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DE RUEHMS #0430 1211308
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P 011308Z MAY 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC PRIORITY 8164
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

C O N F I D E N T I A L MUSCAT 000430 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/ARP 
STATE PASS USTR FOR JBUNTIN 
COMMERCE FOR ITA COBERG, USPTO 
 
E.O. 12958: DECL: 04/30/2017 
TAGS: ETRD ECON EINV KIPR MU
SUBJECT: OMANI COMMERCE MINISTER: "WE ARE SO CLOSE" ON FTA 
 
 
Classified By: Ambassador Gary A. Grappo, Reasons 1.4 (b, d) 
 
¶1. (SBU) On April 26, the Ambassador reviewed the status of 
the U.S.-Oman Free Trade Agreement (FTA) with Commerce and 
Industry Minister Maqbool bin Ali Sultan.  Maqbool prefaced 
the conversation by noting that "we are so close" in wrapping 
up the outstanding issues needed for the Agreement's 
implementation to occur. 
 
¶2. (SBU) On intellectual property, Maqbool stated that Oman 
did not have any remaining objections to the draft copyright 
law, and thus should be able to conclude discussions on this 
issue shortly.  On Domain Names, he agreed with the USG 
suggestion to refer disputes to the World Intellectual 
Property Organization (WIPO).  However, he asked that the 
U.S. allow both sides in a dispute to first attempt to 
resolve their differences through a mediation process led on 
the Omani side by the Telecommunications Regulatory Authority 
(TRA).  The Minister added, "Why go to WIPO if we can settle 
it between the two of us?  If that doesn't work, that is, if 
the U.S. party is dissatisfied with a TRA finding, then it 
can be referred to WIPO." 
 
¶3. (SBU) On transition periods for the operation of 
electronic means and electronic databases, and for rules 
pertaining to the Patent Cooperation Treaty, Maqbool 
recollected that Oman had initially asked for a three year 
period during the negotiation process.  He said that when he 
learned that Bahrain had agreed to just one year with the 
USG, he agreed to change Oman's position on these rules to a 
single year, and six months for all the other rules.  (Note: 
Maqbool appeared frustrated by the perceived change in the 
USG position not to include such transitions.  End Note).  In 
selling the FTA to the Omani cabinet, Maqbool remarked that 
he could successfully argue that Oman was getting the same 
treatment as Bahrain, but could not argue that Oman was 
getting worse.  On patent and data protection, Maqbool again 
voiced his concern that the USG had initially accepted Oman's 
language for Article 65, but now was "reopening it for 
review."  He stated that his IPR team (with considerable 
input from WIPO) had found the current language to be 
satisfactory. 
 
¶4. (SBU) Maqbool briefly shared his perspective on the 
remaining outstanding issues.  Concerning anti-bribery, the 
Minister thought that Oman had adequately covered this issue 
throughout its legal framework, but was open to signing a 
side-letter to satisfy USG concerns.  Maqbool also preferred 
to resolve the matter of Omanization via side letter, noting 
that it would be "impossible" to issue a new law that would 
be applicable to all foreign companies. (Comment: Given the 
domestic sensitivities associated with this issue, it is 
extremely unlikely that the Sultan would agree to new 
legislation.  End comment.)  On transparency, Maqbool felt 
that there were no real problems to address; on 
telecommunications, the Minister expressed his opinion that 
both sides were moving toward conclusion.  Finally, on 
government procurement, Maqbool apologized for the delay in 
providing a draft of the new tender law, and remarked that he 
personally had to intervene to break a deadlock between the 
Ministry of Legal Affairs and the Ministry of Commerce and 
Industry.  He said that the process is "back on track" and 
that he would get the Embassy a draft "soon." 
 
¶5. (C) Comment:  The meeting with Maqbool went much better 
than the teleconference the Ambassador had with the Minister 
on April 21.  Maqbool appeared upbeat about the progress we 
are making on the FTA, as evidenced by his agreement to send 
his IPR staff to Washington for consultations as needed. 
Maqbool was confident that the May 5 trip by Ambassador 
Jennifer Hillman would lead to further progress on closing 
out several outstanding issues.  The Embassy is working with 
USTR and the Ministry on a draft schedule for Ambassador 
Hilman that would focus on customs, Omanization, labor, 
environment, and anti-bribery concerns.  Other meetings with 
the Ministry of Commerce and Industry, Telecommunications 
Regulatory Authority and Ministry of Legal Affairs will be 
arranged to address intellectual property, 
telecommunications, and government procurement concerns, 
respectively.  End Comment. 
GRAPPO