customs regulation once their internal deliberations concluded. The Director welcomed Wilson's offer to submit the U.S. position on labeling. The Director also noted an upcoming animal welfare conference in the U.S., which the GCC member states are interested in attending. (Note: ATO subsequently sent information about the November 15-17 Society of Animal Welfare Administrators conference, to be held in Austin, Texas, to the GCC. End note.) Gulf Standards Organization -------------- ¶6. (SBU) The Gulf Standards Organization (GSO),which seeks to harmonize standards in the Gulf region, is a coordinating office within the GCC. GSO Director Anwar Al-Abdullah told Wilson his "small but ambitious" organization's 2010 goals include: establishing a Gulf Accreditation Center in early 2010, proposing a common law of metrology in November, and pilot-testing a conformity mark on toys starting January 1, ¶2010. Al-Abdullah said his five-year-old organization would welcome U.S. assistance. ¶7. (U) AUSTR Chris Wilson cleared on this cable. SMITH