UAE, US continue trade talks

UAE ministers met with US officials on Friday to discuss a trade and investment agreement, according to Gulf News. Minister of economy Shaikha Lubna Al Qasimi and minister of state for finance and industry Mohammad Khalfan Bin Kharbash flew to Washington for talks over a closer relationship within the Trade and Investment Framework Agreement Plus (TIFA Plus). The two countries are keen to boost trade links, despite failure to conclude a free trade agreement before the expiration of the Trade Promotion Authority on June 30. Progress has been hampered until now by differences over labour and investment issues.

The TPA allowed the Bush administration to negotiate trade agreements that cannot be amended by Congress. The UAE and US had been under pressure to conclude the FTA by March 31 for the Bush administration to get congressional approval before the TPA expired.TIFA Plus is a step towards a full trade agreement while outstanding issues are resolved, such as foreign investment in the telecommunications sector. The UAE is not ready to allow foreign investment in the sector before 2010 as it wants local operators to grow before facing competition, Gulf News says.Other differences include US demands for UAE labour market reforms and the opening of the services sector.The US currently has agreements with Bahrain, Oman and Morocco. Source