US And UAE Begin Free Trade Talks

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

09 March 2005

Speaking to reporters on Tuesday, the UAE's Minister of State for Financial and Industrial Affairs, Dr Mohammad Khalfan Bin Kharbash announced that negotiations had begun with the US government on a bilateral free trade agreement.

"There is political will to successfully conclude this free trade agreement. The United States is looking to achieve its aspirations. The UAE also has its aspirations [including enhancing] its position in this region" he revealed.

Objections were expressed last year by Gulf Cooperation Council member states to a planned FTA between Bahrain and the United States, because the GCC's customs union agreement imposes a 5% duty on all goods entering GCC countries from overseas, but the bilateral agreement between Bahrain and the US would grant the latter duty free access to consumer and industrial products.

However, several other GCC members in addition to the United Arab Emirates are also now looking to enter into such agreements with the United States.

Explaining that the bilateral nature of the negotiations was an aspect requested by the US authorities, Dr Bin Kharbash observed that:

"It is a challenge for the GCC. We have resolved some of the issues and others are being resolved. We have strong relations with all GCC states and that will remain."

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