Central Bank discusses US FTA negotiation strategy - UAE
1 March 2005
ABU DHABI - Though the negotiations for a free trade agreement (FTA) between the UAE and the United States will take place from March 8, the banking and financial sectors has told the Central Bank of the UAE about its desire for more liberalisation.
The Central Bank of the UAE convened a consultative meeting with national banks, investment and finance companies to evolve the country’s strategy for the forthcoming FTA negotiations with the United States.
The purpose of the meeting was to discuss with the country’s banking and financial sector their view points and concerns regarding the FTA with the USA, and the new schedules that the UAE intends to submit to the WTO regarding further liberalisation of its banking and financial business.
The meeting also reviewed the response to a questionnaire sent by the Central Bank to all national banks, investment and finance companies 20 days ago.
Responding to the questionnaire, most national banks, investment and finance companies favoured further liberalisation of the banking and financial business in the UAE giving a go-ahead for entering into a free trade agreement (FTA) with USA and WTO new schedules.
Most national banks, investment and finance companies demanded an FTA agreement granting market access based on equal and fair treatment to the financial institutions of both the countries. A similar approach should be adopted for WTO schedules.
The meeting agreed to form a task force comprising technical and legal members representing national banks, investment and finance companies, along with representatives from Central Bank which will review the matter.