WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO 
WT/TPR/M/262/Add.1 
25 May 2012 
 (12-2746) 
Trade Policy Review Body 
27 and 29 March 2012 Original: English/ 
 anglais/  inglés 
 
TRADE POLICY REVIEW 
THE UNITED ARAB EMIRATES 
Record of the Meeting 
Addendum 
Chairperson:  H.E. Mr. Eduardo Muñoz (Colombia) 
 This document contains the advance writte n questions, and replies provided by the 
United Arab Emirates.1 
__________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
27 et 29 mars 2012 
 
EXAMEN DES POLITIQUES COMMERCIALES 
ÉMIRATS ARABES UNIS  
Compte rendu de la réunion 
Addendum 
Président:  S.E. M. Eduardo Muñoz (Colombia) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par les Émirats arabes unis.
1 
__________________________________________________________________________________ 
 
Órgano de Examen de la s Políticas Comerciales 
27 y 29 de marzo de 2012 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
EMIRATOS ÁRABES UNIDOS 
Acta de la reunión 
Addendum 
Presidente:  Excmo. Sr. Eduardo Muñoz (Colombia) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por los Emiratos Árabes Unidos.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.   WT/TPR/M/262/Add.1 
 Page 3 
 
 
 REPLIES PROVIDED BY THE UNITED ARAB EMIRATES 
TO WRITTEN QUESTIONS 
 
QUESTIONS FROM ARGENTINA 
 
Report by the Secretariat (WT/TPR/S/262) 
 
SUMMARY 
 
I. ECONOMIC  ENVIRONMENT 
 
 Paragraph 4 explains that in reaction to the crisis, the Federal Government applied strong 
countercyclical monetary and fiscal policies a nd adopted rescue packages for government-related 
enterprises (GREs), including important debt restructuring.  1. Could the United Arab Emirates please speci fy which sectors have benefited from these 
rescue packages?  Answer:  During the crisis the UAE government has adopte d financial bailout measures to support the 
banking sector through liquidity injection, reca pitalization and investment guarantees. The 
bailout amounted to AED 70 billion in addition  to AED 50 billion pledged by the UAE Central 
Bank as countercyclical loan facilities design ed to mitigate a further financial crisis. 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(3) D
EVELOPMENT AND ADMINISTRATION OF TRADE POLICY  
(i) Agencies involved in trade policy implementation 
 
 Paragraph 13 states that since 2008, the development and administration of trade policy has been under the responsibility of the Ministry of Foreign Trade (previously the Ministry of Economy and Planning), in coordination with other ministri es at the federal level and trade-related bodies and 
local departments, including the Ministry of Environment and Water. 
 
2. Could the United Arab Emirates please explain  whether foreign representations accredited in 
the country can access official databases or direct info rmation sources with a view to responding to 
enquiries which, by nature, fall within the scope of the Ministry of Environment and Water? 
 
Answer:  Foreign representations accredited in the country  can access information sources pertaining to 
the scope of the Ministry of Environment and Wa ter by directly contacting the concerned entity 
or by accessing its website. .  
 
(4) T
RADE POLICY OBJECTIVES  
(i) General trade policy objectives 
 
 Paragraph 19 mentions that the future strategi c growth of Dubai is based on six key economic 
sectors:  tourism, trade, transportation, finance, construction, and professional services. 
 
3. Could the United Arab Emirates please specify  which policy measures have been and will be 
implemented to promote the trade sector?  WT/TPR/M/262/Add.1 
Page 4  
 
 Answer: 
 Regarding Paragraph 19 mentioning that the futu re strategic growth of Dubai is based on six 
key economic sectors:  tourism, trade, transportation, finance, construction, and professional services, this statement was probably based on  the old Development Strategic Plan (DSP) 2007-
2015, which was drafted in 2006.  Back then, as  Dubai was pursuing its major infrastructure 
drive and as real estate was expanding fast, the co nstruction sector was indeed expected to be 
one of the main drivers of growth. Since 2009, there have been major changes in the sectoral 
sources of growth. Construction has provided th e Emirate with a high-quality infrastructure 
and real estate (with some excess capacity that will be utilized in the coming years), but it will no 
longer be a significant driver in the next five years or so. Growth will be driven instead by 
domestic and international trade, which a ccounts for about 30 percent of GDP, tourism 
(undergoing very rapid growth since 2010), tr ansportation and logistics and finance. 
Manufacturing has also shown a lot of resilience even  during the peak of the crisis. It is also 
important to notice that Dubai’s main trader partners (India being the first) have been growing 
and are expected to grow relativ ely fast in the coming years. 
 As to which policy measures have been and will be  implemented to promote the trade sector, for 
the UAE, being a highly open country, the expansio n of trade is of very high importance for its 
economy. As well known, customs duties are v ery low by international standards and 
determined at the GCC- level under the GCC Customs Union. In addition, there are no 
quantitative restrictions. The UAE is pursuing the objective of foreign trade expansion through 
trade facilitation and streamlining export and im port procedures, further investment in the 
hardware and software of trade logistics and wider and more efficient dissemination of 
information about foreign markets. Self-financed export guarantee schemes are also expected to 
spur SMEs engagement in international markets.  
 
Export promotion entities have also been set up in a number of Emirates to link local exporters 
with foreign markets.   The Ministry of Foreign Trade was set up to  promote the country’s foreign trade.  
 
All these measures are required to bring about grow th and a higher degree of diversification in 
exports, both geographically and product-wise.   III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
 Paragraph 29 explains that prior authori zation from the appropriate government body is 
required to import specific goods, including weapons  and ammunition, all alcoholic beverages, 
pork products, tobacco products, pub lications, visual and audio tapes, telecommunication equipment, 
all foodstuffs, animals and their products, animal  feeds, additives, living bees and bee queens, 
fireworks and explosives.  Other goods are regulat ed or require registration, as is the case for 
pharmaceuticals.  
4. Could the United Arab Emirates please explain in  more detail what this authorization consists 
of, what procedure is followed to obtain it, an d which authority is responsible for granting it? 
  WT/TPR/M/262/Add.1 
 Page 5 
 
 
 Answer: 
 
This authorization is not in a unified form. Each entity that is responsible for a specific 
authorization has its own requirements. These entities include the Ministry of Interior, Ministry 
of Environment and Water, Ministry of Health and Emirates Authority for Standardization and 
Metrology.  
Example of Restricted Goods in the UAE and the responsible authority 
No. Product Title/Description Prohibiting Authority 
1. Wild animals Ministry of Environment and 
Water 
2. All kind of weapons and ammunitions Ministry of Interior 
3. Alcohol drinks Ministry of Interior 
4. Medicine including tranquilizer used for medical purposes Ministry of Health 
5. Organic and chemical fertilizers Ministry of Environment and 
Water 
6. Fungicides Ministry of Environment and 
Water 
7. Agricultural seedlings  Ministry of Environment and 
Water 
8. Seeds Ministry of Environment and 
Water 
9. Wire and Wireless Communication Devices  Telecommunications 
Regulatory Authority 
10. Live horses Ministry of Environment and 
Water 
11. All forms of chemicals & radioactive substances Ministry of Environment and 
Water 
12. Live fish, non-local fish products, Ornamental fish, fish larvae for the purpose of breeding Ministry of Environment and 
Water 
13. Bird's eggs fresh, for hatching Ministry of Environment and 
Water 
14. Animal semen Ministry of Environment and 
Water 
15. Veterinary vaccines and serums, Human bl ood; animal blood attired for therapeutic, 
preventive or diagnostic uses; antis era & ot her blood component & m odified immunological 
products, whether or not obtained by means of biotechnological processes; vaccines, toxins, 
poison of micro-organisms (excl uding yeasts) & similar products  Ministry of Environment and 
Water 
Ministry of Health  
16. Animal products of all kinds  (leather, wool & others) Ministry of Environment and 
Water 
 
For more information, kindly revert to www.dxbcustoms.gov.ae. 
 
(vi) Import prohibitions, restrictions, and licensing 
 
 Paragraph 51 explains that in addition to im port prohibitions, imports of 244 tariff lines at the 
eight-digit level were restricted in 2011;  th ese comprise mainly swine and alcohol products. 
 WT/TPR/M/262/Add.1 
Page 6  
 
 5. Could the United Arab Emirates please explain in more detail what the restriction on imports 
of 244 tariff lines at the eight-digit level consists of?  Answer:  
Restricted goods are those goods that the import  and export of which is restricted under the 
provisions of the law or system in force in the country. A complete list at the 8 digit level can be found at the following link: http://www .customs.gov.ae/restrictedgoods_en.aspx. 
 6. Could the United Arab Emirates please specify  which alcohol products are subject to the 
import restrictions?  
Answer: 
 All Alcoholic beverages are subject to import restrictions and require authorization from the 
Ministry of Interior.  Please refer to answer No. 4.  
 (x) Sanitary and phytosanitary requirements 
 
 Paragraph 79 states that the Department of Veterinary Quarantine in the Ministry of 
Environment and Water must authorize the importati on of animals and their products, animal feeds, 
and additives. 
 
7. Could the United Arab Emirates please provide fu rther details of the procedure for obtaining 
such authorization?  
Answer: 
 A prior written approval should be obtained from the Ministry of Environment and Water 
(MOEW).  The requirements are:  
- That the importer must have a licence from the MOEW to trade in animals and their 
 products. 
- That the exporting country not be under embargo by the MOEW. 
 More information is available at MOEW’s we bsite at: http://moew.gov.ae/Portal/en/our-
services/animal-wealth.aspx. 
 IV. TRADE POLICIES BY SECTOR (2) A
GRICULTURE  
(ii) Policy objectives for the sector 
  Paragraph 17 mentions that th e United Arab Emirates' long-term  policy objective is to achieve 
food security, while protecting the environment and scarce water resources.  
8. Could the United Arab Emirates please provide further information on the strategy that is 
being applied to ensure food security? 
  WT/TPR/M/262/Add.1 
 Page 7 
 
 
 Answer: 
 The UAE government encourages the private sector to  invest in the agricultural sector. It also 
encourages it to establish strategic and inv estment agricultural partnerships with foreign 
investors both domestically and abro ad, especially agricultural countries.  
 
The UAE also ensures the diversification of it s food imports suppliers, and regularly assesses 
their production capacities of basic food  staples such as rice, wheat, etc.  
 The UAE is also considering creating a national food reserve stockpile strategy. 
 
(iii) Fisheries 
 
 Paragraph 23 states that the Government assist s local fishermen in procuring marine outboard 
engines and establishing small-scale fish farms, and that it also provides support for commercial 
fish-farming activities, through the UAE Offsets Group. 
 
9. Could the United Arab Emirates please explain what type of support/assistance it provides?  
Direct payments, easy access to cred it or other types of support/assist ance?  What requirements must 
be met by beneficiaries in order to obtain such support/assistance?  
Answer: 
 Detailed information regarding these matters is a vailable at the Ministry of Environment and 
Water’s website:  http://moew.gov.ae/Por tal/en/our-services/fisheries/fishermen.aspx. 
 WT/TPR/M/262/Add.1 
Page 8  
 
 QUESTIONS FROM AUSTRALIA 
 
Report by the Secretariat (WT/TPR/S/262) 
SUMMARY  
Page ix, Para 18  
Australia is pleased to note the United Arab Emirates is in the process of introducing competition law. 
We believe free and open competition can be a powe rful inducement to economic efficiency and the 
advancement of consumer welfare; through the mark et price mechanism, the forces of competition can 
be powerful instruments for ensuring that the needs of  consumers and industry ar e satisfied in the least 
costly and most effective manner possible. In turn, such spurs to efficiency can contribute to economic 
growth and the sustenance of the na tion's level of material well-being 
 - What is included in the draft competition legislation? 
 
- Is the UAE able to advise at what stage the dr aft competition policy is up to in the Ministerial 
process? 
 
Answer: 
 
The main objective of the draft competition La w is to promote competition by controlling or 
eliminating all practices that have as their object or effect the prevention, restriction or 
distortion of competition within the UAE market. 
 The law would apply to all enterprises operating in the UAE with the exception of sectors that 
are subject to specific competition regulations , State Enterprises (SEs) and SMEs. After the 
issuance of the Law, the Cabinet will issue a reso lution, clarifying the disciplines and conditions 
to which SEs and SMEs may be exempted.  
 
The draft law would cover three major areas which are: restri ctive agreements; abuse of a 
dominant position and mergers and acquisitions. 
 
The draft Law also includes a general clause that  allows the Minister of Economy, based upon a 
recommendation of the Competition Committee, to exempt anti-competitive practices and 
agreements if such practices and agreements co ntribute to improving the production or 
distribution of goods or services or to promoting technical or economic progress, while allowing 
consumers a fair share of the resulting benefits. 
 Various and proportionate financial penalties (fines) may be imposed as a result of the violation 
of the Law's provisions. 
 Once the law is enacted, an implementing regulat ion will be issued to specify all the procedures 
necessary to apply the Law.  
 The new law is likely to be enacted by the end of this year. 
 
Page x, Para 25 
 
Australia notes the services sector is growing rapidly,  particularly in air and maritime transport, 
telecommunications, and tourism.  Ho wever, developments in the sect or would benefit in general from 
some flexibility of the foreign investment ownership limitations  currently in place  WT/TPR/M/262/Add.1 
 Page 9 
 
 
 As a general requirement wholly owned representativ e offices or branches must operate  through an 
agent.  Operating through an ag ent adds an administrative burden to business, which can create a 
barrier to trade 
 
- Would the United Arab Emirates please expl ain why an agent is necessary for foreign 
companies to undertake trade? 
 - Is the United Arab Emirates cons idering removing this obligation? 
 
Answer: 
 
The advantage for the foreign company of having a UAE services agent is having access to a network of contacts and a connection with someone with a good knowledge of local customs and markets. Moreover, the obligations of a services agent are confined to rendering services i.e. 
issuing necessary licenses without taking any responsibility or having any financial 
commitments or interfering in the management. 
 The new draft companies Law, which is still und er consideration, includes a provision stating 
that the appointment of a UAE service agent will be optional, which means that the foreign 
companies will be free to operate with or without a local service agent.  
 
The United Arab Emirates does not allow the estab lishment of majority fo reign-owned commercial 
presence in key sectors including construction, telecommunications, financial, distribution and 
transport services  We note that this has resulted, particularly in the case of telecommunications, of foreign investment and therefore competition being low 
 
- Would the United Arab Emirates consider allo wing majority foreign-ownership in these 
 sectors?  
Answer: 
 
The UAE has submitted its conditional initial offer within the framework of the DDA 
negotiations.  This offer includes the liberalization of the te lecommunication, financial services, construction 
and transport sectors.  In light of the assessm ent of other WTO member offers, the UAE will 
submit its revised offer. 
 Moreover, the UAE Government is looking into increasing foreign equity participation in the 
new Companies Law. However, it has not determ ined in which sectors this will take place.  
 
Page xi, Para 27 
 
We note that the United Arab Emirates does not appl y national treatment for taxation of foreign banks 
which advantages domestic banks in the market  - Can the United Arab Emirates please explain its rationale for the 20% tax on profits? 
 WT/TPR/M/262/Add.1 
Page 10  
 
 Answer: 
 The 20% tax is levied at the local emirate’s govern ment level. This tax is levied on the income 
generated by the branch of the foreign banks op erating in the respective emirate. The Federal 
Authorities cannot impose any rules or interfere in such matters.  
 
The United Arab Emirates has a limitation on the num ber of branches that foreign banks can operate, 
and subsidiaries are prohibited  - This would seem to constitute a significant barri er for foreign banks to enter the United Arab 
Emirates 
 Would the United Arab Emirates please briefly overview the number of foreign banks which are 
operating in the UAE?  Answer:  The total number of foreign banks operating in th e UAE to date stands at (31) banks of which 
(28) are commercial banks with 102 branches, 1 pay office, and 60 electronic banking service units (EBSU).  The other (3) are wholesale banks . A fourth wholesale bank will be soon licensed 
as it has been granted the initial approval. (see the table below). 
 
LIST OF FOREIGN BANKS AND DISTRIBUTION OF THEIR BRANCHES IN THE UAE (AS ON 29-2-2012)  
Total Al Ain Fuj U.A.Q Ajman R.A.K SHJ Dubai Abu 
Dhabi  Head 
Office Name of the bank S.No 
1 0 0 0 0 0 0 0 1 Abu Dhabi National Bank of 
Bahrain 1 
1 0 0 0 0 0 0 0 1 Abu Dhabi Rafidain Bank 2 
8 1 1 0 1 1 1 2 1 Abu Dhabi Arab Bank PLC 3 
5 1 0 0 0 1 1 1 1 Abu Dhabi Banque Misr 4 
1 0 0 0 0 0 0 0 1 Abu Dhabi El Nilein Bank 5 
1 0 0 0 0 0 0 0 1 Abu Dhabi National Bank of  
Oman 6 
2 0 0 0 0 0 0 1 1 Dubai Credit Agricole  - 
Corporate and 
Investment Bank 7 
6 1 0 0 0 1 1 2 1 Dubai Bank of Baroda 8 
2 0 0 0 0 0 0 1 1 Abu Dhabi BNP Paribas 9 
4 1 0 0 0 0 1 1 1 Abu Dhabi Janata Bank 10 
8 1 1 0 0 1 1 3 1 Dubai HSBC Bank Middle 
East Limited 11 
2 0 0 0 0 0 0 1 1 Dubai Arab African 
International Bank 12 
4 0 0 0 0 1 1 1 1 Dubai Al Khaliji (France) 
S. A. 13 
2 0 0 0 0 0 0 1 1 Dubai Al Ahli Bank of 
Kuwait 14 
2 0 0 0 0 0 0 1 1 Dubai Barclays Bank PLC 15 
7 1 0 0 0 0 1 4 1 Dubai Habib Bank Ltd. 16 
8 0 0 0 0 0 1 5 2 Dubai Habib Bank A.G 
Zurich 17 
11 1 0 0 0 0 1 7 2 Dubai Standard Chartered 
Bank 18 
5 1 0 0 0 0 1 2 1 Dubai CitiBank N.A. 19 
7 1 0 0 1 0 1 3 1 Dubai Bank Saderat Iran 20 
7 1 1 0 0 1 1 2 1 Dubai Bank Meli Iran  21 
2 0 0 0 0 0 1 1 0 Dubai Blom Bank France 22  WT/TPR/M/262/Add.1 
 Page 11 
 
 
 Total Al Ain Fuj U.A.Q Ajman R.A.K SHJ Dubai Abu 
Dhabi  Head 
Office Name of the bank S.No 
1 0 0 0 0 0 0 1 0 Dubai Lloyds TSB Bank 
PLC 23 
3 0 0 0 0 0 1 1 1 Dubai The Royal Bank of 
Scotland N.V. 24 
8 1 0 0 0 0 1 3 3 Dubai United Bank Ltd. 25 
1 0 0 0 0 0 0 1 0 Dubai Doha Bank 26 
1 0 0 0 0 0 0 1 0 Dubai Samba Financial 
Group 27 
1 0 0 0 0 0 0 1 0 Dubai National Bank of 
Kuwait 28 
111 11 3 0 2 6 15 47 27   Total   
 
II. TRADE POLICY REGIME: Framework and Objectives (5) TRADE AGREEMENTS AND ARRANGEMENTS 
(i) Participation in the WTO 
Page 20, Para 23 
 
Australia notes that the United Arab Emirates has pending notifications in a number of areas, including agriculture. These pending notifications relate to both export subsidies and domestic 
support, for which the last notifications to the WTO date from 2002. 
 When will the UAE submit relevant outstanding notifications? 
 
Answer:  
The UAE is working on these notifications. In fact, the Ministry of Foreign Trade has invited the 
WTO Secretariat to hold a workshop on “WTO No tifications”. The workshop was held in Dubai 
from 6-7 Dec. 2011 and was attended by sever al government bodies (Ministry of Health, 
Ministry of Economy, Ministry of Environment and Water, Federal Customs Authority, Emirates Authority of Standardisation and the Ministry of Foreign Trade). The aim of the 
workshop was to identify and complete the mi ssing notifications in various WTO agreements. 
We thus believe that these entities will soon deliver the required notifications.  III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS (iv) Tariffs 
 
Page 35, Para 40 
 
Australia welcomes the continued policy of trad e liberalisation implemented by the UAE. While the 
simple applied MFN tariff was 4.9% in 2011, slightly  lower than 2005, Australia notes that protection 
for agriculture (6.3%) rose and remains hi gher than for non-agricultural goods (4.6%). 
 Can the UAE please explain the cause of the rise in  tariff protection of the agriculture sector? 
 Does the UAE have a mechanism in place to continue trade liberalisation? 
 Answer:  Our records do not show any increase in Agricu ltural Tariffs, however, we will consult with 
WTO Secretariat regarding this matter.  WT/TPR/M/262/Add.1 
Page 12  
 
 The UAE believes that free trade and open markets are the main drivers of economic 
development. As such, The UAE believes that tr ade liberalization takes many forms and is not 
only confined to tariff reduction. The UAE already  has very low tariff rates on both industrial 
and agricultural products. The Country appli es trade facilitating procedures based on 
international best practices. This has enab led the UAE to handle huge trade volumes both 
smoothly and expeditiously, making it a regional platform in this regard. 
 (4) MEASURES AFFECTING PRODUCTION AND TRADE (iii) Competition Policy and Regulatory Issues Page 51, Para 112 
 
It is stated that SMEs will be exempted from th e draft competition law when it comes into effect.  
 How will this work in practice?  
 
If an anti competitive agreement is entered into between a large company and an SME, will the 
agreement be valid or invalid?   
Answer:  
 After the enactment of the Competition Law, a Cabinet resolution will define the disciplines and 
conditions according to which the SMEs may be exempted. 
 
It is confirmed at paragraph 113 that the Gulf C ooperation Council - of which the UAE is a member - 
is developing a common Anti-Unfair Compe tition Law to be applied among GCC members. 
 
What impact does the UAE expect the GCC's reforms to have on the regulation of competition in the 
UAE?  What is the UAE's role in the GCC's deliberations  and what is the proposed timetable for reform? 
 
Answer: 
 
The scope of the GCC draft Law would be limited  to anti-competitive practices arising from 
cross-border trade between GCC member states. Th e Draft is still under consideration by the 
GCC members. 
 IV. TRADE POLICIES BY SECTOR (2) ACRICUTURE (ii) Policy objectives for the sector 
Page 63, Para 17  
Australia notes that according to the authorities, th e UAE’s long-term agricultural policy objective is 
to achieve food security, while protecting the environment and scarce water sources.  
What is the future role of trade, and further tr ade liberalisation, in achieving the UAE’s food security 
into the future?  
  WT/TPR/M/262/Add.1 
 Page 13 
 
 
 Answer: 
 The open market policies and low tariff and reg ulatory barriers present in the UAE guarantee 
the smooth flow of food and the diversity of its sources. Nearly all food entering the UAE is tariff exempt. 
 
Page 63, Para 18  In the emirate of Abu Dhabi a strategy to reduce water consumption has been embarked which offers 
financial assistance to farmers. Farmers are granted a financial subsidy of AED 90,000 annually if 
they accept a number of conditions aimed at reducing water use. 
 How would this domestic support subsidy be notified? 
 
Answer: 
 
Please refer to the answer to the quest ion regarding Page 20, Para 23. 
 
Report by the United Arab Emirates (WT-TPR-G-262) 
 III. SECTORAL DEVELOPMENTS 
(IV) Future Direction 
(3) Competition 
Page 51, Para77 
It is stated that the United Arab Emirates (UAE ) has drafted competition laws after evidence surfaced 
of possible anticompetitive practices, and that these dr aft laws are currently being considered by the 
Federal National Council.   When were these laws first drafted and when  are they likely to come into effect?  
 
Will a new regulatory body be est ablished to enforce these laws? 
 
Answer: 
 The Draft competition Law is likely to be enacted by the end of this year. 
 
According to the draft law, the Minister of Econ omy is the head of the competition authority. 
Additionally, a Competition Committee will be est ablished; its composition and functions are 
still under consideration.  
Page 51, Para 113 
 It is mentioned that a body called the Emirates Co mpetitiveness Council has been established, and that 
the Council enacts policies and undertakes actions to drive competitiveness.  What sorts of issues do the policies cover?   Answer:  The Emirates Competitiveness Council (ECC) was created in 2009 as the UAE federal 
government entity mandated to drive the nation’s  competitiveness, with the vision to become 
one of the leading countries in the world. WT/TPR/M/262/Add.1 
Page 14  
 
 However, ECC does not enact polic ies.  Rather, the ECC undertakes analysis to advocate and 
support policies and actions to drive the UAE’ s competitiveness agenda and unites the country 
towards achieving regional and global leadership, and future prosperity for its people.  This 
policy advisory role, as well as other actions to drive the UAE’s competitiveness agenda are 
embodied in the ECC’s 7 strategic objectives: 
 
1. Advocate the competitiveness of UAE nationals. 2. Raise national awareness of competitiveness, and promote the UAE’s competitiveness locally 
and internationally. 3. Advocate for reforms that increase the UAE’s competitiveness. 
4. Help establish a level playing field across the emirates. 
5. Become a thought leader and a centre of excellence on competitiveness. 6. Engage with the private sector to become th eir channel in which their competitiveness needs 
are identified and communicated. 7. Engage with international ranking organizations and government entities to improve the 
UAE’s ranking. 
 Consistent with its mandate, the ECC has engaged with diverse government entities (both 
Federal and Local) to advocate for policies co nducive to improving the business environment 
and the prosperity of the UAE, including legislat ions such as Insolvency, Competition and FDI 
related laws, Procedures, initiatives and servic es to ease starting a business, enforcing a 
contract, and access to finance. Other areas are looked at and studies are generated to ensure 
that the UAE is one of the most attractive na tions in the world for Talent and Companies. 
Quality Of Life studies are carried out by the ECC and partners on a regular basis.  
 The ECC also works closely with internationa l agencies such as the World Bank, the World 
Economic Forum and the OECD to study toge ther areas where the UAE can show major 
improvement specially by benchmarking the Co untry’s performance against the OECD average 
or the World Bank top performers in the annual Doing Business report.  
 
Are they enforceable as against companies and or  the Government operating within the UAE? If so, 
how are they enforced? 
 
Answer: 
 The Emirates Competitiveness Council (ECC) does not enforce change but encourages it when it 
serves Vision 2021 for the UAE (www.vision2021.ae).  
 
The ultimate goal of any change or advocacy th e ECC is offering is to make the UAE a more 
attractive place.  We use both internal and int ernational measurements tools, which is important 
to benchmark our performance year-on-year.  WT/TPR/M/262/Add.1 
 Page 15 
 
 
 QUESTIONS FROM CANADA 
 
Report by the Secretariat (WT/TPR/S/262)  Part II. Trade Policy Regime: Framework and Objectives; (5) Trade Agreements and 
Arrangements; (ii) Preferential trade agreemen ts; (a) Gulf Cooperation Council: paragraphs 
25-36, pages 21-22:  
1. Please detail efforts amongst the GCC towards gr eater regional integration, especially in trade 
policy matters and towards the inclusion of Jord an and Morocco in common market discussions. As 
you are aware Canada has concluded an FTA with  Jordan and is negotiating one with Morocco  
 
Answer:  The GCC Supreme Council has agreed to examine potential areas of joint cooperation between 
the Council and the Hashemite Kingdom of Jorda n and the Kingdom of Morocco. It has also 
formed a number of specialized cooperation co mmittees to reach the aspired partnership.   
 There is currently a Gulf committee that is monitoring the GCC member countries trade 
policies and working on unifying them.   
 
Part II. Trade Policy Regime: Framework and Objectives; (6) Foreign Investment Regime: 
paragraph 43, page 24:  
2. With regard to the promulgation of the ne w Company Law, that will allow foreign businesses 
to own 51% or more of a UAE based corporate entity,  firstly what is the timeline for the entry into 
force of this law and, secondly what sectors would this Law apply to?  
 
Answer: 
 
The UAE Cabinet issued on Sunday, December 4th, 2011 a new draft Companies Law.  It is expected that the new Law will contribute to enhance the competitiveness of the national 
economy at all local, regional a nd international levels as well as enhance the performance of the 
business environment and investment climate in the UAE.  
The new law is expected to allow for one hund red percent foreign ownership in specific sectors 
of the country’s economy in line with the federal government’s economic diversification 
strategy.  The new Law will allow the Cabinet to  issue a resolution specifying the sectors and 
businesses activities in which the share of foreign partners may be increased up to 100 percent. 
 This will be followed by a review of the new Dra ft Law by the National Council. It is expected 
that the new law will be enacted by the end of 2012 . 
 
Part III. Trade Policies by Measure: (2) Measures Directly Affecting Imports; (i) Customs 
Procedures: paragraph 12, page 30: 
 
The Secretariat report notes that the ability to impor t or export, or to distribute imported goods is 
restricted to United Arab Emirates (UAE) nationals or to those entities which are either 51% or wholly 
owned by UAE nationals.  
 3. In light of the tremendous work done on trad e facilitation, what plans does the UAE have to 
remove the remaining obstacles to trade?  WT/TPR/M/262/Add.1 
Page 16  
 
 Answer: 
 As mentioned in the response to question No 2, the UAE Cabinet has already issued a new draft 
Companies Law that will allow up to one hundred percent foreign ownership in specific sectors 
of the country’s economy. The Law is expected  to be enacted by the end of this year. 
 
In addition, the UAE would like to highlight that  the commercial agencies are entrenched as an 
established method of doing business in the UAE. The advantage for the foreign company of having an exclusive agent is an efficient network of contacts to carry out all the required official 
procedures, a connection with someone with a good knowledge of local customs and markets 
distribution channels, and the availability of outlets to distribute and advertise the product.  
In addition, the Federal Law on Commercial Agencies is designed to protect the rights of all 
parties (the agent, the producer and the consum er), regulate trade activities and ensure after-
sale service (maintenance and spare parts).  
Moreover, importers are free to operate with or  without registered agents. In fact a foreign 
company may appoint an agent that is not registered in the Ministry of Economy.  
 Part III. Trade Policies by Measure: (2) Measures Directly Affecting Imports; (i) Customs Procedures: paragraph 18, page 31:  
The Secretariat Report notes that UAE customs procedures require commercial documents 
(certificates of origin, commercial invoices, packing lists , original bills of lading, airway bills, etc) to 
be legalized via consular transactions and that a fee of $15 dollars is a pplied to each document and 
each copy of a document.  
 4. Taking into consideration the high priori ty given to trade facilitation in the UAE (see 
paragraph 14), is consideration being given to eliminating the re quirement for the legalization of 
documents?  Answer:  There are currently no intentions to remove this requirement. 
 
Part IV. Trade Policies by Sector: (2) Agricu lture; (ii) Policy Objectives for the Sector: 
paragraph 20, page 63: 
 
The Secretariat Report indicates that the UAE has not made any domestic support notifications to the 
WTO since 2002. The last domestic support notif ication corresponds to the years 2000 and 2001. 
Further, the UAE notified to the WTO that it has not  maintained any export subsidies but the last 
export subsidy notification was submitted in 2002.  
 5. Could the UAE elaborate as to when it will submit these overdue notifications?  Answer:  The UAE is working on these notifications. In fact, the Ministry of Foreign Trade has invited the WTO Secretariat to hold a workshop on “WTO No tifications”. The workshop was held in Dubai 
from 6-7 Dec. 2011 and was attended by sever al government bodies (Ministry of Health, 
Ministry of Economy, Ministry of Environment and Water, Federal Customs Authority, 
Emirates Authority of Standardisation and the Ministry of Foreign Trade). The aim of the  WT/TPR/M/262/Add.1 
 Page 17 
 
 
 workshop was to identify and complete the mi ssing notifications in various WTO agreements. 
We thus believe that these entities will soon deliver the required notifications.  Part IV. Trade Policies by Sector: (5) Services ; (iii) Transport; (c) Maritime Transport and 
Ports: paragraph 142, page 89: 
 6. What are the policy issues and objectives that have led to the decision to aim for an increase 
in the size of the UAE’s marine registered fleet?  
Answer: 
 
The policy’s objectives are to enhance, support and develop the maritime economy of the UAE. 
Since ship owning is the focal point around which the shipping industry revolves, the emphasis has been to put proper policies in place to en courage ship-owners to register their fleet under 
the UAE flag. 
 
Part IV. Trade Policies by Sector: (5) Services ; (iii) Transport; (c) Maritime Transport and 
Ports: paragraph 143, page 89:  
Paragraph 143 states: “Only ships registered in  the UAE may conduct cargo or passenger cabotage 
operations”.  
 
7. Does this limitation also include marine activiti es of a commercial nature that do not include a 
transportation component, such as tugging, towing or dredging?  
 
Answer: 
 
The UAE Maritime Law has provisions that allow the Chairman of the National Transport Authority (NTA) to grant exemptions to foreign flag vessels to engage in activities of a commercial nature as mentioned in the qu estion i.e. tugs, towage or dredging.  
 
8. Would these non-transportation activities be open to foreign-registered vessels?  Answer:  Yes.  Non-transportation services like towage, support services etc. are open to foreign – 
registered vessels. 
 
Part IV. Trade Policies by Sector:  (5) Services;  (iii) Transport;  (c) Maritime Transport and 
Ports:  paragraph 144, page 89: 
 
9. How many waivers are issued each year on average by the NTA Chai rman for the use of 
foreign vessels and is there a limit on the number issued each year?    Answer:  Many such waivers are issued each year. As  an example, between January and March 15
th 2012, 
136 Flag vessels were granted navigation licences (waivers) to conduct legal & lawful maritime 
business in UAE waters.  
10. Are there any time limits or other conditions  included on these waivers?  Is there a fee 
required to obtain a waiver?  
 WT/TPR/M/262/Add.1 
Page 18  
 
 Answer: 
 1) There are no limits on the number of vessels that can qualify for these waivers.  
2) Conditions for support vessels that are operati ng in the offshore industry or in dredging 
activities or performing towage services are issued fo r one year each or to the length of contract. 
If the contract runs longer than 1 year then the navigation licence is validated accordingly one 
year at a time, provided that the vessels safety certificates and other certificates required under the national and international law remains valid at all times.  3) Yes.  An annual fee must be paid in order to obtain a waiver.  
 
11. What are the criteria used to determine if a service by a foreign vessel is issued a waiver from 
the NTA Chairman?   
Answer: 
 
The Criteria include: A Contract with a Government or a Quasi Government entity. The validity of all safety and class certificates. The owner’s/operator’s backgr ound must be satisfactory. 
That security checks on the personal be performed by the security agencies of the UAE 
government. 
 That the crew must be STCW 1978 (as amended) certified. 
 
12. Are foreign vessels operating under a waiver re quired to have a national crew on board or can 
foreign nationals work on those vessels? 
 
Answer:  There are no restrictions on this issue except; That the crew employed must be cleared thru the security agencies of UAE government as 
stated above 
 Have qualifications in line with STCW conventions as stated above. 
 
13. Could the UAE please provide examples of th e types of operations that are permitted for 
foreign-registered vessels that operate under a federal/local government contract? 
 
Answer:  Dredging Tuggage and towage 
Support and utility services for the offshore platforms 
Marine Environment related Specialized vessels e.g.; cable lay ers, survey vessels, crane vessels,  pipe layers, drilling rigs etc 
Other types 
 14. How many foreign vessels operate each year under this type of arrangement? 
  WT/TPR/M/262/Add.1 
 Page 19 
 
 
 Answer: 
 Numbers of Foreign Flag vessels can vary.  On  average, 200-300 such vessels may be operating 
in UAE waters annually. 
 15. Could the UAE please explain what type of vessels and activities are included in paragraph 
144 where it states:  “Foreign flag vessels may operate in UAE territorial waters, mainly in the context 
of offshore projects...” ? 
 
Answer: 
 
The ‘offshore projects’ mentioned in Paragr aph 144 include dredgers and support vessels 
working specifically on the offshore land reclamatio n and creation of artificial Islands projects. 
 
16. Does this include cargo and passenger tran sportation activities as well as other support 
activities such as pipe laying, floating plants, drilling rigs, etc.? 
 
Answer: 
 Yes, it includes but is not limited only to the vessels mentioned above. 
 
Part IV. Trade Policies by Sector: (5) Services ; (iii) Transport; (c) Maritime Transport and 
Ports: – no paragraph  
17. Does the UAE government publish information an d/or instructions on the internet or other 
social media to inform the public on the subject of cabotage law and requirements? 
 
Answer: 
 
Yes. The UAE government publishes the condition s under which a navigation licence (waiver) is 
issued to foreign flag vessels. This is in the form of a Directive issued by the NTA Chairman 
This directive can be found on the NTA website or by alternately contacting the maritime 
registration and licensing department of the NTA. 
 Part IV. Trade Policies by Sector:  (5) Services; (iii) Transport;  (d) Road and railway transport, 
paragraph 156, page 92: 
 18. What percentage of foreign ownership is allowed in UAE road transport companies?  
 
Answer:  In the UAE, road transport companies must h ave a minimum ownership of 51% by a Local 
entity or company. Therefore 49% is the forei gn ownership percentage allowed for the UAE 
road transport Companies. 
 However, in the free zones, it is possible for a Transport company to have full foreign ownership 
(100%). 
 19. Is it possible for a foreign enterprise to establish a trucking company (if so, under what 
conditions)? 
 
  WT/TPR/M/262/Add.1 
Page 20  
 
 Answer: 
 Yes; it is possible with 51% and 49% local a nd foreign owner respectively. The conditions are 
set in the land transport Law Number 9 of 2011 (available on the NTA website) and its 
Executive Proceedings. 
 
Part IV. Trade Policies by Sector: (5) Services; (iii) Transport; (d) Road and railway transport: 
paragraph 155 and 158, page 92: 
 
20. Is the public transit market in the UAE ope n to foreign investment (e.g. construction and 
operation)? 
Answer: 
 Currently, the land transport sector is preparing a railway law for the proposed railway network in the UAE. The Main objectives of the Law are to embrace direct foreign investments 
and to create a competitive market  for the future railway industry. 
 
21. Will the expansion of the Abu Dhabi and D ubai metro systems be open to international 
competition?   
Answer:  
 
The National Transport Authority is the national regulator, thus local transit systems (Such as the Abu Dhabi and Dubai Metro) are under the responsibility of the Department of Transport Abu Dhabi (DOT) and the Road Transport Author ity in Dubai, which have both been and 
continue to be open to international bidding.  
 
Part IV. Trade Policies by Sector:  (5) Servi ces;  (vi) Trade in Business and Professional 
Services: paragraphs 178-192, pages 96-98  
Canada noted the number of limitations in place with  respect to trade in professional services in the 
UAE.  
 
22. Has the UAE ever considered a thorough re view of their existing legal and commercial 
conditions affecting the supply and trade of services in the UAE territory, in terms of assessing their 
continued efficiency and necessity to ensure th e attainment of legitimate public policy goals?  
 
Answer: 
 The UAE is conducting a review of Law No 22 of 1995 regarding the profession of Accounting Auditors in light of the international standard s related to auditing and the effects of the 
international financial crisis of 2008. For that purpose, a new draft law is under consideration 
by the Ministry of Justice and is expected to be issued by the end of 2012 after completion of the 
required procedures of adoption.   WT/TPR/M/262/Add.1 
 Page 21 
 
 
 The main amendments included in the new draft Law are: 
 
 The possibility for foreign companies providing  auditing services to open a branch in 
the UAE under some conditions such as; Holding a valid license in the country of origin, Experience of at least 5 years, a representative of the mother company must 
be present at the branch that seeks to be registered in the accounts auditors register 
at the Ministry of Economy. 
 
 The possibility for the foreign companies providing auditing services to establish 
companies within the UAE and acqui re the equity majority up to 75%. WT/TPR/M/262/Add.1 
Page 22  
 
 QUESTIONS FROM COLOMBIA 
 
Trade Policy and Multilateralism: 
 
 Since the last Trade Policy Review, the Unite d Arab Emirates has pursued an active trade 
policy, with strong emphasis on the consolidation of regional integration processes and the negotiation 
of bilateral agreements (GCC and Pan-Arab Free Trade Area).  With the GCC, it has negotiated 
bilateral agreements with EFTA, Singapore and Ne w Zealand.  Nonetheless, the UAE considers 
regional agreements to be a valuable complement to multilateralism.  1. How does the UAE envisage reconciling these outcomes with the opportunities for driving 
trade liberalization forward within the multilateral system?  Answer:  
The FTAs that the UAE and the GCC members have pursued are consistent with the WTO 
rules governing such agreements and also consis tent with the WTO agreements themselves.  
 These FTAs are also in line with WTO goals th at aim to eliminate trade barriers and widen 
market access opportunities. The FTAs achiev e these goals through undertaking “deeper” forms 
of integration through the inclusion of both the provisions that fall under the mandate of the 
WTO agreements and those that currently fall outside of the mandate of the WTO (such as 
provisions on investment measures, government procurement and competition).   Therefore the FTAs are in harmony with, and w ill contribute to achieving the goals of the 
multilateral trading system. 
 
Free Trade Zones (Free Zones): 
 
 With a view to diversifying its economy a nd attracting foreign investment, in 1980 the UAE 
established a special "free trade zone" regime, wi th conditions of owners hip, regulation and tax 
incentives less restrictive than those of the general investment regime applicable outside the free trade 
zones. 
 
2. How was this policy implemented and developed? 
 Answer: 
 
The free zone policy was implemented, with Jebel A li free zone starting operations in 1985.  The 
benefits offered to foreign investors were;  
·100% foreign ownership ·100% repatriation of capital allowed 
·0% customs duty 
·0% corporate and income tax ·No labour restrictions ·No currency restrictions ·One-stop-shop service, which enables invest ors to register their business, obtain a 
lease & license to conduct operations, obtain employee-related services from one place. 
 An oversight to govern the policy were created of: 
  WT/TPR/M/262/Add.1 
 Page 23 
 
 
 ·Master planning and zoning. 
·Governing & implementing rules and regulations. ·Facility /superstructure development. ·Services rendered. ·Levying fees. 
 
3. What lessons can be drawn from the UAE's experi ence in this regard that would be useful for 
other countries and emerging economies?  Answer: 
 
The introduction of the free zone policy in th e UAE has resulted in increased foreign direct 
investment (FDI) year on year and increased trade flows. 
 ·Jafza alone currently has over 6,500 customers, of which over 100 are Fortune 500 
companies. Jafza’s trade has grown at a 10-year CAGR of 20 percent from 2001 to 
2010. Moreover, Jafza’s contribution to the eco nomy is equivalent to over 20 percent of 
Dubai’s GDP and over 7 percent of the UAE’s GDP (source: PWC study, 2010).  ·Over 40 percent of FDI in Dubai durin g 2009 came from Jafza customers. 
 
Increased Employment Opportunities 
 
The creation of free zones has increased the level of employment opportunities 
generated in the economy. According to the PWC study mentioned above, Jafza customers have sustained over 138,000 employment opportunities within Dubai, which 
is 10.1% of Dubai’s working population. 
 Promotes Technology Transfer and Knowledge Spillover 
 Free zones in the UAE were created based on an ‘independent but integrated’ concept.  The integration allowed for sourcing of fact ors of input in production such as raw 
material, finished goods, capital, and serv ices from the local economy.  The output 
included primarily finished goods and services.  With increased foreign investment occurring due to the creation of free zones,  the local economy benefited through its 
exposure to international practices, hen ce technology and knowledge transfer from 
these international companies occurred. 
 
Increased Competition Created a Better Business Climate 
 With the free zones being independent and in tegrated, this created positive competition 
that led to a more business friendly climate and efficient processes and faster turnaround times - in terms of setting-up a business, which made the whole economy a 
destination of choice for potential investors. 
 
New Foreign Investment Law: 
 
 While the UAE trade regime is quite open and liberal, its investment regime is considered 
fairly restrictive. The UAE has signalled a new development in this area, namely the drafting of a new 
investment law.  WT/TPR/M/262/Add.1 
Page 24  
 
 4. What changes and reforms to the foreign in vestment regime are being envisaged in the 
immediate future?  Answer:  
Draft Foreign Investment Law: 
 Numerous provisions have been incorporated into  the draft Investment Law to ensure fair and 
equitable national treatment to foreign investors.   The objective is to create a predictable and 
transparent institutional and legal framework for foreign investments. 
 
The main provisions of the draft Law are: 
 
 The expropriation or nationalization of fo reign investments shall not be permitted 
except for public interest and against fair compensation. 
 No restrictions on repatriation of capital: fo reign investors guaranteed, after fulfillment 
of their financial obligations, the free tran sfer of payments, including principals and 
returns related to their investments. 
 Freedom of management of investment projects. 
 The Cabinet will issue a list of economic sector s in which the foreign investor may have 
the equity majority up to100%. 
 The Cabinet may issue a decision granting further incentives and guarantees & 
privileges for foreign projects subject to a number of criteria such as: 1) the promotion 
of strategic economic plans; high value added,  threshold of capital to be determined by 
the Cabinet; transfer of technology; protectio n of the environment;  creation of jobs. 
 
It is expected that the new law will be enacted by the end of this year. 
 
5. What would be the outline and general features of the new investment regime?  Answer:  The outlines and general features of the future investment regime are reflected in the new 
investment law (mentioned in question no. 4) 
 
Hydrocarbons and diversification of production: 
 
 The experience of the UAE with regard to the diversification of production, initially 
hydrocarbons-based, can be considered one of th e most successful in the world and of great 
significance to countries that rely on oil revenue fo r the diversification of their production structures. 
 
6. What are the main features of the UAE's policy regarding the hydrocarbons sector and its 
petrochemical industry?  
Answer:  
 The UAE is gradually moving into the next phase of petrochemical product development – 
branching into specialized value added products instead of just producing primary products.  
 Major initiatives are taken to a ttract investment in the downstream plastic industry. Abu Dhabi 
embarked upon the Polymer Park concept; while  other emirates; especially Dubai, are also 
opening up for downstream petrochemicals for both production and marketing operations. 
  WT/TPR/M/262/Add.1 
 Page 25 
 
 
 One of the latest Abu Dhabi government initiati ves is to develop one of the world’s largest 
(phase one) grassroots integrated Chemical Complexes in the newly planned Chemicals Industrial City at Khalifa Industrial Zone at Taweelah (Abu Dhabi).  The project will combine 
aromatics, olefins and fertilizer production. The Chemicals Industrial City (or Chemaweyaat) is investor-oriented with a clear goal to help inte rnational business opt in to develop the emirate’s 
industrial and downstream industries, create a su stainable petrochemical and chemical hub and 
deliver joint benefits for both the industrial zone and port. 7. What have been the key elements of th e UAE's production diversification strategy? 
 Answer:  
 
The UAE has given a lot of attention to diversifying its economy and moving away from its historical reliance on its oil sector.  The UAE has succeeded in this regard mainly through increasing the contribution to GDP of 
non-oil sectors such as trade, logistics and tran sport, industry, tourism, services, hospitality, 
financial services, renewable energy,  etc.  It has also supported the creation of free tr ade and industrial zones, which have played an 
important part in attracting investments to th e UAE and to the transfer of knowhow and the 
arrival of new industries to the country. 
 
For more information, kindly visit the UAE Visi on 2021 website at:  http://www.vision2021.ae. 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
 Paragraph 12 states that impor ters and exporters require a trading licence to operate in the 
UAE and that these trading licences are granted to UAE nationals and to companies that are at least 51 
per cent owned by UAE nationals.  8. Can importers and exporters conduct their forei gn trade operations in the UAE through a 
customs agency?  Answer:  
“Trade Agencies” registered in the Ministry of Economy / Economic Departments, are able to 
import and export as per UAE Trade agency law and their trade licence.  It is noted that Customs Agencies is referring to Customs Brokers.  
 Customs Broker is discussed in Section 10 of the GCC Common Customs Law (Article 108-115)  
 
Customs Brokers are responsible to release goods from the Customs on behalf of a trader. 
(Article 108 of the GCC Common Customs Law).  
 
9. In what circumstances is it compulsory to use customs agents? 
 
Answer:  It is not compulsory to use Customs Brokers as per Article 110 of the GCC Common Customs 
Law: WT/TPR/M/262/Add.1 
Page 26  
 
 o Declaration of the goods at the customs office and the completion of their 
customs procedures, whether for importatio n, exportation or transit, shall be 
accepted from: 
 The owners of the goods or their authorized representatives satisfying 
the requirements prescribed by the director general including the 
authorization conditions. 
 Licensed customs brokers. 
10. What is the procedure and what are the requirements for obtaining a licence to act as a customs agent?  
Answer: 
 
- Article 109 of the GCC Common Customs Law: “Citizens of the GCC Arab States 
(natural or legal) have the right to exercise the profession of customs clearance upon 
obtaining a license from the Administration.” 
- Article 113 of the GCC Common Customs Law specifies the necessary conditions and 
procedures pertaining to a Customs Broker. 
 
11. Is this procedure different in each emirate? 
 Answer:  
- All Customs Administrations have procedur es derived from Article 113 of the GCC 
Common Customs Law. 
- The Federal Customs Authority is working to review and update unified Customs 
Procedures for the UAE. 
 
 In paragraph 12, the UAE states that imported goods must be distributed by a trade agency.  
Ownership of these agencies is rest ricted to UAE nationals or dom estic companies fully owned by 
UAE nationals.  In addition, only UAE nationals or  judicial persons fully owned by UAE nationals 
may act as trade agents.  
12. Would the UAE not be treating foreign legal pers ons unequally by not allowing them to act as 
trade agents? 
 Answer:  
- According to Article 109 of the GCC Common Customs Law: “Citizens of the GCC 
Arab States (natural or legal) have the right to exercise the profession of customs 
clearance upon obtaining a license from the Administration.” 
- Foreign legal persons are allowed to act as Customs Brokers pending that the brokerage 
company is owned by a UAE or GCC national (51%). 
o Ministry of Economy / Customs is authorizing body, Company Registration laws 
etc is in MoE. 
  According to paragraph 16, each customs office (in each emirate) has its own electronic 
clearance system.  
13. Are the different electronic clearance systems of each emirate interconnected to allow for the 
exchange of information? 
 
  WT/TPR/M/262/Add.1 
 Page 27 
 
 
 Answer: 
 
- Yes, the different electronic systems in the different local customs are interconnected 
through the Federal Customs Authority aime d to exchange specific information for 
different purposes for example: 
o Customs duty distribution system that is connected with the GCC. 
o Statistics 
- Other projects requiring IT connectivity is underway, as an example: 
o Risk Management 
 
14. Is this information taken into account fo r the purposes of risk assessment in the customs 
offices? 
 Answer:  The Local Customs have their own Risk Management systems, but the Federal Customs 
Authority is working on a uni fied UAE Risk Management Project in which exchange of 
information will determine UAE Risk Pa rameters and risk assessment system. 
 In paragraph 21, the UAE states that it uses the Authorized Economic Operators (AEO) concept, which facilitates customs clearance. 
  In paragraph 21, the UAE states that it u ses the Authorized Economic Operators (AEO) 
concept, which facilitates customs clearance.  
15. What are the requirements for obtaining AEO st atus in the UAE?  What benefits are granted 
to foreign trade users that obtain AEO status? 
 
Answer:  
- Traders obtain AEO status regardless of being foreign or local traders, as long as they 
are registered in the Customs Department. 
- List of accredited clients are produced based  on their volume of transaction, compliance 
history and their reputation. 
o Abu Dhabi Customs currently uses their “Gold List” system. 
 Post audit on most goods (lower inspection) 
 Pre-clearance facilities, where goods could be cleared before physical 
arrival of goods. 
o Dubai Customs currently uses their “Accredited Clients” system. 
 Lower inspections. 
 Corporate account where payments of duties could be accumulated and 
paid at a later stage. 
 Account manager responsible for a group of companies to facilitate 
inquiries and resolve issues. 
 Pre-clearance facilities, where goods could be cleared before physical 
arrival of goods. 
 
16. Has the UAE explored the possibility of recogni zing other countries' AEOs?  If so, what 
would be the measures to be considered to this effect? 
 
  WT/TPR/M/262/Add.1 
Page 28  
 
 Answer: 
 
- The UAE is in the study phase of putting a UAE policy and procedure for AEO. 
- Once those policies and procedures are fi nalized, then the UAE would consider the 
possibility of AEO mutual recognition with other Countries. 
o This is links as well with the Unified Trader Code currently in the works in the 
UAE.  WT/TPR/M/262/Add.1 
 Page 29 
 
 
 QUESTION FROM ECUADOR 
 
Report by the Secretariat: 
 
I. ECONOMIC  ENVIRONMENT 
 
 Paragraph 4 of the report refers to "rescu e packages for government-related enterprises".  
What do these rescue packages consist of?  
Answer: 
 
Rescue packages for government related  entities (GREs) consist of:  
 - Direct financial support from local governments in Dubai and Abu Dhabi. - Debt restructuring for GREs facing financial difficulties to overcome the maturity mismatch 
between short-term liabilities and long-term cash-flows. 
- Sovereign guarantee of GREs’ debts. - Enhancing GREs’ access to local banks. - Strengthening GREs’ governance and risk management through the “Debt Management Offices (DMOs)”. 
 
(iv) Tariffs 
 
 Paragraph 43:  Is there any level of ha rmonization between GCC members as regards the 
types of goods that may be considered prohibited?   Is there any level of harmonization between the 
emirates as regards the types of goods that may be considered prohibited? 
 
Answer: 
 
 There is harmonization between the GCC members in the prohibited and restricted 
goods as there is a GCC prohibited and restricted goods list.  he GCC also gives the members the chance to have their own additional restricted or prohibited goods. 
 As for the list of prohibited and restricted goods in the UAE, these lists are made in the 
Federal level and therefore there is harm onization across the different emirates. 
 
(iv) Tariffs 
 
(c) Preferential tariffs:  Does the UAE have an y sort of unilateral Generalized System of 
Preferences in favour of other developing countries? 
 
Answer: 
 
The UAE doesn’t have any sort of unilateral Genera lized System of Preferences in favour of other 
developing countries 
 
(vi) Import prohibitions, restrictions, and licensing 
 
 Which legal instrument contains the lists a nd criteria according to which goods are classified 
as restricted or prohibited?  What is the differen ce between goods that, in impor t terms, are prohibited, 
restricted or subject to licensing? 
  WT/TPR/M/262/Add.1 
Page 30  
 
 Answer: 
 The GCC Common Customs Tariff is the legal instru ment that contains the list of prohibited 
and restricted goods.   
For these goods, the tariff schedule shows no rate but  rather mentions that the particular item is 
either restricted or prohibited. Of course, rest ricted goods require licences that can be obtained 
from the concerned authority. The Dubai Customs “policy” no. 14 stipulates the provisions concerning the prohibited and restricted goods and can be accessed through the Dubai Customs 
website:  
http://www.dxbcustoms.gov.ae/NR/ rdonlyres/88EDFE18-0535-49E5-9D03-
8AE4EE15300E/3113/DCP14.pdf 
 
(x) Sanitary and phytosanitary requirements 
  Paragraph 79 refers to "a certificate attesting that the animals were slaughtered following the 
Islamic method".  Could the UAE please provide in formation on the applicability of these measures in 
relation to fishery and aquaculture products?  
Answer: 
 
The Islamic Sharia (method) for edible animal slaughtering does not apply to aquacultures. 
Therefore no certificates of Islamic slaughteri ng are required for fishery and aquaculture 
products.   (5) S
ERVICES  
 
 Is there any type of limitation, prohibition or  restriction in the area of services due to 
environmental, health and safety, or  religious and moral considerations? 
 
Answer: 
 
The UAE believes that it is the right of any WT O member to resort, when necessary, to Article 
XIV, regarding general exceptions to the WT O’s General Agreement on Trade in services 
(GATS), which allows members to apply exceptional  measures on basis of environmental, health 
and safety concerns, or religio us and moral considerations, for example, prohibiting gambling 
activities on religious grounds. 
  WT/TPR/M/262/Add.1 
 Page 31 
 
 
 QUESTIONS FROM THE EU 
 
Report by the Government 
II. TRADE POLICY DEVELOPMENTS 
(1) Bilateral Agreements 
Report by the Government, page 8, para. 27 
 
The Government's report informs a bout bilateral preferential trade ag reements with Syria, Jordan, 
Lebanon, Morocco and Iraq. According to these agreem ents, the “/…/the UAE and its partners accord 
each other preferential access for a specified list of goods./…/”. 
 
1. Could the UAE provide details about the go ods which are covered by these preferential 
agreements and the preferences granted?  Could th e UAE elaborate how these preferential agreements 
fit in with the country's commitments regardi ng the GCC customs union and common market? How is 
the issue of free circulation of goods entering the GCC common market under these individual 
preferential agreements addressed under the GCC rules? 
 
Answer: 
 All goods traded under cover of these preferential  agreements are exempt from customs duties. 
These goods include all HS Tariff lines with the exception of goods that may be excluded for 
public health reasons, security, etc.   All GCC countries are members to GAFTA (sin ce 2005), which includes the above mentioned 
countries. Almost all Pan-Arab preferential trade falls under GAFTA.   
The GCC Customs Union applies the first point of entry for clearing goods to be put for free 
circulation within the GCC.  
 
(2) Regional Agreements 
(i) Gulf Cooperation Council (GCC) 
Report by the Government, page 9, para. 33  
The Government's report states that the UAE is currently participating in the ongoing negotiations for 
Free Trade Agreements between the GCC and its main  trade partners. The relevant negotiations with 
the European Union are being described as "still open".  
2. Could the UAE indicate which issues it cons iders as still outstanding and elaborate on the 
steps it deems necessary to bring negotiations to a close? 
 
Answer:  
The outstanding issues in the FTA between the GCC-EU are minimal.  We believe that more 
flexibilities could expedite concluding the nego tiations.  The details of the negotiations are 
confidential as agreed between both sides, and could be discussed directly between the 
concerned parties.  
 WT/TPR/M/262/Add.1 
Page 32  
 
 III. SECTORAL DEVELOPMENTS 
(7) Nuclear and Renewable Energy Report by the Government, page 14, para. 67 
 
The Government's report informs about the aim to "/…/reduce the country's reliance on gas to produce 
electricity/…/" start or increase production of electric ity from "clean coal". It further states that the 
UAE is working on "/…/substantially in creasing the country's vegetation cover". 
 2. Could the UAE elaborate on how it aims to meet the commitments of the UN Framework Convention on Climate Change when shifting from le ss carbon-intensive gas to more carbon-intensive 
coal and when increasing the vegetation cover whic h implies an increase in the energy-intensive 
production of desalinated water in the ab sence of sufficient ground water supplies? 
 
Answer: 
 
While the UAE as a non-Annex I country does not have commitments under the UNFCCC, 
nevertheless we are taking a proactive volunt ary approach to addressing climate change. For 
example, we are increasing the proportion of renewable energy in our fuel mix, and are undertaking a number of initiatives to improve energy efficiency and to reduce overall demand. 
Abu Dhabi has set a requirement of 7% renewable energy generation capacity by 2020. Implementation is proceeding; the 100MW CSP plant Shams 1 is under construction and an 
additional 100MW site is in the approval stages.  In Dubai, the Integrated Energy Strategy 2030 
has set specific initiatives and ta rgets to increase efficiency (e.g . a 30% reduction in total energy 
consumption by 2030) as well as introducing so lar and clean coal in the next 10 years. The 
introduction of clean coal is being considered in  the context of diversifying the energy mix, and 
reducing reliance on imported natural gas. The rel ative carbon intensities of clean coal vs. 
natural gas will depend on the technologies used. 
 On the question of water, owing to extreme sca rcity, almost all usable water in the UAE is 
derived from directly or indirectly gas-fired desalination, with attendant repercussions for 
water security, cost, and carbon emissions. The UAE government has consequently set water 
efficiency as a leading priority. 
 
Accordingly, our approach to increasing vegetative  cover is shifting. As of 2011, the Abu Dhabi 
government has phased out subsidies for Rhodes grass, a livestock feed crop that consumed 
60% of water used for agriculture and up to 33 % of total water consumption. Pilot programs 
have been running for several years to confir m climatically appropriate alternatives and a 
training and subsidy program for crop transiti on is in place. The Emirate of Sharjah has 
banned Rhodes grass altogether.  Abu Dhabi is also subsidizing the roll-out of new, highly efficient irrigation systems in the farming sector, as well their mandatory impl ementation in all public landscaped spaces. 
Greenhouse agriculture, with potential 15-fold improvements in kilos of crops produced per 
cubic meter of water, is additionally being piloted. 
 Water efficiency standards a re moreover inscribed in mandatory  building codes, including 
Estidama. Mandatory and free installation of wa ter-saving devices in homes, offices, and public 
buildings has already cut non-agricultural water consumption by 19%. A newly approved 
plumbing code and funded replacement program in Abu Dhabi is also estimated to bring 
distribution system leakage (currently around 20%) in line with international standards (between 5 and 10%).  Additionally, softscapes in building projects will be limited to 30% of 
surface area, and all plants must meet salinity and drought resistance standards issued in 2011.  WT/TPR/M/262/Add.1 
 Page 33 
 
 
 Grey water will also be increasingly used. Curre ntly, 40-50% of treated waste-water is reused, 
but a new pipe network, to be completed by 2013,  will enable 100% utilization. Simultaneously, 
the UAE is building two reservoirs to capture th e 2-3% of excess desalinated water that was 
previously not retained.  
The Dubai Integrated Energy Strategy 2030 has set targets for use of efficient water dispensers 
in households, irrigation and commercial buildin gs to reduce water demand. Re-use of certain 
wastewater (grey water) is being assessed to reduce reliance on desalinated water. 
 As of 2009, the UAE is also piloting the use of  solar-powered reverse osmo sis desalination, with 
18 test sites (and 12 more to follow by the end of 2012) currently producing data on implications 
for larger scale application. 
 
IV. FUTURE DIRECTION 
(1) Reform of the Investment Framework 
Report by the Government, page 15, para. 73  
The Government's report states that "/…/discussions  are underway in the UAE to re-examine the 
Federal Law on Commercial companies that limits fore igners to hold a minority equity in companies 
incorporated in the UAE (the historical cap of 49% ). /…/a Federal Unified Foreign Investment Law is 
expected to increase the foreign ownership in some sectors to more than 49%./…/". 
 
4. A change of the relevant laws has been a nnounced for several years now; the issue had, in 
fact, already been addressed during the UAE Tr ade Policy Review of 2006. In expectation of 
imminent changes, insecurity is now growi ng amongst companies whether to rather await 
amendments or to invest in a Free Trade Zone in stead, leading them to hold back investments.  
 
Could the UAE elaborate on content and scope of th e envisaged amendments to the relevant laws 
allowing foreigners a majority stake in companies and the planned timeline for their implementation? 
 
Answer: 
 
Draft Companies Law:  
The UAE Cabinet issued on Sunday, December 4t h, 2011 a new draft Companies Law.  It is 
expected that the new Law will contribute to enhance the competitiveness of the national 
economy at all local, regional a nd international levels as well as enhance the performance of the 
business environment and investment climate in the UAE.  
The new law is expected to allow for one hund red percent foreign ownership in specific sectors 
of the country’s economy in line with the federal government’s economic diversification 
strategy.  The new Law will allow the Cabinet to  issue a resolution specifying the sectors and 
businesses activities in which the share of foreign partners may be increased up to 100 percent. 
 This will be followed by a review of the new Dra ft Law by the National Council. It is expected 
that the new law will be enacted by the end of 2012.  
Draft Foreign Investment Law: 
 
Numerous provisions have been incorporated into  the draft Investment Law to ensure fair and 
equitable national treatment to foreign investo rs. The objective is to create a predictable and 
transparent institutional and legal framework for foreign investments. 
 WT/TPR/M/262/Add.1 
Page 34  
 
 The main provisions of the draft Law are: 
 
 The expropriation or nationalization of fo reign investments shall not be permitted 
except for public interest and against fair compensation. 
 No restrictions on repatriation of capital: fo reign investors guaranteed, after fulfillment 
of their financial obligations, the free tran sfer of payments, including principals and 
returns related to their investments. 
 Freedom of management of investment projects. 
 The Cabinet will issue a list of economic sector s in which the foreign investor may have 
the equity majority up to100%. 
 The Cabinet may issue a decision granting further incentives and guarantees & 
privileges for foreign projects subject to a number of criteria such as: 1) the promotion 
of strategic economic plans; high value added,  threshold of capital to be determined by 
the Cabinet; transfer of technology; protectio n of the environment;  creation of jobs. 
 
It is expected that the new law will be enacted by the end of this year.  
In general, regarding the planned time for the implementation of the laws, the UAE would like 
to emphasize that its federal system makes the ad option of federal laws, such as the companies 
and foreign investment laws that would tr ansform the whole business environment and 
investment climate in the UAE, which is a time-consuming process as it requires extensive 
consultations on substantial issues with all the relevant federal and local authorities. 
 
(4) E-Government Report by the Government, page 16, para. 80  
According to the Government's report the UAE is giving great importance to e-government and 
"/…/great efforts have been made by the Emir ates eGovernment and various government entities to 
further enhance the eGovernment profile and enri ch the value delivered to both the public and 
business sectors".  5. The EU shares the UAE's view  that e-government is an important tool for efficient and 
effective governance.  However, companies complain  about a lack of transparency in UAE public 
administration.  Could the UAE elaborate on measur es taken to ensure that all legal instruments, 
including laws, decree-laws, ordinary decrees, and regulations, as well as court rulings and 
administrative decisions are available and acces sible on-line?  Can the UAE inform whether 
summaries of this information in English are available?  
Answer: 
 
Transparency through eGovernment in the UAE   In its role of offering judicial and legal services, and achieving justice and equality in the country, the UAE Ministry of Justice recognises the need for legal texts, services and related 
information to be easily available to the public. The ministry launched the portals 
www.ejustice.gov.ae and www.elaws.gov.ae for the benefit of the litigating parties, the legal fraternity and the society in general. The portal s aim at simplifying procedures and administer 
justice effectively.   The portal www.elaws.gov.ae offers the UAE laws along with their amendments and all general 
legal texts published in the Official Gazette si nce the establishment of the UAE in 1971 in both 
Arabic and English. The portal also offers th e UAE High Court decisions (civil and criminal),  WT/TPR/M/262/Add.1 
 Page 35 
 
 
 the consultations (Fatwa) offered by the Department of Consultations and Legislations at the 
Ministry of Justice and the International Treaties signed and ratified by the UAE.  
 The UAE Ministry of Justice offers many eServ ices through their portal www.ejustice.gov.ae 
which include eNotary, eFiling, search for la wyers and case status. People can access the 
eServices in both Arabic and English.   
 Legal texts and eServices relating to legal systems at the level of the local governments are also available online. The portal of Abu Dhabi Judi cial Department (www.adjd.gov.ae) provides 
decisions of the courts, offers eServices rela ting to case management, notary and public 
prosecution and explains the structure of courts in the emirate. These services can be accessed in 
both Arabic and English.  Similarly, the portals of Dubai Public Pro secution (www.dxbpp.gov.ae) and Dubai Courts 
(www.dubaicourts.gov.ae) offer several  eServices such as case status and requests relating to the 
emirate through its website in Arabic and Englis h. Dubai Courts portal provides the laws in 
English and Arabic.   Dubai Public Prosecution has launched mobile apps ‘UAE Laws HD’ and ‘UAE-Laws’. These 
apps provide the federal laws, including the penal code and criminal, civil, traffic and narcotics 
laws on your mobile phone.  
 
The UAE government is boosting its eGovernment programme to improve their services to the public, increase government efficiency and ensu re all-round transparency. The UAE’s federal 
eGovernment programme plays a vital role in  achieving an accountable, innovative and 
connected government. The UAE federal portal www.government.ae which is the one stop shop 
for the government services and information in th e UAE is an important milestone in the UAE’s 
federal eGovernment programme. The portal not on ly helps people in accessing the government 
services at any time from any place in a cost effective manner but also achieves transparency 
throughout the entire application process.   The eParticipation and Open Data sections on the portal also have an important role in bringing 
about a connected, responsible and transparent government. The eParticipation section on the 
portal promotes and encourages public participat ion. It provides platforms to the people to 
share their views and discuss concerns if any re garding the government’s services, policies etc. 
The eParticipation section provides links to the various social media accounts of Emirates eGovernment and forums, surveys, blogs, polls and surveys relating to the UAE government’s 
services. Comments and feedback are moderated on ly to ensure that they are not offensive or 
abusive and that they do not violat e local laws or someone’s privacy. 
 According to the UN eGovernment Survey 2012, the UAE and Republic of Korea are the only 
two countries that scored 100 per cent on whet her the government takes citizen's views into 
decision-making. The UAE features amongst the ‘Top eParticipation Leaders’ list in the report 
and is placed at 6th rank globally.  
 The Open Data section on the portal is a reposit ory of government data. It aims to encourage 
government entities to make all their data (unless it is of sensitive nature and concerns national 
security) available in the public domain. Data  could include information on government 
projects, spending, details of beneficiaries, public facilities etc. Open data will increase 
government transparency and prove to be ve ry useful for students, researches, business 
analysts, trend forecasters etc.  The UAE governme nt is working on making more data open to 
the public.  WT/TPR/M/262/Add.1 
Page 36  
 
 Apart from these, the UAE government has a website, My Gov (www.mygov.ae) that is 
dedicated to gathering feedback in all forms (c omments, suggestions, compliments) from people 
regarding the federal services.     These are just some of the few initiatives from  the UAE government to improve their services, 
increase customer satisfaction, enhance transpa rency and boost citizen participation.  The 
results of UAE government’s efforts in the fiel d of eGovernment are ratified with the UN 
eGovernment Survey 2012 that said, “The rapid progress of the United Arab Emirates is a best 
practice case highlighting how effective e-govern ment can help support development.” It is 
heartening to know that the report goes on to mention the UAE amongst the ‘Emerging leaders’ 
in eGovernment development around the world.  The UAE achieved 28th rank overall according 
to the survey and 1st in GCC and the Arab world.  (5) Labour Market and Emiratization Policy Report by the Government, page 16, para. 86 
 The Government's report states that the "Governme nt has adopted a more flexible labour mobility 
approach within the local market with the aim of maximizing the utilization of the available foreigner 
labour supply and granting opportunities for skilled and professional expatriates to choose the most 
suitable job where they can maximise return for themselves and for their employers".   
 
6. The EU welcomes the latest reforms of the sponsorship/kafala system.  Does the government 
envisage to replace the present system by a system in which an expatriate would not depend on an individual Emirati citizen or company as sponsor/kafeel? 
 
Answer: 
 
There is no Government intention at the moment  to replace the present System. Moreover, the 
term “Kafeel” is not the legal standard name. The official and legal title is “Employer”. 
 
Report by the WTO Secretariat 
I. ECONOMIC ENVIRONMENT 
(5) Fiscal Policy 
WTO Secretariat's report, page 9, para. 32  
According to the Secretariat’s report the "The au thorities are aware of the importance of achieving 
fiscal consolidation and are preparing to intr oduce a VAT in the context of the GCC,/…/". 
 
7. Could the UAE indicate how advanced the discussions on the possible introduction of a value 
added tax are in the framework of the GCC?  
 
Answer:  Currently, there are some discussions on implanti ng the VAT system in the framework of the 
GCC countries and the matter is still under discussion. 
  WT/TPR/M/262/Add.1 
 Page 37 
 
 
 II. Trade Policy regime: framework and objectives 
(2) General constitutional and legal framework WTO Secretariat's report, pages 14- 16  
Could the UAE explain how it ensures that the fundamental rights at work as embodied by the ILO's 2008 Declaration on Social Justice for a Fair Globali sation and the 8 core ILO Conventions (nos. 29, 
87, 98, 100, 105, 111, 138 and 182) are respected in the informal sector?   
Answer: 
 
Every worker in the UAE is registered with all his/her personal and professional details. 
Moreover, he/she is designated to specific employ ers.  Therefore, individuals are not expected to 
conduct any activity without having been registered to the official and relevant department. [Ministry of labour, Ministry of Interior, loca l departments of economics].  Therefore, the work 
sector in the UAE is organized and there is no informal one. 
 
(c) Judiciary 
WTO Secretariat's report, page 16, para. 11  
The Secretariat’s report states that "There are no sp ecialized courts in econom ic/commercial matters at 
the federal level./…/" and that "/…/Abu Dhabi is the only emirate to have a commercial court./…/". 
 
9. Companies are complaining about long and difficult judicial procedures in commercial 
matters.  Could the UAE indicate whether the estab lishment of commercial courts and the introduction 
of the relevant specialised judicial procedures are envisaged?  Answer:  Insofar there are no such special courts at th e federal level. Such matters are handled generally 
by the specific commercial departments at the first instance federal courts.  
 However, as part of the Ministry of Justice’s ma ndate to expedite litigation towards establishing 
special courts, including commercial courts, many  of the judiciary staff are undergoing capacity 
building programs and undertaking relevant studies to be qualified to deal with commercial 
conflicts in an advanced manner that would enable them to also deal with more specific disputes 
including, but not limited to, disputes relate d to Competition, Co nsumer protection and 
Insolvency.  
 
(5) Trade agreements and arrangements 
WTO Secretariat's report, pages 19-24  
10. Could the UAE elaborate on the extent to whic h, and how, trade related environmental, social 
and labour issues are addressed within each of the preferential agreements referred to in the 
Secretariat’s and the Government reports?  
 
Answer: 
 The GCC approach in FTA negotiations is WTO co nsistent.  i.e. It covers WTO topics and is, 
whenever possible, consistent with WTO agreements.  WT/TPR/M/262/Add.1 
Page 38  
 
 (ii) Preferential trade agreements 
(a) Gulf Cooperation Council WTO Secretariat's report, page 21, para. 27 
The Secretariat’s report states that "/…/custom s controls between GCC members have been 
maintained/…/". 
 
11. The GCC customs union had been formally established in 2003. Could UAE provide an update on the status of the GCC efforts to complete the customs union?  
Answer: 
 
The implementation of the GCC customs union has reached an advanced level.  
The Pending issues are: 
 
o Customs revenue collection and distribution. 
o Removal of administrative Customs border control between GCC 
o Determining the role of the GCC Secr etariat in the GCC Customs Union. 
The Active implementation includes: 
 
 Unification of Customs Procedures among all GCC member states. 
 IT connectivity between GCC Customs administrations. 
 Updating the Common Customs law in line with Revised Kyoto Convention. 
 
WTO Secretariat's report, page 21, para. 28 
 
The Secretariat’s report states that "The GCC aims to achieve a common market/…/".  12. In 2008 the GCC declared that its common ma rket had come into effect. Could UAE provide 
an update on the status of the GCC efforts to develop a common market? Which are the barriers 
remaining to free movement of goods, services, capital and investment within the GCC? What is the timeline for their removal?  
Answer: 
 
The UAE has emerged as a country adopting a liberal and open economic policy paradigm. Our 
market was always open for foreign investme nt, and even before the enactment of the GCC 
Common Market (GCCCM) in 2008, many GCC co mpanies used to invest in the domestic 
market as well as in the free zones, availin g the competitive advantages of UAE economy. 
However, GCCCM aims at achieving full GCC ci tizenship; especially in the economic arena. 
Therefore, the common market identified ten do mains to achieve this goal, through extending 
national treatment to GCC nationals in fields su ch as establishing various types of companies, 
practicing professional activities, owning property, and working in public and private sector. GCCCM experienced important developments over time, for instance, the negative list which contains restricted business licenses was reduced to  four. This relaxation resulted in increasing 
the number of trade licenses issued to GCC national to more than 32,000 in 2010 at the GCC 
level.  As far as the number of trade licenses granted to GCC citizens in UAE is concerned, the number increased from 13,015 in 2007 to 21,870 in 2008.  It further increased to 24,109 and 26,223 in 
2009 and 2010, respectively. 
  WT/TPR/M/262/Add.1 
 Page 39 
 
 
 For the Customs Union ( CU ), it was decided in the 32nd session of the GCC Supreme Council, 
to continue with the unified customs law, the unified tariff, and the single point of entry. 
Moreover, it was decided to resolve all the pend ing issues that prevent full utilization of CU 
provisions, and to establish a supranational au thority to look after customs issues.  The 
authority is destined to commence in few months. 
 
There is no doubt that CU was conducive to enhancing the free flow of goods among GCC 
countries, as the volume of trade between UAE a nd the rest of GCC countries recorded  USD 65 
billion in 2010 (approx.).  And between 2003 an d 2011, CU was successful in exempting 811 
commodities from tariffs, the bulk of which is consumer goods, in addition to exempting 
industrial inputs in coordination with WTO and WCO. 
 Ministry of Finance Role in Fostering GCC Common Market  The Ministry of Finance (MoF) is keen on tackling all the impediments that prevent full 
utilization of common market benefits, and we work closely with all stakeholders to address 
those hindrances.  Recently, MoF initiated intern et based program known as “ GCC Takamul “, 
which means “ GCC Integration “ to deal with  complaints, questions, and suggestions from 
GCC nationals and companies regarding the CU and GCCCM. 
 With respect to spreading awareness, MoF dissem inates information through training courses, 
public lectures, seminars, workshops, foru ms, meetings, conferences, and print media. 
 (b) Other preferential arrangements WTO Secretariat's report, page 23, para. 39 
 The Secretariat’s report states that the UAE does not "/…/receive autonomous preferences under the 
Generalized System of Preferences (GSP)/…/".  13. The UAE currently benefits from preferen tial access to the EU market under the EU's 
Generalised System of Preferences (GSP). 
 
Answer: 
 The UAE confirms receiving p referential access under the Generalized System of Preferences 
(GSP).  
(6) Foreign Investment Regime 
WTO Secretariat's report, pages 24-27  
14. Can the UAE confirm that economic activity undertaken in relation to a new or existing 
investment respects the UAE's national labour law, the fundamental rights at work as embodied by the 
ILO's 2008 Declaration on Social Justice for a Fair  Globalisation and the 8 core ILO Conventions 
(nos. 29, 87, 98, 100, 105, 111, 138 and 182)? How does the UAE ensure that these are in fact 
respected? 
 
Answer:  
It is within the Ministry of Labour’s manda te to implement the labour law and related 
legislations. This law and these legislations are in line with all international labour agreements 
that the UAE has signed with the ILO. 
 WT/TPR/M/262/Add.1 
Page 40  
 
 WTO Secretariat's report, page 25, para-s 44 and 45 
 
According to the Secretariat's report, "/…/foreign co mpanies may also exercise their main activity in 
the UAE by opening a branch or a representative o ffice/…/". However, "/…/a local services agent or 
'sponsor' must be appointed, which must be a UAE national or company/…/". 
 
15. Could the UAE indicate in how far changes in  this regard have recently been introduced, 
allowing GCC nationals or GCC companies to be  appointed as local agent? Are there any 
considerations as to change th e current agency requirement? 
 
Answer: 
 The advantage for the foreign company of ha ving an UAE services agent is a network of 
contacts, and connection with someone with a good  knowledge of local customs and markets. In 
addition, the obligations of a services agent a re confined to rendering  services i.e. issuing 
necessary licenses without taking any responsibi lity or having any financial commitments or 
interfering in the management. 
 The new amendment proposed in the new draft companies Law (Article 334) will render the 
appointment of UAE service agent optional which m eans that the foreign companies will be free to 
operate with or without a local service agent.  Ye t, the new draft law states that the services agent 
should be a UAE national or a company owned 100% by  nationals.  Therefore, GCC nationals or GCC 
companies are not allowed to be a ppointed as a local agent in the UAE. 
 16. Could the UAE provide with a list of officially registered local services agents or sponsors to 
facilitate the selection for the foreign investor?   Answer:  There is no list of officially regis tered local services agents or sponsors. 
 
WTO Secretariat's report, page 25, para. 48 
 
The Secretariat’s report states that "Federal Law No . 2 of 2010 introduced further amendments to the 
Commercial Agencies Law, which seem to have pa rtly reverted changes introduced in 2009" 
regarding the rights and duties of commercial agents. It is reported that a "new amendment stipulates 
that, a client (i.e. foreign investor) may terminate an agency contract or fail to renew it, only if there is 
a fundamental reason that would justify its  termination or non-renewal./…/".   
 17. Could the UAE enumerate the safeguards protecting the foreign investor against underperformance by his agent? 
 
Answer: 
 Article 27 of the Commercial Agency Law (No 2 of 2010) stipulates the establishment of a Committee to be called “Commercial Agencies Committee”.  Article 28 states that the 
Committee shall consider any dispute which may ari se relating to an Agency that is registered 
with the Ministry. It also states that the Committee must start looking into the dispute within 60 days from the date of application for dispute revie w, as long as the application is complete, or 
from the date of the completion of the required documents. 
If the client (foreign investor) would like to terminate the agency contract or not to renew it, he 
must send a letter to the Committee explaining th e reasons of his request with the supporting  WT/TPR/M/262/Add.1 
 Page 41 
 
 
 documents.  The letter is then forwarded to the Agent who should respond to the allegations 
contained therein with supporting documents and evidences.  Thereafter, the dispute is brought 
before the Committee for decision.  The decision s of the Committee may be challenged at the 
relevant court within 30 days of the date of the notification of the Committee’s decision.  Since 
the entry into force of the Law, the Committee ha s hold several meetings and issued number of 
decisions ordering deregistration of Commercial agencies. 
III. Trade Policies and Practices by Measure 
(2) Measures Directly Affecting Imports (i) Customs procedures WTO Secretariat's report, page 29, para. 12 
 According to the Secretariat's report "Importers a nd exporters require a trading licence to operate in 
the UAE. Trading licences are granted to UAE nationals and to companies that are at least 51% owned by UAE nationals./…/" and "/…/Imported goods must be distributed by a trade agency./…/".  
18. Does the UAE envisage eliminating this rule, which is creating a de facto  monopoly of import 
on most products?  
Answer: 
 The UAE would like to state that the curren t regime of trading licences does not create a 
monopoly of import and that the foreign equity limitation will be relaxed by the issuance of the 
Companies and foreign investment Laws.  
 
WTO Secretariat's report, page 30, para. 13 
 
The Secretariat’s report states that "/…/Termination or  refusal to renew a contract with a trade agency 
is not permitted unless the importer can present to  the Commercial Agencies Committee and/or court 
(as applicable) "a material reason justifying its term ination or non-renewal./…/". It further points out 
that "/…/limitations on exiting the market or ch anging agents may act as a deterrent for foreign 
companies and individuals to undertake foreign trade operations.".  
19. Does the UAE envisage eliminating this rule , which is acting as a deterrent to foreign 
companies willing to trade with the UAE outside Free Trade Zones and basically precludes foreign 
companies from terminating without compensation thei r agency agreements, ev en those agreed for a 
fixed term? 
 
Answer: 
 The Commercial agencies are entrenched as an established method of doing business in the UAE.  The advantage for the foreign company of having an exclusive agent is an efficient 
network of contacts to carry out all the required  official procedures, connection with someone 
with a good knowledge of local customs and mark ets distribution channe ls, and the availability 
of outlets to distribute and advertise the product.  
In addition, the Federal Law on Commercial agencies is designed to protect the rights of all 
parties (the agent, the producer and the consum er), regulate the trade activities and ensure 
after-sale service (maintenance and spare parts).  
Moreover, importers are free to operate with or  without registered agents. In fact a foreign 
company may appoint an agent that is not registered in the Ministry of Economy. WT/TPR/M/262/Add.1 
Page 42  
 
 As for the compensation aspect, Article 9 of the Federal Law No 13 amending the Federal Law 
No18 of the Federal Law on Commercial Agencies states expressly that eith er part (not only the 
agent) may request compensation for a prejudice caused by the termination of the agency contract. 
 20. Could the UAE enumerate the safeguards prot ecting the principal against underperformance 
by his agent?  
 
Answer:  
Article 27 of the Commercial Agency Law (No 2 of 2010) stipulates the establishment of a 
Committee to be called the “Commercial Agencies Committee”.  Article 28 states that the Committee shall consider any dispute which may ari se relating to an Agency that is registered 
with the Ministry. It also states that the Committee must start looking into the dispute within 60 days from the date of application for dispute revie w, as long as the application is complete, or 
from the date of the completion of the required documents. 
 If the client (foreign investor) would like to terminate the agency contract or not to renew it, he must send a letter to the Committee explaining th e reasons of his request with the supporting 
documents. The letter is then forwarded to th e Agent who should respond to the allegations 
contained therein with supporting documents and evidences.  Thereafter, the dispute is brought 
before the Committee for decision.  The decision s of the Committee may be challenged at the 
relevant court within 30 days of the date of the notification of the Committee’s decision.  Since 
the entry into force of the Law, the Committee ha s held several meetings and issued a number of 
decisions ordering the deregistration of Commercial agencies. 
 
WTO Secretariat's report, page 30, para. 15 
 
According to the Secretariat's report "/…/The right of  trade agents to exclusive distribution (including 
area of distribution), and the impediment to termina ting a contract with an agent act as a barrier to 
trade at the border and between the emirates, as goods cannot be moved freely from one emirate to another unless the agent has the right to do so./…/". 
 
21. Could the UAE explain how this situation is  brought in line with the GCC common market 
rule of free movement of goods and the single entry principle of the GCC customs union? 
 
Answer: 
 
The Federal Law on Commercial Agencies stil l applies on the goods imported from GCC 
countries into the UAE as their import can only be made by registered agents. In fact, the commercial agencies activity is excluded from the Customs Union programme and is still under 
discussion and consultation between the GCC countries.   
 
WTO Secretariat's report, page 30, para. 16  
The Secretariat’s report states that imports entering the UAE require a customs declaration, 
accompanied by “ /…/a sanitary or phytosanitary certificate as required. /…/Imported meat and 
poultry products require a health certificate from the country of origin and a halal slaughter certificate 
issued by an approved Islamic Centre in the country of origin /…/”. 
 On certification, the EU would like to refer to the Codex Alimentarius  "Guidelines for design, 
production, issuance and use of generic official ce rtificates" (ref. CAC/GL 38-2001). However, the 
EU was informed that the UAE requires certain ce rtificates (other than sanitary or phytosanitary  WT/TPR/M/262/Add.1 
 Page 43 
 
 
 health certificates), which include SPS requirements,  to be signed by the competent authorities of 
exporting countries.   22. Could the UAE please clarify whether the a bove mentioned certificates are indeed in place 
and, if that is the case, to indicate the reasoning for including SPS requirements in more than one 
official certificate? 
 
Answer: 
 The UAE is an Islamic Country. Therefore, Halal certification is required. 
The Halal slaughter certificate is different from sa nitary and phytosanitary health certificates.  
The Halal slaughter certificate indicates that th e slaughtering process is done as per Islamic 
requirements, which are mentioned in  standard # UAE.S GSO 2055:2010. 
 WTO Secretariat's report, page 30, para. 16 and page 46, para. 83 
 
On Halal, reference is also made to the draft GCC Guide for Control on Imported Foods mentioned in 
the WTO Secretariat's report, page 46, para.83. The Halal attestations (point 6.3 of the draft GCC 
Guide for Control on Imported Foods) applicable to import of meat, meat pr oducts and products of 
meat origin and the health attestations applicable to import of a number of foodstuffs (points 6.1, and 
6.2 of the draft Guide), contain a number of cros s references to other more specific requirements, 
which include hygiene, inspections by competent authority, animal health in general, infectious 
diseases in particular approval procedures, slaught ering procedures, quarantine pests and approved 
Islamic Authorities.  23. On Halal, could the UAE please indicate what are the applicable Halal import requirements to 
be complied with in exporting countries − including slaughtering procedures and structural 
requirements to be complied with by business ope rators in slaughterhouses of exporting countries − 
applicable to the import of bovines, ovines, caprines, poultry and their products (including genetic material, meat, eggs and dairy products)? 
 24. Could the UAE please provide detailed in formation about the procedures, timing and 
requirements applicable to approval by the UAE of Islamic Centres in the countries of origin? 
 25. Could the UAE please provide detailed in formation about the procedures, timing and 
requirements applicable to the evaluation/audit by  the UAE of Islamic Centres in the countries of 
origin? 
 
Answers for Questions 23, 24 and 25 
 The Gulf Guide for the control of imported  food is under review, the comments and 
observations of EU countries and other states will be taken in consideration during the review and an approved draft will be published for the public. 
 
There are approved procedures and specification s for Halal slaughter in the UAE.  The UAE-
approved Islamic centre in the country of origin issues halal certificates based on these procedures and specifications.  
Below are the requirements for Halal Food: 
  • The requirements of the accredited Islamic cent re in the country of origin supervising Halal 
slaughter.  WT/TPR/M/262/Add.1 
Page 44  
 
  • The procedures of the accredited Isla mic centre supervising Halal slaughter. 
  • Halal certificate form.   • Standard # UAE.S/GSO 2055:2010: Halal Food- Part (2): guidelines for halal food 
Certification Bodies and their Accreditation Requirements. 
 Available here: https://www. esma.ae/e-store/default/STDDetails.aspx?std=5504. 
  • Standard # UAE.S/GSO 1931:2009: Halal Food Part (1): General Requirement:  Available 
here:  https://www.esma.ae/e-store/ Default/stdDetails.aspx?std=3934. 
 WTO Secretariat's report, page 30, para. 16 and page 31 para. 18 
 
The Secretariat’s report states that import declarati ons must be accompanied by:  “/…/ an original 
commercial invoice (legal ized); /…/ a certificate of origin legalized by a UAE Consulate./ …/". It adds 
that "Consular fees of US$15 per document are char ged to legalize certificates of origin, commercial 
invoices, packing lists, original bills of lading, airway bills, etc./…/".  26. Systematic legalisation requirements create an  additional administrative burden on trade.  Is 
the UAE considering the removal the requirement for traders to address the UAE consulates for 
attesting or legalising documentation and to pay the associated fees? 
 
Answer: 
 There are currently no intentions to remove this requirement. 
 
WTO Secretariat's report, page 32, para. 24 
 
The Secretariat’s report states that  “/…/ The transit of goods infringing intellectual property rights 
through the UAE is prohibited.”  
27. Could UAE please elaborate further on the stat ement? Does it mean that customs can act for 
IPR infringing goods in transit?  If so, please pr ovide detail on customs procedure applicable.  
 
Answer: 
- Fake, Counterfeited and Pirated Merchandi se are considered as prohibited goods 
and are not allowed to transit the UAE. 
- The IPR infringements referred to the counterfeited and fake goods and products 
or that violates producers and trademark owner’s rights. 
- Transiting of prohibited or restricted goods is referred to in the GCC Customs law 
Article 24. 
- Goods that are infringing IPR and trademarks laws are considered as prohibited 
and therefore are not allowed to en ter the UAE or transit through. 
- Customs Procedure on IPR:  
o Customs have the right to take action on the border against goods 
Infringing IPR; Counterfeited goods, goods that infringe trademarks, and pirated goods.  
o Customs may detain goods that are suspected to be infringing IPR. 
o Customs work with Right holders by informing them when there is 
suspicion of counterfeiting, and are provided with information and photographs and ask them to present samples of their products to compare them to the suspected goods.  WT/TPR/M/262/Add.1 
 Page 45 
 
 
 o Custom’s final determination wether goods are infringing IPR could only be 
done in cooperation with the right holders. 
o After an infringement decision has been taken, Customs provide the right 
holder with the detailed information about the seizure to help them take the issue in court. 
 
(iii) Rules of origin WTO Secretariat's report, page 34, para. 36 
 
The Secretariat’s report states that the UAE does not apply non-preferential rules of origin.  However, 
outside of a preferential context, the report refers to goods "originating" in certain countries in i.a. 
paras. 49, 71, 79 etc.  In the absence of finali sation of the WTO Harmonisation Work Program for non 
preferential origin, every Member is entitled to apply its own rules of non-preferential origin. 
Therefore, goods having undergone processing in on e country may have obtained a new origin, while 
the same goods, having undergone the same processing ma y have retained their previous origin when 
exported from another country. 
 28. Can UAE explain whether it accepts the origin in these cases as determined by the country of 
export, which may be different according to th at country's rules of non-preferential origin? 
 
Answer: 
 
For non-preferential purposes, the UAE accepts the origin of the goods as indicated by the 
country of export.  
 
29. Can UAE explain what is the purpose of the obligation to present a non-preferential certificate 
of origin, which by definition is stating the origin  of the exporting country according to that country's 
rules of origin? In the interest of trade facilitation,  could UAE consider dispensing with a certificate of 
origin which does not provide for any certainty ab out the level of processing that the goods underwent 
in the exporting country?  In addition, the require ment to have the certificate legalized by a UAE 
consulate adds unnecessary costs to the price of the exported goods, which will eventually be included 
in the final consumer price. 
 
Answer: 
 The purpose of the non preferential certificate of origin is for statistical purposes and to 
evidence the origin of the goods. 
 
This certificate is essential for exporters to prove where their goods came from and it is important for the UAE Authorities to ensure that  the information furnished is accurate and 
compatible with the relevant import documents.  In light of the above, the UAE is not yet considering ceasing requesting the non preferential 
certificate of origin.   
30. Can UAE confirm that the mention "European  Union"/ "EU" is accepted for the purposes of 
origin labelling on imported products? If not, why not?  Answer:  The mention "European Union"/"EU" is not yet a ccepted for the purpose of origin labeling on 
imported products.[SEND TO  ESMA REGARDING WHY NOT] 
 WT/TPR/M/262/Add.1 
Page 46  
 
 (x) Sanitary and phytosanitary requirements 
WTO Secretariat's report, page 46, para. 83  
The Secretariat’s report refers to the fact that  “The UAE notified to the WTO the GCC Guide for 
Control on Imported Foods, which has not yet been implemented. The guide describes the 
requirements that the exporting country and the im porting GCC countries must follow to assure the 
safety of imported food.  It provides a list of the an imal and plant health cer tificates needed, and aims 
at harmonizing the requirements and procedures to  import food amongst GCC members. /…/”. The 
draft GCC Guide for Control on Imported Foods in cludes general requirements applicable to 
foodstuffs (not live animals) and makes referenc es (without listing them) to other more specific 
standards and regulations. 
31. Could the UAE please provide a list of existi ng SPS regulations and standards applicable at 
the level of the GCC and, where different standard s and regulations exist, in the UAE, to the import 
of: 
(a) Foodstuffs, including processed foods, meat of  bovine, meat of ovine, meat of caprine, 
meat of poultry and other birds, and also fish, eggs and dairy products? 
 
(b) Live bovines, live ovines, live caprines, live poultry and other birds, fish, and their 
genetic material ? 
 
Answer: 
 
(A) Standards & Technical regulation related to foodstuffs are available on ESMA’s website/ 
standard store:  https://www.esma.ae/estore/Default/se archResult.aspx?key=a)Foodstufs. 
 
(B) All requested information in this regard is available at the Ministry of Environment and 
Water’s website:  www.moew.gov.ae.  
32. Could the UAE please provide a list of existing SPS regulations and sta ndards applicable to 
the import at the level of the GCC and, where differe nt standards and regulations exist, in the UAE, of 
plants and plant products? 
 
Answer: 
 All requested information in this regard is available at the Ministry of Environment and 
Water’s website:  www.moew.gov.ae.  
33. Could the UAE please indicate if it intends and if yes, by when, to notify to the WTO any 
relevant change to the existing or new SPS standard s or regulations of in the UAE or of the GCC? 
 
Answer: 
 
If new standards are adopted or modi fied, the UAE will notify the WTO. 
 
34. Could the UAE please indicate when would the final version of the draft Guide be made available to the public, and when will it be implemented in the UAE?   WT/TPR/M/262/Add.1 
 Page 47 
 
 
 Answer: 
 The date of publication of the final version of th e draft guide has not been set yet, however, it 
will be made available to the public when it is ready for publication.  
35. Could the UAE please indicate whether the GCC or the UAE intend to make publicly 
available a guide for c ontrol on imported live animals (similar to the mentioned draft Guide)?  
 
Answer: All requested information in this regard is available at the Ministry of Environment and Water’s website: www.moew.gov.ae. 
 
36. Could the UAE please indicate, in the SPS field, the list of standards and regulations being harmonizing in the UAE and at the level of the GCC, and the respective work programme? 
 
Answer: 
 
All approved standards available in ESMA websit e/standards store at:  https://www.esma.ae/e-
store/Default/Default.aspx. 
 
Same paragraph also refers to the fact that the “/…/According to the authorities, the new requirements 
are based on risk analysis and conform to intern ational standards including the Codex Alimentarius, 
the World Organization for Animal Health (OIE), and the International Plant Protection Convention 
(IPPP), particularly where no GCC requirements ar e available./…/”. The EU would like to make 
references to GCC Guide for Control on Imported F oods, to procedures about audits performed by 
experts from all the GCC countries or the UAE al one to exporting countries to evaluate their 
inspection and certification systems, to the Codex Alimentarius  guidelines refs. CAC/GL 26-1997 and 
CAC/GL 20-1995, and to the EU’s communication of 23.6.2011 on "The European Union's approach 
to SPS audits and inspections in third countri es" made to the WTO SPS Committee (WTO document 
G/SPS/GEN/1095). The draft GCC Guide for Control on Imported Foods makes a number of references to audits, i.e. "audit of systems in exporting countries" (point 4 of the draft Guide), "GCC 
countries or their agents" (point 5.1 of the drat Guide), the authenticity and accuracy of official 
certification and certification by officially-recogni zed bodies will be periodically verified and audited 
by the countries of the GCC (point 6 of the draft Guide). 
37. The EU would like to make a specific refere nce to Chapter 11.5 on Bovine Spongiform 
Encephalopathy (BSE) of the World Organisation for An imal Health (OIE), and would like to ask the 
UAE to please explain why is that the UAE and the GCC:  
(a) Still ban the imports of live bovines from the EU on BSE grounds?  
(b) Have never provided a scientific justif ication for maintaining the BSE import ban 
on live bovines, which is not aligned w ith the above-mentioned BSE international 
standard of the OIE?  
(c) Have never provided a scientific justifi cation for allowing the import of live bovines 
following visits to exporting countries but  not allowing imports of deboned beef 
(which represent a lower sanitary risk)?  
(d) Did not yet enact BSE import conditions that would allow the import of safe live 
bovines and their products from countries that would comply with them? WT/TPR/M/262/Add.1 
Page 48  
 
 Answers to a, b and c: 
 The ban on imports of live bovines from the EU , Scandinavia and Eastern Europe was based on 
Ministerial Decision number 18 in 2001. A mechan ism to lift the ban has been set up through the 
GCC Secretariat in July 2009. This mechanism involves the formation of a group from the 
member countries to visit the countries that wish to have the bovine imports ban lifted (This is 
inline with Annex C of the SPS Agreement).  Mechanism for Lifting the Ban:  
- The country wishing to have the ban lifted would file a request to the GCC 
Secretariat requesting lifting the ban indicating that all travel expenses would be covered by the concerned country.  
- The technical team would travel to the co ncerned country and issue a report on the 
visit. 
- The report would be discussed and a pproved by the concerned permanent 
committee in the GCC Secretariat.  
- The report would then be delivered to  the GCC Secretariat’s Agricultural 
Cooperation Committee. 
- Each country would then work on satisf ying the requirements of the committee.  
The aforementioned mechanism has been used to lift the ban on 3 European 
countries; France, Germany and the Ne therlands, in accordance with the 
Ministerial Decision number 464 of 2010.  The results of the technical team’s visit to 
Spain is currently being reviewed. Regarding the issue of ‘never providing a scientific justification for allowing the 
import of live bovine following the visits  to exporting countries but not allowing 
imports of deboned beef (which represent a lower sanitary risk)’, a ministerial 
decision has been issue in this regard, Ministerial Decision no. 34, 2012, in which its article 3 stipulates the lifting of the ban on the import of meat from the countries that have had their ban on importing cows lifted in accordance with the decision.  In effect, many permits to import cows h ave been issued to a number of countries 
that have their ban lifted, of which are: Germany – 6 permits (682 heads), The 
Netherlands – 9 permits (1220 heads) and France – 2 permits (65 heads).  
 
38. Could the UAE please indicate where can the lis t of quarantine plant pests of the UAE be 
found?  
 
Answer: Here is the required list:  
 
) Index No. (1 
Quarantine Plant Insects  
List No. (1) 
A 1 
No. Scientific Name  Order  Family  
1 Aceria sheldoni (Ewing)  Acarina Eriophyidae 
2 Aleurocanthus spiniferus (Quaintance ) Homoptera Aleyrodidae 
3 Aleurocanthus floccosus (Maskell)  Homoptera Aleyrodidae 
4 Aleurocanthus woglumi (Ashby)  Homoptera Aleyrodidae 
5 Amauromyza maculosa  Diptera Agromyzidae 
6 Anarsia linealella Zeller  Lepidoptera Gelechiidae 
7 Anastrepha fraterculus Wiedemann   Diptera Tephritidae 
8 Anastrepha ludens Loew  Diptera Tephritidae 
9 Anastrepha oblique Macquart  Diptera Tephritidae 
10 Anastrepha serpentine Wiedemann  Diptera Tephritidae 
11 Anastrepha suspense Loew  Diptera Tephritidae 
12 Anthonomus grandis Boheman  Coleoptera Curculionidae  WT/TPR/M/262/Add.1 
 Page 49 
 
 
 No. Scientific Name  Order  Family  
13 Araecerus fasciculatus (De Geer) Coleoptera Anthribidae 
14 Asterolecanium phoenicis Homoptera Asterolecanidae 
15 Bactrocera atrisetosa Perkins  Diptera Tephritidae 
16 Bactrocera cucurbitae Diptera Tephritidae 
17 Bactrocera tsuneonis Miyake  Diptera Tephritidae 
18 Bactrocera tyroni Froggatt  Diptera Tephritidae 
19 Bactrocera melonata Coquillett  Diptera Tephritidae 
20 Bactrocera melanotus Coquillett Diptera Tephritidae 
21 Bactrocera minax (Enderlein)  Diptera Tephritidae 
22 Blitopertha orientalis (Waterhouse)  Coleoptera Scarabaeidae 
23 Brevipalpus californicus (Banks)  Acarina Tenuipalpidae 
24 Brevipalpus lewisi (McGregor)  Acarina Tenuipalpidae 
25 Bruchidius incarnatus (Boheman)  Coleoptera Bruchidae 
26 Bruchus rufimanus (Boheman)  Coleoptera Bruchidae 
27 Bryobia praetiosa (Koch)  Acarina Tetranychidae 
28 Cacoecimorpha pronubana (Hubner)  Lepidoptera Tortricidae 
29 Carposina niponensis Lepidoptera Carposinidae 
30 Cephus cinctus  (Norton) Hymenoptera Cephidae 
31 Cephus pygmeus  (Linnaeus) Hymenoptera Cephidae 
32 Cerambyx sp. Coleoptera Cerambycidae 
33 Ceratitis rosa (Karsch)  Diptera Tephritidae 
34 Chilo suppressalis (Walker)  Lepidoptera Pyralidae 
35 Cicadulina mbila (Naud`)  Hemiptera Cicadellidae 
36 Chrysomphalus aonidum (Linnaeus)  Homoptera Diaspididae 
37 Cosmopolites sordidus (Germar)  Coleoptera Curculionidae 
38 Cryptotermes sp. Isoptera Rhinotermitidae 
39 Cydia nigricana (Fabricius)  Lepidoptera Torticidae 
40 Cydia inopinata  (Heinrich) Lepidoptera Torticidae 
41 Cydia molesta  (Busck) Lepidoptera Torticidae 
42 Cydia packardi  (Zeller) Lepidoptera Torticidae 
43 Cydia pomonella (Linnaeus)  Lepidoptera Torticidae 
44 Cydia prunivora (Walsh)  Lepidoptera Torticidae 
45 Diaphorina citri (Kuwayana)  Homoptera Psyllidae 
46 Diaspidiotus perniciosus (Comstock)  Hemiptera Diaspididae 
47 Diatraea saccharalis Lepidoptera Pyralidae 
48 Epitrix cucumeris (Harris)  Coleoptera Chrysomelidae 
49 Epitrix tuberis (Bry)  Coleoptera Chrysomelidae 
50 Eutetranychus banksi (McGregor)  Acarina Tetranychidae 
51 Eutetranychus lewisi Acarina Tetranychidae 
52 Eutetranychus orientalis (Klein)  Acarina Tetranychidae 
53 Eotetranychus sexmaculatus (Riley) Acarina Tetranychidae 
54 Florinia japonica (Kuwana)    
55 Frankliniella fusca (Hinda)  Thysanoptera Thripidae 
56 Gonipterus gibberus (Boisduval)  Coleoptera Curculionidae 
57 Grapholita molesta (Busck)  Lepidoptera Tortricidae 
58 Helicoverpa zea (Boddie)  Lepidoptera Noctuidae 
59 Lepidosaphes beckii (Newman)  Homoptera Diaspididae 
60 Lepidosaphes gloverii (Packard)  Homoptera Diaspididae 
61 Lepidosaphes ulmi (Linnaeus)  Homoptera Diaspididae 
62 Leptinotarsa decemlineata (Say)  Coleoptera Chrysomelidae 
63 Linepithema humile (Mayr)  Hymenoptera Formicidae 
64 Liriomyza brassicae (Riley)  Diptera Agromyzidae 
65 Liriomyza huidobrensis Diptera Agromyzidae 
66 Lopholeucapsis japonica (Cockerell)  Coccinea Diaspididae 
67 Margarodes spp. Homoptera Margarodidae 
68 Monochamus alternatus  (Hope) Coleoptera Cerambycidae 
69 Monochamus carolinensis (Olivier)  Coleoptera Cerambycidae 
70 Myndus crudus (Van Duzec)  Homoptera Cixiidae 
71 Naupactus leucolomus Boheman  Coleoptera Curculionidae 
72 Oligonychus pratensis (Banks)  Acarina Tetranychidae 
73 Opogona sacchari Lepidoptera Tineidae 
74 Panonychus citri (MvGregor)  Acarina Tetranychidae 
75 Panonychus ulmi (Koch)  Acarina Tetranychidae 
76 Parabemisia myricae (Kuwana)  Homoptera Aleyrodidae 
77 Parasaissetia nigra (Nietner)  Hemiptera Coccidae 
78 Pentalonia nigronervosa (Coquerel)  Hemiptera Aphididae 
79 Penthaleus major  (Duges) Acarina Pethaleidae 
80 Petrobia lateens  (Moller) Acarina Tetranychidae 
81 Phoracantha semipunctata (Fabricius)  Coleoptera Cerambyeidae 
82 Popillia japonica (Newman)  Coleoptera Scarabaeidae 
83 Premnotrypes spp. Coleoptera Curculionidae WT/TPR/M/262/Add.1 
Page 50  
 
 No. Scientific Name  Order  Family  
84 Prostephanus truncatus (Horn)  Coleoptera Bostrichidae 
85 Quadraspidiotus perniciosus (Comstock)  Hemiptera Diaspididae 
86 Rhagoletis pomonella  (Walsh) Diptera Tephritidae 
87 Rhynchophorus palmarum  (Linnaeus) Coleoptera Curculionidae 
88 Rhynchophorus vulneratus (Panzer)  Coleoptera Curculionidae 
89 Scirtothrips aurantii (Faure)  Thysanoptera Thripidae 
90 Scirtothrips citri Thysanoptera Thripidae 
91 Spodoptera eridania (Cramer)  Lepidoptera Noctuidae 
92 Spodoptera frugiperda (JE. Smith)  Lepidoptera Noctuidae 
93 Sternochetus mangiferae Coleoptera Curculionidae 
94 Thrips palmi  Karny Thysanoptera Thripidae 
95 Toxoptera citricida Kirkaldy  Homoptera Aphididae 
96 Trioza erytreae (Del Guerico)  Homoptera Triozidae 
97 Trogoderma granarium Co leoptera Dermestidae 
98 Unaspis citri  (Comstock) Homoptera Diaspididae 
99 Unaspis yanonensis  (Kuwana) Homoptera Diaspididae 
100 Viteus vitifoliae Fitch  Homoptera Phylloxeridae 
101 Zeuzera pyrina (Linnaeus)  Lepidoptera Cossidae 
 
A2 
1 Aceria mangiferae (Sayed)  
2 Aonidiella citrina (Craw)  
3 Aonidiella aurantii (Maskell)  
4 Bactrocera ciliatus 
5 Bactrocera dorsalis 
6 Bactrocera olea (Gmelin)  
7 Bactrocera zonata (Saunders)  
8 Bemisia tabaci 
9 Carpomya incompleta 
10 Carpomya vesuviana 
11 Ceratisis capitata  (Weidmann)  
12 Conotrachelus  nenuphar 
13 Frankliniella occidentalis  (Pergande)  
14 Liriomyza sativae (Blanchard)  
15 Liriomyza trifolii 
16 Nipaecoccus viridis  (Newstead)  
17 Ommatissus lybicus 
18 Oryctes spp. 
19 Perkinsiella saccharicida  (Kirkaldy)  
20 Phyllocnistis citrella 
21 Rhynchophorus ferrugineus 
22 Scirtothrips dorsalis 
23 Spodoptera exigua 
24 Spodoptera litura 
25 All other fruit flies not mentioned in A1 
26 All other- leaf miners not mentioned in A1 
 
List No. (2) 
Non-Quarantine Insects under regulations 
Name 
Aphis craccivora (koch)  1 
Aphis gossypii (Glov)  2 
Aphis spiraecola (Patch)  3 
Apomecyna lameerei (Pic)  4 
Aulacophora africana (Weise) 5 
Bacterocera vertebratus (Bez)  6 
Campylomma impicta (Wagner)  7 
Carpophilus dimidiatus (Fabricius)  8 
Carpophilus hemipterus (Linnaesus)  9 
Cryphalus dilutus (Eichhoff)  10 
Frankliniella shultzi (Trybon)  11 
Lipaphis erysimi (Kalt)  12 
Macrocoma sp. 13 
Megalothrips sp. 14 
Myllocerus undecimpustulatus (Faust)  15 
Myzus persicae (Sulz)  16 
Procontarinia matteiana  17  WT/TPR/M/262/Add.1 
 Page 51 
 
 
 Name 
Pseudaspidoproctus hypheniacus (Hall)  18 
Pseudococcus spp 19 
Rhopalosiphum maidis (Fitch)  20 
Sphenoptera Arabica (Gory)  21 
  
 
List of Quarantine Plant Bacterial Pests 
List No. (1) 
A1 
Name 
Agrobacterium rhizogenes 1 
Erwinia amylovora  (Burrill) Winslow et al. 2 
Pantoea stewartii pv. stewartii  (Erwinia stewartii) (Smith) Merg. et al. 3 
Clavibacter xyli var. xyli 4 
Curtobacterium flaccumfaciens pv. betae  5 
Curtobacterium flaccumfac iens pv. flaccumfaciens  (Hedges) Collins & Jones 6 
Pseudomonas phaceolicola  7 
Pseudomonas syringae pv. persicae (Prunier et al.) Young et al.  8 
Xanthomonas fragariae  Kennedy & Knig 9 
Xylella fastidiosa  (Wells et al) 10 
Xylophilus ampelinus  (Panagopoulos) Willems et al 11 
Xanthomonas campestris pv. glycines  (Nakone) Malgrea 12 
Xanthomonas campestris pv. vasculorum  13 
Xanthomonas oryzae pv. oryzae  (Ishiyama) Swings et al. 14 
 
A2 
Name 
Agrobacterium tumefaciens (E. F. Sm. & Towns) 1 
Calvibacter michiganensis  pv. michiganensis (Smith) Davis et al. 2 
Calvibacter michiganensis pv. sepedonicus  (Kotthoff) Davis et al. 3 
Calvibacter michiganesis pv.insidiosus  (Mc. Culloch) Davis et al. 4 
Citrus greening bacterium  (Liberobacter spp.) 5 
Pseudomonas syringae pv. lachrymans  (Smith) Yabuuchi et al. 6 
Ralstonia solanacearum  7 
Xanthomonas axonopodis pv.  citri 8 
Xanthomonas axonopodis pv. phaseoli  (Smith) Dowson 9 
Xanthomonas campestris pv. alfalfae   (Hasse) Dye 10 
Xanthomonas campestris pv. mangiferaindica 11 
  
List of Non-Quarantine Plant Bacterial Insects under regulations  
List No. (2)  
Name 
Erwinia carotovora sub. sp. atroseptica  (Van Hall) Dye 1 
Erwinia carotovora sub. sp. carotovora  (Jones) Dye 2 
Streptomyces scabies  (Thaxter) Wakesman & henrici 3 
 
39. Could the UAE please indicate whether import pe rmits are required for all plants and plant 
products, if the International Sta ndard on Phytosanitary Measures ISPM 20 (point 4.2) has been or 
will be taken into considerati on, and if import permits include  phytosanitary requirements? 
 Answer: All information regarding this matter is available in detail at: http://moew.gov.ae/Portal/en/our-services/agricultural.aspx. WT/TPR/M/262/Add.1 
Page 52  
 
 40. Could the UAE please indicate whether phytosan itary certificates are required for all plants 
and plant products, and whether the Internationa l Standard on Phytosanitary Measures ISPM 32 has 
been taken into consideration?  
Answer: 
 
Phytosanitary certificates are required for all plant products that have undergone a 
transformation process, such as cooked items, fr uit salad, cotton fabrics, chocolates, gum, steam 
treated rice, etc. 
 
41. Could the UAE please indicate for which plants or plant products is a Pest Risk Assessment 
(PRA) required prior to import, and what is the timeframe to perform a PRA? 
 
Answer:  All information regarding this matter is availabl e in detail at:  http://moew.gov.ae/Portal/en/our-
services/agricultural.aspx. 
 
42. Could the UAE please indicate whether it entirely follows, in the context of the import of food 
and of the evaluation of the competent authorities of exporting countries, the "principles for food import and export inspection and certification" of the Codex Alimentarius  (CAC/GL 20-1995) and, if 
not, what parts are not followed and why and, in this case, what other procedures/requirements are 
followed? 
 
Answer:  The UAE / GCC adopted and accepted the principl es for food import and export inspection and 
certification of Codex Alimentarius (CAC/GL 20-1995) as a UAE GCC standard.  
43. Could the UAE please indicate whether it entir ely follows, in the context of the import of 
food, the "guidelines for the design, operation, assess ment and accreditation of food import and export 
inspection and certification systems" of the Codex Alimentarius  (CAC/GL 26-1997) or, if not, what 
parts of these guidelines are not followed and why and, in this case, what other 
procedures/requirements are followed? 
 
Answer:  The UAE has still not adopted the aforementioned guideline. The Gulf Guide for the control of 
imported food is under review, the comments a nd observations of EU countries and other states 
will be taken in consideration during the review and an approved draft will be published for the 
public. 
 
44. Could the UAE please explain why is that repor ts of evaluations (inspections and audits) 
performed by experts from GCC countries to the EU  are not made available to the competent 
authorities of the visited EU countries (which contradicts section 6 - assessment reporting of the above 
mentioned guidelines of the Codex Alimentarius, ref. CAC/GL 26-1997)? 
Answer: 
This matter is currently under discussion at the GCC Level.  
  WT/TPR/M/262/Add.1 
 Page 53 
 
 
 45. On inspection and audit procedures, the EU  would like to ask the UAE to please provide 
detailed information:  (a) About the procedures for inspections and a udits in exporting countries, to verify the 
compliance with hygiene, food safety and animal an d plant health requirements of the UAE or GCC - 
including the list of animals, plants and their products subject to such evaluations? 
 (b) On whether imports are only allowed from those establishments that were inspected by 
experts from the UAE or the GCC, or - following the recommendations of the mentioned Codex 
Alimentarius  ref. CAC/GL 26-1997 - the UAE accepts im ports from all the complying establishments 
from the entire exporting country if the result of the evaluation of the inspection and certification 
systems were considered by the UAE as satisfactory?  (c) About the content of pre-audit questionnaires, duration of the visits to the exporting country, types of sites to be visited, associated costs, number of inspector/auditors, reporting procedures)? 
 
Answer: 
 All information regarding this matter is availabl e in detail at: http://moew.gov.ae/Portal/en/our-
services/agricultural.aspx. 
 
(3) Measures Directly Affecting Exports WTO Secretariat's report, pages 46-49 
 
46. What measures – if any – does the UAE take to ensure that goods destined for export are 
produced in full respect of the fundamental rights at work as embodied by the ILO's 2008 Declaration 
on Social Justice for a Fair Globalisation and the 8 core ILO Conventions (nos. 29, 87, 98, 100, 105, 
111, 138 and 182)?    
Answer: 
 Private enterprises involved in production and services activities in the private sector abide by 
law number 8 (Issued 20
th April 1980, last amended on 13th November 2011), which is in line 
with international agreements.  The law has b een revised by the ILO before it was issued. 
Moreover, other regulatory labour legislations h ave also been released in compliance with the 
clauses of international agreements  that the UAE has ratified. 
 
(iv) Export support WTO Secretariat's report, pages 47-48, para-s 89-96  
The Secretariat’s report describes the UAE has free-trade-zone (FTZ) regime, in place since 1980.  
 47. Could the UAE inform whether national labour laws, the fundamental rights at work as 
embodied by the ILO's 2008 Declaration on Social Justice for a Fair Globalisation and the 8 core ILO 
Conventions (nos. 29, 87, 98, 1 00, 105, 111, 138 and 182) also ap ply in FTZs?  If not, why not? 
 
Answer:  The answer will be prepared soon. 
 
WTO Secretariat's report, page 48, para. 93  
Regarding FTZ, the Secretariat’s report states that "/…/To import products from an FTZ to the 
national territory an agent is needed." WT/TPR/M/262/Add.1 
Page 54  
 
 48. Is the UAE considering the further facilitati on of exchange between its FTZs and its domestic 
market by removing the requirement for a commercial agent for imports from FTZs? 
Answer: 
 The Commercial agencies are entrenched as an established method of doing business in the 
UAE.  The advantage for the foreign company of having an exclusive agent is an efficient 
network of contacts to carry out all the required  official procedures, connection with someone 
with a good knowledge of local customs and mark ets distribution channe ls, and the availability 
of outlets to distribute and advertise the product.  
In addition, the Federal Law on Commercial agencies is designed to protect the rights of all 
parties (the agent, the producer and the consum er), regulate the trade activities and ensure 
after-sale service (maintenance and spare parts).  At present, there is no intention to remove the requirement for a comercial agent for imports 
from FTZs  
(4)
 MEASURES AFFECTING PRODUCTION AND TRADE  
WTO Secretariat's report, pages 49-59 
 
49. Could the UAE explain what it is doing to help its producers to produce goods which are 
environmental and socially sustainable and access niche markets overseas through adherence to 
voluntary sustainability standards (for example, Fair Trade, UTZ Certified, Global G.A.P.)?  
Answer: 
 
The UAE has undertaken a number of steps to help producers produce goods that are 
environmental and socially sustainable. These steps include providing UAE-based accreditation 
to organic food producers.  By mid 2011, 28 farms have been certified by the UAE Ministry of Water and Environment as growing fruit and ve getables organically throughout the UAE.  All 
farms producing organic products must be regist ered and approved by the ministry and are also 
supervised.  
 
The UAE has adopted law number 5 of 2009 concerning the regulation of organic food production. 
 
(ii) Role of state-owned enterprises, and privatization 
WTO Secretariat's report, pages 50-51 
 
50. How does the UAE ensure the fundamental rights at work as embodied by the ILO's 2008 
Declaration on Social Justice for a Fair Globalisati on and the 8 core ILO Conventions (nos. 29, 87, 98, 
100, 105, 111, 138 and 182) are respected by stat e-owned enterprises, in particular those that are 
engaged in manufacturing or processing destined for export? 
 
Answer: 
 Labour rights have been regulated and safeguar ded under binding legislation.  This applies to 
both Public Sector and Private Sector.  Violations to such legislation and different laws, is 
subject to different escalation actions by the sup ervisory authorities.  This includes protection to 
wages, overseas savings/ money transfer, work ing hours and over time, health and safety, 
medical insurance, end of service....etc.  
  WT/TPR/M/262/Add.1 
 Page 55 
 
 
 WTO Secretariat's report, page 50, para. 109 
 
According to the Secretariat's report some state- owned “/…/companies (e.g. in electricity and air 
transport) act as both operators and regulators of their respective sectors".  
51. Could the UAE elaborate on what this means in regard of the air transport sector?  In how far 
are government related entities, like Etihad or Emir ates airlines, involved in the regulation of the air 
transport sector?  
Answer: 
 
The above statement from Secretariat report (WTO Secretariat's report, Part III-Trade policies and practices by Measures- page 50, para. 109)  is  not accurate and even contradicts the 
statement made later in the same secretariat rep ort (cfr. Part IV. – Trade Policies by Sector- 
Para. 121 at Page 86). 
 
As stated in the specific sector report, the regulation of the air transport activities in the UAE is clearly attributed to the Federal Authority (GC AA) in coordination with local civil aviation 
entities, without the involvement from the Airlines (local or international), which are the subjects of such regulations. 
 
(iii) Competition policy and regulatory issues WTO Secretariat's report, page 51, para. 114 
 
According to the Secretariat's report "There are no price controls in the UAE. The Ministry of 
Economy only monitors the price of food products." 
 
52. How would the UAE qualify consumer price related measures which the federal government 
introduced in early 2011, including fixed retail charges for basic food and consumer goods, and the fact that companies have to lodge an application with a government-led committee in order to have the 
prices which were fixed for their products reviewed ?  Could the UAE elaborate on the procedures and 
criteria applied when a company is seeking the revi sion of fixed prices? Is the UAE considering the 
revision or abolishment of these measures? 
 
Answer: 
 
Stabilizing prices 
 Stabilizing prices is made through coordination , cooperation and partnership between the UAE 
competent authority (i.e. Ministry of Economy)  and major retailers, cooperative societies and 
suppliers operating in the State.  In fact, the major retailers accept, as part of their social 
responsibility vis-à-vis the consumers and on a voluntary basis, to stabilize the prices for 
selected basic commodities for a limited period of one year, without any pressure or interference 
from the Ministry of Economy.  Procedures and criteria applied in the revision of prices  
In the UAE market, prices are determined upon the interaction between supply and demand. In 
dealing with the prices, there are two kinds of situations:  
- The first situation: when the companies brin g to the market new products for the first 
time, they are free to determine the prices of those products. WT/TPR/M/262/Add.1 
Page 56  
 
 - The second situation: when the companies alrea dy operating in the market and having a 
market share are seeking to raise the price of their products, the following mechanism 
is applied: 
 
- They have to submit an application requesting the increase of their prices with a 
certain percentage; 
- They have to provide convincing justifications that support their requests. 
 Then, the Ministry of Economy will conduct a fina ncial and economic analysis of the requests in 
order to determine the fair price and submit its recommendation to th e Supreme Committee for 
Consumer Protection for appropriate decision. At  several occasions, the prices of many goods 
have been raised due to different factors (high pr oduction costs, rise of world prices, increase of 
the inflation rate, and increase of shipping costs …).  In fact, the Ministry of Economy monitors the prices in accordance with the Consumer 
Protection Law No. (24) of 2006, and based on sev eral indicators used in identifying whether the 
price increases are justified or not. The Law enumerates these indicators as follows: 
 
- Inflation rate in the country; 
- Evolution of the prices of the commodity and service; 
- General level of the prices in the state. 
- General level of the prices in neighboring countries. 
- Average rate of the price increase of the commodity or service. 
- Exchange rate; 
- Consumer complaints about the price increases submitted to the Ministry of 
Economy. 
 
In general, there are no a priori price contro ls, and the government discourages such practice. 
The intent of the above measures is to stabilize the market and prevent the abusive and monopolistic practices in a ccordance with the law. 
 
(iv) Government procurement 
WTO Secretariat's report, page 51-55, para-s. 115-131  
The Secretariat’s report describes the UAE’s gover nment procurement regime.  Transparency in 
procurement processes is crucial for foreign compani es, especially as regards registration procedures, 
assessment of prequalification documents, length and criteria of the short listing process and, in some 
cases lack of information on the final prices of competing bidders.  
 53. Could the UAE provide further information on how it ensures transparency in public procurement processes and how it ensure that it appli es to all bidders (whether domestic or foreign)?  
 
Answer: 
 
This is ensured through the following:  
 The quotation process is done electronically  
 In case the quotation does not match the government’s requirements, the 
procurement process does not proceed and the same notice is resubmitted.  
  It is ensured that the person responsible of government procurement and the 
supplier are not on social terms  WT/TPR/M/262/Add.1 
 Page 57 
 
 
  The quotations are reviewed through a committee, the members if this 
committee are reassigned on a regular basis. 
 During the tendering process a procurement notice is usually posted 
electronically at Ministry of Finance or the relevant ministry, and local newspapers. 
WTO Secretariat's report, page 51, para. 115 
 
The Secretariat’s report states that the "The UAE is not a party or an observer to the WTO Plurilateral Agreement on Government Procurement./…/".  54. Following the historic agreement on the outco mes of the renegotiation of the Plurilateral 
Agreement on Government Procurement on 15 Decemb er 2011, is the UAE considering to join the 
agreement as a party or as an observer? 
 
Answer: 
 The UAE has no plans to join the GPA as a party or as an observer for the time being, however 
this could change in the coming years.  
55. Could the UAE provide further information on how it ensures transparency in public procurement processes and how it ensure that it appli es to all bidders (whether domestic or foreign)? 
Does the UAE have any plans in amending its cu rrent public procurement legislative framework? 
 Answer:  The first part of the question has been answered in question 53.  Yes, the Ministry of Finance is currently under the process of reforming the policies and 
procedures of the current procurement process.  
(v) Intellectual property rights 
WTO Secretariat's report, page 55, para. 132  
 The Secretariat's report states that “/…/The UAE does not have laws to protect geographical 
indications". 
56. The EU commends the UAE's efforts in estab lishing a modern and efficient system of 
consumer protection. Reliable geographical indica tions are an important instrument for allowing 
consumers to make well-informed choices and to determine the quality of the products they are 
planning to purchase. Could the UAE inform whethe r, in the context of its efforts to increase 
consumer protection, the introduction of laws prot ecting geographical indications is being envisaged? 
 
Answer:  The Unified GCC Trademarks Law, which is currently under consideration by the GCC 
countries states that after its entry into fo rce, a specific Chapter on the protection of 
geographical indications will be drafted and incorporated into the Law.  
    
 WT/TPR/M/262/Add.1 
Page 58  
 
 WTO Secretariat's report, page 55, para. 132 and 134 
 
According to the Secretariat's report "The inte llectual property regime in the UAE is still 
developing./…/". It further states that "/…/Enfor cement at the border is mainly dealt with by the 
Federal Customs Authority./…/". 
 
57. Could the UAE explain in how far the customs authorities of the individual Emirates as well as other federal and Emirate-level authorities are c ontributing the enforcement of intellectual property 
rights?  
 
Answer: 
 
- There are several Forums and workshops targeted to Customs, Customs Inspectors, 
Government Agencies, and Private Sectors that take place in the UAE aiming to 
increase awareness of copyright protection and IPR. 
o Dubai Customs has hosted several IPR conferences 
o Abu Dhabi Customs has made several seminars and workshops for Customs 
officers as well as the public to increase awareness on IPR issues. 
o FCA to host and Launch IPM initiative in an IPR Forum (9-11 April 2012) 
o FCA hosting IPR workshop for inspecto rs, where right holders will present 
to them different ways of detecting counterfeiting. There will be also a 
presentation regarding risk management and counterfeiting presented by 
the WCO. 
- IPM (Interface Public Member) is a WCO initiative where right holders submit 
various information regarding means of detection of counterfeiting and copyright infringement.  The UAE has signed up to be a member and is providing access to 
inspectors in the different customs depart ments to enable them to access this 
information as a reference and training tool. 
- Customs is the authority to implement the IPR law and the protection of IPR in the 
first points of entry.  Therefore the local customs authority are directly involved in implementing and enforcing the IPR protection in the boarder. 
 
For exact measures taken in this regard, kindly refer to our answer to Question 27.  
 
WTO Secretariat's report, page 59, para. 154 and 155  
 
The Secretariat's report states that “The UAE h as implemented programmes to increase awareness 
regarding IP protection./…/". It further elaborates that "The laws on copyright, patents and designs, 
and trade marks provide for measures to prevent violation of intellectual property rights, including preventive seizure, confiscation, removal or destru ction of products and e quipment, as well as 
elimination of the effects of the illegal acts, and compensation, and imprisonment in certain instances." 
58. Could UAE please better clarify what “preve ntive seizure” means and in which case that 
procedure is applicable? 
 
Answer:  Copyright and related rights 
 
Article 34 of the Federal Law No 32 of 2006 states that the chairman of the first instance court may order for any work published or exhibited without written authorization from the author or his successors, the seizure of the original wo rk and its reproduction (whether book, pictures,  WT/TPR/M/262/Add.1 
 Page 59 
 
 
 drawing, performance, photograph, phonogram , broadcasting program or otherwise), the 
materials used in republishing this work or reproducing copies of it, as well as all the revenues coming from the publication or exhibition of this work.   Trademarks 
 
According to Article 41 of the Federal Law No 37 of 1992, the owner of a brand may request, at any time and prior to filing any lawsuit, an order from a competent court to take provisional measures such as the seizure of the products and equipment that represent a violation of his trademark. 
 
59. Could UAE please clarify which intellect ual property rights are covered by customs 
legislation?   
Answer: 
 
The local customs departments in the UAE have implemented a system for registering trademarks. This system enables trademark ow ners to provide the customs departments with 
data related to their trademarks, which enables the customs to provide full legal protection for 
these trademarks.  The “Trademark Register System” is linked to all customs centres.  
Furthermore, article 36 of law number 7 of 2002, concerning copyrights and neighbouring 
rights, gives the customs authority the right to act on its own, or upon the request of the copyright owner, to hold the clearance on any goods infringing on this law. 
 
60. Could the UAE provide statistics regarding th e enforcement of intellectual property rights? 
This would include the number or  value of goods seized and the number and type of punishments 
imposed by the authorities. 
 
Answer:  The UAE plays an active role in pr otecting intellectual property rights. 
 
For instance, in 2011 over 8313 cases of IPR infringements have been seized, 7636 of which relate to trademarks. The total value of all seize d infringements was wort h AED 2.4 billion, most 
of which was from China. 
 61. Could UAE please clarify if customs can act upon demand of right-holders and on its own 
initiative for goods entering or leaving free-trade zon es?  Which particular measures have been taken 
in order to enforce intellectual property rights in the Free Trade Zones?  In how far do such measures 
cover violations of intellectual property rights thro ugh the production of counterfeit goods in the Free 
Trade Zones?  In how far do such measures cover the interception of trans-shipments of products 
violating intellectual property rights? 
 
Answer: 
 
- Yes, Customs is able to take action against IPR infringements.  Customs has a 
presence in the Free Zones in both entry and exit points, therefore Customs can 
take action on IPR violations as per the procedures in place. 
- If the Customs administration has inform ation of goods being transhipped through 
the UAE, it can take action as per the pr ocedures in place against IPR violations or 
any violation thereof. WT/TPR/M/262/Add.1 
Page 60  
 
 - Customs administrations use Risk Management and information exchange between 
International Customs Administrations in helping to detect any kinds of violations whether it is pertaining to IPR or otherwise. 
 
IV. Trade Policies BY SECTOR 
(2) Agriculture  
(i) Features WTO Secretariat's report, pages 61-63, para-s 14-16  
The value of UAE’s agricultural products exports is  considerable, especially given the many obstacles 
to agricultural production mentioned in paragraph 14 and, also when compared with the other 
countries in the region.  62. Could the UEA provide information on the shar e (in value) of re-exported agricultural goods 
in total agricultural exports?  
 
Answer: 
 In 2010, re-exported agricultural goods were valued at AED 9.9 billion, while total agricultural exports were AED 17.5 billion. [Note:  Agricultur al products include HS Chapters 1-24.] More 
details are available at: www.trade-exchange.ae. 
 
WTO Secretariat's report, pages 61-63, para-s 14-18  
According to the Secretariat’s repor t, the UAE managed to increase their agricultural production with 
a simultaneous decrease in total cultivated land and in the envir onment of limited water supplies. 
 
63. Could the UAE elaborate further on whethe r this was achieved through an enhanced 
productivity of the sector?  Could the UAE provide a brief info on its experience in this context?  
What were the policies that lead to the positive results? 
 
Answer: 
 
The UAE Ministry of Environment and Water has worked on increasing the productivity of the 
agricultural sector through encouraging the use of  protected farming and water farming due to 
their high efficiency with regards to water a nd fertilizer usage, and the high quality of their 
produce.  The Ministry has also advised farmer s on the best means in using greenhouses, and 
has encouraged them to use them more often in planting various crops such as tomatoes and 
cucumbers.   The Ministry works on ensuring the country’s food security and encouraging and developing 
agricultural production. It also encourages vert ical agriculture through greenhouses and water 
agriculture, and reducing conventional open agric ulture, which relatively consumes more water.  
 
The Ministry encourages farmers to use organic  fertilizers, which improve the water retention 
capacity of the topsoil, thus reducing the require d amount of irrigation. Moreover, these organic 
fertilizers do not pose a present or future threat to underground aquifers. 
  WT/TPR/M/262/Add.1 
 Page 61 
 
 
 (4) Energy and Water 
(i) Petroleum  and (ii) Natural gas  
WTO Secretariat's report, pages 67-72 
 
The oil and gas sector is dominated by govern ment-owned entities and special requirements for 
government procurement are the norm.  Vendors (for goods) and contractors (services) are invariably 
required to be registered with each and every g overnment entity (ie each ADNOC group company) to 
which they wish to sell.  Registration typically re quires the vendor or contractor to be a UAE-based 
company.  In order to sell to ADNOC or any of its  subsidiaries, ADNOC requires the supplier to have 
representation in the emirate of Abu Dhabi. This re quirement can be satisfied by appointing an Abu 
Dhabi-based agent. In addition to vendor regist ration, all products and services are required to go 
through a certification process which involves submi ssion of technical information and subsequent 
analysis and evaluation by the purchaser.  Each ADNOC group company has its own requirements 
(although they are all similar), and a prospective supp lier must register with each company separately.  
 
64. Does the UAE plan to relax the above rest rictions on foreign direct investment? 
 
Answer: 
 Regarding the registration process cited in the a ttached example, kindly note that this is 
applicable to vendors of goods and services and is not directly related to FDI in its general sense. 
 
Foreign Direct Investment in the Abu Dhabi Oil Sector is governed by a different set of commercial and legal framework, i.e. joint venture and concession awards.  
 The current (circa 2012) body of reference repre senting the government of Abu Dhabi in this 
matter is the Supreme Petroleum Council. 
 ADNOC Group of Companies’ requirements in t erms of registration and prequalification for 
goods and services providers are in line with the Law of Abu Dhabi and the UAE.  To this end and to minimize duplicating regis tration requirements, ADNOC has developed an 
online (e-registration) system with a set of  unified procedures called “Unified supplier 
registration and prequalification procedure”. 
 Given the long value chain, some companies fo r certain goods and / or services may exercise a 
further level of evaluation to ascertain the vendors capabilities and /or products viability. 
 
All matters related to natural resources fall with in the jurisdiction of local governmnets.  
 
(5) Services 
(i) Financial services (a) Banking  
WTO Secretariat's report, page 76, para. 77   
The Secretariat's report states that "/…/Foreign bank s are subject to a 20% tax on profits, which is not 
applied to national banks./…/".  
65. Could the UAE explain the rationale of this differentiation and indicate whether there are 
plans to streamline the tax regime for foreign banks and national banks? 
 
  WT/TPR/M/262/Add.1 
Page 62  
 
 Answer:  
 
The 20% tax is levied at the local emirate’s government level.  This tax is levied on the income 
generated by the branch of the foreign banks op erating in the respective emirate. The Federal 
Authorities cannot impose any rules or interfere in such matters.  
 
WTO Secretariat's report, page 77, para. 81 
 
The Secretariat’s report describes regulatory measures taken by the UAE in 2010, including a moratorium on new licences for commercial banks and limiting the number of branches permitted to 
licensed foreign banks.  
 66. Could the UAE please clarify whether these me asure apply to free zones specializing in the 
provision of financial services (DIFC)?   Answer: 
 
The DIFC is a financial free zone with its own policies, rules, regulations and licensing 
procedures. It does not have a moratoruim on licensing of banks or financial institutions.  
 
67. Does the UAE consider abolishing restricti ons on new licences for co mmercial banks and the 
limit on the number of branches of foreign banks?  
 Answer : 
 
Currently there are 54 banks operating in the UAE.  There are (31) foreign banks of which (28) 
are commercial banks with 102 branches, 1 pay office, and 60 electronic banking service units 
(EBSU).  The other (3) are wholesale banks.  A fo urth wholesale bank will be soon licensed as it 
has been granted the initial approval.  (see the attached tables).  Permitting foreign banks to 
open more branches is currently unde r consideration by the CBUAE. 
 
LIST OF FOREIGN BANKS AND DISTRIBUTION OF THEIR BRANCHES IN THE UAE (AS ON 29-2-2012)  
Total Al Ain Fuj U.A.Q Ajman R.A.K SHJ Dubai Abu 
Dhabi  Head 
Office Name of the 
bank S.No 
1 0 0 0 0 0 0 0 1 Abu 
Dhabi National Bank 
of Bahrain 1 
1 0 0 0 0 0 0 0 1 Abu 
Dhabi Rafidain Bank 2 
8 1 1 0 1 1 1 2 1 Abu 
Dhabi Arab Bank PLC 3 
5 1 0 0 0 1 1 1 1 Abu 
Dhabi Banque Misr 4 
1 0 0 0 0 0 0 0 1 Abu 
Dhabi El Nilein Bank 5 
1 0 0 0 0 0 0 0 1 Abu 
Dhabi National Bank 
of  Oman 6 
2 0 0 0 0 0 0 1 1 Dubai Credit Agricole  
- Corporate and Investment 
Bank 7 
6 1 0 0 0 1 1 2 1 Dubai Bank of Baroda 8 
2 0 0 0 0 0 0 1 1 Abu 
Dhabi BNP Paribas 9 
4 1 0 0 0 0 1 1 1 Abu 
Dhabi Janata Bank 10  WT/TPR/M/262/Add.1 
 Page 63 
 
 
 Total Al Ain Fuj U.A.Q Ajman R.A.K SHJ Dubai Abu 
Dhabi  Head 
Office Name of the 
bank S.No 
8 1 1 0 0 1 1 3 1 Dubai HSBC Bank 
Middle East 
Limited 11 
2 0 0 0 0 0 0 1 1 Dubai Arab African 
International 
Bank 12 
4 0 0 0 0 1 1 1 1 Dubai Al Khaliji 
(France) S. A. 13 
2 0 0 0 0 0 0 1 1 Dubai Al Ahli Bank of 
Kuwait 14 
2 0 0 0 0 0 0 1 1 Dubai Barclays Bank 
PLC 15 
7 1 0 0 0 0 1 4 1 Dubai Habib Bank 
Ltd. 16 
8 0 0 0 0 0 1 5 2 Dubai Habib Bank 
A.G Zurich 17 
11 1 0 0 0 0 1 7 2 Dubai Standard 
Chartered Bank 18 
5 1 0 0 0 0 1 2 1 Dubai CitiBank N.A. 19 
7 1 0 0 1 0 1 3 1 Dubai Bank Saderat 
Iran 20 
7 1 1 0 0 1 1 2 1 Dubai Bank Meli Iran  21 
2 0 0 0 0 0 1 1 0 Dubai Blom Bank 
France 22 
1 0 0 0 0 0 0 1 0 Dubai Lloyds TSB 
Bank PLC 23 
3 0 0 0 0 0 1 1 1 Dubai The Royal Bank 
of Scotland 
N.V. 24 
8 1 0 0 0 0 1 3 3 Dubai United Bank 
Ltd. 25 
1 0 0 0 0 0 0 1 0 Dubai Doha Bank 26 
1 0 0 0 0 0 0 1 0 Dubai Samba 
Financial Group 27 
1 0 0 0 0 0 0 1 0 Dubai National Bank 
of Kuwait 28 
111 11 3 0 2 6 15 47 27    Total 
 
(c) Insurance services 
WTO Secretariat's report, page 81, para. 102  
 
The Secretariat’s report refers to the decision take n by the UAE’s Insurance Authority in December 
2008 not to issue new licenses in the insurance services sector. 
68. Is the UAE planning to lift this moratorium  to enable the development and growth of the 
sector?  
Answer: 
 
The moratorium is still under consideration and st udy.  It’s worth noting that the insurance 
companies registered with the Insurance Author ity amounted to 61 insurance companies with 
more than 200 branches all over the emirates in a ddition to 170 insurance brokers, 15 insurance 
agents, 70 loss adjusters, 27 actuaries and 20 insurance consultants and this is a relatively big number considering the size of the UAE insura nce market and the country’s population. 
 
WTO Secretariat's report, page 82, para. 104  
The Secretariat’s report states that “The UAE ma de no specific commitments in its GATS Schedule WT/TPR/M/262/Add.1 
Page 64  
 
 regarding insurance services.  The cross-border s upply of insurance services is not permitted for 
companies located abroad.  All assets and risks in the UAE must be insured domestically by a 
company registered in the UAE; this may be a do mestic company, a local branch of a foreign 
company or an agency.  However, UAE-based compani es may insure risks located abroad.  To protect 
the interests of policyholders, the maximum fore ign ownership of domestic insurance companies 
allowed by law is 25%.  Representative offices may not engage in insurance business or act as 
insurance agents. This does not apply to reinsura nce services, for which commercial presence is not 
required:  UAE insurance companies may reinsure th eir risks from internationa l reinsurance markets. 
Insurance agents must be UAE citizens.” 
69. Does the UAE foresee changes to these restri ctive regulations, which prohibit cross-border 
supply of insurance services for foreign companies and require that all assets and risks in the UAE 
must be insured by a company registered in the UEA?   
Answer: 
 
No changes are planned so far in respect to  prohibiting cross-border supply of insurance 
services. Accordingly, all assets and risks in the UAE must be insured by companies licensed to 
operate in the UAE. 
 
70. Does the UAE foresee increasing equity caps fo r foreign ownership in domestic insurance 
companies? 
 
Answer: 
 The permitted 25% equity caps are under the pro cess of evaluation.  However, according to our 
records no foreign insurance co mpany has fully met the permitted equity caps to date. 
Accordingly, when this happens, then it will be possible to reconsider incr easing the equity caps 
if necessary. 
 
(vi) Trade in business and professional services 
WTO Secretariat's report, page 96, para. 179 
 The Secretariat’s report describes limitations in the professional services sector.  
 71. Could the UAE explain the compatibility of its licensing requirement, residence requirement 
and requirement to use a local service agent in the committed professional services (accounting, 
auditing, and book-keeping services; certain taxa tion services; architectural, engineering, urban 
planning and landscape services;  and veterinary  services) with the GATS provisions, while those 
limitations are not inscribed in the UAE’s schedule?  
Answer: 
 With regards to licensing requirements, article 6 of the GATS Agreement (Domestic Regulation) 
covers this aspect.  As for the resident requirement , if the nature of the service allows it to be 
provided under mode 1 and 2, then it is no t compulsory to appoint a local agent. 
 The UAE has clarified the requirements in its DDA offer, which includes the liberalization of a number of new services sectors.  Moreover, the draft competition law, which is currently under 
discussion includes some provisions that makes the requirement of a local agent optional instead 
of mandatory.    WT/TPR/M/262/Add.1 
 Page 65 
 
 
 QUESTIONS FROM HONG KONG, CHINA 
 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT 
III   TRADE POLICIES AND PRACTICES BY MEASURE 
Pages 34-37 (Paras. 37-42) 
Tariffs 
 
The UAE has bound all its tariff lines.  The 2011 applied tariff comprises four ad valorem  tariff rates, 
viz. zero, 5%, 50%, and 100%.  The average applied tariff rate has fallen slightly from 5.1% in 2005 
to 4.9% in 2011.  However, the bound rates, ra nging from zero to 200%, are in general considerably 
higher than the applied rates.  This gives margin s for increasing the applied MFN tariffs and presents 
an element of uncertainty to traders.  Question:  
1. On 1 January 2003, the UAE adopted the Gu lf Cooperation Council (GCC) common external 
tariff (CET) which is a five-year tariff.  The current CET covers the period of 2007-2012 which 
should soon expire. We would like to know if the UA E has any plan to review the CET to reduce the 
gaps between the applied and bound rates so as to provide greater predictability in its tariff regime? 
 
Answer: 
 
The gap between the UAE bound rates and the applied rates is not higher than that of many of 
the developing WTO members. Nevertheless, the UAE has not raised a single applied rate since joining the WTO in 1996, not even during the gl obal economic crisis. Furthermore, the UAE is 
an advocate of the Doha round and will, once su ccessfully concluded, implement its outcomes 
especially those pertaining to Non Agricultural  Market Access, which will bring closer the gap 
between the applied and bound rates.  
 
Page 43 (Paras. 67 – 69) 
Technical regulations 
 
In the UAE, there is no central body in charge of preparing technical regulations.  Such regulations 
may be developed by the Emirates Standardizati on and Metrology Authority (ESMA) or devised 
directly by a Ministry.  Question: 
 
2. As technical regulations may be developed by various authorities, would the UAE advise us in 
what ways traders can get hold of the latest inform ation?  Is there any central mechanism in place for 
disseminating relevant information to the trade?  
Answer: 
 
The Emirates Authority for Standardization and Metrology (ESMA) has established the 
National Enquiry Point of the UAE in 2005, which is responsible to notify the WTO in draft form for any proposed/adopted national technical regulations (local or federal) according to the 
TBT agreement. Moreover, the Enquiry Point is responsible for answering enquiries regarding 
matters that include: 
(1) Any proposed / adopted UAE standards. (2) Any proposed / adopted conformity assessment procedures. WT/TPR/M/262/Add.1 
Page 66  
 
 (3) The membership and participation of th e ESMA in the international and regional 
standardizing bodies and conformity assessment  systems, as well as in bilateral and 
multilateral arrangements within  the scope of this Agreement. 
 
Contact Information for UAE TBT Enquiry Point: 
P O Box 2166 Abu Dhabi United Arab Emirates 
Tel.:  (+971) 2 403 2657 
Fax:  (+971) 2 671 0999 E-mail:  uaetbt@esma.ae Website:  http://www.esma.gov.ae/en-us/Pages/home.aspx 
 Page 47 (Para. 89);  Page 49 (Para. 101) 
Export support / Incentives 
 
The UAE’s most recent "new and full" notification re garding subsidies dates back to 2000.  At that 
time the UAE notified that it did not grant or mainta in any subsidy within the meaning of Articles 1.1 
and 2 of the Agreement on Subsidies and Countervaili ng Measures, or operated directly or indirectly 
to increase exports from or reduce imports into its terr itory within the meaning of Article XVI:1 of the 
GATT 1994.  Question:  
3. The UAE’s most recent "new and full" notifi cation regarding subsidies dates back to 2000.  
Would UAE please advise if there has been change with  respect to subsidies since the last notification 
of 2000?  Answer:  The UAE would like to confirm that there has been no change with respect to subsidies since the 
last notification of 2000.  In fact, the UAE confir ms that it did not grant or maintain any subsidy 
within the meaning of Articles 1.1 and 2 of the Agreement on Subsidies and Countervailing Measures, or operated directly or indirectly to in crease exports from or reduce imports into its 
territory within the meaning of Article XVI:1 of the GATT 1994.  
 The UAE competent Department (Ministry of Ec onomy) is currently collaborating with all 
Federal and Sub-federal Authorities to prepare its new and full subsidy notification and it will 
be submitted to the WTO Committee on subsid y and Countervailing Measures once finalized.  
In this respect, the UAE would like to highlight th at its federal system makes such notification a 
time-consuming process as it requires extensive consultations with all the relevant federal and 
local authorities.  
 Pages 51-54 (Paras. 115, 121, 127-129) 
Government Procurement 
 
We note that UAE is not a party or an observer to the WTO Plurilateral Agreement on Government Procurement.  That said, the Secretariat Report summarizes that the UAE’s government procurement 
favours local companies and suppliers, and there is an offset programme for defence contracts and a 
range of economic activities (including advertising,  fish farming, etc.).  Besides, the UAE 
procurement regulations contain nationality restrictions for a bidder in general. 
   WT/TPR/M/262/Add.1 
 Page 67 
 
 
 Question: 
 4. We would like to know if the UAE has any pl ans to open its government procurement system 
to allow foreign companies and suppliers to bid its  contracts by relaxing or removing the nationality 
restrictions and the offset requirement? 
 
Answer: 
 There are two levels for procurement in the UAE; the Federal and Emirate’s level. On the Federal level, there are currently no such plans. However, on the Emirate’s level, the matter is 
left to the discretion of each Emirate.   
IV.  TRADE POLICIES BY SECTOR 
Page 77 (Para. 81) 
Banking 
 
To help mitigate future financial crises, the Cent ral Bank implemented a series of regulatory measures 
in 2010, including, inter alia , an increase of the minimum capital adequacy ratio to 12%; a 
moratorium on new licences for commercial banks; a limit on the number of branches permitted to 
licensed foreign banks and restrictions on pro cessing fees for loans, debit, and credit cards. 
 Question:  
5. Are these regulatory measures transitional to respond to the global financial and economic 
crisis?  Would the UAE Government consider  reviewing these regulatory measures later? 
 
Answer: 
 
Capital adequacy  Based on BASEL Committee recommendations a nd as per BASEL – I guidelines the Central 
Bank of the United Arab Emirates (CBUAE) issued a regulation in the year 1993 vide Circular No. 13/93 dated 4
th April 1993 requiring all banks operati ng in the United Arab Emirates to 
maintain Risk Assets Ratio at a minimum of 10% at all times, in which tier - 1 capital must 
reach a minimum of 6% of total risk weighted assets.  Due to the financial crisi s that started in 2008, the above regulation was revised in the year 2009. 
The CBUAE issued Notice No. 4004/2009 dated 30
th August 2009 by which it instructed all 
banks to increase their capital adequacy ratio to 11% no later than 30th September 2009, and of 
which Tier – I capital must not be less than 7%. Moreover, all banks were required to increase 
their capital adequacy ratio to 12% no later than 30th June 2010, Tier – I capital of which must 
not be less than 8%.  
The above regulation issued in 2009 has remaine d unchanged since then. The Central Bank to 
date has not decided to make any change in th e present capital adequacy ratio. However, these 
ratios are subject to adjustments, if deemed necessary.  
 Schedule of fees, commissions and charges 
 
On 23
rd February 2011, and after extensive consulta tions with the banks and finance companies, 
the CBUAE issued Regulation No. 29/2011“Regar ding Bank Loans & Other Services Offered to 
Individual Customers”. The objective was to de termine the relationship between the banks and WT/TPR/M/262/Add.1 
Page 68  
 
 finance companies and their individual customers in a more transparent manner so as to boost 
confidence in banks and finance companies and enhance the credibility of the banking system. 
 The Regulation stated the fees, commissions, deductions and charges on loans, overdraft 
balances and unpaid credit card balances and th ose charged on retail banking services. Banks 
and Finance Companies cannot impose any commission s, fees, charges or fines other than those 
mentioned in this Regulation. CBUAE sha ll annually review these charges, fees and 
commissions as part of its normal regulatory measures.  
 Foreign Banks’ Branches 
 
1. Currently there are (31) foreign banks of which (28) are commercial banks with 102 
branches, 1 pay office, and 60 electronic banking service units (EBSU) operating in the UAE.   Permitting foreign banks to open more bran ches is currently under consideration by the 
CBUAE. 
 
 New licenses for commercial banks 
 In the last few years there has been a de facto lifting of a moratorium on the licensing of 
commercial banks both locally incorporated and foreign. Three local banks were established 
and three GCC commercial banks were licensed on  reciprocal basis. In addition three other 
foreign banks have been granted a license for wh olesale banking business while a fourth one has 
received the initial approval.  
Pages 83 & 84 (Para. 108) 
Telecommunications 
 
We note from the Secretariat report that the m onopoly in the UAE telecommunications market has 
been ended and there are currently two companies providing telecommunications services in the UAE.  
However, these two companies are mainly owned by the UAE Government.  Foreign investors are not allowed to buy shares in these two companies.  Th ere is no plan to licence a third operator as the 
responsible authority considers the current compe tition level in the UAE’s telecommunications sector 
as adequate.  
Question: 
 6. While there is no plan to issue a third licence,  we would like to know if the UAE Government 
has any plan to further liberalising the telecomm unication markets and increasing the participation of 
private sector or foreign investment. 
 
Answer: 
 
Currently the Telecom Regulatory Authority (T RA) does not have any plans to increase the 
participation of private sector or foreign inv estment by issuing additional licenses. The TRA 
considers that in some markets competition is  entrenched. For example the UAE has over 11 
million mobile telephony subscribers and a pene tration rate (per 100 inhabitants) of over 150%. 
Over 90% of this market is pre-paid (no cont ract) subscribers with both mobile operators 
having approximately equal market share. Fo r post-paid (contract) subscribers the market 
share is skewed in favour of the incumbent (68% ) but this share is falling rapidly (down from 
100% 4 years ago). International benchmarks show that the UAE currently has some of the 
lower mobile voice call rates in the world. Mob ile consumers are now facing increasing price  WT/TPR/M/262/Add.1 
 Page 69 
 
 
 competition and real choice for mo bile services. This is set to increase in the short-term when 
mobile number portability is introduced.   
For the fixed and internet markets competitio n has been much slower to develop and the 
incumbent still has 85% of the market. As this ma rket is characterised by high barriers to entry 
and sunk costs the TRA feels that in the shorter term it would be more beneficial to promote 
infrastructure based competition between current licensees than introduce additional licensees. 
To that end the TRA is currently establishing a number of measures to aid the introduction of 
competition through infrastructure sharing. Th ese include bitstream inte rconnection which will 
allow more competition in retail fixed and intern et markets and passive infrastructure sharing 
(ducts, cables and exchanges) for the high-speed data markets. The first of these measures is due 
to be introduced in April 2012 with others to follow.  
 Based on the outcome of the introduction of infrastructure sharing in the fixed and internet 
markets and the continued development of comp etition in the mobile market the TRA will 
continue to monitor the need for the introduction  of additional licensees over the longer term.   
 
The TRA is, however, expecting an increase in the issuance of Satellite Licenses. Such Licenses 
may, depending on their applications, cover any or all of the following services: Voice, data 
and/or internet access. Although the TRA does  not see Satellite services as a viable long-term 
substitute for fixed or mobile services there will be an element of competition developing as the 
number of providers increase and pri ces for Satellite services decrease. 
 Page 90 (Para. 147) 
Ports 
 
According to the Secretariat report, foreign partic ipation in port management remains limited except 
in free zones. 
 
Question:  7. Are there any equity limitation and other kinds of restrictions for foreign companies in port management?  Please also share with us the current s ituation on foreign partic ipation in ports of the 
UAE.   
 
Answer: 
 The UAE made no commitments during accession  under Maritime services. However, it has 
submitted an offer in maritime transport services under the DDA.  The management of any 
UAE port falls under the discretion of the Emirate it is located in.  
 
Page 92 (Para. 162) 
Tourism 
 The UAE National Council for Tourism and Anti quities (NCTA) was established to promote the 
UAE's tourism sector within the country and over seas, and help coordinate the UAE tourism-related 
policies at the federal level.  It is, however, repor ted that NCTA is not responsible for issuing tourism 
licences. Tourism licences are issued at emirate level.  Question: 
 
8. We would like to know how the NCTA helps c oordinate the UAE tourism-related policies at 
the federal level.  Would the NCTA consider ali gning the tourism-related licences among all emirates? WT/TPR/M/262/Add.1 
Page 70  
 
 Answer: 
 The following are clauses from the Federal Law on the establishment of the National Council of 
Tourism according to which amendm ents to the above can be made: 
 Article 4 – Objectives of the Council  
 
The Council shall aim at coordinating the de velopment and promotion of tourism , whether 
domestically or abroad , in view of meeting the cultural heritage and the original Emirati social 
values , and of preserving national antiquities and national identity , which yields economic, social , cultural and informational benefits to the country .  
 
Article 5 – Jurisdictions of the Council   
First: In coordination and cooperation with the competent authority, the Council shall carry out 
all necessary tasks in order to develop an d promote tourism and preserve antiquities, 
specifically the following:  
 
1 - Activate, promote and develop touris m, whether domestically or abroad.  
 
2 - Preserve and excavate antiquities and take necessary measures for the classification and 
protection thereof, preserve, register, reanimate and exhibit same domestically and abroad.  
 
3 - Represent the State abroad in all matters related to tourism and antiquities.  
 
4 - Suggest joining the International treaties related to tourism and antiquities affairs and 
whatever is necessary to fulfill the commitments towards the other countries in coordination 
with the ministry of foreign affairs. 
 
For more information, kindly visit the NCTA’s website (www.uaetourism.ae). 
 
PART II:  QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 16 (Paras. 85 & 87) 
Labour Market and Emiratization Policy 
 As mentioned in the Government report, foreigne rs dominate the private sectors, both as employers 
and employees, in the UAE.  In this connection, the UAE Government proposed the establishment of a 
quota system for nationals in certain sectors.  
 
Question: 
 
9. Would the UAE share with us the current situ ation of foreigners’ par ticipation in the labour 
market and the details of the proposed quota system  for nationals?  Which sectors will be covered by 
the proposed quota system?  Will there be any transi tional period for companies to comply with the 
system, and is there any mechanism to review  the need of continuing the quota system? 
 
Answer: 
 The TCL (i.e. foreigners) enjoy the majority of employment in the UAE’s labour market 
specifically in the private sector.  They represe nt the overwhelming majority within the total 
labour force in the private sector  labour market and a considerable share in the other sectors 
(Government and public sectors).  WT/TPR/M/262/Add.1 
 Page 71 
 
 
 The targeted quota for national employment a nd the targeted sectors have been determined 
since 2005.  They are:  Banking , Insurance and Trade sectors. WT/TPR/M/262/Add.1 
Page 72  
 
 QUESTIONS FROM INDIA 
 
Part I:  QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Page 28 (Para 3)  
Import prohibitions apply on some 30 HS tariff lines,  and another 244 lines at the HS 8-digit level are 
considered restricted goods.  Restrictions and prohibitions are mo stly applied on safety, religious 
or moral grounds.   No import licensing regime is in pl ace, and the transaction value of goods is 
generally used for valuation purposes. 
 
Question 1 
 
The United Arab Emirates is requested to provide an answer to the reasons for maintaining 30 HS 
tariff lines under Import prohibitions and another 244 li nes at the HS 8-digit level are considered 
restricted goods.  What is the purpose behind imposing these measu res and India would like to know if UAE has 
notified these restrictions to WTO Secretariat? 
 
Further, without having a central body which is in charge of preparing technical regulations for the 
UAE (Para 5, Page 28), what would be the ins titutional mechanism vide which the UAE will impose 
these restrictions which are based on safety issues.  Answer:  These measures have been applied based on safety , religious, moral, health and security grounds 
such as those adopted in other countries. Those tariff lines that cover the restricted and prohibited products are already listed in th e UAE’s applied tariff schedule, which can be 
accessed on the WTO’s website. 
 
Regarding the institutional mechanism, kindly refer to the answer to Question 2. 
 
Page 28 (Para 5) 
 
The Emirates Standardization and Metrology Au thority (ESMA), established in 2001, is the 
standardization body in the UAE.  The ESMA devel ops and adopts standards, which are prepared by 
its technical committees at the request of the Government, industry, and consumers. In general, 
standards are developed according to existing in ternational and regional st andards; however, if 
no international standards are available Dubai deve lops its own standards. Drafts are circulated 
to the relevant bodies for comments.  There is no central body in charge of preparing technical 
regulations in the UAE.  These may be developed by the ESMA, initially in the form of a standard 
and then made mandatory, or may be devised direc tly by a Ministry; all technical regulations are 
approved by Cabinet decision for legal implementa tion.  The ESMA monitors the application of 
standards and technical regulations.  
Question 2 
 The United Arab Emirates is requested to provide as what are the reasons for not having a central body which is in charge of preparing technical re gulations for the UAE, even though the United Arab 
Emirates became a member as early as 1996.   WT/TPR/M/262/Add.1 
 Page 73 
 
 
 Answer: 
 As per the TBT articles 2 & 3 it’s not mandatory to have a central body to be in-charge of 
preparing technical regulations, however the UAE  TBT National Inquiry point, which belongs 
to the Emirates Authority for Standardization and Metrology [ESMA], coordinates with 
government entities if there is a need to prepare new technical regulations to notify the WTO for 
the same.  According to article 3 of the TBT agreement, th e UAE’s ESMA takes the necessary measures to 
insure that all the technical regulations are notified to the WTO in accordance with the 
provisions of paragraphs 9.2 and 10.1 of Article 2. 
 
Page 28 (Para 5) & Page 42 (Para 66) 
 The UAE does not implement the GCC Internationa l Conformity Certification Programme (ICCP). 
It implements the Emirates Conformity Asses sment Scheme (ECAS) as a mandatory product 
certification scheme, which applies to products that affect health and safety or have an impact 
on the environment, such as low-voltage equipment and toys. The authorities indicated that the 
ECAS' aim is to ensure the safety and quality of products and to protect consumers. The ECAS may 
also cover products subject to (voluntary) sta ndards for which interested parties may request 
certification  
 
Question 3  The United Arab Emirates is requested to provide an an swer to the contradictions in the statements of 
Para 5  (….There is no central body in charge of pre paring technical regulations in the UAE…. ) and 
Para 66 (…It implements the Emirates Conformity Assessment Scheme (ECAS) as a mandatory 
product certification scheme, which applies to products t hat affect health and safety or have an impact 
on the environment, such as low-voltage equipment and toys…. ) 
 Answer:  
There are no contradictions in the above mentio n statements as ESMA is the standardization 
body of the UAE and responsible to issue the req uired technical regulation to protect the public 
and ensure the quality of the country’s exports.  At the same time other government entities 
have the right to issue technical regulations in  cooperation with ESMA for the same reason. 
 
Page 24 (Para 40) of Secretariat Report and Page 15 (Paras 73-75) of Government Report 
 The UAE's economic environment is generally liberal and business-oriented and its trade regime open.  
However, despite some modifications in its regul ations, its investment policy continues to limit 
foreign investment and competition between local a nd foreign investors, except in the Free Zones, 
where 100% foreign ownership is allowed.  Outsid e free zones, industrial licences are granted only to 
domestic companies that are majority-owned by  UAE nationals (at least 51%-owned by UAE 
nationals), or by 100% foreign-owned branches th at appoint a local services agent or "sponsor". 
 
Question 4 
 
We understand that the Government intends to re vise the existing foreign investment framework. 
Could UAE kindly elaborate on these plans and the anticipated timeframes? 
 
 
 WT/TPR/M/262/Add.1 
Page 74  
 
 Answer: 
 The UAE Cabinet issued on Sunday, December 4t h, 2011 a new draft Companies Law.  It is 
expected that the new Law will contribute to enhance the competitiveness of the national 
economy at all local, regional a nd international levels as well as enhance the performance of the 
business environment and investment climate in the UAE. 
 
The new law is expected to allow for one hund red percent foreign ownership in specific sectors 
of the country’s economy in line with the federal government’s economic diversification 
strategy.  The new Law will allow the Cabinet to  issue a resolution specifying the sectors and 
businesses activities that may increase the share of a foreign partner to more than 49% of the 
capital of the company. It will also stipulate that  the ratio may not be reduced after the issuance 
of the resolution.  
This will be followed by a review of the new Draft Law by the National Council.  It is expected 
that the new law will be enacted by the end of 2012.  
Page 40 (Para 51) 
 In addition to import prohibitions, imports of 244 ta riff lines at the 8-digit level (165 tariff lines at 4 
digit level) were restricted in 2011;  th ese comprise mainly swine and alcohol products. 
 Question 5  
 
Could the UAE indicate what products (other than swine and alcohol products) are subject to import 
restrictions? 
 
Answer: 
 
Import restriction is on all restricted goods indi cated in the list (both joint GCC list as well as 
the additional UAE list that was submitted to the WTO Secretariat) 
 Example of Restricted Goods in UAE 
No. Product Title/Description Prohibiting Authority 
1. Wild animals Ministry of Environment and Water 
2. All kind of weapons and ammunitions Ministry of Interior 
3. Alcohol drinks Ministry of Interior 
4. Medicine including tranquilizer used for medical purposes Ministry of Health 
5. Organic and chemical fertilizers Ministry of Environment and Water 
6. Fungicides Ministry of Environment and Water 
7. Agricultural seedlings  Ministry of Environment and Water 
8. Seeds Ministry of Environment and Water 
9. Wire and Wireless Communication Devices  Telecommunications Regulatory 
Authority 
10. Live horses Ministry of Environment and Water 
11. All forms of chemicals & radioactive substances Ministry of Environment and Water 
12. Live fish, non-local fish products, Ornament al fish, fish larvae for the purpose of Ministry of Environment and Water  WT/TPR/M/262/Add.1 
 Page 75 
 
 
 No. Product Title/Description Prohibiting Authority 
breeding 
13. Bird's eggs fresh, for hatching Ministry of Environment and Water 
14. Animal semen Ministry of Environment and Water 
15. Veterinary vaccines and serums, Human bl ood; animal blood attired for therapeutic, 
preventive or diagnostic uses; antis era & other blood component & modified 
immunological products, whether or not obtained by means of biotechnological 
processes; vaccines, toxins, poison of mi cro-organisms (excluding yeasts) & similar 
products  Ministry of Environment and Water 
Ministry of Health  
16. Animal products of all kinds  (leather, wool & others) Ministry of Environment and Water 
 
*For more information kindly revert to www.dxbcustoms.gov.ae.  
Page 40 (Para 52) 
 During the period under Review the UAE made no notifications to the Committee on Import Licensing Procedures.  The UAE does not appear to have an import licensing regime in place.  
 
Question 6 
 As the UAE has not notified and does not appear to have an import licensing regime in place, what 
mechanism, if any, exists for channelling imports s ubject to import restrictions (it being understood 
that the products in question are rest ricted and not prohibited to import)? 
 
Answer: 
 Channeling imports subject to import restrictio ns is not conducted in a unified form.  Each 
entity that is responsible for a specific authoriz ation has its own requirements. These entities 
include the Ministry of Interior, Ministry of Environment and Water, Ministry of Health and 
Emirates Authority for Standardization and Metrology. 
 
Page 49 (Para 102) and 65 (Para 27) 
 The UAE grants the right to import duty free, all ma terials included in an industrial project’s license. 
The information sought will help to evaluate if  the requirement to obtain a license for industrial 
undertakings is acting as a de facto discrimination, especially from a subsidies perspective  
 
Question 7 
 
Could the United Arab Emirates provide details of  the nature of industrial undertakings for which 
obtaining a license is mandatory?  
Answer: 
The UAE would like to clarify that the industr ial license is a mandatory  requirement for all 
industrial companies to start operating in the UAE. In other words, there are no industrial 
undertakings operating in the UAE without an i ndustrial license.  This mandatory requirement 
is applicable to all industrial enterprises, industrie s as well as in all Emirates.  With this respect, 
we would like to clarify that the import duty exemption is not limited to a group of enterprises or industries;  it is instead of that granted to  all industrial enterprises and industries operating WT/TPR/M/262/Add.1 
Page 76  
 
 in the UAE. Furthermore, the UAE would like to confirm that there are no industrial companies 
legally operating in the UAE which have not been  granted the import duty exemption.  Finally, 
table IV.2 (page 64) of the Secretariat Report / regarding the manufacturing activity in the UAE 
shows clearly that the industrial license is applic able to all industrial enterprises and industries 
that would like to start operating in the UAE (4960 in 2010). All the referred industrial 
companies operating in the UAE re ceive the import duty exemption. 
 Table IV.2 Manufacturing output by activity, 2007-10 
Industry 2007 2008 2009 2010 
Food industries 334 359 379 405 
Wood products 489 546 615 656 
Paper products  294 317 362 384 
Chemical products 679 734 810 857 
Metallurgy  516 557 616 653 
Metallurgical products 1,042 1,178 1,315 1,437 
Spinning and weaving industries 267 277 282 290 
Mining and petroleum refining 69 77 82 87 
Other industries 162 174 183 191 
Total 3,852 4,219 4,644 4,960 
 
Page 50 (Para 108) 
 
The WTO Secretariat Report suggests that a number of government owned companies are engaged in 
trade like Etisalat, Dubai Petroleum Company. Emirates National Oil Company etc.  The UAE had however in October 1996, notified the WTO that it did not maintain any state trading enterprises 
within the meaning of Article XVII of the GATT. The details sought will clarify if the situation has 
changed since 1996 and if these government owned comp anies need to conform with the requirements 
in Article XVII of the GATT.  
 
Question 8 
 
Could the United Arab Emirat es provide details of its wholly  or partially  government-owned 
companies that engage in trade?  Could the Unit ed Arab Emirates also provide the details of 
government ownership in each of such companies?  
 
Answer: 
 
Due to the UAE’s structure, which includes fed eral and local emirate level jurisdictions, the 
required information needs more time to be collected.  
Page 95 (Para 173)  
 
The UAE had enacted a special insolven cy regime for Nakheel in July 2009.  
 Question 9  Could the United Arab Emirates provide details of th e special insolvency regi me enacted for Nakheel 
(real estate developer, Dubai World’ subsidia ry) through the Dubai Financial Support Fund?   
  WT/TPR/M/262/Add.1 
 Page 77 
 
 
 Answer: 
 Yes there is an articulated detailed regime. The G overnment of Dubai has issued a decree in this 
regard. As well, a special tribunal was estab lished to handle the large scale and complex 
restructuring disputes. More details could be found in (www.dubaiworldtribunal.ae) shedding 
lights on the mandate, scope, team members with bio…etc. WT/TPR/M/262/Add.1 
Page 78  
 
 QUESTIONS FROM INDONESIA 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  Standards and other technical requirements 
1. As noted by Secretariat that since 2005 the ESMA has been the UAE national enquiry point 
for standards information;  it represents the UAE in regional and international conferences and 
organizations.  The ESMA is a member of several international standards organizations including the 
International Organization for Standardization (IS O), the International Electrotechnical Commission 
(IEC), the International Laboratory Accreditati on Cooperation (ILAC), the GCC Standardization 
Organization (GSO), the Arab Industrial Deve lopment and Mining Organization (AIDMO), the 
International Organization of Legal Metrology (OIML), and C odex Alimentarius. (Document : 
WT/TPR/S/262, para 62 page 42).  2. According to the Report by Secretariat In  2004, the ESMA started operating the National 
Accreditation System (ENAS) in accordance with Decision of Council of Ministers No. 22 of 1 June 
2004.  Institutions seeking accreditation must to appl y to the ESMA;  after an assessment, the ESMA 
decides whether to grant; accred itation.  Once accredited institutions  are surveyed.  The authorities 
have noted that accreditation in the UAE follows in ternational requirements a nd procedures, and that 
the ENAS operates in accordance with the intern ational practices for accreditation bodies (ISO/IEC 
17011).  In the context of this Review, the authorities indicated that there are 31 accredited 
laboratories, 8 inspection bodies and 2 certification bodies in the UAE (Document : WT/TPR/S/262, 
para 65 page 42) 
 Question:  a. Para 62 and 65 stated that ESMA as repres entative of UAE is a member of several 
international standards organizations including th e International Organization for Standardization 
(ISO), the International Electro technical Commission (IEC), the International Laboratory Accreditation Cooperation (ILAC) etc.  As a member of ILAC, do you have any MRA with other countries concerning the regulated products. 
If yes could you please identify the scope of the MRA?  Furthermore, Is the acceptance were based on 
the testing result, products certification or inspection? 
 
Answer:  The ESMA/ENAS have not signed MRA with ot her countries.  However the UAE has applied 
for MLA with IAF for products, systems etc. certifications.  
b. Does UAE recognize the designation of conform ity assessment body by the regulatory in the 
absence of accredited conformity assessment bodies in the scope of MRA?   
Answer: 
 
The UAE is accepting accredited CABs for regulatory purposes 
 
3. We note from the WTO Secretariat’s repor t that the UAE does not implement the GCC 
International Conformity Certifi cation Programme (ICCP).  It impl ements the Emirates Conformity 
Assessment Scheme (ECAS) as a mandatory product certification scheme, which applies to products 
that affect health and safety or have an impact on the environment, such as low-voltage equipment and 
toys. The authorities indicated that the ECAS' aim is  to ensure the safety and quality of products and 
to protect consumers.  The ECAS may also cover products subject to (voluntary) standards for which  WT/TPR/M/262/Add.1 
 Page 79 
 
 
 interested parties may request certification. The conformity assessment process verifies that the 
product complies with the approved standards and an effective quality management system is 
implemented.  The process involves sampling and t esting products, as well as visiting and auditing the 
factory to ensure that products and system re quirements are satisfactorily complied with.  If 
successful, ESMA issues a license to u se the Emirates Quality Mark on the product and the Certificate 
of Conformity (COC) for the product, to the produc er or trader.  Locally manufactured products as 
well as imports are included in this scheme. (D ocument : WT/TPR/S/262, para 66 page 42-43) 
 Question:  
a. In accordance with the article 9 of the TBT Agreement, does the ECAS has an international 
scheme which align to the international standards in order to make easy for process of harmonization 
in the framework of trade facilitation.   
Answer: 
 
The ESMA/ECAS member of IECEE since 2011, moreover Emirates Conformity Assessment 
Scheme (ECAS) operates  according to the in ternational practices for Conformity assessment 
bodies (ISO Guides 65, 28, 68) 
 
b. Could UAE provide detail of  explanation regarding conformity assessment process for 
granting the Emirates Quality Mark? How could we  get access to a regulation and the guidelines of 
issuing the marking process?   
Answer: 
 
Attached is the conformity assessme nt process for granting the EQM. 
 1-(CAPY-03 GENERAL REQUIREMENTS FOR THE EMIRATES QUALITY MARK)  2-(CAPY-14 Usage Policy for EQM Logo) 
 
c. If the imported products entering the UAE Market had been tested in its country of origin, does the UAE required such products to be re-tested in the UAE Jurisdiction?  Answer:  The UAE will not perform a retesting of products  if the products are tested according to the 
following conditions:  a. Products are tested according to the UA E Standards or its equivalent regional or 
 International standards by a UAE recognized testing body. b. Products are tested according to the climat ic conditions of the UAE (Tropical Climate 
 Class). 
c. Products are tested meeting the national deviations in the UAE. 
 
4. Related to technical regulations as noted in th e report by Secretariat, there is no central body 
in charge of preparing technical regulations in the UAE.  They may be developed by the ESMA, initially in the form of a standard and then made mand atory, or may be devised directly by a Ministry.  
According to the authorities, the former is the more  common, and the standard is made mandatory by 
Cabinet resolution.  In the context of this Revi ew, the authorities noted that the decision whether a 
standard will become a technical regulation is gene rally taken before the standard is drafted.  WT/TPR/M/262/Add.1 
Page 80  
 
 However, in some cases, however, an existing standard may be the base for issuing a technical 
regulation.  The final draft of the standard must be approved by the ESMA Board of Directors before 
being sent to Cabinet for approval.  (D ocument: WT/TPR/S/262, para 67 page 43) 
 Question: 
 
a. Could you provide us (if any) the UAE pre-shipment mechanism for the regulated and high risk products?   
Answer: 
 
There are no pre-shipment inspection is required but instead, a certificate of conformity is required when the processing of release of goods from ports & customs authority. 
 
b. Risk Impact Assessment (RIAs) have been identified as one tool to assist regulatory decision-
making process. RIAs can assist regulatory decision-ma king to determine whether there is a need to 
regulate standards. Does the UAE apply the Regulatory Impact Assessments?   
Answer: 
 Impact risk assessment is conducted to identify what control is being implemented in regulated 
products. The result of Risk Assessment may require the product to be certified through the 
following process:  
 Self-declaration of conformity 
 Type approval 
 Full certification 
 100% inspection 
 
5. According to labelling, as noted in the report by Secretariat that Labelling requirements in the 
UAE apply mainly to toys, cigarettes, and food.  All warning labels on toys  are required to be in 
Arabic or in Arabic and English.  Cigarette p ackages require a special health warning in Arabic. 
(Document : WT/TPR/S/262, para 70 page 43).  6. As noted by Secretariat that Food labels must  also include: product and brand names in Arabic 
or Arabic and English;  ingredients listed in d escending order of proportion, as well as additives, using 
their "E" numbers;  the origin of all animal fats;  ne t content, expressed in metric units;  and country of 
origin.  The labels for specialty items such as di et, health or baby foods must contain detailed 
nutritional information. (Document: WT/TPR/S/262, para 71 page 43). 
 7. We note from the WTO Secretariat’s report th at the production and expiry dates (best use-
before date) must appear on food products as a fully integrated part of the packaging (i.e. printed on 
the label or embossed on the can).  The production date  must be preceded by the word "Production" or 
the letter "P".  Stickers and rubber stamping ar e not acceptable for date markings. (Document : 
WT/TPR/S/262, para 72 page 43)  
Question: 
 a. How does the mechanism of labelling works in UAE, does the label can be done in the 
country of origin before entering to the UAE market  or when the products enter to the custom area?  
 
  WT/TPR/M/262/Add.1 
 Page 81 
 
 
 Answer: 
 Labeling should be done in the country of origin before entering to the UAE market 
 
b. In the context for harmonization particul ar for labelling for food products, do you have 
harmonization of the of date-marki ng on prepared foodstuff, in particular on its format, expiry date 
and/or manufacturing date, category of products fo r which date-marking, ne t content and drained 
weight of pre-packaged food? 
 
Answer: 
 
As per standard # UAE.S GSO 9:2007 (Labelling Of Pre-packaged Foodstuffs)  All the requirements of labelling of pre-packaged foodstuff are harmonized 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  Sanitary and Phytosanitary Requirements  
8. Under Federal Law No. 5 of 1979 on agricultu ral quarantine, all plants and plant products 
entering the UAE are subject to quarantine.  Plants and plant products in transit are subject to plant 
quarantine regulations and must stay in quarantine cen tres for at least seven days.  It is prohibited to 
introduce plants and plant products affected with pest s before their disinfection.  Federal Law No. 5 of 
1979 specifies insects and diseases that may not enter th e UAE.  In general, it is prohibited to import 
living insects, bacteria, virus, parasites, and ag ricultural materials infected by any pests without 
previous authorization from the relevant authorit y.  To protect plant and animal health and the 
environment, the Minister in charge, may at any point prohibit or restrict the importation, sale, 
cultivation, propagation or movement of any plant, so il or any item that can spread a pest.  In these 
cases, the Minister must issue an Administrativ e Decision to enforce the restriction or import 
prohibition.  (Document: WT/TPR/S/262, para 77 page 44)  Question: 
 
Pursuant to the United Arab Emirates Federal La w No. 5 of 1979 on agricultural quarantine which 
stipulate that plants and plant products in transit are subject to plant quarantine regulations and must 
stay in quarantine centre for at least seven days. Indonesia ki ndly requests the United Arab Emirates 
(UAE) to further explain this policy particularly concerning the seven days period of quarantine and 
the purposes of the quarantine period.  Are these provi sions also apply to fresh food from plant origin? 
and what kind of quarantine measures will be taken during this quarantine period. 
 
Answer: 
 Kindly note that law No. 5 of 1979 stipulates that  the quarantine period must not exceed 7 days. 
As for fresh food from plant origin, this provision does not apply. 
 
IV. TRADE POLICIES BY SECTOR 
Air transport and airports  
9. The UAE has bilateral air services agreem ents with 144 countries, including 90 open skies 
agreements.  Based on the traffic rights specified in  the respective air services agreements, airlines 
decide their own capacity (frequency and aircraft type ), subject to approval by the authorities.  In 
2009, the UAE joined the IATA air services agreemen t, along with six other countries, in order to 
further liberalize its air space by signing the d eal under IATA's Multilateral Statement of Policy 
Principles.  Under this non-binding multilateral agre ement, airlines may merge across borders, acquire WT/TPR/M/262/Add.1 
Page 82  
 
 airlines in other countries, or tap into internatio nal equity markets or private equity investors. 
(Document:  WT/TPR/S/262, para 123 page 86)  Question: 
 
We noticed that UAE is taking a liberal approach on air transport sectors with its open sky policy. 
Could you please give further explanations on how  UAE government regulates the competition among 
airliners (national and foreign carriers)? And Does UAE have a specific regulation on air transport competition?  Answer:  The UAE has been one of the first countries adop ting a liberal policy that pursues the conclusion 
of Air Services Agreements without any restrictions  on the frequency, capacity, routes and type 
of aircraft to be operated by the airlines, include s multiple designation clauses, an open route 
schedule with full unrestricted 5
th freedom traffic rights, third country code sharing provision, a 
double disapproval tariff regime and full flexibilit y for non schedule/charter operations both for 
passenger and cargo services.  These agreements are sometimes typified as “open skies” agreements.  The UAE Government is convinced that this very liberal approach, which does not grant any 
protection, market access restriction or prefere ntial treatment to UAE national carriers, has 
encouraged competition among UAE and non UAE (foreign) airlines, making the UAE one of 
the most competitive ma rkets in the world. 
 This is the approach of the UAE Government to promote competition in the aviation industry. 
Apart of the above, there is no specific regulation on air transport competition in the UAE.  
10. Dubai International Airport was the fastest growing airport for international passengers in 
2009, and is one of the busiest in the world in te rms of international passenger and cargo traffic.  
Dubai International is connected to over 220 des tinations across six continents through some 
130 scheduled airlines.  It comprises three terminals, including Emirates Terminal 3, which opened in 
October 2008.  The new terminal helped boost the airport's operational capacity to 60 million 
passengers per year (Document: WT /TPR/S/262, para 131 page 87) 
 Question:  
Could UAE kindly provide further explanation on how it manages the slot – allocation for 
international air carriers to overcome Dubai interna tional airport’s traffic congestion?  Is there any 
priority treatment given to new entrants or LCC or national carriers?   
Answer: 
 
Dubai International is a level 3 airport in terms of the IATA Slot Allocation System. Slots are 
allocated to airlines for summer and winter seasons by a slot coordinator appointed by Dubai 
Airports. IATA slot allocation procedu res are adopted by the coordinator ‘ACL’. 
 -    No priority is given to new entrants. 
-    No priority is given to National Carriers. 
     WT/TPR/M/262/Add.1 
 Page 83 
 
 
 More information is available from Dubai Airports at:  
 http://www.dubaiairports.ae/en/lets-talk-busin ess/aviation/Documents/Dubai%20International 
%20Conditions%20of% 20Use%20Winter%20Season%202011-2012.pdf . 
 WT/TPR/M/262/Add.1 
Page 84  
 
 CAPY-03 GENERAL REQUIREMENTS FOR THE EMIRATES QUALITY MARK  
 
UAE PRODUCT CERTIFICATION SCHEME  
 
GENERAL REQUIREMENTS  
FOR THE GRANTING OF THE  
EMIRATES MARK OF CONFORMITY 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  WT/TPR/M/262/Add.1 
 Page 85 
 
 
 1. Introduction  
 
This document defines General Requirements for the implementation of UAE Product Certification 
Scheme. The UAE Product Certification Scheme is a third party national certification scheme being 
implemented by the Emirates Authority for Standa rdization and Metrology where the Scheme shall 
grant the use of the Emirates Mark of Conformity (“Al-Alama”) to the prod ucts that demonstrate 
compliance to this General Requirements, the rele vant Specific Requirements and the relevant UAE 
National Standards or other acceptable Standards.  
 
Participation to this Scheme is voluntary. Howe ver, in some instances government authorities may 
require mandatory certification.  
 
2. Scope 
 This General Requirements for UAE Product Certifi cation Scheme is applicable to imported and 
locally produced products having a UAE National Sta ndard, GCC Standards or other internationally 
accepted Standards. 
 
ESMA shall prepare specific Technical Require ments for each product under this scheme. ESMA 
shall conduct the Product Certification Process only for products having specific Technical 
Requirements.  
 
3. Definition  
 
For the purpose of these General Requirements,  the following definitions shall apply:  
 
3.1 ESMA- a government body mandated to issue the Emir ates Mark of Conformity and is the only 
authorized body to implement this Scheme.   
3.2 Product – refers to the product(s) being eval uated and approved for the UAE Product 
Certification Scheme.   
3.3 UAE Product Certification Scheme – a national product certificati on scheme which allows the 
use of the Emirates Mark of Conformity to the certified product.   
3.4 Licensing Agreement – an agreement entered into by ESMA and the licensee to be implemented 
for the products having approved under the  
 
UAE Product Certification Scheme and is  using Emirates Mark of Conformity 
 
3.5 License – a document granted to the licensee allowing him to use the Emirates Mark of 
Conformity to the certified products unde r the UAE product Certification Scheme  
 
3.6 Licensee – a manufacturer or trader responsible for the Products approved under the UAE Product 
 
3.7 Initial Testing - refers to the verification of product conformance to a specified Technical 
Requirements prior to the Certification of the Product  
 
3.8 Technical Requirements – a document specifying the set of ru les in implementing this General 
Requirements to be met by a specific product  
 
3.9 Certificate of Conformity – a certificate issued by ESMA indicating that a product complies with 
the requirements of the UAE Product Certification Scheme.  WT/TPR/M/262/Add.1 
Page 86  
 
 3.10 Emirates Mark of Conformity – An approved mark by ESMA indi cating conformity of product 
to the UAE Product Certification Scheme   
3.11 Approved Standard – refers to a Product Standard approved by ESMA to be used in verifying 
conformity of a product.  
 
3.12 Recognized Conformity Assessment Body- a competent body recognized by ESMA to carry 
out factory inspection and/or testing of product.   4. Condition to be met for the granting of Cert ificate of Conformity and the Emirates Mark of 
Conformity  
 
4.1 Locally produced or imported products and the co mpany responsible to the product shall apply 
and comply with this General Requirement and th e specific Technical Requirements for the product to 
be granted the license to use the Emirates Mark of Conformity  
 4.2 It is the responsibility of the Manufacturer for locally manufactured product or the importer for the 
imported products to register the product/s to ESMA. 
 
5. Application  
 
5.1 Documents required to be submit ted for Registration of Products  
 
5.1.1  Application Form. Application from an applican t shall be signed by both the applicant and the 
manufacturer of the product if the applicant is different from the Manufacturer. By signing the 
application form, the applicant and the manufacturer  agrees to comply with this General Rules and 
with the Specific Technical Requirements for th e product covered by the Certification process  
 
5.1.2  Separate applications shall be submitted for each product type or group of products that refers to 
a different Technical Requirements   
5.1.3  Valid Trade / Industrial License  
 5.1.4  Vicinity Map of the company and its warehouse where the product is stored.  
 
5.1.5  Quality Manual, Quality Plan and other docum ents as defined in the specific Technical 
Requirements   6. Initial Assessment and Independent Testing of Product  
 6.1 Upon acceptance of the Application form and a ll the necessary documents. ESMA shall make the 
necessary arrangement with the applicant for carrying out the initial assessment. The initial 
assessment shall consist of: 
 
6.1.1  Assessment of the factory quality management system according the latest edition of ISO 9001 
Standards and the Technical Requirements for the Product.  
 6.1.2  Third Party testing of product according to the Specific Technical Rules and Approved Standard.  
 
6.2 Assessment, Testing and Evaluation of product shall be conducted by ESMA and/or by the ESMA 
Recognized Conformity Assessment Bodies.  
  WT/TPR/M/262/Add.1 
 Page 87 
 
 
 6.3 The number of samples, the tests to be cond ucted and the Approved Standards for which the 
product is subjected for testing shall be defined in the specific Technical Requirements.   
 
7. Certification of Product  
 
7.2 When the results of factory assessments and third party laboratory testing demonstrates that the 
relevant requirements are met, ESMA shall issue a Licensing Agreement to be signed by the applicant 
indicating his acceptance of the Terms and Conditions of the Licensing Agreement  
 
7.3 After the signing of the Licensing Agreement, a Ce rtificate of Conformity, the License to use of 
the Emirates Mark of Conformity shall be issued together with the Emirates Mark of Conformity and 
the certified product and the licensee shall be incl uded in the List of UAE Certified Products.  
 7.4 The Certificate of Conformity is not transferable and is valid only for the product being 
manufactured in a site being assessed.  
 7.5 Product Certification shall be renewed annually.  
 
8. Extending the Scope of Certification  
 8.1 The licensee can extend the product certification to other types or models of products made in the 
same factory to the same Technical Requirement. In cases like this, ESMA shall decide whether a Factory assessment and/or product testing shall be wa ived or performed for a particular model.  
 
Other products being manufactured in the same factor y shall be treated independently and separately.  
 9. Regular Surveillances  
 
9.1 Certified Products are subjected to a regular su rveillance visit to ensure that the product is 
consistently complying with the defined Technical  Requirements. Surveillance visit shall include 
factory assessment and product testing to be conduc ted by ESMA and/or its recognized Conformity 
Assessment Bodies.  
 
9.2 In addition to surveillance visits ESMA may carry out special unannounced visits whenever 
necessary.  
 
10. Market Monitoring  
 
10.1 ESMA shall prepare a market-monitoring plan to verify that the product certified under the 
scheme complies with the relevant Technical Re quirements. The market monitoring involves a 
random inspection of the items at point of sale and/ or at the warehouse. Samples shall be withdrawn 
during monitoring for further testing if necessary.  
 
11. The Emirates Mark of Conformity  
 11.1 After obtaining the Certificate of Conformity, th e licensee has the right to use the Emirates Mark 
of Conformity on the certified products.   
11.2 The licensee may use the mark for sales promo tion for the product. It may be used in 
advertisements and on stationary together with the logo or the name of the manufacturer or the 
licensee provided that it is not used in such a manner that ESMA may consider as misleading. The 
Emirates Mark of Conformity shall be reproduced exactly the same color and proportion whenever it 
is possible.  WT/TPR/M/262/Add.1 
Page 88  
 
 11.3 The Emirates Mark of Conformity is issued toge ther with an Identifica tion Code, which is unique 
to the registered product. When using the Emirates Mark of Conformity, the licensee shall always use 
it with the corresponding identification code.  
 
11.4 The Emirates Mark of Conformity is the exclusive property of ESMA and its correct use is a 
contractual obligation. Intentional misuse of the ma rk maybe grounds for actions that may include but 
not limited to withdrawing the Certificate of C onformity. ESMA shall implement market monitoring 
for ensuring correct use of the Emirates Mark of Conformity.   12. Publicity for Certified Products  
 12.1 ESMA shall maintain and publish a List of  Certified Products under the UAE Product 
Certification Scheme   
12.2 The licensees have the right to publish, adverti se that certification has been granted. However, 
care should be taken so that there shall be no c onfusion between certified a nd non-certified products.  
 13. Suspension, Withdrawal and Cancellation of the License and the Licensing Agreement  
 
13.1 The licensing agreement may be suspended if  surveillance shows non-conformance with the 
requirements of such nature that immedi ate withdrawal is not necessary such as:  
 13.1.1  Defects detected in the product caused by te mporary disturbance in the production process  
 
13.1.2  Improper use of Emirates Mark of Conformity th at is not solved by remedial measures by the 
licensee  
 13.1.3  Mutual agreement between ESMA and the licensee for whatever reason.  
The suspension shall be lifted upon satisfactory implementation of the corrective action(s).  
 13.2 The License may be withdrawn permanently under the following conditions:  
 
13.2.1  The product defect is not corrected within the agreed period.  
 
13.2.2  The Emirates Mark of Conformity is being used for the non-certified products  
 13.2.3  Violation of the provision of the Licensing Agreement  
 
13.2.4  Failure of the licensee to settle financial obligation to ESMA  
 
13.2.5  Inadequate corrective actions taken to  rectify the reasons for suspension  
 13.3 The License can be canceled if:  
 
13.3.1  Certification is terminated by the Licensee  
 
13.3.2  The standard or rules are changed and the licensee cannot ensure co mpliances with the new 
requirements.  
 
13.3.3 Product is no longer produced or if  the licensee goes out of business.  
 
13.4 Upon suspension, withdrawal or cancellation of the License.   WT/TPR/M/262/Add.1 
 Page 89 
 
 
 13.4.1  Use of Emirates Mark of Conformity shall be stamped on the product and on promotional or 
advertising materials   
13.4.2 If required, the Emirates Mark of Conformity shall be removed from all products in stock or 
from those already delivered to th e dealers to the open market.  
 
13.4.3  If required, the Licensee shall inform its client s about the non-conformities in the products.  
 
13.4.4  The Licensee shall take all the necessary steps to en sure that all interested parties are not misled 
to believe that the License has not been suspended, withdrawn or cancelled.  
 14. Appeals  
 
14.1 The applicant or the Licensee may appeal an y decision by ESMA by writing to the Deputy 
Director General within 14 days from receiving the decision.  
 14.2 For each appeal received, the relevant section sh all recommend to the Deputy Director General of 
ESMA the formation of an Ad-Hoc Appeals Committee comprising of impartial qualified members to 
review and study the appeal. The Committee shall se t a schedule for a decision meeting and inform 
the appellant of the date of the meeting and th e composition of the Committee. During the meeting, 
the appellant and the relevant Section of ESMA are entitled to state their case confidentially.  
 14.3 A consensus decision by the Committee is consid ered final. Until such decision is made, the 
relevant Section decision shall remain in force.  
 
15. Certification Fees  
 
15.1 The applicant shall pay the necess ary fees in accordance with the Schedule of Fees issued by 
ESMA.  
 15.2 ESMA has the right to invoice for any additional wo rk related to repeated or additional testing 
and/or factory assessments due  to non-compliances found.  
 15.3 ESMA reserves the right to amend the fees if necessary.  
 
15.4 Paid fees are not refundable.  
 
15.5 For all related overseas activities, the appli cant shall bear all the cost necessary for the 
transportation, accommodation and a llowances of ESMA personnel.  
 
16. Liability and Disclaimer  
 
16.1 ESMA shall not be held responsible for any action (legal or otherwise) raise by any party against 
the licensee on matters resulting from the implementa tion of Registration and Monitoring of Electrical 
Home Appliances.  
 
16.2 The Licensee is ultimately responsible for ensu ring that the product meets the requirements of 
other applicable regulations that were not assessed  during the process. This includes quality, safety, 
health and environmental regulations  that are not necessarily covered by  the relevant Standards and or 
the Specific Technical Requirements.  
 
 
 WT/TPR/M/262/Add.1 
Page 90  
 
 17. Revision  
 
17.1 ESMA has the right to change this General Rules and specific Technical Rules. Interested parties 
shall be informed accord ingly of the changes.  
 
18. Confidentiality  
 
18.1 ESMA is responsible for ensuring that confiden tiality of information is maintained by its 
personnel and of and those of its subcontractors c oncerning all information obtained as a result of the 
inspection and testing carried out.  
 
19. Product Complaints  
 
The Emirates Quality Mark holder sh all keep records of all complain ts relating to product compliance 
and report all complaints to ESMA upon request incl uding all corrective actions done with respect to 
such complaints.  WT/TPR/M/262/Add.1 
 Page 91 
 
 
 Usage Policy for EQM Logo 
 
Purpose 
 
This document regulates the use of Emirates Quality  Mark (EQM) logo in certified products and this 
is intended for ESMA and its clients. This will be  the document to be used as a reference for the 
proper usage of the EQM logo and the correctiv e action to be taken in case of misuse.  
 
Content  
0. Definitions  1. Introduction  
2. Design of EQM Logo  3. General Rules  4. Corrective Action for Defective Products  or Misuse of Certification Mark  
5. Conditions under which Corrective Action is taken  
6. Types of Corrective Action  
7. Choice of Action against the Misuser  8. Initiating Corrective Action with Misuser  9. Completing a Successful Corrective Action with  a Misuser who has an Agreement with ESMA-
CAD  10. Degree of Corrective Action to be Achieve  
11. Refusal to Take Corrective Action  
12. References   
0. DEFINITIONS 
 For the purpose of this Policy, the following definitions shall apply:  
 0.1  Emirates Quality Mark 
It is an approved mark by ESMA indicating conf ormity of product to the UAE Product Certification 
Scheme.   
0.2  Certified Product 
It refers to the product(s) being evaluated and a pproved for the UAE Product Certification Scheme.  
 0.3 Logo 
It is a unique graphic identification of an organisa tion. In the context of product certification, it is a 
product certification mark given to product/s which complies with an approved standard.  
 0.4 Approved Standard 
 It refers to a Product Standard approved by ESMA to be used in verifying conformity of a product.  
 
0.6 UAE Product Certification Scheme 
It is a national product certification scheme which allo ws the use of the Emirates Mark of Conformity 
to the certified product.   
1. INTRODUCTION 
This document is prepared for satisfying the re quirement of Federal Law No. 28:2001 Article 5, 
Clause 11 requiring that the certificate of conformi ty and marks issued by ESMA shall be properly 
controlled. The license to use the Emirates Quality Mark (EQM) is given to companies manufacturing 
certified products and this document specifies the conditions on the proper use of EQM logo and the 
corrective action for its misuse.  WT/TPR/M/262/Add.1 
Page 92  
 
 2. DESIGN OF EQM LOGO 
 
2.1 Design 
  
 
2.2 Colour 
 The logo shall be reproduced in the national flag colours of UAE.   2.3 Size  
 
The size of the logo shall as a main rule in ratio of  1:1 (length x breadth) and as shown in the 2.1. .In 
any case of size variations (decreasing or increasing) , the size must always follow and respect the 
proportions of the logo.   2.4 Paper quality 
 
The EQM logo shall be printed on paper which assur es quality that the colour is reproduced correctly 
and with a sharp text.   2.5 Access to EQM logo  
 
The EQM Logo will be transferred electronically to companies after the signing of the License to  
Use the Emirates Quality Mark.   
3. GENERAL RULES  
 3.1 After obtaining the Certificate of Conformity, the licensee has the right to use the Emirates Quality 
Mark on the certified products.   3.2 The licensee may use the mark for sales promo tion for the product. It may be used in 
advertisements and on stationery together with the logo or the name of the manufacturer or the 
licensee provided that it is not used in such a manner that ESMA may consider as misleading. The 
EQM Logo may be used on the following:  -on the principal display panel of the certified products,  -on the secondary or tertiary packaging whichever is  directly visible to the buyer during display  
-on company publicity materials such as brochures, company profiles, reports, exhibition materials, 
flyers, banners, roll-ups etc  
-on corporate electronic media such as in website, internet etc  -on the internal walls and doors of the factory/offices  -on company vehicles  -on company communication documents su ch as letterheads, stationeries etc  
  WT/TPR/M/262/Add.1 
 Page 93 
 
 
 3.3 The Emirates Quality Mark shall be reproduced exactly the same color and proportion whenever it 
is possible.   3.4 The Emirates Mark of Conformity is the excl usive property of ESMA and its correct use is a 
contractual obligation. Intentional misuse of the ma rk maybe grounds for actions that may include but 
not limited to withdrawing the Certificate of Conformity.  
 3.5 ESMA shall implement market monitoring for ensu ring correct use of the Emirates Quality Mark.  
 3.6 The company/supplier shall not use its product certification in such a manner as to bring ESMA-
Conformity Affairs Department (CAD) into disr epute and not make any statement regarding its 
product certification that ESMA-CAD may consider misleading or unauthorized.   3.7 In making reference to its product certificat ion in communication media, a supplier of 
ECAS/EQM Certified products must comply with  ESMA-CAD requirements. A supplier may publish 
that it has been authorized to apply certification mark  to products to which the certification applies. In 
all cases, the supplier shall take sufficient care of in its publications and a dvertisements that no 
confusion arises between certified and non-certified products. If a supplier wishes to publish a test 
report or evaluation report, the report shall be re produced in full, unless specific authorization is 
granted by ESMA-CAD to publish part(s) of the repo rt. A supplier shall not specify function, or claim 
or the like in its use information that could misl ead purchasers to believe that performances of the 
products or its use are covered by the certification when in fact they are not.  
 3.8 Instructions or other user information accompa nying the product and related to the certification 
scheme shall be approved by ESMA-CAD. Advertis ements containing ESMA-CAD certification mark 
or reference to certification shall be approved by ESMA-CAD.  
 
3.9 In case of any doubts regarding the use of the logo, prior written approval shall be obtained from 
ESMA to prevent misuse and subsequent corrective action.   4.0 Corrective Action for Defective Products or Misu se of Certification Mark ESMA-CAD procedures 
for taking corrective action following the identifi cation of defective products or misuse of its 
certification marks follow ISO/IEC Guide 27, Guid elines for corrective action to be taken by a 
certification body in the event of either misapplica tion of its mark of conformity to a product, or 
products which bear the mark of the certification body being found to subject persons or property to 
risk.   5.0 Conditions under which Corrective Action is taken 
ESMA-CAD will require a misuser (i.e., any person, organization, or corporate body that misuses the 
certification marks, regardless of whether or not th e product is eligible to bear the mark) to take 
corrective action whenever an the certification mark has been affixed to a product that:  
 • is hazardous;  
• is not authorized to bear the certification mark , e.g., because there is no record of the product in 
question having been certified; or does not comply with the applicable certification requirements to 
the extent that the integrity of certification mark is jeopardized;  • bears an unauthorized form of the mark;  or  • is in violation of the ECAS/EQM policies under which the product was tested and certified.  
 
A product is considered “hazardous” if it exposes life,  limb, or property to imminently dangerous 
conditions.  A hazardous product is considered to exis t if the quantity of products involved is such as 
to constitute an unacceptable per centage, and there is either:  
• An unsafe construction; or  WT/TPR/M/262/Add.1 
Page 94  
 
 • The product is gaining widespread use in an app lication not foreseen when the standard(s) to which 
the product is certified was (were) written, such appl ications in turn being ones for which the product 
was not certified; and  - No specific scope of applications has been provided in the standard(s), and  
- No limiting scope of application has been pr ovided by the manufacturer in written material 
accompanying the product at point of sale.  
 
Note — where an inherent hazard is necessary for th e product to perform its intended function, e.g. 
rotating blades of a food mixer, such a hazard shall not be considered “hazardous” in the context of 
this definition.  
 Whenever either a report of misuse of certificati on mark or of a hazard involved with a product 
bearing certification mark is received, the validity of the report will be investigated. Where it is 
established that misuse has occurred ESMA-CAD will determine the scope of the misuse, including 
products, model number, serial numbers, factory production facilities, produc tion runs and quantities 
involved.  
 
6.0 Types of Corrective Action  
 
6.1 Corrective action could be one or more of the following:  
 
6.1.1  Notification of parties authorized and responsible  for instituting a recall (i.e., the action by which 
the misuser of the certification mark or the producer  of a hazardous product or other party responsible 
for making the product available withdraws the product from users, the marketplace, or distribution sites and returns them to an acceptable location fo r corrective action) when, in ESMA-CAD's opinion, 
such recall is necessary to protect the public and to permit implementation of the corrective action 
(i.e., the action determined by ESMA CAD to be a ppropriate to eliminate the consequences of the 
misuse and to remove the hazard as far as necessary and practicably possible);   6.1.2  Removing the certification mark from the product (This is normally done only at the factory or 
other central location so that the product in qu estion is removed from the stockroom, marketplace, 
distribution sites, or user's possession. Alternatively,  the certification mark could be removed from the 
product on site, provided such removal is in collabor ation with the involved regulatory authorities who 
would then proceed to accept or reject the product.);   6.1.3  Rebuilding the product so that it complies w ith the governing certification requirements;  
 
6.1.4  Scrapping or replacing a returned product because it is not practicable either to remove the 
certification mark or to rebuild the product so that it complies with the governing certification 
requirements; and   6.1.5  Where a hazardous condition exists, ESMA CAD w ill, in consultation with the appropriate 
regulatory authorities (such as Dubai Municipality, Abu Dhabi Municipality etc), pursue the release of 
a notice to the general public about the hazard.  
 
7. Choice of Action against the Misuser 
 
When the facts indicating a need for correctiv e action are conclusive, ESMA-CAD will initiate 
corrective action immediately, provided there is a mi suser to be held responsible for such action. 
Legal actions to be initiated and penalties to be imposed shall be  based on Federal Law 28:2001.  
    WT/TPR/M/262/Add.1 
 Page 95 
 
 
 8. Initiating Corrective Action with Misuser  
 
When there is conclusive proof that a product is hazardous or is involved in misuse of certification 
mark, corrective action will be initiated by ESMA-C AD. In such instances, the misuser and, where 
appropriate, the regulatory authorities shall be notifie d immediately by telephone, fax, or E-Mail of 
the problem, and License to apply the certification mark  to the involved product shall be terminated. 
In the case of a hazardous product bearing the certif ication mark, ESMA-CAD will inform the misuser 
of the need to take appropriate corrective action, advising of the hazard and the action to be taken.  
 The initial notification to the misuser will require co nfirmation in writing by registered (or equivalent) 
letter, with copies to the appropriate regulatory au thorities and/or other bodies when appropriate. Such 
letter will normally contain: the reason(s) for co rrective action, any hazardous conditions that may 
exist, actions to be taken by the misuser to reso lve the problem, and a statement covering the action to 
be taken to ensure that certification mark  is not applied to ineligible products.  
 9. Completing a Successful Corrective Action  with a Misuser who has an Agreement with 
ESMA-CAD  
 
When a corrective action has been  resolved to ESMA-CAD's satisfaction, ESMA-CAD will undertake 
the following:   
9.1 All recipients of the letter which called for co rrective action will be sent a second letter which:  
• States the suspension imposed upon the misuser  • has been lifted and that authorization to u se the certification mark has been reinstated;  
• summarizes the corrective action taken by the misuser;  • When applicable, describes the new marking require d to distinguish the product in its corrected state 
from its previous unacceptable condition.  
 9.2 Certification records will be revised to include  any modifications necessitated by the corrective 
action.  ESMA-CAD shall also carry out an audit of: • Its own approval and surveillance duties to determ ine whether part of the misuse was due to a  
weakness in its own organization;  
• its procedures to determine the means wh ereby ESMA-CAD's approval and surveillance 
responsibilities can be altered to ensure, so far as r ealistic to do so, that such misuse of the mark 
cannot be repeated.   10. Degree of Corrective Action to be Achieve 
 
ESMA-CAD desires that the corrective action be  taken on one hundred percent of the product 
involved.   However, this may not be possible, especially if  the product has been out on the market for a 
considerable time. Normally, ESMA considers that corrective action as appropriate has been carried 
out satisfactorily if:  
 
10.1.  The misuser has made a proper public announcement when asked to do so;  
 
10.2.  The products in the marketplace and distribution sites have been recalled, rebuilt, replaced or 
destroyed under supervision, or other corrections  thereto made as required to the maximum degree 
feasible;  
 WT/TPR/M/262/Add.1 
Page 96  
 
 10.3.  The misuser has agreed to continue the requi red corrective action on units which are in the 
possession of the user until ESMA-CAD is satisfied that the maximum practicable result has been 
achieved;   10.4.  Such necessary steps have been  instituted in the manufacturing process to obviate the production 
of products which will again requi re similar corrective action.  
 
11. Refusal to Take Corrective Action  
 
When a misuser refuses to take corrective acti on, ESMA-CAD will take the following steps:  
 
11.1.  Cancellation of appropriate certification c ontracts with the misuser may be processed;  
 11.2.  Regulatory authorities involved and/or other bodies,  when relevant, shall be informed that the 
misuse has refused to take correctiv e action and that certification license and contracts in the name of 
the misuse have been canceled, where the severity of the case warrant such action;  
 11.3.  Legal actions may be taken as per Federal Law 28:2001.  
 In the event that a supplier refused  to take corrective action, discussions with concerned regulatory 
authorities, government bodies, free zone authorities, interested parties and legal counsel may be held 
to decide on a course of action. In addition to action that regulatory authorities might take, some 
possible courses of action open to ESMA-CAD would include:  
 11.3.1.  Promoting a rapid revision of the standard a nd requiring all certified products of the type 
involved to meet the new criteria at an early date following the revision to the standard;  
 
11.3.2 . Notifying the public of the discovered hazard via the most appropriate news media.  
 
12. REFERENCES 
 
1. ISO IEC Guide 65:1996 General requirement s for bodies operating product certification  
    systems 
2. ISO Guide 27:1983 Guidelines to be take n by the certification body in the event of 
misuse of its mark of conformity 
3. ISO Guide 23:1982 Methods of indicating conformity with standards for third party 
certification systems 
4. Federal Law No. 28:2001  Fe deral Law of Establishing ESMA 
  WT/TPR/M/262/Add.1 
 Page 97 
 
 
 QUESTIONS FROM JAPAN 
 
The report by the United Arab Emirates (WT/TPR/G/262)  II. TRADE POLICY DEVELOPMENTS 
(2) REGIONAL AGREEMENTS 
(i) Gulf Cooperation Council (GCC) 
(Question1: Page 9, Paragraph 33) 
 
Among the FTAs referred to in Para 33, could the UAE explain which FTA negotiations cover 
“competition” and how?  
 
Answer: 
 The FTA negotiations with Australia, New Ze aland and the Agreement with EFTA cover 
competition.  This is done through the inclus ion of provisions on competition within the FTA 
agreements.  The objective is to create and mainta in open and competitive markets that promote 
economic efficiency and consum er welfare through commitment to promote competition by 
adopting, maintaining and enforcing measures, as they deem appropriate.  The design and application of those measures shall be consis tent with the principles of transparency, 
comprehensiveness, non-discriminati on and procedural fairness. 
 
The report by the Secretariat (WT/TPR/S/262)  II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(5)TRADE AGREEMENTS AND ARRANGEMENTS (ii)Preferential trade agreements 
(Question2: Page 22, Paragraph 31) 
 
Japan would like to know whether the GCC-Singapore FTA has entered into force yet.  If not, could 
the United Arab Emirates provide the reason for this delay?  Answer:  The GCC- Singapore FTA Agreement has not entered in to force yet.  This is due to the fact that 
some of the GCC members have not ratified the Agreement according to their constitutional 
requirements.  As for the UAE, the Agreement has been ratified. 
 
(Question3: Page 22, Paragraph 36) 
 
Could the United Arab Emirates outline the progress w ith GCC’s internal review of FTA policy and 
tell us when a decision can be expected.   Answer:  The GCC internal review of the present and anticipated FTAs is currently subject to assessment by the GCC members. A decision w ill be taken in the near future. 
 WT/TPR/M/262/Add.1 
Page 98  
 
 (6) FOREIGN INVESTMENT REGIME 
(Question4: Page 24, Paragraph 43) 
 
Could the United Arab Emirates explain the schedul e and details of the amendment to the Federal 
Commercial Companies Law to deregulate the limits of foreign capital participation?  Answer:  
The UAE Cabinet issued on Sunday, December 4th, 2011 a new draft Companies Law.  It is 
expected that the new Law will contribute to enhance the competitiveness of the national 
economy at all local, regional a nd international levels as well as enhance the performance of the 
business environment and investment climate in the UAE. 
 The new law is expected to allow for one hund red percent foreign ownership in specific sectors 
of the country’s economy in line with the federal government’s economic diversification 
strategy.  The new Law will allow the Cabinet to  issue a resolution specifying the sectors and 
businesses activities in which the share of foreign partners may be increased up to 100 percent. 
 This will be followed by a review of the new Dra ft Law by the National Council. It is expected 
that the new law will be enacted by the end of 2012.  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION 
(Question5: Page 28, Paragraph 2) 
 
Could the United Arab Emirates provide a complete up -to-date list in HS codes with all the industrial 
and agricultural products and corresponding duties to  which the GCC’s Common External Tariff does 
not apply? (In other words, could United Arab Emir ate provide the latest protective tariff table?)  
 Answer:  The UAE does not have a protective tariff table  IV. TRADE POLICIES BY SECTOR 
(5) SERVICES 
(i) Financial services (c) Insurance services 
(Question6: Page 82, Paragraph 104) 
 
Japan understands that the United Arab Emirates  made no specific commitments in its GATS 
Schedule regarding insurance services. Japan would like to know the United Arab Emirates’ concrete 
concerns that prevent it from making commitmen ts on insurance services in GATS Schedule.  
 
Answer: 
 
It is true that the UAE has not made any co mmitment under the insurance sector when first 
joining the WTO in 1996.  This is due to the fact that it was premature to commit in the 
insurance sector, which was subject to further lega l regulations at that time.  However, the UAE 
has included, in its DDA initial services offer in 2005, an offer under insurance sector covering 
Direct insurance, Reinsurance and retrocession, In surance intermediation, Services auxiliary to 
insurance, Actuarial services, Loss Adjustment, risk assessment and claim settlement services. 
The Insurance Authority was established in 2007 a nd has ever since worked on developing the 
rules and regulations of the UAE’s insurance market.   WT/TPR/M/262/Add.1 
 Page 99 
 
 
 (v) Construction services 
(Question7: Page 95, Paragraph 175) 
 
The Secretariat notes that “Major state-linked develo pers have reportedly offered only 65% of money 
owed and no payment was made until 2010.” Japan would like to know whether this situation has 
changed.  Answer:  Yes there is an articulated detailed regime.  The Government of Dubai has issued a decree in 
this regard.  
A special tribunal was established to handle the large scale and complex restructuring disputes. 
More details could be found in (www.dubaiworldtr ibunal.ae) shedding light on the mandate, 
scope, team members with bio…etc. WT/TPR/M/262/Add.1 
Page 100  
 
 QUESTIONS FROM PAKISTAN 
 
1. UAE has the highest mobile and internet penetr ation in the Arab world, there are almost two 
mobiles per person, yet the competition in the tel ecommunication sector remains low.  Since the last 
review the monopoly of one company has been terminated but is the Govt. of UAE planning to increase competition n this sector?  
Answer: 
 
Currently the Telecommunications Regulatory Au thority (TRA) does not have any plans to 
increase competition in the mobile sector through th e introduction of additional licensees. In a 
recent competition assessment of this market ( due to be released on the TRA's website  
(www.tra.gov.ae) on 29th March 2012 the TRA fo und the mobile market to be "prospectively 
competitive"  As the Ambassa dor for Pakistan kindly notes there are over 11 million mobile 
telephony subscribers with a penetration rate (per 100 inhabitants) of over 150%. Over 90% of 
the subscribers is pre-paid (no contract) s ubscribers with both mobile operators having 
approximately equal market share.  For post-p aid (contract) subscribers the market share is 
skewed in favour of the incumbent (68%) but th is share is falling rapidly (down from 100% 4 
years ago).  International benchmarks show the UAE currently has some of the lowest mobile 
voice call rates in the world.  Mobile consumer s are now facing increasi ng price competition 
particularly in mobile data packages and intern ational calls with the introduction of VoIP 
calling cards by each operator reducing the intern ational call rate to South Asia to US$0. 10c 
per minute.  This level of competition is set to increase in the short-term when mobile number 
portability is introduced. The TRA will review th e situation with it 2015 WTO obligation to 
examine competition in each telecommunications ma rket with respect to potential new entrants. 
 For the fixed and internet markets competitio n has been much slower to develop and the 
incumbent still has 85% of the market. As this mark et is characterized by high barriers to entry 
and sunk costs the TRA feels that in the shorter term it would be more beneficial to promote 
infrastructure based competition between current licensees than introduce additional licensees. 
To that end the TRA is currently establishing a number of measures to aid the introduction of 
competition through infrastructure sharing.  Th ese include bitstream interconnection which will 
allow more competition in retail fixed and intern et markets and passive infrastructure sharing 
(ducts, cables and exchanges) for the high-speed data markets.  The first of these measures is 
due to be introduced in April 2012 with others to follow. 
 
Based on the outcome of the introduction of infrastructure sharing in the fixed and internet markets and the continued development of competition in the mobile market the TRA will continue to monitor the need for the introducti on of additional licensees over the longer term. 
 The TRA is, however, expecting an increase in the issuance of Satellite Licenses. Such Licenses 
may, depending on their applications, cover any or all of the following services: Voice, data 
and/or internet access. Although the TRA does  not see Satellite services as a viable long-term 
substitute for fixed or mobile services there will be an element of competition developing as the 
number of providers increase and pr ices for Satellite services decrease. 
 
2. Although agriculture is just one percent of the UAE gross domestic product, the Government 
of UAE is requested to indicate when are they pl anning to submit notifications which are due since 
2002. 
  WT/TPR/M/262/Add.1 
 Page 101 
 
 
 Answer: 
 The UAE is working on these notifications. In fact, the Ministry of Foreign Trade has invited the WTO Secretariat to hold a workshop on “WTO Notifications”.  The workshop was held in 
Dubai from 6-7 Dec. 2011 and was attended by several government bodies including the 
Ministry of Environment and Water, which is in  charge of the agricultural sector.  The aim of 
the workshop was to identify a nd complete the pending notifications required in accordance to 
the WTO agreements, including the Agricultu re Agreement.  This would contribute in 
expediting the submission of the required notifications. 
 3. To streamline the procurement procedures, is the govt. of UAE planning to develop a standard 
system for the suppliers to challenge the award of a contract?  
Answer: 
 
The UAE government is working on streamlining the procurement procedures to render the 
award process more easier for all supplier. 
 
4. How do UAE looks at the GCC initiative for the adoption of a common currency?  
Answer: 
 
The GCC has pursued a monetary union as part  of its goal to achieve full integration 
among its members.  However, the UAE in 2009, preceded by Oman, had decided not to 
join the monetary union and this posi tion has remained unchanged to date. 
 
5. UAE Economic Vision 2030 envisage a knowledge based diversified economy, some of  the 
strategic sectors identified are oil and gas ,petro chemicals ,metals, aviation, aerospace ,defense, 
biotechnology and pharmaceuticals. What steps are being taken by UAE for technology diffusion and 
dissemination? 
 
Answer:  The UAE would like to clarify that the vision stipulated in the question is related to Abu Dhabi 
local government. For more information,  please visit the following website:  
http://www.abudhabi.ae/egovPoolPortal_WAR/appmanager/ADeGP/Citizen?_nfpb=true&_pageLabel=P6800117491243344215175&lang=en&did=131654 WT/TPR/M/262/Add.1 
Page 102  
 
 QUESTIONS FROM SINGAPORE 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Paragraphs 16 and 18 of Part III: Trade Policies and Practices by Measure  
 
Questions: 
 
Fees for Import Documents 
 
Paras 16 and 18 
 
1. The Secretariat’s report mentions that there is  a standard consular fee of USD15 charged by 
the UAE embassies to legalise each document re quired for imports entering the UAE, such as 
certificates of origin, commercial invoices, packing lists, original bills of lading, airway bills, etc. In 
addition, the fees charged are also listed in the websit e of the Ministry of Foreign Affairs. The website 
lists the fees as 100 AED (equivalent to USD27) for each document.  The actual fees charged, 
however, differ from these stipulations and also differ from country to country. We would like to ask 
the UAE for the reasons for the different amounts char ged.  We would also like to request that the 
UAE consider standardising these rates to  increase certainty and facilitate trade. 
 
Answer:  
There are two main reasons for the difference of the charged amounts (i.e. administrative fees). 
Firstly, the currency rate of the AED is fixed and reviewed every year.  It aims at avoiding 
currency exchange fluctuations. Secondly, th e fees of the financial stamps are rounded. 
 The UAE is currently considering the adoption  of fees in AED currency irrespective of the 
currency rates and their fluctuations.  Moreover,  the financial stamps will be replaced by more 
flexible measures.   WT/TPR/M/262/Add.1 
 Page 103 
 
 
 QUESTIONS FROM SOUTH AFRICA 
 
 
I. ECONOMIC ENVIRONMENT 
(7) Developments in Trade 
(ii) Direction of Trade  (page 11, paragraph 40)  
 
In the Secretariat Report, “[i]t is estimated that nearly two thirds of non-hydrocarbon exports originate 
in free zones, mainly the Dubai Jebel Ali Free Zone au thority (Jafza)”.  It is also mentioned that “[r]e-
exports are an important source of revenue, re presenting around one third of total merchandise 
exports”.  1. What procedures and regulations does the UA E have in place to control the storage and 
distribution of products in transit in, or shipped thr ough, the Jafza and other fre e zones.  Are the transit 
and shipment procedures different for the Jafza and other free zones as compared to the rest of the 
UAE?  Are there special or different procedur es in place for the Jafza and other free zones for 
products, such as tobacco products, which  are subj ect to prior import authorization when imported 
into the UAE?  Answer:  
 Dubai Customs have the following procedure:  
 The importer should be authorized (must have a valid Free Zone License issued by the 
appropriate Free Zone Authority) to deal in  the goods that are being imported (Transit 
IN); 
 Consignments are randomly picked for Physica l Inspection by the ‘Risk Engine’ of the 
Dubai Customs declaration management system based on various criteria. These criteria include various risk factors like, past co mpliance history of the Trader, Country of 
Origin of the products, Country of Shipment, nature of products … etc. 
 Hazardous/dangerous items identifiable by  HS codes are picked for Compulsory 
Inspection by the Dubai Customs declaration management system. 
 For release of Restricted Items into the UAE, prior approval fr om the ‘concerned 
department’ is a prerequisite to clear the Cu stoms Declaration for such transactions. Eg. 
Prior Clearance from Dubai Municipa lity for clearance of Foodstuff.  
 Please refer to the below links of Dubai Cust oms and DP World for more information with 
regard to the requested query:  
Dubai Customs Requirements for Transit and Tran sshipment cargo:  Details can be obtained 
from the below link:  http://www.dubaicu stoms.gov.ae/Content/Procedures/Customs 
Declaration/Transit/.  Dubai Customs policy on Import of Foreign Goods intended to be re-exported: Details can be 
obtained from the below link:  http:// www.dxbcustoms.gov.ae/NR/rdonlyres/88EDFE18-0535-
49E5-9D03-8AE4EE15300E/3047/CP34en.pdf.  DP world Tariff information with regard to Tr ansit & Transshipment and storage: Details can 
be obtained from the below link:  http://www.dpworld.ae/Uploads/Documents/Tariff%20-%202012%20-%20Nov'30th%20Release%20Final.pdf. 
 WT/TPR/M/262/Add.1 
Page 104  
 
 On the other hand, the Import/export is well controlled by Dubai Customs through MERSEL-2. 
All restricted and controlled products such as Chemicals, Pharmaceuticals, Medicines, 
Radioactive Food, Fisheries and Agriculture pro ducts etc. are listed on MERSEL-2 and requires 
prior approval from relevant department/authori ties and cannot be imported in or exported 
from UAE without prior approval from relevant department.  
 
Environment, Health & Safety -Trakhees Department is monitoring the storage requirements of 
such controlled & restricted products through reg ular inspections of all warehouses in Jebel Ali 
Free Zone and ensure that all such products are stored as per local, Federal and International 
warehousing standards & requirements. The wa rehouses are designed and constructed as per 
relevant local, federal and international sta ndards and well equipped and fitted with Fire 
Fighting system, Ventilation, Lighting, Rackin g Arrangements, safe loading/unloading ramps, 
waste collection and Sanitary fa cilities etc. to comply with Trakhees regulatory requirements. 
Moreover, Geographical location of the Jebel Ali Port facilitates smooth sea transport within the 
Jebel Ali Free zone, which provid es more logistical convenience. 
 
All Dubai Customs procedures include the Free Zones are governed by the “Common Customs 
Law of the GCC States“ 
 
The Secretariat Report also mentions that “[ n]on-hydrocarbon exports from outside the free zones 
include clothing, tobacco products, and aluminium”. 
 
2. Is any authorization required to export goods from the UAE?  Are “restricted” goods such as tobacco products subject to any specific rules?  If yes, we would be interested in the UAE detailing 
these rules. 
 
Answer: 
 Commercial goods do not require export auth orization.  However, goods such as UAE 
antiquities and archeaological artifacts, goods that are subject to Federal Laws number 13 (Goods subject to control in export and import) of 2007 and 40 (Relating to Chemical Weapons) of 2006 and goods banned by UN Security Co uncil resolutions require prior export permits 
from the export competant authorities.  
 As for restricted goods, an import permit is req uired from the competent authority. No such 
permit is required for exportatio n of the restricted goods. As fo r tobacco products, they are not 
listed among the restricted goods and are treated like any other commercial goods.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (1) Introduction (page 28, paragraph 2) 
 
The Secretariat Report indicates that the UAE “applies the Gulf Cooperation Council’s (GCC) 
Common External Tariff (since 2003). The tariff structure is relatively simple, with low dispersion: it 
comprises four ad valorem tariff  rates: zero; 5% which is the gene ral tariff rate; and 50% and 100% 
which are applied on alcohol and tobacco products respectively”.   
 3. Do the GCC or the UAE have any plans to increase the rate of the tariffs imposed on imports 
of alcohol and tobacco products?  If tariff incre ases are being considered, could the UAE provide 
information on the options examined as well as on th e possible date of entry into force of the new 
tariffs  
 
  WT/TPR/M/262/Add.1 
 Page 105 
 
 
 Answer: 
 There are are no plans at the moment to increa se the Tariff rates on the mentioned products. 
 
4. Are regulated products such as tobacco products subject to any excise and/or other taxes when 
imported into or sold into the UAE?  If yes, c ould the UAE please provide detailed information on 
these taxes and indicate, in particular, whether such  taxes are determined at the UAE or GCC level? 
 
Answer: 
 
No, such products are not subject to exise or  any other taxes other than customs tariff. 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (2) Measures Directly Affecting Imports (i) Customs procedures  
(page 33, paragraph 29)  
According to the Secretariat Report “[p]rior aut horization from the appropriate government body is 
required to import specific goods, including weapons and ammunitions, all alc oholic beverages, pork 
products, tobacco products, publications, visual and audio tapes, telecommunication equipment, all 
foodstuffs, animals and their products, animal feed , additives, living bees and bee queens, fireworks 
and explosives”. 
 5. Could the UAE please detail the type of au thorization required to import tobacco products 
into the UAE and the government body competent to gr ant such authorization.  Is an authorization 
also required prior to the shipment of tobacco produc ts into free zones?  If yes, are the authorization 
procedures different for shipments to free zones as compared to imports to the rest of the UAE? 
 
Answer: 
 No authorization is required to imptort tobacco  products into the UAE. What is required 
however is that the tobacco meet sandards set forth by Emirates Standards Metrology Authority 
(ESMA). Moreover, if the brand is registered by an agent, it should be imported through this 
agent.  As for Free Zones, no authorization is required prio r to shipping tobacco products into or out of 
these zones to foreign countries.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) Measures Directly Affecting Imports (ix) Standards and other technical requirements (c) Labeling and packaging requirements  (page 43, paragraph 70) 
 
The Secretariat reports that “[l]abelling requirement s in the UAE apply mainly to toys, cigarettes and 
food” and that “[c]igarette packages requir e a special health warning in Arabic”. 
 6. Could the UAE please describe the special  labeling requirements  and any packaging 
requirements imposed on tobacco products and indi cate whether any amendments to these are being 
considered?  Are tobacco products manufactured or  processed in free zones subject to any labeling 
and packaging requirements?  If yes, could the UAE please also detail these. 
 
 WT/TPR/M/262/Add.1 
Page 106  
 
 Answer: 
 Standard # UAE.S GSO 246:2011 describes the sp ecial labelling requirements  for tobacco 
products.The standards are available at  ESMA website  (https://www.esma.ae/e-
store/Default/stdDetails.aspx?std=6078). 
 
Labeling requirements are applied to the tobacco  product distributed in the UAE. Products 
manufactured for re export are not s ubjected to a labeling  requirment. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(3) Measures Affecting Exports 
(i) Procedures  (page 46, paragraph 84) 
 
The Secretariat Report provides that “[s]pecific export permits or licences are required for 
commodities subject to export controls, for instance under CITES.”  
 7. Could the UAE provide a list of commodities that can only be exported with specific permits or licenses? Is the export of “restricted” goods also subject to specific export procedures? If yes, could 
the UAE please detail these. 
 
Answer: 
 Commercial goods do not require export authoriz ation. However, goods such as UAE antiquities 
and archeaological artifacts, goods that are subj ect to Federal Laws number 13 (Goods subject 
to control in export and import) of 2007 and 40 (Relating to Chemical Weapons) of 2006 and 
goods banned by UN Security Council resolutions re quire prior export permits from the export 
competant authorities.   III. TRADE POLICIES AND PRACTICES BY MEASURE (3) Measures Affecting Exports (iv) Export support 
(page 48, paragraphs 93 and 94) 
 
The Report of the Secretariat describes the free zone  system and the significant increase in the volume 
of trade made through free zones.   
8. How does the UAE monitor shipments into an d exports and re-exports from trade zones? Do 
UAE authorities maintain specific trade statistics for each type of customs procedure for the different 
trade zones?    
Answer: 
 
 The Customs Administration monitors and has control over free zones as per the 
GCC Common Customs law (77-88) 
 Yes, there are trade statistics for Imports, Exports, and Re-exports to and from Free 
Zones available at the Federal Customs Authority 
 
According to the Secretariat’s report, “[t]o impor t products from an FTZ to the national territory an 
agent is needed”. 
  WT/TPR/M/262/Add.1 
 Page 107 
 
 
 9. Could the UAE please describe the role, status and obligations of these “import agents”.  Are 
agents also required to ship products from a free zone to export markets? 
 
Answer:  
Goods imported from Free Zones to the loca l market are subject to the same Customs 
regulations as those goods imported from the international market. 
 
IV. TRADE POLICIES BY SECTOR 
(3) Manufacturing 
(i) Features 
(page 64, paragraph 25) 
 
The Secretariat reports that “[t]he UAE’s main industries are food, beverage and tobacco; chemicals, mineral products; metal equipment; paper products ; textiles and clothing; and wood products”. 
 
Given that tobacco products are subject to specific re gulations, in the interest of transparency, what 
authorization(s) and/or license(s)  necessary to manufacture, transport and distribute tobacco products 
within the UAE are required?  
Answer: 
 
Tobacco, just as any other industrial activity is  subject to an Industrial license issued by the 
Ministry of Economy to start operating in the UAE.  With this respect, the industrial electronic 
database shows that there are no  Tobacco companies that were licensed to operate in the 
customs territory of the UAE under the Federal Law No 1 of 1979 organizing industrial affairs. 
However, there are a few tobacco  enterprises that are operating  in the Free Trade Zones under 
FTZ licenses and regimes.  
 Furthermore, it might be important to clarify that Tobacco was listed in the Secretariat report 
among “the UAE`s main industries” merely becau se the Standard Classification of Industrial 
Activities, which we rely upon to define industri es and to classify compan ies, classifies Tobacco 
within the level of industrial classification relating to: “Food, beverage and tobacco”. WT/TPR/M/262/Add.1 
Page 108  
 
 QUESTIONS FROM THAILAND 
Question 1 
 Page 38, paragraph 47 
 
II. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(v) Other charges affecting imports 
 
47. There are no transit duties amongst the emirates , or any other additional duty, according to the 
UAE authorities.  In general, no other duties are applied on imports, with the exception of alcoholic 
beverages, which may be subject to municipality tax es;  e.g. liquor is subject to a 30% municipality 
tax in Dubai.  
Question:   In general, no other duties are applied on imports, with the exception of alcoholic 
beverages, which may subject to municipality taxes. Do these municipality taxes apply to both 
imported products and domestic products? 
 
Answer: 
 The Municipality fees on alcohol are applied in  accordance with the principle of national 
treatment.  
 Question 2  Page 42, paragraph 61 and 66 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(ix) Standards and other technical requirements 
(b) Standards, testing, and certification 
 
61. In mid 2011, there were 6,000 standards in th e UAE, mostly based on GCC standards.  When 
there are no national or GCC standards, the ESMA will  follow international standards that are suitable 
for the UAE environment, as mandated by Ministerial Decision No. 114/2 of 2004.  It is estimated that 
some 65-70% of the applied standards are in conformity with international standards. 
 Question:   When there are no national or GCC standards, the ESMA will follow international 
standards that are suitable for the UAE environment.  In this connection, what are the requirements 
for international standard considered suitable for the UAE environment? 
 Answer:  
Before adopting any international standard as a na tional standard, it is reviewed by a concerned 
technical committee to determine if it is suitab le to the UAE based on many factors such as 
climate, traditions, culture, etc.   In the event that there are no national or GCC standards, the UAE follows available 
international standards.  
66 The UAE does not implement the GCC Interna tional Conformity Certification Programme 
(ICCP).  It implements the Emirates Conformity Assessment Scheme (ECAS) as a mandatory product certification scheme, which applies to products that a ffect health and safety or have an impact on the  WT/TPR/M/262/Add.1 
 Page 109 
 
 
 environment, such as low-voltage equipment and toys . The authorities indicated that the ECAS' aim is 
to ensure the safety and quality of products and to protect consumers.  The ECAS may also cover 
products subject to (voluntary) standards for which interested parties may request certification. The 
conformity assessment process verifies that the product complies with the approved standards and an effective quality management system is implemen ted.  The process involves sampling and testing 
products, as well as visiting and auditing the factory to ensure that products and system requirements 
are satisfactorily complied with.  If successful, ESMA issues a license to use the Emirates Quality 
Mark on the product and the Certificate of Conformity (COC) for the product, to the producer or trader.  Locally manufactured products as we ll as imports are included in this scheme. 
 
Question:   WTO Secretariat’s Report, page 42, para 66 stated that UAE does not implement the 
GCC International Conformity Certification Pr ogramme (ICCP). It implements the Emirates 
Conformity Assessment Scheme (ECAS) as a mand atory product certification scheme, which applies 
to products that affect health and safety or have  an impact on the environment, such as low-voltage 
equipment and toys. Even though UAE is the memb er of GCC, UAE does not implement ICCP, what 
is the rationale behind that?  Will UAE accept imported goods which is certified by ICCP? 
 
Answer: 
 The WTO Secretariat’s Report regardi ng this matter is not correct.   
 
The UAE / ESMA accept the GCC Conformity Cert ificate issued by the GSO. Moreover, ESMA 
also implements the national conformity cert ificate scheme for the regulated products not 
covered by GCC Conformity Certificate scheme. ESMA is member of IECEE WT/TPR/M/262/Add.1 
Page 110  
 
 QUESTIONS FROM TURKEY 
 
REPORT BY THE GOVE RNMENT (WT/TPR/G/262) 
 (IV) FUTURE DIRECTION 
(1) Reform of the Investment Frame, pr. 73, pg. 15 
 
It is noted in the Government Report that “Currently, discussions are underway in the UAE to re-
examine the Federal Law on Commercial companies that  limits foreigners to hold a minority equity in 
companies incorporated in the UAE (the histor ical cap of 49%).  A Federal Unified Foreign 
Investment Law is in the legislative level wh ich reflects government policies towards foreign 
investments.  This new Law is expected to increase the foreign ownership in some sectors to more than 
49%.  Furthermore, there are several busin ess laws that which will enhance the investment 
environment in the country such as the new Arbitra tion law that is to be developed in line with the 
UNCITRAL Arbitration Law.” 
 
Turkey would like to know more about the details of  the envisaged amendments to the Federal Law on 
Commercial Companies, specifically the planned changes related to the sectors where foreign 
ownership ratio intended to be increased. 
 
 
Answer: 
 The UAE Cabinet issued on Sunday, December 4th, 2011 a new draft Companies Law.  It is 
expected that the new Law will contribute to enhance the competitiveness of the national 
economy at all local, regional a nd international levels as well as enhance the performance of the 
business environment and investment climate in the UAE. 
 The new law is expected to allow for one hund red percent foreign ownership in specific sectors 
of the country’s economy in line with the federal government’s economic diversification 
strategy.  The new Law will allow the Cabinet to  issue a resolution specifying the sectors and 
businesses activities in which the share of foreign partners may be increased up to 100 percent. 
 
This will be followed by a review of the new Dra ft Law by the National Council. It is expected 
that the new law will be enacted by the end of 2012. 
 
(5)  Labor Market and Emiratization Policy pr. 86-87, pg. 16 
 
Concerning the employment policies of UAE, it is stated in the Government Report that “…This 
policy is expected to have a positive impact on the sources of labour.  This means that demand for 
labour will be satisfied more from the internal labour  supply and less from outside.  This will also 
improve wage levels and will thus have a positive im pact on Emiratization. It is largely recognized 
that expatriate workers will continue to play a vita l role in the country’s economy.  Nevertheless, the 
authorities feel that the growth of the private se ctor and the employment of non-nationals cannot be 
left unregulated.  Hence, they propose the establishm ent of a quota system for nationals in certain 
sectors.  
Could the Government of UAE elaborate on the speci fics of the “Emiratization” concept? To which 
sectors is the quota system for nationals planned to be introduced? Does the Government of UAE 
foresee contractions in foreign investments due to this new employment policy?     WT/TPR/M/262/Add.1 
 Page 111 
 
 
 Answer: 
 The ‘Emiratization’ concept is primarily based on labor law No. 8, 1980, which indicates that 
the priority for filling job vacancies is for nationals (article 9-10).   
Moreover, national human resources are the key to the UAE’s sustainable economic and social 
development. As stated in UAE Vision 2021 , the UAE Government “want all Emiratis to make a 
valuable contribution to their nation’s growth by building their knowledge and applying their 
talent with innovation and drive”, and “the UAE  will harness the full potential of its National 
human capital by maximising the participation of Emiratis, encouraging entrepreneurship, and 
nurturing home-grown public and private sector leaders while attracting and retaining the best 
talent’. Therefore, when it comes to employmen t policies “Emiratisation” is about enhancing the 
participation and competitiveness of UA E nationals in the labour market.  
 We also have to put Emiratisation in context. The fact that Emiratis constitute less than 1 
percent of the workforce in the private sect or stresses the necessity and importance of 
Emiratisation policies particularly in the private sector.  Over the years, the Government of the UAE ha s encouraged the private sector to recruit and 
train Emiratis through building partnerships.   The Government has provided employment 
services to both national job seekers and employers, and provided job-related training to job 
seekers according to employers’ requirements.  The Government has been expecting the private 
sector employers to take advantage of the na tional human resources and fulfil their social 
responsibilities for the benefit of the country a nd themselves as well.  This is why when the 
quota system has been introduced in some sectors, where private sector employers are required 
to achieve a small percentage of annual increa se of Emirati staff in their workforce, the 
Government has not strictly enforced its implementation. 
 Currently, the quota system app lies to three sectors: banking, insurance, and trade. In 1998, the 
Council of Ministers issued Decree No. 10/1998 requi ring all banks to achieve four percent 
annual incremental increase of Emirati staff in  their workforce. For the insurance sector, 
Cabinet Resolution No. 202/2 for 2003 decreed 15 percent Emiratisation to be achieved by the 
end of 2003, with five percent annual increases th ereafter. Cabinet Resolution No. 259/1 for 2004 
stipulates that trade sector firms that employ 50 or more employees are subject to an annual two percent quota for National employees.  
Moreover, the Government of the UAE does not fo resee any contractions in foreign investments. 
There are no indications that FDIs have been  affected by the Emiratization process. 
 REPORT BY THE SECRETARIAT (WT/TPR/S/262)  II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(2)
 INTRODUCTION , pr.2, pg.14 
 
In the Secretariat Report, it is mentioned that  “the full consolidation of th e GCC's Customs Union was 
still pending in mid-2011…”.  
 What are the pending issues in the GCC’s Customs Un ion? We would also like to hear more on those 
in the active implementation within the Customs Uni on, if any, as well as the framework for the trade 
remedies. 
 
 
 WT/TPR/M/262/Add.1 
Page 112  
 
 Answer: 
 The Pending issues are: - Customs revenue collection and distribution. - Removal of administrative Customs border control between GCC 
- Determining the role of the GCC Secretariat in the GCC Customs Union. 
 The Active implementation includes: - Unification of Customs Procedures among all GCC member states. - IT connectivity between GCC Customs administrations. 
- Updating the Common Customs law in  line with Revised Kyoto Convention. 
 The UAE would like to clarify that the GCC legal framework for the trade remedies is the GCC Common Law on Antidumping and Countervailing Me asures and safeguards and its Rules of 
Implementation, dated respectively 21 December 2003 and 11 October 2004. 
 
The above legal texts were recently amended on  2010. Indeed, the amendment of the GCC 
Common Law on Antidumping and Countervailing Measures and safeguards was adopted by 
the GCC Financial & Economic Cooperation committee on 6 November 2010 and the amendment of the Rules of Implementation wa s adopted by the GCC Industrial Cooperation 
Committee on 2 June 2010. The main amendments are detailed in the Secretariat Report (pages 
40-41, paragraphs 54-58).  
(4) T
RADE POLICY OBJECTIVES , pr. 19, pg. 18 
 
The Secreteriat Report indicates that: “The Fed eral Government is responsible for the broad 
framework of policymaking in the UAE.  Each em irate, however, sets its own strategy, which is 
integrated into the overall federal plan.  The emir ates of Abu Dhabi and Dubai have formulated long-
term development plans, Abu Dhabi Economic Vi sion 2030 and Dubai Strategic Plan 2015, each 
providing a roadmap to moderni ze and diversify their economies”. 
 Could the Government of UAE defi ne common goals and strategies in above mentioned development 
plans and Vision 2021 strategy? 
 
Answer: 
  WT/TPR/M/262/Add.1 
 Page 113 
 
 
 
 
 WT/TPR/M/262/Add.1 
Page 114  
 
 
 
  WT/TPR/M/262/Add.1 
 Page 115 
 
 
 
 
 
(5) TRADE AGREEMENTS AND ARRANGEMENTS  
(ii) Preferential trade agreements, pr. 37, pg. 23 
 
It is noted in the Secretariat Report that “The Pan Arab Free Trade Area Agreement (PAFTA), signed 
on 19 February 1997 to implement the Agreement on Facilitation and Devel opment of Trade among 
Arab Countries, entered into force on 1 January 1998.   This agreement enco mpasses all the members 
of the Arab League, and had as an objective to create a free-trade area by 2007 by dismantling 
customs tariffs by 10% annually over a decade.  On 1 January 2005, all tariffs were eliminated among 
its members.  Therefore, originating goods, incl uding agricultural goods are traded duty free under 
PAFTA.  However, non-tariff barriers, such as customs and administrative procedures and transit 
fees, still have a negative impact on intra-regio nal trade. For products  imported from PAFTA 
countries, local value-added of at least 40% is requi red in order to qualify for preferential treatment. 
The principal entity responsible for implementing the agreement is the Economic and Social Council 
of the Arab League. In addition, the Union of Arab Chambers of Commerce has been tasked to 
produce a half-yearly report on the difficulties encountered by traders with the customs 
administration and regulatory agencies of indivi dual member countries.  Currently, 17 members are 
implementing the Agreement.  The PAFTA was no tified to the WTO under GATT Article XXIV”. 
 
Could the Government of UAE  provide furthe r information about Pan Arab Free Trade Area 
(PAFTA) which is also known as GAFTA ?  
 WT/TPR/M/262/Add.1 
Page 116  
 
 Answer: 
 
All the pertinent information about GAFTA is in cluded in the Secretariat Report (page 23) and 
on the following link on the Ministry of Foreign Trade’s website:  http://moft.gov.ae/wto/index.php?option=com_con tent&view=article&id =57&Itemid=25&lang=
en. 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (1)
 INTRODUCTION , pr.2, pg.28 
 
In the Secretariat Report it is noted that  “The UAE's applies the Gulf Cooperation Council's (GCC) 
Common External Tariff (since 2003)… Since the last R eview of the UAE, the average tariff rate has 
come down somewhat, from 5.1%, to 4.9%.  The UAE has bound all tariff lines.  Bound rates are in 
general considerably higher than applied rates, rangi ng from zero to 200%, giving scope for their 
reduction.” 
 
Considering the minor changes the average tariff ra te the UAE’s had made, it can be considered that 
there is a considerable room for improvement in the reduction of bound rates.  The UAE has bound all tariff lines, however the bound rates are higher than applied rates, reducing the predictability and 
transparency for the trade policy.  What is the pros pect of the UAE’s on the elimination of this binding 
overhang? 
 
Answer: 
 The gap between the UAE bound rates and the applied rates is not higher than that of many of 
the developing WTO members. Nevertheless, the UAE has not raised a single applied rate since 
joining the WTO in 1996, not even during the gl obal economic crisis. Furthermore, the UAE is 
an advocate of the Doha round and will, once su ccessfully concluded, implement its outcomes 
especially those pertaining to Non Agricultural  Market Access, which will bring closer the gap 
between the applied and bound rates.  (4)
 MEASURES AFFECTING PRODUCTION AND TRADE  
(iii) Competition policy and regulatory issues, pr. 112, pg. 51  
On the competition regime, it is stated by the Secreteriat that: “The UAE does not have a competition 
law, but the authorities noted that a draft UAE competition law is under consideration by the 
Ministerial Cabinet... The authorities indicated that the law will apply to all enterprises operating in 
the UAE with the exception of state-owned ent erprises and SMEs, and enterprises operating in sectors 
that are subject to specific competition regulati ons (e.g. telecommunications, the financial sector, 
petroleum and gas, and distribution of water and gas)”. 
 
May the Delegation of UAE clarify the considered extent of immunity for state-owned enterprises 
(SOEs) from competition regulations in considera tion? Are all SOEs planned to be immune or 
immunity is considered to be limited with certain sectors?  
 
Answer:  Indeed, the enterprises owned or controlled by the State will be excluded from the scope of the 
federal Law on competition. After the entry into force of the Law, a Cabinet decision will define 
the criteria that would be used in qualifying such SOEs.  In this respect, the UAE would like to emphasize  that the draft Law on competition has been 
drafted based on the consideration of various model laws including th e UNCTAD model law and  WT/TPR/M/262/Add.1 
 Page 117 
 
 
 the EU competition regime. In this process, the UAE adopts a progressive approach in 
establishing a legal competition regime that en sures the balance between the internationally-
recognized principles and the particularities of the UAE Economy. The SOEs is one of the areas that would be considered in line with this approach.  
IV. TRADE POLICIES BY SECTOR 
(1)
 INTRODUCTION , pr. 1, pg. 60 
 
Pertaining to the diversification of the economy the Secreteriat Report tells : “The UAE economy 
continues to be dominated by the oil sector and connected industries.  However, attempts are under 
way to diversify the economy, particularly in to the areas of services and manufacturing” 
 
What are the planned steps to be taken- in add ition to EIB/EDB credits- to encourage private sector 
for further diversification of the production? 
 
Answer: 
 This paragraph does not reflect the achievement of  the UAE in terms of economic diversification 
strategy. As shown by the official figures (NSB ), the non-hydrocarbon sector contribution has 
been increasing steadily over the past few years.  The sector's contribution went up from 46% in 
1990 to 70% in 2010. This is indicative of the su ccessful economic diversification policy of the 
UAE government. 
 (5)
 SERVICES , pr. 176, pg. 95 
 
In the Secretariat Report it is stated that: “The deflating real-estate bubble continues to restrain 
prospects for recovery, particularly in Dubai” . 
 The construction sector in Dubai was prominent how ever given the construc tion bubble on 2008–2009 
financial crisis, what kind of precautions are taken in order to overcome this problem? In addition, 
what is the reason of the slow down of construc tion sector in Dubai whereas it has been growing 
rapidly in Abu Dhabi?  Alleviate  
 
Answer: 
 Even though the real estate market in the UAE as a whole is governed by the powers of supply 
and demand, where the government can take a supporting and regulatory role that cannot 
impinge or substitute supply or demand, the Dubai Government has undertaken a number of 
precautionary measures to alleviate the effect of the crisis on its construction sector.   These measures include the introduction of a numb er of real estate laws and regulations to boost 
the investors’ trust and encourage developers, the rescheduling of a number of projects 
according to Dubai priorities, increasing liqui dity and strengthening the banking sector and 
supporting other important economic sectors such as trade, industry, tourism, logistical services 
and transport. These measures have been effect ive and led to the recovery of the real estate 
sector, which has been witnessing increased transa ctions towards the end of 2011 and into 2012 
both in terms of volume and value. 
 WT/TPR/M/262/Add.1 
Page 118  
 
 The current disparity in the pace of growth in  the construction sector between Dubai and Abu 
Dhabi is mainly due to the fact that the Dubai construction boom started many years prior to 
the one currently being witnessed, albeit relatively smaller, in Abu Dhabi and was vast and intense and included the completion of the city’s mega-projects.  
More about the construction sector in Dubai can be found on this link 
http://www.dubailand.gov.ae/EngTashjee.aspx.  WT/TPR/M/262/Add.1 
 Page 119 
 
 
 QUESTIONS FROM THE UNITED STATES 
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
WT/TPR/S/262 
 II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(5)  T
RADE AGREEMENTS AND ARRANGEMENTS  
(ii)  Preferential trade agreements (a)  Gulf Cooperation Council (GCC) 
 
Page 21, paragraph 25:  When does the UAE, along with its GCC partners, intend to complete its 
review of the WTO Secretariat’s draft Factual Pres entation on the GCC Customs Union, so that it can 
be reviewed for transparency in th e Committee on Regional Trade Agreements? 
 
Answer: 
 The UAE, along with its GCC partners, has esta blished a special work team to expedite the 
review of the WTO Secretariat’s draft Factual Presentation on the GCC Customs Union. This 
GCC team is expected to complete its review and comments in the near future. 
 Page 21, paragraph 27:   When does the UAE, as well as its GCC partners, intend to notify the 
services component of the GCC Agreement to WTO Members, as required by WTO rules? 
 
Answer: 
 
This issue will be discussed with the GCC Secret ariat. However, while we believe that this 
matter has already been dealt with through the G CC’s notification of the said agreement, we are 
ready to receive any further enquiries related to this matter to discuss them collectively with the 
GCC. 
 
(6)
 FOREIGN INVESTMENT REGIME  
 
Page 24, paragraph 43:   The Secretariat report indicates that foreign nationals cannot hold more than 
49% of the capital of a company unless they are nati onals of other GCC countries, in which case they 
are granted national treatment and may have up to 10 0% ownership in most activities.  What steps is 
the UAE taking to raise the 49% limit appli cable to investors from other countries?  
 Answer:  1. Nationals of other GCC countries are granted national treatment and may have up to 
100% ownership in most activities with the exclus ion of five activities that are reserved to UAE 
nationals and may not be carried out by ot her GCC nationals: Hajj and Umra services, 
commercial agencies, social services, cultural acti vities, and importing labor (Cabinet Resolution 
No 4 of 2008).  
2. The UAE Cabinet issued on Sunday, December 4th, 2011 a new draft Companies Law.  
It is expected that the new Law will contribut e to enhance the competitiveness of the national 
economy at all local, regional a nd international levels as well as enhance the performance of the 
business environment and investment climate in the UAE. 
 The new law is expected to allow for one hund red percent foreign ownership in specific sectors 
of the country’s economy in line with the federal government’s economic diversification WT/TPR/M/262/Add.1 
Page 120  
 
 strategy.  The new Law will allow the Cabinet to  issue a resolution specifying the sectors and 
businesses activities in which the share of foreign partners may be increased up to 100 percent.  
This will be followed by a review of the new Dra ft Law by the National Council. It is expected 
that the new law will be enacted by the end of 2012. 
 Page 24, paragraph 45: According to the Secretariat report, the UAE requires foreign companies to 
appoint a local services agent or “sponsor” in orde r to open a representative office or branch in the 
UAE.   What steps is the UAE taking to revise its investment legislation and regulations in order to 
eliminate the requirement that foreign entities act through an Emirati agent?  Answer:  The advantage for the foreign company of ha ving an UAE services agent is a network of 
contacts, and connection with someone with a good  knowledge of local customs and markets. In 
addition, the obligations of a services agent a re confined to rendering  services i.e. issuing 
necessary licenses without taking any responsibi lity or having any financial commitments or 
interfering in the management. 
 
The new amendment proposed in the new draft companies Law (Article 334) will render the appointment of a UAE service agent optional wh ich means that the foreign companies will be 
free to operate with or without a local service agent.  Yet, the new draft law states that the 
services agent should be a UAE national or a company owned 100% by nationals. 
 
Page 27, paragraph 56:  The Secretariat report states that the UAE has begun drafting a new 
Investment Law, which will regulate foreign investors’ rights, protect and promote foreign 
investments, give national treatment to foreigners, and provide incentives for foreign investors.  When 
does the UAE expect this draft law to be enacted?    
Answer: 
 
It is expected that the new law will be enacted by the end of this year. 
 III. TRADE POLICIES AND PRACTICES BY MEASURE  
(2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs procedures  Page 30, paragraph 16:   The Secretariat report indicates that the UAE’s import declaration must be 
accompanied by additional documentation, includin g a legalized commercial invoice and a certificate 
of origin legalized by a UAE Consulate.  What  authorities are able to appropriately legalize a 
commercial invoice?  Are legalized certificates of  origin required for all imports, including those 
imports not applying for preferential treatment?  Answer:  The legalization of the commercial invoice is perf ormed by the UAE consulate in the country of 
export. Furthermore, all imports require legalized certificates of origin, including those imports 
not applying for preferential treatment.  
 Page 31, paragraph 18:   The Secretariat report indicates that the UAE maintains consular frees for 
legalization of certificates of origin, commercial invoi ces, packing lists, original bills of lading, airway 
bills, etc.  What steps is the UAE taking to eliminat e such consular fees?  How do the fees relate to the 
cost of the purported service provided?  WT/TPR/M/262/Add.1 
 Page 121 
 
 
 Answer: 
 There is no intention to eliminate the abovementioned consular fees.  
 
Page 32, paragraph 24:   The Secretariat Report states that “The Customs Administration prohibits 
the transit of goods for which importation into the UAE  is restricted or prohibited.  The transit of 
goods infringing intellectual property rights through th e UAE is also prohibited.”  Please provide 
additional detail regarding the type of intellect ual property rights infringements that would be 
prohibited from transiting the UAE?  Are goods bearing counterfeit trademarks and piratical 
merchandise prohibited from transiting the UAE?  
 
Answer: 
 - Fake, Counterfeited and Pirated Merchandise are considered as prohibited goods and 
 are not allowed to transit the UAE. 
- The IPR infringements refer to counterfeited and fake goods and products or those that 
 violate producers and trademark owner’s rights. - Transiting of prohibited or restricted good s is referred to in the GCC Customs law 
 Article 24. - Goods that are infringing IPR and trademarks laws are considered as prohibited and 
 therefore are not allowed to enter the UAE or transit through it. 
 
(ii) Customs valuation and rules of origin 
 
Page 33, paragraph 31:  When will the UAE submit responses to  the customs valuation checklist of 
issues to the WTO Committee on Customs Valuation?    Answer:  The UAE will be submitting the responses to the checklist before May 2012. 
 
Page 33, paragraph 31:   Does the UAE apply paragraph 2 of Decision 4.1 on the Valuation of 
Carrier Media Bearing Software for Data Processing Equipment, as well as the Decision on the 
Treatment of Interest Charges in the Customs Value of Imported Goods?  
Answer: 
 
The UAE applies the paragraph 2 of Decision 4.1 on the Valuation of Carrier Media Bearing 
Software for Data Processing Equipment (Article 1, Paragraph 8 of the Rules of Implementation 
of the GCC Customs Law). The Value shall be asses sed on the basis of the value of such media 
only without determining the value of information recorded thereon.  Interest on financing provided by the seller shall not be included in the customs value (IV.C1.e 
of the Interpretative Annex of the GCC Customs Law) provided that:  
 Such interest is separated from the price actu ally paid or payable by the imported goods 
 The financial agreement is concluded in writing 
That the buyer can prove that the goods a re really sold at the declared price  
 That the financing interest rate does not exceed  the prevalent rate of the country where the 
financing was extended regarding such a transaction. 
 WT/TPR/M/262/Add.1 
Page 122  
 
 (iv) Tariffs 
 Page 37, paragraph 43:   Which products are included in the UAE’s “list of special goods” that are to 
be exempt from the GCC common external tariff (CET)? 
 
Answer: 
 There is no UAE list of “special goods”. Special goods refer to specific goods for the GCC that certain members allow importation where others have them as prohibited (Ex. Alcohol and meat of swine). 
 
(ix) Standards and other technical requirements  Page 41, paragraph 60:   The Secretariat report explains that the Emirates Standardization and 
Metrology Authority (ESMA), is in charge of drafting,  formulating, and issuing standards.  As part of 
this process, EMSA circulates draft standards for co mment to stakeholders in the relevant field.  
Please explain how the EMSA identifies relevant stak eholders and circulates the draft standards. 
Please also explain how the UAE ensur es that technical regulations will be notified in draft form to the 
WTO before becoming mandatory, will allow all inte rested parties sufficient time to review and 
comment, and will take those comments into account before finalizing any technical regulation even 
when based on a voluntary standard. 
 
Answer: 
 
A - The ESMA has ten technical committees. So me committee members are  the stakeholders 
and they are identified based on the following criteria: 
 
1. Possibility of influencing the outcome (standards)  2. Relevancy of the standards (to the stakeholder)  3. Knowledge based organizations (such as research institutes, universities etc) or 
 individuals (the individuals who could contribute to the standardization activity) 
 4. The users of standards such as regulat ory authorities, manufacturers, consumer 
 organizations, etc.  
ESMA is working on the development of a ne w Committee Workspace for the Standards Hub, 
which will significantly improve the usability, functionality and performance of the Committee. The new Committee Workspace, within the Standard s Hub, is expected to be launched in the 
third quarter of 2012.  B – The Emirates authority for Standardizatio n and Metrology (ESMA) has in 2005 established 
the national enquiry point of the UAE, which is res ponsible to notify to the WTO in draft form 
for any proposed/adopted national technical regulat ions (local or federal) according to the TBT 
agreement. Moreover, the Inquiry point is resp onsible for answering enquiries that include 
enquiries about:  
(1) any proposed / adopted UAE standards, 
(2) any proposed / adopted conformity assessment procedures, (3) the membership and participation of th e ESMA in the international and regional 
standardizing bodies and conformity assessment syst ems, as well as in bilateral and multilateral 
arrangements within the scope of this Agreement,  WT/TPR/M/262/Add.1 
 Page 123 
 
 
 (4) the location of notices publis hed pursuant to this Agreement 
 According to the TBT agreement, ESMA gives 60 days to interested parties to review and 
comment. Comments received within the given p eriod are forwarded to the concerned technical 
committee to be taken in consideration dur ing finalizing the technical regulation. 
 
Page 41, paragraph 60:   Why does ESMA not circulate draft st andards abroad for comments if they 
are based on an existing international standard?  
Answer: 
 
ESMA does not circulate draft standards ab road for comments because as per the TBT 
agreement, notification regarding the adoption of international standards is not required  
 ESMA has provided all approved standard s on its website, https://www.esma.ae/e-
store/Default/Default.aspx.  
Page 42, paragraph 65:   The Secretariat report indicates that institutions seeking accreditation from 
the national Accreditation System (ENAS) must appl y to the Emirates Standardization and Metrology 
Authority (ESMA), and after an assessment, the EMSA  decides whether to grant accreditation.  As a 
member of the International Laboratory Accr editation Cooperation (ILAC), does ESMA accept the 
test results of accredited ILAC labor atories located in third countries? 
 
Answer: 
 Yes ESMA accepts the results of labora tories accredited by ILAC signatories. 
 Page 43, paragraph 67:  Please explain how UAE ensures that voluntary standards that are made 
mandatory by technical regulations will be notif ied to the WTO before becoming mandatory, will 
allow all interested parties sufficient time to re view and comment, and will take those comments into 
account before finalizing any technical regulati on even when based on a voluntary standard. 
 Answer:  When ESMA adopts any voluntary standards as mandatory standards (technical regulations), 
the TBT Inquiry point sends notification to the WTO, and gives 60 days for comments. We 
apply the same procedure of notification when we  change the status of standards from voluntary 
to mandatory (TR).   
(iv) Government procurement  Page 51, paragraph 115:   The Secretariat notes that the UAE is neither a signatory nor an observer to 
the WTO Plurilateral Agreement on Government Proc urement.  Does the UAE plan to become an 
observer to the WTO Agreement on Government Procur ement now that the GPA has been revised?  If 
so, when?  Does the UAE have plans to commence accession to the GPA in light of the fact that the 
GPA has been revised and should assist in the accession process ?  If not, why not?  If so, when 
does the government plan to undertake accession?   Answer:  The UAE has no plans to join the GPA as a party or as an observer for the time being, however 
this could change in the coming years. 
 WT/TPR/M/262/Add.1 
Page 124  
 
 (v) Intellectual property rights 
 Page 55, paragraph 132 :  The Secretariat’s Report indicates that  legislation to protect undisclosed 
information is currently being drafted.  When do es the UAE anticipate that this legislation will be 
enacted? 
 
Answer: 
 
Indeed, the draft amendments to the Federa l Law No 31 of 2006 on the organization and 
protection of industrial property (patents and industrial designs) include a section on the protection of undisclosed information. They have  already been submitted to the Cabinet and 
will enter into force once approved.  
Page 56, paragraph 139:  The Secretariat’s report indicates that a compulsory license may be given if 
a patentee does not grant a voluntary license.  This seems to refer to Art. 21(1) in Federal Law 31 
(2006).  Is this true in the absence of a national emergency, circumstances of extreme urgency or 
public non-commercial use and at any point in the en forceable life of a patent (e.g., within the first 
three years after grant)?  If so, please explain th is in light of the TRIPs and Paris Convention 
obligations?   
 
Answer: 
 At the outset, it is important to  underline that Article 24 – instead of article 21 - of the Federal 
Law 31 (2006) provides for the conditions under which the compulsory may be granted; they 
are, mutatis mutandis , the same conditions provided for in Article 31 of the TRIPS. 
 
Article 27.2 of the same Law stipulates that the competent court may disregard the conditions 
cited in paragraphs (a) and (b) of the above arti cle 24 (i.e. the lapse of at least three years after 
granting the patent, and the obligation for the ap plicant for a compulsory license to prove that 
efforts have been made to obtain a license from  the patent owner on reasonable conditions) in 
the case of a general emergency or for extremely urgent public needs or non-commercial use 
purposes. 
 
Page 57, Table III.7:   The Secretariat Report lists protected works under Copyright and 
Neighbouring Rights Law (2011) in Table III.7.  Are collective works and choreographic works protected by copyright? Please also clarify what is  meant by “musicals accompanied by dialogue and 
musical which are not accompanied by dialogue.”  Does it mean works that contain music (i.e., 
dramatico-musical works) or does it mean musical compositions with or without words? 
 
Answer: 
 
Collective works and choreographic works are pr otected by The Federal Law No. (32) of the 
year 2006 amending the Federal Law No. (7) of the year 2002 concerning copyrights and 
neighbouring rights. The applicable articles are Articles 1 and 25 of the Law. 
 
“Musicals accompanied by dialogue and musical which are not accompanied by dialogue” mean musical compositions with or without words.  
 
Page 59, paragraph 154:   The Secretariat Report states that the UAE “has implemented programmes 
to increase awareness regarding IP protection.”  Please provide more detail on the types of programs 
that were implemented to increase awareness regardi ng copyright protection, including the outcomes 
of such awareness programs.    WT/TPR/M/262/Add.1 
 Page 125 
 
 
 Answer:  
 The UAE competent Department (Ministry of economy) has organized a number of workshops (7 in 2011), launched advertising campaigns (Rad io programmes) and printed booklets (17,000 
thousand copies distributed in schools) CDs about the UAE’s copyright Law in order to increase 
the level of awareness about the intellectual property protection in the UAE. Different entities within the UAE have taken part in these activities (local economic departments, UAE union of writers, customs departments, prosecutors, pub lishers, and students). Such outreach activities 
are organized on a yearly basis. 
 
- Moreover, others entities have also co ntributed towards increasing awareness 
regarding copyright protection and IPR. These include: Dubai Customs, which has hosted several IPR conferences  
- Abu Dhabi Customs, which has made  several seminars and workshops for 
Customs officers as well as the public to increase awareness on IPR issues. 
 
- The Federal Customs Authoriy (FCA) is to  host and Launch IPM initiative in an 
IPR Forum (9-11 April 2012)  
- The FCA is hosting IPR workshop for inspectors, where right holders will 
present to them different ways of detecting counterfeiting.  There will be also a presentation regarding risk management and counterfeiting presented by the WCO. 
 The IPM (Interface Public Member) is a WCO initiative where right holders submit 
various information regarding means of de tection of counterfeiting and copyright 
infringement. The UAE has signed up to be a member and is providing access to 
inspectors in the different customs depart ments to enable them to access this 
information as a reference and training tool. 
 
Page 59, paragraph 157:  The Secretariat’s report provides that “Customs is entitled to take measures 
at the border to prevent any violation of IPRs, in  accordance with the above-mentioned laws as well as 
under customs regulations.  These measures may be taken upon demand of the right-holder, based on 
a judicial order or by the customs authorities on their own initiative.”  Pl ease describe the types of 
intellectual property rights violations for which Cu stoms has the authority to take action on at the 
border.  For actions taken by Customs authorities on their own initiative, is a judicial finding of infringement required for seizure, or does Custom s have the authority to make infringement 
determination on which it can base seizures?  
 
Answer:  - Customs have the right to take action on the border against goods Infringing IPR; 
 Counterfeited goods, goods that infringe trademarks, and pirated goods.  
- Customs may detain goods that are suspected to be infringing IPR. 
- Customs work with Right holders by informing them when there is suspicion of 
 counterfeiting, and are provided with information and photographs and ask them to  present samples of their products to compare them to the suspected goods. 
- Custom’s final determination on whether goods are infringing IPR could only be done in 
 cooperation with the right holders. 
- After an infringement decision has been taken, Customs provide the right holder with 
 the detailed information about the seizure to  help them take the issue to court. 
 WT/TPR/M/262/Add.1 
Page 126  
 
 Part II: Questions Regarding the Government Report 
 
WT/TPR/G/262 
 
IV. FUTURE DIRECTION 
(5) Labour Market and Emiratization Policy 
 Page 16, paragraph 86 : The Government report states that the Government of the UAE has adopted a 
more flexible mobility approach within the local market maximize the utilization of the foreign labor 
supply.  Further, the report states that this policy is  expected to have a positive impact by allowing the 
demand for labor to be satisfied more from the in ternal labor supply and less from the outside.  Can 
the Government of the UAE please clarify what is meant by this statement?  Are nationals and foreign workers covered by the same labor laws?   
Answer: 
 
A. The UAE’s labour market has been a very dy namic one with a high labour turnover ratio. 
However, this turnover consists of mostly infl ow and outflow of temporary contractual labour 
(TCL), i.e. foreign labour, rather than tu rnover within the internal labour market. 
 The flexible mobility policy mentioned above aims  at increasing the ratio of turnover within the 
internal labour market. It also represents an approach that aims at maximizing the utilization of 
the available TCL supply and offering opportuniti es for skilled and professional TCL to choose 
the most suitable job where they can maximise re turn for themselves and for their employers. It 
also provides an opportunity to allow the availa ble labour supply to satisfy economic activity 
needs on time.  
 
The direct positive impacts of the mentioned policy are as follows; increasing the level of 
utilization by workers of their skills and experi ences, providing the employers with the labour 
supply they need (skilled and qualified) on time, wi thout having to wait for long to bring them 
from abroad, providing employers with workers wh o have a better local experience than that 
possessed by new entrants from abroad.  
 
These objectives have been achieved in 2011 fo llowing the implementation of the mentioned 
policy. Statistical data has revealed that in 2010,  that 49,000 have changed their jobs, while in 
2011, the number of workers who moved from  one job to another exceeded 100,000. 
 
This means that more TCL had the chance to move from their current jobs to new ones. It also 
reveals that employers satisfied their labour dema nd more from the internal labour market than 
before.   B. Yes. Labour Law No. 8, 1980 covers and organ izes the labour relations of both national 
workers and TCL who are working in the pri vate sector.  Moreover, there are additional 
measures and procedures that have been issued and implemented in order to support the efforts 
of national employment, aiming at increasing the employment level of nationals in the private sector. 
 
Page 16, paragraph 87:  The Government report states “the authorities feel that the growth of the 
private sector and the employment of non-nationals cannot be left unregulated.  Hence, they propose 
the establishment of a quota system for nationals  in certain sectors.”  What is the process for 
determining the sectors subject to the quota system ?  Have any decisions on “certain sectors” been 
made already?  If not, what is the an ticipated timetable for such a decision? 
  WT/TPR/M/262/Add.1 
 Page 127 
 
 
 What is the process for determining th e sectors subject to the quota system? 
 
Answer: 
 The UAE government has set a criteria to det ermine the sectors subject to the quota system. 
 
There shall be a quota:  - In sectors where national job seekers can po ssess the required educational and skill 
 level.  
- In quality jobs that attract nationals and p ay suitable wage levels that match their 
 expectations.  Currently, the quota system appli es to three sectors: banking, insurance, and trade. In 1998, the 
Council of Ministers issued Decree No. 10/1998 requiring all banks to achieve four percent 
annual incremental increase of Emirati staff in  their workforce.  Fo r the insurance sector, 
Cabinet Resolution No. 202/2 for 2003 decreed 15 percent Emiratization to be achieved by the end of 2003, with five percent annual increases thereafter.  Cabinet Resolution No. 259/1 for 2004 stipulates that trade sector firms that employ 50 or more employees are subject to an annual two percent quota for National employees. WT/TPR/M/262/Add.1 
Page 128  
 
 FOLLOW-UP AND ADDITIONAL QUESTIONS FROM THE EU 
 
I. FOLLOW-UP  QUESTIONS 
 
1. Question 47 by the EU (WTO Secretariat's report, pages 47-48, para-s 89-96) : the UAE has 
indicated that the answer to the EU question 47 w ill be prepared soon. The EU looks forward to 
study the reply latest one month after the TPR meeting.  
 Answers:  All Labour Federal Laws applicable in UAE apply in the Free Zones as well.  
2. Follow-up to question 5  (Report by the Government, page 16, para. 80) :  In the interest of 
transparency, could the UAE provide details on what authorization(s) and/or license(s) are 
necessary to manufacture, transport, and di stribute tobacco products within the UAE?    
 Answer: 
 
The tobacco industry, like other industrial activities,  is subject to an Industrial license issued by 
the Ministry of Economy in order to operate in the UAE. With this respect, the industrial electronic database shows that there are no Tobacc o companies that were licensed to operate in 
the customs territory of the UAE under the Fe deral Law No. 1 of 1979 organizing industrial 
affairs. However, there are a few tobacco enterprises operating in the Country’s Free Trade 
Zones under FTZ licenses and regim es.  Furthermore, it might be important to clarify that 
Tobacco was listed in the Secretariat report amon g “the UAE`s main industries” simply because 
the Standard Classification of Industrial Activi ties, which we rely upon to define industries and 
to classify companies, classifies Tobacco within the level of industrial classification relating to: 
“Food, beverage and tobacco”. 
 
Could the UAE also indicate if production of restricted goods in the free zones is subject to any 
specific authorization(s) or license(s) and if rul es applicable in the free zones differ from those 
that apply in the rest of the UAE?   Answer: 
 
The Free Zones apply strict rules and pro cedures to monitor any restricted goods in 
coordination with the competent authorities; i.e.  Customs bodies. In general the applicable rules 
are in line with those applicable in the rest of the UAE. 
 
EU’s initial question 5: According to the Government 's report the UAE is giving great importance to 
e-government and "/…/great efforts have been m ade by the Emirates eGovernment and various 
government entities to further enhan ce the eGovernment profile and en rich the value delivered to both 
the public and business sectors".  Th e EU shares the UAE's view that e-government is an important 
tool for efficient and effective governance.  However, companies complain about a lack of 
transparency in UAE public administration.  Coul d the UAE elaborate on measures taken to ensure 
that all legal instruments, including laws, decree- laws, ordinary decrees, and regulations, as well as 
court rulings and administrative decisions are av ailable and accessible on-line? Can the UAE inform 
whether summaries of this inform ation in English are available? 
 Reply by the UAE: In its role of offering judici al and legal services, and achieving justice and equality 
in the country, the UAE Ministry of Justice recogni ses the need for legal texts, services and related  WT/TPR/M/262/Add.1 
 Page 129 
 
 
 information to be easily available to the public. The ministry launched the portals 
www.ejustice.gov.ae and www.elaws.gov.ae for the bene fit of the litigating parties, the legal fraternity 
and the society in general. The portals aim at  simplifying procedures and administer justice 
effectively.   
The portal www.elaws.gov.ae offers the UAE laws al ong with their amendments and all general legal 
texts published in the Official Gaze tte since the establishment of the UAE in 1971 in both Arabic and 
English. The portal also offers the UAE High Court decisions (civil and criminal), the consultations 
(Fatwa) offered by the Department of Consultations and Legislations at the Ministry of Justice and the 
International Treaties signed and ratified by the UAE.  
 
The UAE Ministry of Justice offers many eServi ces through their portal www.ejustice.gov.ae which 
include eNotary, eFiling, search for lawyers and case status. People can access the eServices in both 
Arabic and English.  
Legal texts and eServices relating to legal systems at the level of the local governments are also 
available online. The portal of Abu Dhabi Judici al Department (www.adjd.gov.ae) provides decisions 
of the courts, offers eServices relating to ca se management, notary and public prosecution and 
explains the structure of courts in the emirate. These services can be accessed in both Arabic and 
English.   
Similarly, the portals of Dubai Public Prosecution (www.dxbpp.gov.ae) and Dubai Courts 
(www.dubaicourts.gov.ae) offer several eServices such  as case status and requests relating to the 
emirate through its website in Arabic and English. Dubai Courts portal provides the laws in English 
and Arabic.   
Dubai Public Prosecution has launched mobile  apps ‘UAE Laws HD’ and ‘UAE-Laws’. These apps 
provide the federal laws, including the penal c ode and criminal, civil, traffic and narcotics laws on 
your mobile phone.  The UAE government is boosti ng its eGovernment programme to improve their 
services to the public, increase government efficiency and ensure all-round transparency.  The UAE’s 
federal eGovernment programme plays a vital ro le in achieving an accountable, innovative and 
connected government.  The UAE federal portal www. government.ae which is the one stop shop for 
the government services and information in the UAE is an important milestone in the UAE’s federal 
eGovernment programme. The portal not only he lps people in accessing the government services at 
any time from any place in a cost effective manner but also achieves transparency throughout the 
entire application process.   
The eParticipation and Open Data sections on the portal also have an important role in bringing 
about a connected, responsible and transparent govern ment.  The eParticipation section on the portal 
promotes and encourages public participation.  It pr ovides platforms to the people to share their 
views and discuss concerns if any regarding the government’s services, policies etc.  The 
eParticipation section provides links to the various social media accounts of Emirates eGovernment 
and forums, surveys, blogs, polls and surveys relatin g to the UAE government’s services. Comments 
and feedback are moderated only to ensure that they are not offensive or abusive and that they do not 
violate local laws or someone’s privacy.    According to the UN eGovernment Survey 2012, th e UAE and Republic of Korea are the only two 
countries that scored 100 per cent on whether the government takes citizen's  views into decision-
making. The UAE features amongst the ‘Top eParticipa tion Leaders’ list in the report and is placed at 
6th rank globally.   The Open Data section on the portal is a reposito ry of government data. It aims to encourage 
government entities to make all their data (unless it is of sensitive nature and concerns national WT/TPR/M/262/Add.1 
Page 130  
 
 security) available in the public domain. Data co uld include information on government projects, 
spending, details of beneficiaries, public fa cilities etc. Open data will increase government 
transparency and prove to be very useful for student s, researches, business analysts, trend forecasters 
etc.  The UAE government is working on ma king more data open to the public.   
 
Apart from these, the UAE government has a website , My Gov (www.mygov.ae) that is dedicated to 
gathering feedback in all forms (comments, sugg estions, compliments) from people regarding the 
federal services.  These are just some of the few in itiatives from the UAE government to  improve their services, increase 
customer satisfaction, enhance transparency and boos t citizen participation. The results of UAE 
government’s efforts in the field of eGovernme nt are ratified with the UN eGovernment Survey 2012 
that said, “The rapid progress of the United Arab Emirates is a best practice case highlighting how 
effective e-government can help support development.” It is heartening to know that the report goes 
on to mention the UAE amongst the ‘Emerging leaders’ in eGovernment development around the 
world. The UAE achieved 28th rank overall acco rding to the survey and 1st in GCC and the Arab 
world.  
3. Follow-up to question 26 (WTO Secretariat's report, page 30 , para. 16 and page 31 para. 18) : 
How does the UAE qualify requirements (e.g. in Germany) according to which companies are 
required to obtain a paid pre-legalisation of do cuments from a private entity before being able 
to apply for legalisation of the document by th e UAE consulate? Would this not constitute a 
non-tariff barrier to trade (NTB)?  Answer:  
The UAE requires that the commercial invoices be stamped by the UAE consulate in the 
exporting country. This requirement is necessary to ensure the authenticity of goods entering 
the UAE and to combat fraudulent pro ducts and commercial transactions.  
 EU’s initial question 26: The Secretariat’s repor t states that import declarations must be 
accompanied by:  “/…/ an original commercial invoice (legalized); /…/ a certificate of origin 
legalized by a UAE Consulate./…/". It adds that "Consular fees of US$15 per document are charged 
to legalize certificates of origin, commercial invoices, packing lists, original bills of lading, airway 
bills, etc./…/".Systematic legalisation requirem ents create an additional administrative burden on 
trade. Is the UAE considering the removal the re quirement for traders to address the UAE consulates 
for attesting or legalising documentatio n and to pay the associated fees?  
 
Reply by the UAE: There are currently no in tentions to remove this requirement. 
 
4. Follow-up to questions 28 and 29 (WTO Secretariat's report, page 34, para. 36) :  Could the UAE 
explain why such a certificate is accepted when the origin proven is different according to the 
rules applied by the country of export?  Answer: 
 
The UAE Customs accepts the non-prefer ential origin as declared in the authentic certificate of origin 
or in the authentic commercial invoice of the imported goods issued by the country of export.  In case 
of doubt, the customs authorities will verify the origin in cooperation with customs
 authorities of the 
exporting country.  
 
EU’s initial question 28: The Secretariat’s report states that the UAE does not apply non-preferential 
rules of origin. However, outside of a preferentia l context, the report refers to goods "originating" in  WT/TPR/M/262/Add.1 
 Page 131 
 
 
 certain countries in i.a. para-s. 49, 71, 79 etc. In the absence of finalisation of the WTO 
Harmonisation Work Program for non preferential or igin, every Member is entitled to apply its own 
rules of non-preferential origin.  Therefore, goods  having undergone processing in one country may 
have obtained a new origin, while the same goods , having undergone the same processing may have 
retained their previous origin when exported from another country.  Can the UAE explain whether it 
accepts the origin in these cases as determined by the country of export, which may be different 
according to that country's ru les of non-preferential origin?  
 Reply by the UAE:  For non preferential purposes, the UAE a ccepts the origin of the goods as 
indicated by the country of export.   
 
EU’s initial question 29:  Can UAE explain what is the purpose of the obligation to present a non-
preferential certificate of origin, wh ich by definition is stating the origin of the exporting country 
according to that country's rules of origin? In th e interest of trade facilitation, could UAE consider 
dispensing with a certificate of origin which does not provide for any certainty about the level of 
processing that the goods underwent in the exportin g country? In addition, the requirement to have 
the certificate legalized by a UAE consulate adds u nnecessary costs to the price of the exported goods, 
which will eventually be included in the final consumer price. 
 Reply by the UAE:  The purpose of the non preferentia l certificate of origin is for statistical purposes 
and to evidence the origin of the goods. This cer tificate is essential for exporters to prove where their 
goods came from and it is important for the UAE Au thorities to ensure that the information furnished 
is accurate and compatible with the relevant import documents. In light of the above, the UAE is not 
yet considering ceasing requesting the non preferential certificate of origin.   
5. Follow-up to question 30  (WTO Secretariat's report, page 34, para. 36) :  the UAE has not yet 
provided a reply on the second part of the question (as regards why it is not accepting the mention “EU” for the purpose of origin labelling ). The EU looks forward to study the reply 
latest one month after the TPR meeting.  Answer:   
The UAE believes that the country of origin mu st be indicated in order to safeguard the 
consumer’s right to know in which country the product was manufactured.  
 
EU’s initial question 30: Can UAE confirm that the mention "European Union"/ "EU" is accepted for 
the purposes of origin labelling on imported products? If not, why not? 
 
Reply by the UAE:  The mention "European Union"/" EU" is not yet accepted for the purpose of origin 
labeling on imported products. 
 
6. Follow-up to question 37  (WTO Secretariat’s report, page 46, para. 83) : The EU notes that 
question 37 has not been fully replied. Could th e UAE provide a reply as regards a scientific 
justification to keep the import ban on BSE gr ounds and for imposing conditions (against the 
recommendations of the OIE) on the import of deboned meat?  Answer:  
The new mechanism to lift the ban on the importatio n to the UAE of bovine meat is explained in 
the attached ministerial decree no. 34 for the year  2012 (The decree is inline with Annex C of the 
SPS Agreement). 
 WT/TPR/M/262/Add.1 
Page 132  
 
 EU’s initial question 37: The EU would like to ma ke a specific reference to Chapter 11.5 on Bovine 
Spongiform Encephalopathy (BSE) of the World Organisation for Animal Health (OIE), and would 
like to ask the UAE to please explain why is that the UAE and the GCC:  a)  Still ban the imports of 
live bovines from the EU on BSE grounds? b) Have never provided a scientific justification for 
maintaining the BSE import ban on live bovines, whic h is not aligned with the above-mentioned BSE 
international standard of the OIE? c) Have never provided a scientific justification for allowing the 
import of live bovines following visits to exporting co untries but not allowing imports of deboned beef 
(which represent a lower sanitary risk)? d)Did not yet enact BSE import conditions that would allow 
the import of safe live bovines and their products from countries that would comply with them? 
 Reply by the UAE: The ban on imports of live bov ines from the EU, Scandinavia and Eastern Europe 
was based on Ministerial Decision number 18 in 2001.  A mechanism to lift the ban has been set up 
through the GCC Secretariat in July 2009. This mec hanism involves the formation of a group from the 
member countries to visit the countries that wish to  have the bovine imports ban lifted (This is inline 
with Annex C of the SPS Agreement). 
 Mechanism for Lifting the Ban: 
 
The country wishing to have the ban lifted would file a request to the GCC Secretariat requesting lifting the ban indicating that all travel expense s would be covered by the concerned country.  
 
The technical team would travel to the c oncerned country and issue a report on the visit. 
 
The report would be discussed and approved by th e concerned permanent committee in the GCC 
Secretariat.  
 
The report would then be delivered to th e GCC Secretariat’s Agricultural Cooperation 
Committee.Each country would then work on satisfying the requirements of the committee.  
 
The aforementioned mechanism has been used to lift the ban on 3 European countries; France, 
Germany and the Netherlands, in accordance with the Ministerial Decision number 464 of 2010. The 
results of the technical team’s visit to Spain is currently being reviewed.   
 Regarding the issue of ‘never providing a scientific ju stification for allowing the import of live bovine 
following the visits to exporting countries but not a llowing imports of deboned beef (which represent a 
lower sanitary risk)’, a ministerial decision has been issue in this regard, Ministerial Decision no. 34, 
2012, in which its article 3 stipulates the lifting of th e ban on the import of meat from the countries 
that have had their ban on importing cows lifte d in accordance with the decision.  
 In effect, many permits to import cows have been i ssued to a number of countries that have their ban 
lifted, of which are: Germany – 6 permits (682 heads), The Netherlands – 9 permits (1220 heads) and 
France – 2 permits (65 heads).   
7. Follow-up to question 48  (WTO Secretariat’s report, page 48, para. 93) :Could the UAE provide 
further details on the role, status and obligatio ns of these "commercial agents" for imports?  
Furthermore, are agents also required to ship pr oducts from a free zone to export markets?  
 EU’s initial question 48: Regarding FTZ, the Secretar iat’s report states that "/…/To import products 
from an FTZ to the national territory an agent is  needed.". Is the UAE considering the further 
facilitation of exchange between its FTZs and its domestic market by  removing the requirement for a 
commercial agent for imports from FTZs?   WT/TPR/M/262/Add.1 
 Page 133 
 
 
 Reply by the UAE: The Commercial agencies are entrenched as an established method of doing 
business in the UAE. The advantage for the foreign  company of having an exclusive agent is an 
efficient network of contacts to carry out all the required official procedures, connection with 
someone with a good knowledge of local customs and markets distribution channels, and the availability of outlets to distribute and adver tise the product. In addition, the Federal Law on 
Commercial agencies is designed to protect the ri ghts of all parties (the agent, the producer and the 
consumer), regulate the trade activities and ensure a fter-sale service (maintenance and spare parts). 
At present, there is no intention to remove the requi rement for a commercial agent for imports from 
FTZs.  
Answer: 
 According to the Federal Law on Commercial Ag encies, a commercial agent is regarded as the 
sole importer of the product covered by his agency  contract if that agency is registered with the 
MoE.  
 
The agent is required to provide for after-sale se rvices (Maintenance, spare parts, etc.), register 
and issue the required approvals for the relevant products from the competent departments and 
make the necessary investments to provide outlet s to distribute and advertise the products.  
 Since October 2005, a list of basic food items has been excluded from being covered in the Trade 
Agencies Law (rice;  flour;  coffee;  tea;  cooking oil; meat products…etc). The Ministry of 
Economy does not register any commercial agency for such products, which may be imported 
without requiring a commercial agent.  In addition, there are many commercial agencies th at are not registered with the Ministry of 
Economy. Their products can be freely imported by any importer. 
 Regarding imports from Free Zones into the UAE ma rket, it is compulsory that they be handled 
through registered agents. If those imports a re not covered by any registered commercial 
agency, they may enter the market without the requirement for a commercial agent.  
 
8. Follow-up to question 61  (WTO Secretariat’s report, page 59, para. 154 and 155):  As illicit trade 
seriously affects lawful trading relations and Members' finances, could the UAE detail the measures in force to combat illicit trade throug h free zones? Are any of these measures specific 
to tobacco products or other restricted goods?   
EU’s initial question 61: Could UAE please clarify  if customs can act upon demand of right-holders 
and on its own initiative for goods entering or leavi ng free-trade zones? Which particular measures 
have been taken in order to enfo rce intellectual property rights in the Free Trade Zones? In how far 
do such measures cover violations of intellectual  property rights through the production of counterfeit 
goods in the Free Trade Zones? In how far do such measures cover the interception of trans-
shipments of products violating intellectual property rights? 
 
Reply by the UAE: - Yes, Customs is able to ta ke action against IPR infringements. Customs has a 
presence in the Free Zones in both entry and ex it points, therefore Customs can take action on IPR 
violations as per the procedures in place.- If th e Customs administration has information of goods 
being transhipped thro ugh the UAE, it can take action as per the procedures in place against IPR 
violations or any violation thereof. - Customs administrations use Risk Management and information 
exchange between International Customs Administrations in helping to detect any kinds of violations 
whether it is pertaining to IPR or otherwise.  WT/TPR/M/262/Add.1 
Page 134  
 
 Answer:  
 
 In the GCC Customs Law Article 80 states the following: 
o The following goods may not be admitte d into the free zones and duty-free 
shops: 
1. Flammable goods, excluding the fu els necessary for the operation 
allowed by the authority supervising free zones and duty-free shops under the conditions prescribed by the competent authority. 
2. Radioactive materials 
3. Arms, ammunition and explosives, of any kind, except those licensed 
by the competent authorities. 
4. Goods infringing the laws relating to commercial and industrial 
property rights and copyright protection in respect of which resolutions have been issued by the competent authorities. 
5. All kinds of narcotic drugs and derivatives thereof. 
6. Goods originated in an economically boycotted country. 
7. Goods prohibited from entering the country; a list of such goods shall 
be made by each State. 
 Article 81 states: “The customs office may carry out inspection works in the free zones 
and duty-free shops for detection of prohibited goods, and it may also review the documents and examine the goods when smuggling operations are being suspected.” 
 Article 82 states “The management of the free zones and duty-free shops shall submit to 
the Administration, if so requested, a list of all the goods brought into or taken out from 
them.” 
 Article 87 states “The administration of the free zones and duty-free shops shall be held 
responsible for all the offences committed by  its officers and for the goods illegally taken 
out from them. All regulations and instructions relating to security, public health, smuggling and fraud control shall remain ef fective in these free zones and duty-free 
shops. 
 The same procedures apply to tobacco products 
 
II. ADDITIONAL QUESTIONS 
 III.
 TRADE POLICIES AND PRACTICES BY MEASURE  
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(IV) EXPORT SUPPORT  
 WTO Secretariat's report, page 48, para. 94 
 
The Secretariat’s report describes the significant increase in the volume of trade made through 
free zones.   
 
1. Could the UAE elaborate on how it monito rs shipments into, and ex ports and re-exports, 
from trade zones?  Does the UAE maintain speci fic trade statistics for each type of customs 
procedure for the different trade zones?  WT/TPR/M/262/Add.1 
 Page 135 
 
 
 Answer: 
 
 Article 82 of the GCC Customs Law states “The management of the free zones and 
duty-free shops shall submit to the Administ ration, if so requested, a list of all the 
goods brought into or taken out from them.” 
 The UAE maintains specific trade data fo r the Free Zones for both Import, Export 
and Re-export. WT/TPR/M/262/Add.1 
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 WRITTEN FOLLOW-UP QUESTIONS FROM THE UNITED STATES  
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
WT/TPR/S/262  
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 (5) T
RADE AGREEMENTS AND ARRANGEMENTS  
  (ii) Preferential trade agreements   (a) Gulf Cooperation Council (GCC)  
Page 21, paragraph 25:  When does the UAE, along with its GCC partners, intend to complete its 
review of the WTO Secretariat’s draft Factual Pres entation on the GCC Customs Union, so that it can 
be reviewed for transparency in th e Committee on Regional Trade Agreements? 
 
Answer: 
 
The UAE, along with its GCC partners, has esta blished a special work team to expedite the 
review of the WTO Secretariat’s draft Factual Presentation on the GCC Customs Union. This 
GCC team is expected to complete its review and comments in the near future. 
 
Follow up comment:  We thank the UAE for its efforts to expedite the review of the WTO 
Secretariat’s draft Factual Presentation on th e GCC Customs Union and look forward to its 
completion.  
 III. TRADE POLICIES AND PRACTICES BY MEASURE  (2) MEASURES DIRECTLY AFFECTING IMPORTS 
 (i) Customs procedures 
 Page 30, paragraph 16:  The Secretariat report indicates that the UAE’s import declaration must be 
accompanied by additional documentation, includin g a legalized commercial invoice and a certificate 
of origin legalized by a UAE Consulate.  What  authorities are able to appropriately legalize a 
commercial invoice?  Are legalized certificates of  origin required for all imports, including those 
imports not applying for preferential treatment? 
 
Answer: 
 The legalization of the commercial invoice is perf ormed by the UAE consulate in the country of 
export. Furthermore, all imports require legalized certificates of origin, including those imports 
not applying for preferential treatment. 
 
Follow up question:   For what purpose does the UAE require a certificate of origin for all imports, 
even those not applying for preferential treatment, given that it does not apply non-preferential rules of origin?  
 
Answer: 
 
The reason for requiring a non-prefrential certificate of origin is to preserve the right of the consumer 
to know the country where the good is made a nd for the accuracy of foreign trade statistics 
 
  (ix) Standards and other technical requirements  Page 41, paragraph 60:   The Secretariat report explains that the Emirates Standardization and 
Metrology Authority (ESMA), is in charge of drafting,  formulating, and issuing standards.  As part of  WT/TPR/M/262/Add.1 
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 this process, EMSA circulates draft standards for co mment to stakeholders in the relevant field.  
Please explain how the EMSA identifies relevant stak eholders and circulates the draft standards. 
Please also explain how the UAE ensur es that technical regulations will be notified in draft form to the 
WTO before becoming mandatory, will allow all inte rested parties sufficient time to review and 
comment, and will take those comments into account before finalizing any technical regulation even 
when based on a voluntary standard. 
 
Answer: 
 
 A - The ESMA has ten technical commi ttees. Some committee members are the 
stakeholders and they are identified based on the following criteria: 
1. Possibility of influencing the outcome (standards) 
2. Relevancy of the standards (to the stakeholder) 
3. Knowledge based organizations (such as research institutes, universities etc) or 
individuals (the individuals who could contribute to the standardization activity) 
4. The users of standards such as regulat ory authorities, manufacturers, consumer 
organizations, etc. 
Follow up question:  In light of provisions J and L of the Code of Good Practice, how can other 
stakeholders or interested parties not identified by  ESMA learn about draft standards and be involved 
in the process of drafting and commenting? 
 
Answer: 
 As explained below, ESMA is expected to la unched the Standards technical committee forum in 
the third quarter of 2012. At that time any in terested party can register in the forum and get 
access to all published projects. They will also ha ve the right to send comments on the published 
projects. 
 Moreover, all adopted standards have been publishe d in the official gazette. Also we published 
all adapted standards in official gazette.  
 ESMA is working on the development of a new Committee Workspa ce for the Standards 
Hub, which will significantly improve the usab ility, functionality and performance of the 
Committee. The new Committee Wo rkspace, within the Standards Hub, is expected to 
be launched in the third quarter of 2012.  B – The Emirates authority for Standardization and Metrology (ESMA) has in 2005 
established the National Enquiry Point of the UAE, which is responsible to notify to the 
WTO in draft form regarding any proposed /adopted national technical regulations 
(local or federal) according to the TBT agreement. Moreover, th e Enquiry Point is 
responsible for answering enquiries that include enquiries about:  (1) any proposed / adopted UAE standards 
(2) any proposed / adopted conformity a ssessment procedures (3) the membership and 
participation of the ESMA in the internat ional and regional standardizing bodies and 
conformity assessment systems, as well as in bilateral and multilateral arrangements 
within the scope of this Agreement(4) the lo cation of notices published pursuant to this 
Agreement. WT/TPR/M/262/Add.1 
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 According to the TBT agreement, ESMA gives 60 days to interested parties to review 
and comment. Comments received within the given period are forwarded to the 
concerned technical committee to be take n in consideration during finalizing the 
technical regulation. 
 
 (v) Intellectual property rights 
 
Page 56, paragraph 139:   The Secretariat’s report indicates that a compulsory license may be given if 
a patentee does not grant a voluntary license.  This seems to refer to Art. 21(1) in Federal Law 31 
(2006).  Is this true in the absence of a national emergency, circumstances of extreme urgency or 
public non-commercial use and at any point in the en forceable life of a patent (e.g., within the first 
three years after grant)?  If so, please explain this in light of the TRIPS and Paris Convention obligations? 
 
Answer: 
 
At the outset, it is important to  underline that Article 24 – instead of article 21 - of the Federal 
Law 31 (2006) provides for the conditions under which the compulsory license may be granted; 
they are, mutatis mutandis , the same conditions provided for in Article 31 of the TRIPS. 
 
Article 27.2 of the same Law stipulates that the competent court may disregard the conditions 
cited in paragraphs (a) and (b) of the above arti cle 24 (i.e. the lapse of at least three years after 
granting the patent, and the obligation for the ap plicant for a compulsory license to prove that 
efforts have been made to obtain a license from  the patent owner on reasonable conditions) in 
the case of a general emergency or for extremely urgent public needs or non-commercial use 
purposes. 
 Follow Up Question:  We thank the UAE for the clarification regarding compulsory licensing 
provisions in Article 24 and 27 of Federal Law 31(2006).  We would appreciate if the UAE could 
provide additional information regarding what is contained in Article 27(1), and explain how this 
provision fits into the UAE’s scheme for compulsory licensing.  Answer:  
The purpose of Article 27(1) is to empower the competent court, based upon a request made by 
an interested party, to consider preventing the holder of a patent or a utility certificate from 
using his patent or getting other licenses to ex ploit it, in accordance with the provisions of 
Article 24.  The new Draft Law on patents and industrial designs, still under consideration, will 
review this paragraph for further clarity on th e competent court jurisdiction with regard to 
compulsory license applications. 
 
Part II: Questions Regarding the Government Report  
WT/TPR/G/262  
IV. FUTURE DIRECTION 
(5) Labour Market and Emiratization Policy 
 Page 16, paragraph 87:  The Government report states “the authorities feel that the growth of the 
private sector and the employment of non-nationals cannot be left unregulated.  Hence, they propose 
the establishment of a quota system for nationals  in certain sectors.”  What is the process for 
determining the sectors subject to the quota system ?  Have any decisions on “certain sectors” been 
made already?  If not, what is the an ticipated timetable for such a decision?  WT/TPR/M/262/Add.1 
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 What is the process for determining th e sectors subject to the quota system? 
 
Answer:  The UAE government has set a criteria to determine the sectors subject to the quota 
system.  
Follow up question: We would appreciate if the UAE could confirm that Resolution No. 1187 of 
2010 regulates Emiratization hiring quotas?  If so, please provide additional details about Resolution 
No. 1187, including the categories created under th e regulation, and how a company can move from 
one category to another.  
 
Follow up Answer:  21 April 2012 
 In 2011, the cabinet passed a new regulation that in troduced changes to the classification system 
and the labour fees. The implementation of the new system will take effect on January 1, 2012.  
The overall premise of the new regulation is to create more flexibility in the system, by 
introducing additional firm groups, stronger Emiratization conditions, and by tightening 
further the nationalities' diversification criteria.  The new classification system includes 3 groups of firms: Group 1, Group 2, and Group 3.  With a further decomposition of Group 2 into Class 2. A, Class 2.B and Class 2.C. The selection is 
given by: 
 
 Group 1 .  Firms are classified in this group if they satisfy 2 new criteria concerning the skill 
composition of the firm's workforce and its Emiratization efforts.  In particular: 
o The firm has at least 20% of its workforce with high skills (Levels 1,2 and 3), and 
o The share of UAE nationals in the firm is at least 15% of the high skilled 
workers  
 Group 2 .  Within Group 2, firms are classified  in different classes according to the 
nationalities criteria  
 
 
Group 3 .  Firms that are systematically found in infr ingement of the labour laws and regulations 
 
Exceptions  
 Small firms (less than 4) are classified in Class 2.B 
 There shall be a quota:  
- In sectors where national job seekers can possess the required educational and skill 
level.  
- In quality jobs that attract nationals and p ay suitable wage levels that match their 
expectations.  
 Currently, the quota system applies to three sectors: banking, insurance and trade.  WT/TPR/M/262/Add.1 
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 In 1998, the Council of Ministers issued Decree No . 10/1998 requiring all banks to achieve four 
percent annual incremental increase of Emirati sta ff in their workforce.  For the insurance 
sector, Cabinet Resolution No. 202/2 for 2003 decreed 15 percent Emiratization to be achieved by the end of 2003, with five percent annual increases thereafter. Cabinet Resolution No. 259/1 
for 2004 stipulates that trade sector firms that employ 50 or more employees are subject to an 
annual two percent quota for National employees. 
 
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