US embassy cable - 05KUWAIT1465

C O N F I D E N T I A L KUWAIT 001465 
 
SIPDIS 
 
NEA/ARPI PASS TO USTR 
 
E.O. 12958: DECL: 04/12/2010 
TAGS: ECON, ETRD, EU, PREL, KU, Trade Agreements 
SUBJECT: EU TRADE COMMISSIONER CRITICAL OF GCC STATE 
BILATERAL FTAS 
 
 
Classified By: Ambassador Richard LeBaron, reasons 1.4 (b) and (d) 
 
1. (C) During consultations on a variety of issues with my EU 
counterparts today, they advised that during the recent 
EU/GCC Ministerial in Bahrain, the EU Commissioner for Trade 
criticized GCC members for pursuing bilateral free trade 
agreements with the U.S. 
Peter Mandelson reportedly upbraided the Bahrainis and the 
Omanis for their agreement or pursuit of an FTA with the U.S. 
 The Omanis subsequently were very dismissive of the proposed 
"EU Strategic Partnership with the Mediterranean and the 
Middle East," which some  attributed to the EU's attitude 
about bilateral FTAs, although they also said that the 
"Strategic Partnership" went over badly in general with GCC 
members. 
 
2.  (C) Mandelson's displeasure made its way into the 
communique issued at the end of the 5 April meeting in 
Bahrain.  The text reads: "The European Union conveyed its 
view regarding bilateral free trade agreements by individual 
states with other third countries.  The EU considers regional 
economic integration processes as important instruments for 
peace, stability, and prosperity."  According to one 
participant, the word "view" had been watered down from 
"concern" in an earlier draft. 
 
3.  (C) The EU group with whom I met did not include a 
Commission rep, and their views were tempered by some 
skepticism about when, if ever, the EU/GCC negotiations will 
bear fruit, given their fifteen plus year history.  The two 
sides agreed in Bahrain to do everything they can to finalize 
the text by the end of the year, but, as one Ambassador said, 
"We've heard that before." 
LEBARON