VZCZCXRO8622
PP RUEHDE
DE RUEHAD #2461 1651121
ZNR UUUUU ZZH
P 141121Z JUN 06
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 5680
INFO RUEHDE/AMCONSUL DUBAI PRIORITY 6240
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS ABU DHABI 002461 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, EB/TPP/BTA 
 
E.O. 12958: N/A 
TAGS: ETRD ECON KBCT AE
SUBJECT: SHEIKHA LUBNA ON FTA NEGOTIATIONS 
 
REF: ABU DHABI 2420 
 
¶1. (SBU) Summary:  On June 14, Minister of Economy Sheikha 
Lubna Al-Qasimi told Ambassador and Econchief that she was 
facing increasing local opposition to the FTA. She stressed 
the importance of continuing with discussions/negotiations on 
the investment chapter of the FTA as "a critical path" to 
concluding an agreement successfully.  She also said that she 
wanted to re-energize the other negotiating groups to move 
forward simultaneously with the investment group.  She 
reiterated the UAEG's commitment to eliminate application of 
the Arab League's secondary and tertiary boycott and 
expressed frustration that UAE companies and agencies were 
still using old language that did not reflect UAEG policy. 
She said that she would be visiting Washington from June 19 
to 23 to conduct Congressional outreach and also hoped to 
meet with USTR Schwab.  She planned to meet with 
Representative Sue Kelly (R-NY) to respond to her concerns 
about UAE efforts to counter terror finance and 
proliferation.  End Summary. 
 
UAEG Facing Increasing Local Opposition to FTA 
--------------------------------------------- 
 
¶3. (SBU) Sheikha Lubna said that she faced increasing local 
sentiment opposed to the FTA, and that it was now broader 
than just the Dubai merchant families.  She explained that 
UAE public opinion was being shaped negatively by the strong 
U.S. public opposition to DP World's investment in U.S. port 
operations and this week's press mention of Rep. Kelly's 
recent letter to the UAEG expressing concerns that the UAE 
needed to do more to reduce its vulnerability to exploitation 
by terrorist organizations and nuclear proliferators.  She 
said that her upcoming trip to Washington would focus on 
public outreach in order to promote the FTA and the bilateral 
economic relationship. 
 
Both Investment and Non-Investment Negotiations Important 
--------------------------------------------- -- 
 
¶4. (SBU) Sheikha Lubna said that the FTA investment group and 
natural resources represented a "critical path" for the 
success of the FTA negotiations.  She added, however, that 
the discussions were not going as quickly as either side had 
hoped, stressing that the issue of natural resources in the 
UAE came under the authority of individual emirates rather 
than the federal government, requiring a great deal of 
internal consultation.  She urged that the U.S. and the UAE 
continue the discussion on natural resources in July, and 
added that she had discussed with MinFin A/US Khalid 
Al-Bustani the need to re-energize discussion among the other 
negotiating groups. 
 
Boycott: Commitment to Resolve 
----------------------------- 
 
¶5. (SBU) Sheikha Lubna raised econchief's June 12 meeting 
with MinEcon U/S Al-Saleh about the Arab League Boycott 
(reftel).  She reiterated the UAE's commitment to resolve the 
remaining applications of secondary and tertiary boycott 
language and expressed her frustration with both the number 
of remaining cases and the fact that the same companies and 
government entities kept appearing.  She said "we've told 
them" that they needed to change language to reflect UAEG 
policy.  She added that she might instruct Al-Saleh to call 
the companies/agencies into a joint meeting to try and push 
forward cooperation. 
 
Visiting the U.S. to promote FTA and Respond to Concerns 
--------------------------------------------- -- 
 
¶6. (SBU) Sheikha Lubna will be in the United States from June 
19 to June 23 to meet with members of Congress to promote the 
FTA.  She also plans to meet with Representative Sue Kelly to 
provide an initial response to her stated concerns -- 
although she stressed that the MFA was responsible for 
coordinating a formal written response.  She said that the 
UAE shared the international community's concerns about Iran, 
but stressed that geographic proximity meant that the UAE had 
to engage with the country.  Absent international (UN) 
sanctions, she said, the UAE could not cut trade or financial 
ties with its neighbor. 
SISON