DUBAI, 9 March 2005 — The United Arab Emirates and the United States launched yesterday the first round of Free Trade Agreement negotiations, WAM news agency reported. The US delegation, led by Assistant United States Trade Representative Catherine A. Novelli, is participating in the three- day negotiations with the UAE government in Abu Dhabi.
Novelli told reporters that the FTA between the UAE and would help solidify and enhance this leadership role through expanded trade and investment with the US, she said. The US official stressed that the FTA is a culmination of a shared vision that “open markets are the way for prosperity of the people.”
Novelli said that the UAE’s success with the open markets and free zones helped facilitate the initiation of the FTA. She indicated that the agreement will bring great economic benefits for the UAE, citing Jordan, where a similar agreement signed in 2000, had led to an upswing in trade and the creation of thousands of more jobs. “An open business climate and open markets will draw more investments from the US and firms across the globe,” she said.
Novelli said that FTA agreements with Bahrain and now the UAE was a precursor for a broader Gulf Cooperation Council (GCC) based agreement and with countries in the entire Middle East.
The political and economic alliance of the GCC consists of Saudi Arabia, Kuwait, Oman, Qatar, Bahrain and the UAE. It had previously criticized Bahrain for signing an FTA with the US, but the GCC states are emulating Bahrain. Oman, Kuwait and Qatar are also keen to sign FTAs with the US.
Novelli stressed that the FTA with the UAE did not include any political conditions. “This agreement builds on the overall excellent strong and vibrant political and military relations we have with the UAE. This agreement completes these relations,” she said.
The US administration has concluded two FTAs with Morocco and Bahrain, ratified two with Jordan and Morocco and initiated two FTA negotiations with the UAE and Oman.
