SHARJAH, 5 July 2005 — Officials from the UAE and the US have discussed issues related to the rules of origin on their respective goods and products as part of negotiations on working out a free trade agreement (FTA) between them.
The discussions meant that the two sides were moving closer to finalizing the FTA negotiations. In May, officials said they would need two more rounds to complete the negotiations.
Saeed Abdullah Al-Rukn, deputy director of the Department of Industrial Development (DID) at the Ministry of Finance and Industry (Mofi), told the Emirates News Agency, WAM, that the latest meeting aimed at reaching an agreement on the rules of origin on goods and products to qualify for preferential treatment under the future FTA between the US and the UAE.
During the meeting headed by Saeed Khalifa Saeed Al-Mirri, deputy director-general at the Federal Customs Authority, the officials reviewed similar agreements the US has with other countries, namely Bahrain and Australia, to draw on their experiences.
The operation of rules of origin followed under UAE-Gulf and UAE-Arab trade agreements was also looked at.
Al-Rukn explained that the rules of origin committee that was formed as part of the FTA negotiating team aims at reaching an agreement that guarantees a healthy competition for UAE goods and products in the vast US market. He stressed the importance of supporting the UAE industrial sector and ensuring that an FTA with the US will benefit national industries — a very crucial element in the country’s economic diversification policy.
The UAE is also negotiating an FTA with Australia. A third round of negotiations will take place in October or November this year in Australia.
Both sides have agreed on issues relating to trade in commodities and services and more discussions on what officials described as important issues that will come up in the third round. No time frame has been set for signing the FTA agreement.
While Australia is specifically interested in negotiations concerning local sponsorship for foreign businesses, freer access in joint ventures and Trade-Related Aspects of Intellectual Property Rights, UAE businessmen want tariffs on exports to Australia to be dropped and a speeding up of the visa process to facilitate faster business.