WASHINGTON — The United States is concerned
over the prospect of a change in its strategic relationship with the United Arab Emirates.
Officials said the Bush administration has detected increasing UAE
dismay over the rejection by Congress of a proposed takeover by a
state-owned company of six major U.S. ports. They said the UAE has postponed
free trade negotiations with the United States scheduled for this week.
"We have got to strengthen our relationships and friendships with
moderate Arab countries in the Middle East," Bush told a conference on March
10. "I'm concerned about a broader message this issue could send to our
friends and allies around the world, particularly in the Middle East."
Bush said Dubai services more U.S. military ships than any other foreign
country. He said Abu Dhabi, which has bought 80 F-16 Block 60 aircraft for
$6.4 billion, has shared intelligence on Al Qaida-aligned operatives and
helped dismantle the nuclear smuggling cell of Pakistani scientist Abdul
Qadeer Khan.
The Office of the U.S. Trade Representative has confirmed that the March
13 talks with the UAE have been canceled. A spokeswoman said the two
countries agreed that they need more time to prepare for the meeting, Middle East Newsline reported.
"The U.S. and UAE are strongly committed to making progress on our FTA
negotiations," spokeswoman Neena Moorjani said. "This [postponement] is not
unusual. Just in the past few months, we've postponed rounds with Ecuador
three times, Panama twice and Colombia once."
The announcement of the cancellation of the next round of talks came
hours after the UAE firm DP World announced that it would shelve plans to
directly operate U.S. ports. Abu Dhabi and Washington began free trade
accord talks in 2005.
The House of Representatives has vowed to block the UAE takeover and
began drafting legislation to ban foreign companies from operating U.S.
ports. In an effort to dissuade Congress, the state-owned Dubai firm said it
would transfer operations to an unidentified U.S. company.
"The decision by the company [DP World] is a way to move forward, and it
does resolve this matter so that we can continue focusing on other important
priorities," White House press secretary Scott McClellan said March 10.
But the administration stressed that the episode has left its mark on
U.S. relations with the Arab world. President George Bush said the
congressional uproar over DP World could send a message to U.S. allies in
the Middle East.
Officials said the DP World episode highlighted the differences on trade
between the United States and the UAE. They said the main obstacles to an
FTA were Abu Dhabi's restrictions on foreign investments.
The United States has concluded an FTA with Oman. Congress was expected
to consider the accord with the Gulf Cooperation Council state later in
2006.
"UAE is a valued and strategic partner," Bush said. "I'm committed to
strengthening our relationship with the UAE and explaining why it's
important to Congress and the American people."
