US embassy cable - 05ABUDHABI1297

UNCLAS SECTION 01 OF 02 ABU DHABI 001297 
 
SIPDIS 
 
STATE FOR NEA/ARP; NEA/PPD; NEA/RA; INR/R/MR; PA; 
INR/NESA; INR/B; IIP/G/NEA-SA 
WHITE HOUSE FOR PRESS OFFICE; NSC 
SECDEF FOR OASD/PA 
USCINCCENT FOR POLAD 
LONDON FOR GOLDRICH; ALSO FOR MOC 
PARIS FOR ZEYA 
 
E.O. 12958: N/A 
TAGS: OIIP, KMDR, TC 
SUBJECT:  MEDIA REACTION:  A/USTR NOVELLI'S VISIT TO THE UAE TO 
NEGOTIATE FTA, MARCH 8-10 
 
 
1.  SUMMARY:  ALL LOCAL ELECTRONIC AND PRINT MEDIA PROMINENTLY 
COVERED ASSISTANT USTR CATHERINE NOVELLI'S MARCH 8-10 VISIT TO 
THE UAE TO NEGOTIATE THE FTA.  ABU DHABI PA ARRANGED A PRESS 
ROUNDTABLE WITH FOURTEEN LOCAL AND REGIONAL PRINT MEDIA, IN 
ADDITION TO ONE-ON-ONE TELEVISION INTERVIEWS WITH ABU DHABI TV, 
DUBAI TV, AL ARABIYA AND MBC.  SEPARATE BRIEFING WAS HELD WITH 
SENIOR EDITORS FROM AL KHALEEJ AND GULF NEWS.  HER MEETINGS WITH 
OFFICIALS AND ARTICLES WITH PHOTOGRAPHS FROM THE PRESS ROUNTABLE 
AND THE ONE-ON-ONE INTERVIEWS WERE PUBLISHED ON FRONT PAGES IN 
ALL ENGLISH AND ARABIC LOCAL AND REGIONAL NEWSPAPERS. THE ONE-ON- 
ONE TV INTERVIEWS WERE BROADCAST MORE THAN ONCE THROUGHOUT THE 
THREE DAY VISIT.  END OF NEGOTIATION JOINT PRESS CONFERENCE 
GENERATED STORIES AND PHOTOGRAPHS IN ALL DAILIES.  END SUMMARY. 
 
2.  DURING HER VISIT TO THE UAE, A/USTR NOVELLI GAVE ONE-ON-ONE 
TELEVISION INTERVIEWS TO ABU DHABI TV ON MARCH 8, DUBAI TV, AL 
ARABIYA AND MBC ON MARCH 9.  ABU DHABI TV AND DUBAI TV CARRIED 
THE INTERVIEW IN THEIR TWO MAIN EVENING NEWS CASTS.  AL ARABIYA 
AND MBC CARRIED THE INTERVIEW THREE TO FOUR TIMES IN THEIR MAIN 
NEWS CASTS. 
 
3.  DURING THE PRESS ROUNDTABLE ON MARCH 8, A/USTR WAS ASKED 
ABOUT THE BENEFITS OF THE FTA AND SAUDI OPPOSITION TO THE 
BILATERAL AGREEMENT.  SHE ASSERTED THERE WERE NO POLITICAL PRE- 
CONDITIONS IMPOSED ON THE UAE AND ANSWERED QUESTIONS ABOUT 
WHETHER THE UAE WOULD BE COMPELLED TO EASE THE BOYCOTT OF ISRAEL. 
ARTICLES APPEARED ON MARCH 9-10, 2005. 
 
4.  THE GULF NEWS (ENGLISH, CIRCULATION 95,000) FRONT PAGE 
ARTICLE WAS TITLED "BILATERAL FREE TRADE PACTS WILL BENEFIT GCC, 
SAYS U.S."  THE ARTICLE STRESSED THAT THE U.S. SUPPORTS THE GCC 
BUT WILL CONCLUDE FREE TRADE AGREEMENTS ON A BILATERAL BASIS WITH 
THE MEMBER STATES.  THE ARTICLE NOTED NOVELLI'S COMMENTS THAT THE 
FTA AGREEMENTS ARE COMPLEMENTARY TO THE GCC AGREEMENT.  THE 
ARTICLE ALSO NOTED THAT NOVELLI STATED THAT SIGNING THE FTA "WILL 
NOT COMPEL THE UAE TO EASE THE BOYCOTT OF ISRAEL." 
 
5.  KHALEEJ TIMES (ENGLISH, CIRCULATION 70,000) FRONT PAGE 
ARTICLE ENTITLED, " TREATY NOT TO THREATEN OTHER GCC COUNTRIES. 
THE ARTICLE NOTED THAT NOVELLI DID NOT EXPECT THE NEGOTIATIONS TO 
FACE SERIOUS OBSTACLES, AND SHE WAS QUOTED, "AND IF WE DO, THERE 
ARE NO HITCHES THAT CANNOT BE OVERCOME." 
 
6.  AL ITTIHAD (ARABIC, CIRCULATION 65,000) FRONT PAGE ARTICLE 
ENTITLED "THE U.S. DENIES IMPOSING ANY POLITICAL TERMS AS PART OF 
FTA.  THE UAE ENDEAVORS TO CONCLUDE A BALANCED AGREEMENT."  THE 
ARTICLE QUOTED NOVELLI, "WASHINGTON CONSIDERS THE AGREEMENT AN 
EXCELLENT OPPORTUNITY TO EXPAND COMMERCIAL TIES." 
 
7.  AL BAYAN (ARABIC, CIRCULATION 90,000) FRONT PAGE ARTICLE 
ENTITLED "LIFTING ISRAEL'S BOYCOTT IS NOT A SUBJECT OF DISCUSSION 
IN THE FTA TALKS."  HALF PAGE ARTICLE IN THE BUSINESS SECTION 
NOTED THAT HEAD OF THE U.S. DELEGATION POINTED OUT THAT THE FIRST 
ROUND OF NEGOTIATIONS IN THE UAE IS AN IMPORTNMAT STEP TOWARDS 
FREE TRADE IN THE MIDDLE EAST. 
 
8.  AL KHALEEJ (ARABIC, CIRCULATION 85,000) FULL PAGE ARTICLE 
ENTITLED "THE FREE TRADE AGREEMENT DOES NOT OBLIGATE THE UAE TO 
ANY POLITICAL CONDITIONS."  A/USTR REITERATED HER NATION'S 
CONCERN ABOUT THE INTEGRATION OF THE GCC COUNTRIES AS A POLITICAL 
AND ECONOMIC ENTITY.  A/USTR NOTED THE FTA'S ECONOMIC ADVANTAGES 
FOR THE UAE.  THE ARTICLE QUOTED NOVELLI, "THIS AGREEMENT IS A 
CHANCE TO BROADEN THE ECONOMIC, TRADE AND INVESTMENT TIES." 
 
9.  THE IN DEPTH DISCUSSION WITH "AL KHALEEJ" AND "GULF NEWS" 
SENIOR EDITORS RESULTED IN ARTICLES ON MARCH 10.  "AL KHALEEJ" 
PUBLISHED HALF PAGE ARTICLE IN THE BUSINESS SECTION WITH 
HEADLINES OF THE ARTICLE ON THE FIRST PAGE.  THE "GULF NEWS" 
ARTICLE WAS A FIRST PAGE ARTICLE. 
 
10.  "Al Khaleej" Front-page headline read:  "The Senior U.S. 
negotiator tells Al-Khaleej: `We do not intend to implement our 
laws in the UAE'."  The newspaper carried a headline on page one 
of the Business Supplement: "Cathy Novelli, the senior American 
negotiator tells "Al-Khaleej": "We do not aim to implement our 
laws in the UAE, but demand transparency."  Points covered in the 
articles directly addressed local fears about US intentions in 
pursuing an FTA. 
-- Novelli, "the UAE would be capable of playing a distinctive 
role in world economy having succeeded, in a such a short period 
of time,  in achieving huge economic gains for its national 
economy, the best in the whole region." 
-- "The UAE is expected to attract more direct American 
investments following the signing of the FTA, noting that 
American direct investments in the UAE are $ 1.4 billion now, and 
this is expected to increase sharply during the next few years." 
-- The U.S. does not aim to impose its regulations in the UAE, 
but expects that UAE laws are comparable to similar international 
regulations, and transparent. 
-- Discussions about labor laws in the UAE are focused on 
ensuring that those laws are compatible with international 
standards, not specifically American laws. 
-- The agreement does not give American companies a priority for 
contracts, but guarantees them fair and just evaluation. 
-- The agreement does not qualify American companies for 
privileges provided to the national (UAE) companies, as this is 
an internal issue and not part of the discussions. 
-- The U.S. expects its companies to operate in the UAE without a 
(local) sponsor and to sell their commodities without an agent 
and this right is guaranteed for the UAE companies seeking to 
operate in the U.S. markets.  She said these are general terms 
applicable in all our foreign agreements. Companies must decide 
whom the local distributor or the agent is, but must not become 
hostage to one person because they want to develop their 
business.  If the local agent does not suit them they should be 
able to look for an alternative. " I believe that local agents 
have invested huge amounts to develop their business and most 
American companies want to maintain their regional partners." 
-- American companies like to operate in countries that have 
sound regulatory and legislative infrastructure; investment 
requires guarantees and transparency.  "We hope our banks will 
come and establish branches here and become capable of doing 
business, however these banks must get UAE approval and meet all 
the local conditions and laws.  If American banks want to open 
branches here they must adhere to local regulations including 
those regarding human resources. 
 
11.  "Gulf News" front page headlined "Trade agreement by the end 
of the year," and the subtitle was "UAE and U.S. laws must meet 
international standards."  A/USTR told the Gulf News that she 
sees no obstacles to signing the FTA with the UAE.  She added: 
"We are not saying that you have to change your law in accordance 
with the US demand. But it is necessary to see different laws in 
both countries in compliance with the international laws both 
countries have signed."  A/USTR Novelli also noted that 
developments in the UAE have made the market attractive for 
companies from all around the world.  She explained that US trade 
with Jordan has increased fivefold after signing the agreement 
and noted: "I believe the UAE will benefit even greater (than 
Jordan) since the economy here is highly prepared for such a 
move." 
 
12. Joint press conference which concluded the round of 
negotiations resulted in upbeat articles and photos in all 
papers.  Selected titles: 
Khaleej Times: UAE-USA FTA talks `flexible' 
Al Bayan: Second round will be in May: Positive spirit prevails 
in the FTA talks with the US 
Gulf Today: FTA talks end on upbeat note 
ALBRIGHT