VZCZCXRO6009
OO RUEHDE
DE RUEHAD #0240/01 0441248
ZNR UUUUU ZZH
O 131248Z FEB 07
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8268
INFO RUEHDE/AMCONSUL DUBAI 6846
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 ABU DHABI 000240 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR NEA/ARP, EBB/TPP/BTA 
STATE PASS USTR FOR AUSTR DONNELLY AND DOUG BELL 
TREASURY FOR AHMED SAEED 
 
E.O. 12958: N/A 
TAGS: ETRD EINV PREL AE
SUBJECT: UAE Press Highlight FTA "Progress" 
 
¶1. (SBU) On February 13, the UAEG issued a press release on the 
progress of the free trade agreement negotiations and on the 
intention to restart the Trade and Investment Framework Agreement 
(TIFA) Council that received extensive UAE press coverage.  The 
UAEG's press release specifically did not mention the expiration of 
the U.S. Trade Promotion Authority (TPA), or the impossibility of 
concluding the FTA before expiration of TPA.  Unfortunately, based 
on the headlines, several of the local papers appear to have gotten 
a much more positive impression about the near term prospects of the 
FTA than the UAEG may have intended to give. 
 
¶2. (U) On February 13, the UAEG issued a press statement on the 
progress of the free trade agreement negotiations and on the 
intention to restart the TIFA council that was covered by all papers 
in the UAE.  Although the articles all drew from the press release, 
many of the headlines were very bullish, including:  Al-Itihad 
(Arabic) "Notable Progress in E-Commerce and Intellectual Property 
Rights Issues:  Resumption of the UAE-U.S. Free Trade Negotiations;" 
 Gulf News (English) "Officials breathe new life into UAE-US FTA: 
Parties reviewed progress in London last week, with significant 
ground being made."  Al-Khaleej's (Arabic) headline was the most 
restrained (and accurate): "A meeting in London to discuss the Free 
Trade Zone:  The UAE and USA Agree to activate the Framework 
Agreement to enhance bilateral trade and investment (TIFA)." 
 
¶3. (U) The UAE's news agency WAM carried a press release in both 
English and Arabic.  The Arabic press quoted Dr. Kharbash as saying 
that the two parties would "activate" the TIFA and that there would 
be a meeting this spring to discuss how to expand the TIFA and to 
work on achieving progress on trade and investment issues.  It noted 
that "The two sides reviewed progress achieved in their 
negotiations, including notable progress in standardization, 
environment, e-commerce, market access, intellectual property, and 
textiles."  It also said that the parties would focus on a number of 
issues in the coming periods including e-commerce and intellectual 
property rights.  In addition, the release cited the excellent trade 
and investment relationship between the U.S. and the UAE, noting 
that the UAE is the third largest Arab exporter to the U.S. (second 
largest non-oil Arab exporter) and that the U.S. is one of the most 
important sources of goods for the UAE after China and Japan.  WAM's 
English Language press release, contained below, was slightly less 
detailed.  The English Language Khaleej Times article, had a fairly 
complete rendition of the press release. 
 
 
¶4. (U) Begin Text of WAM English language press release 
 
Abu Dhabi, Feb 13th,2007(WAM)--Free Trade Talks between the UAE and 
the United States have achieved progress in many aspects, notably in 
the areas of standards, environment, e-commerce, penetration to 
markets and copyrights. 
 
According to a statement issued Monday by the Ministry of Finance 
and Industry, the two sides will build on the progress made so far 
to clear the rest of the hurdles. 
 
"The two sides have agreed to redouble efforts to resolve the 
outstanding issues, notably issues related to digital economy and 
other issues that are still impeding the smooth flow of trade 
between the two countries", the statement said. 
 
UAE and U.S. officials met in London on Feb. 9th, to review the 
progress by the various negotiation teams. At the end of the 
meeting, the two sides renewed their commitment to expedite the 
talks with the view of ultimately reaching a free trade agreement 
and, eventually creation of a free trade zone. 
End Text 
 
¶5. (U) 5. (U) Begin Text of Khaleej Times Article 
 
 
UAE makes progress in trade talks with U.S. 
By a Staff Reporter 
 
Abu Dhabi- Free trade negotiations between the UAE and the United 
States have made progress in many aspects, notably in the areas of 
standards, environment, e-commerce, market access and copyrights. 
 
According to a statement issued yesterday by Ministry of Finance and 
Industry, the two sides will build on the progress made so far to 
clear the rest of the hurdles. 
 
"The two sides have agreed to redouble efforts to resolve the 
outstanding issues, notably issues related to digital economy and 
other issues that are still impeding the smooth flow of trade 
between the two countries," the statement said.  The two sides also 
 
ABU DHABI 00000240  002 OF 002 
 
 
agreed to reactivate the Trade and Investment Framework Agreement 
(TIFA) and the talks in this regard would take place in spring this 
year. 
 
Sheikha Lubna Al Qasimi, Minister of Economy led the UAE team during 
the talks held in London on February 9.  Dr. Mohammed Khalfan bin 
Khirbash, Minister of State for Financial and Industrial Affairs, 
and other high-ranking officials also participated in the meeting. 
 
 
The two sides reviewed the progress on trade talks and renewed their 
commitment to expedite the talks with the view of ultimately 
reaching a FTA and, eventually creation of a free trade zone. 
 
End Text 
 
¶6. (SBU) Comment:  The UAEG's press release specifically did not 
mention the expiration of the U.S. Trade Promotion Authority (TPA), 
or the impossibility of concluding the FTA before expiration of TPA. 
 According to MinFin A/US Khalid Al-Bustani, the UAE decided not to 
refer to TPA, "given that this was a U.S. domestic matter." 
Unfortunately, based on the headlines, several of the local papers 
appear to have gotten a much more positive impression about the near 
term prospects of the FTA than the UAEG may have intended to give. 
 
Sison