US embassy cable - 05ABUDHABI160

UNCLAS ABU DHABI 000160 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ARP, NEA/RA, EB/OMA 
STATE PASS USTR FOR BELL 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, ELAB, ETTC, TC 
SUBJECT: DUBAI CUSTOMS REENGINEERS FOR UPCOMING FTA 
 
REF: DUBAI 4362 
 
1. This cable is a joint Abu Dhabi - Dubai message. 
 
2. (SBU) Summary: The UAE press reported this week on three 
recent events that are relevant for upcoming planned U.S. - 
UAE FTA negotiations.  Dubai customs is in the middle of 
multi-million dollar program to upgrade its customs and 
document processing system in response to globalization and 
free trade agreements.  In a separate event, the Ministry of 
Labor hosted a workshop on compliance with International 
Labor Organization standards (an issue of concern in upcoming 
FTA negotiations).  Finally, Dubai Ports International signed 
a MOU with the Abu Dhabi Ports Authority to develop a 
strategy to manage Abu Dhabi's Port Zayed, which will 
arguably improve the UAE's ability to take advantage of 
increased regional economic integration and freer trade.  End 
Summary. 
 
3. (U) The UAE press reported that Dubai Customs' ongoing 
reform and modernization program would give Dubai a 
competitive administrative advantage in facing globalization 
and free trade agreements with the U.S. and the EU.  Dubai 
Customs launched a multi-million dollar program to upgrade 
its customs and document processing system.  The Director 
General of Dubai Customs said that his organization is 
developing a new business model and a sophisticated IT system 
in response to the "strategic drivers" of globalization and 
free trade agreements.   According to FCS Abu Dhabi, Dubai 
Customs has been aggressively seeking comprehensive software 
solutions. 
 
4. (SBU) Dubai will be reporting septel the results of an 
Arab Labor Organization workshop that the UAE is hosting in 
Dubai.  According to MoL U/S Khalid Al-Khazraji, the workshop 
is geared to training labor inspectors and legal advisors to 
implement ILO standards.  The UAE understands that the USG 
requires its FTA partners to enforce their own labor laws and 
expects that these laws will be consistent with international 
standards, as defined by the ILO.  The UAE has told us that 
they intend that their revised labor laws will be fully ILO 
compliant.  This workshop also indicates that the UAE intends 
to continue enforcing the labor laws it already has. 
 
5. (U) In a positive sign of cooperation, the Abu Dhabi 
Seaport Authority signed a memorandum with Dubai Ports 
International (a wholly owned subsidiary of the government 
owned Dubai Ports, Customs, and Free Zone Corporation, which 
manages a number of ports internationally and is the world's 
sixth largest port management firm) to develop a joint 
strategy to manage Abu Dhabi's Port Zayed.  The goal is to 
"expand commercial opportunities at Port Zayed" and to enable 
the "UAE to further compete at the regional and international 
level."  (Note: Dubai Ports International recently bought the 
overseas port management operations of American-based CSX. 
End Note.) 
 
6. (SBU) Comment:  The UAE continues to take steps to prepare 
for an eventual FTA with the U.S.  Upgrades in Dubai customs 
and increased inter-emirate cooperation are also welcome from 
a non-proliferation point of view.  According to Federal 
Customs Authority Chairman Mohammed Al-Mehairi, these 
announcements presage a welcome move toward better 
inter-emirate coordination and we should expect to see more 
over the next year.  Historically, there has been more 
competition than cooperation among the ports and customs 
departments of the individual emirates.  End Comment. 
SISON