WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/162/Add.1 
2 June 2006 
 (06-2642) 
Trade Policy Review Body 
24 and 26 April 2006 Original:   English/ 
 anglais/  inglés 
 
TRADE POLICY REVIEW 
United Arab Emirates 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Ms. Claudia Uribe (Colombia)  
 This document contains the advance written qu estions, and replies provided by the United 
Arab Emirates.1 
  __________________________________________________________________________________  
Organe d'examen des politiques commerciales 
24 et 26 avril 2006 
 
EXAMEN DES POLITIQUES COMMERCIALES 
Émirats Arabes Unis 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. Mme Claudia Uribe (Colombie) 
 
 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 las Políticas Comerciales 
24 y 26 de abril de 2006 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
Emiratos Árabes Unidos 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra. Claudia Uribe (Colombia) 
 
 En el presente documento figuran las pr eguntas 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/162/Add.1 
 Page 3 
 
 
WRITTEN QUESTIONS BY MEMBERS 
 
QUESTIONS FROM THE GOVERNMENT OF CANADA 
Report by the Secretariat (WT/TPR/S/162) 
Summary Observations, (1) The Economic Environment, paragraph 3: 
 
 The summary observations section to the Secr etariat Report refers to the "emiratization 
programme" which introduced minimum quotas of Em irati staff in some services sectors.  The 
Secretariat Report notes that this policy could eventu ally become and impediment to doing business in 
the United Arab Emirates (UAE) because of the lack  of skilled nationals in some professions.  Does 
the UAE plan to remedy this potential impedime nt by introducing a new domestic policy aimed at 
increasing educational opportunities for UAE nationals in these professions?  
Part III. Trade Policies and Practices by Measure, (2) Measures Directly Affecting Imports, (iv) 
Tariffs, other duties, and taxes, paragraph 23:  
 Paragraph 23 states: "For most products, MF N applied rates are well below the final bound 
rates; however, on 33 tariff lines at the HS eight-digit level, the applied MFN rate of 5% is above the 
final bound rate of zero (as of April 2006). Accordi ng to the authorities, this has resulted from the 
implementation of the GCC [Gulf Cooperation Council ] tariff in 2003, with rates higher than those 
previously levied or bound by the UAE." Since ma intaining applied tariffs that are higher than bound 
rates is contrary to the UAE's obligations under GATT Article II, what steps are being taken to correct 
this situation? 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 33:  
 
 When does the UAE expect to commence notifications to  the Committee on Technical 
Barriers to Trade (TBT Committee)? For example, paragraph 43 refers to a new law on the labelling 
of chemicals and industrial products.  Does the UAE  intend to notify the draft law and provide the 
minimum 60-day comment period to allow other WTO members the opportunity to comment on its 
contents?  
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 34: 
 Can the UAE please provide details regarding th e Emirates Authority for Standardization and 
Metrology's (ESMA) new organizational structure? 
 How does the ESMA work to ensure the inde pendence of its accreditation function from its 
conformity assessment function? 
 In addition to the Minister of Finance and Industry, who are the other members of the 
ESMA's Board of Directors?  How are these pe ople selected? How long is a term of service? 
 We are not aware that the ESMA has notified the ISO/IEC Information Centre of its 
acceptance of Annex 3 of the TBT Agreement (Code of Good Practice for the Preparation, Adoption 
and Application of Standards).  Can the UAE plea se clarify what is meant by the second to last 
sentence of paragraph 34?  WT/TPR/M/162/Add.1 
Page 4  
 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 35:  
 What is the percentage of UAE standards wh ich are identical to or based on international 
standards? 
  Of the approximately 600 standards which are technical regulations, what is the process used 
to develop these draft technical regulations? Are th ere timely opportunities for interested domestic 
stakeholders to provide comments which are then  taken into account in the drafting process? Are 
these standards published in the Official Gazette in both draft and final form or final form only? 
  Since the UAE has not yet notified any draft technical regulations or mandatory conformity assessment procedures to the WTO, ho w are interested foreign stakeholders able to learn about draft 
standards and comment on those in which they have an interest?  
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 36:  
 Could the UAE explain what is meant by "interna tionally recognized standards" in relation to 
acceptance of the Supplier's Declaration of Confor mity? Are these international standards in the 
context of the TBT Agreement?   Could the UAE elaborate on its post market su rveillance regime and compliance mechanisms 
with respect to the Supplier's Declaration of Conformity?  
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 38: 
 Does the UAE use international standards and guides as the basis of its conformity 
assessment regime? 
 
 Are any of the laboratories which are accredite d, approved and recognized located outside of 
the UAE? Have these laboratories received foreign accreditation?   Can the ESMA please provide the details of the process which is followed to review 
submitted test report information? What appeal process is in place to deal w ith circumstances where a 
certificate of conformity is not issued? 
 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 41: 
  Can the UAE please clarify for what reason all official veterinary health certificates and other 
required documents for consignments of animals, thei r products or offal are required to be attested by 
an Arab country's embassy?  Please clarify who and what is being attested to.  
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 44: 
 
 Could the UAE please clarify the 11 goods that  require both pr oduction and expiration dates? 
  Canada would like to know what the UAE means by production dates and whether manufacturer's production codes are acceptable? 
  WT/TPR/M/162/Add.1 
 Page 5 
 
 
 Does the UAE allow manufacturer set expiration dates, as is allowed in other Gulf Cooperation Council countries such as Bahrain and Oman?  If not, what is the UAE doing to allow 
manufacturer set expiration dates?   Could the UAE please confirm the elimination of the shelf-life related import requirements? 
 
Part III. Trade Policies and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(iv) Intellectual property (IP) rights, paragraph 94: 
 
 Paragraph 94 notes that the 2002 amendmen t of the 1992 Copyrights and Neighbouring 
Rights Law No. 40 "is designed to meet the obligations arising from Article 9 of the TRIPS 
Agreement (Berne Convention, Articles 1-21, except Article 6 bis), through the extension of the 
works and types of expression covered as well as th e nature of the protection." Can the UAE please 
provide more details?  Part III. Trade Policies and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(iv) Intellectual property (IP) rights, paragraph 95:  
 Canada understands that the 1992 Trademarks Law No. 37 "also contains provisions on well-
known marks." Would the UAE please provide furt her details, particularly as to whether non-
registered marks could qualify as well-known marks? 
 
Part III. Trade Policies and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(iv) Intellectual property (IP) rights, paragraph 96:  
 Canada understands that "the 2002 amendment of the law [the Trademarks Law] added that 
the non-use of the trade mark should not be a reason fo r the deletion, if it is due  to reasons not related 
to the ownership of the trade mark." Can the UAE please provide further details? 
 
Part IV. Trade Policies by Sector, (5) Servic es, (iii) Telecommunica tions, paragraph 108: 
 
The Secretariat Report indicates that, while licensee s are obliged to keep separate accounts, it is 
difficult to determine whether the 60% state-owned monopoly and incumbent, Etisalat, funds one line 
of business with another as there is no separate ac counts for domestic and international activities or, 
for that matter, for fixed and mobile services.   Is the UAE considering any measures that woul d require the incumbent to identify whether it 
funds one line of business with another or, at least , to improve transparency in relation to how it 
operates these different elements of its business?  The Secretariat Report notes that a second full service provider is expected to enter the market in 2006 
but that it would also involve some  federal government participation. 
 
 Can the UAE provide any further details on the scope of offerings of this second provider and 
the anticipated range of government involvement? 
  Is the UAE considering allowing any further competition?  
 
Part IV. Trade Policies by Sector, (5) Servic es, (iii) Telecommunica tions, paragraph 112: 
 
The Secretariat Report notes that the Telecommuni cations Regulatory Authority (TRA) has "full 
authority for issuing and implementing regulations for telecom services and all licensed operators," 
which includes price regulation and interconnection.  It also notes that the TRA is responsible for 
establishing and implementing standards for type approval of equipment. WT/TPR/M/162/Add.1 
Page 6  
 
 Could the UAE comment on the Secretariat Report's observation that, in 2005, these approvals were still performed by the incumbent Eti salat (under contract with the TRA)?  How is the 
UAE ensuring independence of the regulator in relation to such decisions?   Could the UAE address the question of in terconnection and price regulations?  The 
Secretariat Report notes that, in practice, new prices for telecom services were set by the incumbent, 
subject to prior approval by the TRA.   Does the UAE have any plans for limiting the incumbent's involvement in these types of 
regulatory decisions?  Part IV. Trade Policies by Sector, (5) Servic es, (iii) Telecommunica tions, paragraph 116: 
 
The Secretariat Report refers to a recent report th at found the UAE cellular market to be among the 
least competitive in the region. 
 
 Does the UAE agree with this finding?   Does the UAE have any indication of the role that the relatively high state involvement plays in the competitiveness of this market?  Part IV. Trade Policies by Sector, (5) Services, (iv) Tourism services, paragraph 118: 
 
According to the Secretariat Report, the large investment in hotels was one of the factors 
behind the growth of the sector in 2000-04.  What kind of incentives have been provided to encourage such investments by local and foreign entities? 
 
Part IV. Trade Policies by Sector, (5) Services, (iv) Tourism services, paragraph 120: 
 
 The Secretariat Report states that the Gove rnment of Dubai has instituted pro-business 
policies combined with an investor-friendly environm ent.  In addition to al lowing property ownership 
by foreigners in certain cases, what other exam ples of pro-business policies have been introduced? 
 
 The Secretariat Report states that as of January 2006 Dubai's law on foreign real estate ownership was still in draft form.  Please advise when this law is expected to be finalized and describe 
what its likely elements will be. 
 
Part IV. Trade Policies by Sector, (5) Services, (iv) Tourism services, paragraph 121:  
 The Secretariat Report notes the GATS commitments made by the UAE in the provision of hotel and restaurant services.  The initial services o ffer also cites commitments in respect of tourist 
guide services.  Is the UAE considering commitments in respect of travel agency and tour operator 
services? 
 
Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, 
paragraph 142: 
 
 Paragraph 142 notes that "91% of the UAE work force is foreign."  Does the UAE believe 
that the introduction of the "emiratization programme " has been effective in reducing the percentage 
of foreigners in the work force in the UAE?  Can the UAE please provide an indication of what 
percentage of the UAE work force was foreign prior to the introduction of this programme? 
  WT/TPR/M/162/Add.1 
 Page 7 
 
 
Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, 
paragraph 143: 
 
 Paragraph 143 notes that foreign professionals  are permitted to practice business services in a 
number of professions, "provided they hold a va lid UAE residence permit."  Can the UAE please 
clarify whether this implies a residency requirement or a licensing requirement? 
 
Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, (a) 
Legal services, paragraph 146:  
 Paragraph 146 notes that "[l]aw firms must be 100% owned by UAE nationals."  Can the 
UAE please clarify whether the emiratization policy of 1997, which states that foreign ownership in foreign firms established in the UAE is limited to 75% (referenced in paragraph 151), includes law 
firms? In other words, is foreign ownership in law firms now permitted, but limited to 75%? 
 Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, (b) Accounting and auditing services, paragraph 151: 
 
 Paragraph 151 notes that under the emiratiza tion policy of 1997, foreign firms established 
prior to 1995 have been given a transition period of  until 2007 to find local partners.  Have the UAE 
introduced any new programmes or mechanisms that assist foreign firms in finding local partners, in 
order to ensure that this policy is not seen as an impediment to foreign direct investment? 
 
Part IV. Trade Policies by Sector, (5) Services, (v i) Trade in business and professional services, (c) 
Engineering services, paragraph 157: 
  Paragraph 157 notes a licensing requirement for the practice of engineering consultancy 
which provides that a license can only be obtained by UAE nationals.  The Secretariat Report notes, however, that "information was available only for the Emirate of Dubai."  Can the UAE please provide information on the cond itions for supplying engineering services in other emirates?  
 
Report by the Government (WT/TPR/G/162) 
 
Part III. Sectoral Developments, (2) Telecommunication, paragraph 39: 
 
The Government Report notes that mobile pene tration ("m-penetration") exceeded 95% of the 
population in 2005.  This is incredibly high by any standard.  Could the UAE share any of its 
strategies for increasing mobile penetration to such a degree? 
 
The Government Report notes that the UAE has taken "[v]arious initiatives to accelerate the 
advancement of the telecom sector."  As an exam ple, it refers to Decree No. 3 of 2003 and it's 
Executive Order, which "initiated the telecom liber alization process and established an independent 
Telecommunications Regulatory Authority (TRA)." 
 
 What other types of initiatives has the UAE taken to support liberalization in this sector?  Does the UAE have speci fic time-frames in mind? 
  Can the UAE provide any indication of whether it is considering binding this new level of 
openness in the current GATS negotiations by making an offer on telecoms to reflect the 2004-05 
reforms?  WT/TPR/M/162/Add.1 
Page 8  
 
Part IV. Future Direction, (1) Reform of the Investment Framework, paragraph 54: 
 The Government Report indicates that the UAE plans to re-examine its Federal Commercial 
law, which limits foreigners to minority stakes in local firms.  Could the UAE explain what this 
review of the Federal Commercial law would enta il and the impact this review will have on the 
foreign ownership cap of 49%? 
Part IV. Future Direction, (1) Reform of the Investment Framework, paragraph 56:  
 In order to diversify the economy and in an effo rt to attract more foreign direct investment, 
the UAE is proposing reforms to the current invest ment framework by amending the Company Law.  
Could the UAE identify the proposed reforms a nd expected outcomes from the changes to the 
Company Law? 
 
WRITTEN QUESTIONS FROM THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, 
PENGHU, KINMEN AND MATSU ON THE REPORT BY THE SECRETARIAT  
 
Report by the Secretariat (WT/TPR/S/162) 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives (page 39, paragraph 75) 
As indicated in Box III. 1 of the report, a numbe r of investment incentiv es are available under the 
UAE's "Federal Law No. 1 of 1979 - Organizing Indus trial Affairs", ranging from duty-free imports to 
supply of utilities at low prices.  According to Article 20 of the Law, "the Council of Ministers and 
the authorities in the United Arab Emirates (UAE) may grant projects that meet certain conditions, 
privileges and exemptions, such as subsidies to expor ts and protective measures for local products".  
Article 21 states, in addition, that priority for the privileges and exemptions mentioned in Article 20 is 
given for: "competitive, export-oriented or expor t-substitution projects", "projects using local raw 
materials", "projects established in areas determined  by the Government" and "a ny other projects that 
may be of specific economic importance, and in cluded in the government development plan." 
  We wonder whether the above-mentioned schemes may be considered as "revenue foregone", 
benefiting as they do those enterprises that meet certain conditions, and which would make them a 
subsidy subject to notification under Article 25 of the SCM Agreement?  
  Would the UAE kindly explain the "conditions " and describe the "beneficiaries" of the 
measures, as well as provide detailed statistical in formation of the government's contribution towards 
such industrial projects in accordance with Articles 20 and 21 of the Federal Law?    
 Furthermore, it would be appreciated if the UAE could also provide further clarification on 
whether the measures at issue constitute prohibited subsidies within the scope of Article 3 of the 
WTO Agreement on Subsidies and Countervailing Measures?    WT/TPR/M/162/Add.1 
 Page 9 
 
 
ADDITIONAL WRITTEN QUES TIONS FROM THE SEPARATE CUSTOMS TERRITORY 
OF TAIWAN, PENGHU, KINMEN AND MATSU ON THE REPORT BY THE SECRETARIAT  
 
Secretariat Report (WT/TPR/S/162) 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(iv) Intellectual property (IP) rights  (i) Enforcement (page 43, paragraph 101) 
 It is indicated that, "Customs is entitled to take measures at the border to prevent any violation of 
intellectual property rights, in accordance with the above-mentioned laws as well as under Customs 
regulations.  These measures can be taken upon demand of  the right holder based on a judicial order."   
 
 Does this mean that Customs will not take meas ures on its own initiative to prevent violations 
of intellectual property rights? 
 
 Does Customs provide to rights holders at their request in order to facilitate legal action, the 
name, address and relevant information of the consignor, exporter and importer, as well as the 
quantity of the counterfeit or pirated goods, or  even samples of the items in question? 
 
IV. TRADE POLICIES BY SECTOR 
(3) MINING, ENERGY, AND WATER 
(iii) Developments regarding selected products ( pages 53 and 54, paragraphs 35, 38, 40 and 41) 
As indicated in the Report, about 40% of oil production is carried out by concessionaries wholly 
owned by foreign interests, and foreign investment is not a prior limitation.   
 We strongly approve of the UAE's efforts to lib eralize trade, and the results achieved with 
foreign participation are increasingly impressive. Do es the UAE have any plans to further open up the 
downstream sector of the petroleum and gas industry? 
(5) SERVICES 
(ii) Transport (b) Maritime transport services (page 63, paragraph 79) 
The UAE shipping agency and freight forwardi ng market comprises numerous companies.  In 
addition, the UAE has developed as a regional hub fo r maritime transportation and logistics (page 8, 
paragraph 48  of the Government  Report WT/TPR/G/162).  
 We would appreciate knowing whether there are any restrictions on establishing a foreign 
company, such as a shipping company, shipping ag ency, freight forwarder or container terminal?  If 
so, could the UAE please further clarify the restrictions, and describe in detail the qualifications 
required of the company manager? 
(page 63, paragraph 81)  
Most port handling services, including crane lifting, loading, discharging, stevedoring and stowage, 
storage and warehousing, as well as pilotage appear to be supplied exclusively by the Emirates' port 
authorities. 
 
 In the interests of promoting further liber alization and efficiency, please could the UAE 
advise whether there is a plan and a schedule to open up these services to private enterprise? WT/TPR/M/162/Add.1 
Page 10  
 
(iv) Tourism service (page 72, paragraph 121) 
The report indicates that the commercial presence of hotels and restaurants is permitted with a 
maximum foreign equity participation of 49% in the UAE. 
 Does the UAE have plans to  ease the above-mentioned limitation on foreign equity 
participation?  If yes, please provide  us with the relevant details. 
(v) Financial services 
(b) Banking (page 76, paragraph 134) 
As indicated in the report, every commercial bank,  including branches of foreign banks, must have a 
minimum paid-up capital of Dh 40 million (US$10.9 million), or 10% of risk weighted assets in the 
UAE, whichever is the greater. 
 
 We believe that the quality of the parent ba nk's assets, the commitment and financial support 
from the parent bank to its branches, and the clo se cooperation between the supervisors of home and 
host countries are more important than the capital requirements for the foreign bank branches.  May 
we suggest, therefore, that the United Arab Emir ates might review the necessity for setting such a 
high level of capital requirements? 
QUESTIONS FROM AUSTRALIA 
Competition Legislation 
  Australia notes that the UAE does not have competition legislation.  We would welcome 
information on plans for competition legislation, in cluding scope and timeframes for development and 
implementation.  
GCC Free Trade Area 
 
 Further to the discussion at (II), paragraph 21 of the GCC free trade area, and in particular the 
observation that the full harmonisation of the list of pr oducts subject to rates higher than 5% has yet to 
be addressed, can the UAE advise when it is expect ed that full harmonisation will take place.  
 Agriculture  
 Further to the observation at (IV), paragra ph 10 that agriculture contributes 2.7% of GDP 
(2003) whilst employing approximately 9% of the UAE workforce, and also recognising the significant water depletion, poor soil quality and the hot and arid climate in the UAE, Australia would 
be grateful for advice on the UAE's future ag ricultural policy in light of these issues.  
 
Food Regulation and Labelling Requirements 
 
 Australia notes the discussion on marking, la belling and packaging at III, paragraphs 43 
and 44.  In addition, Australia is aware that ther e are varying food expirati on dates between Emirates, 
requiring different labelling requirements.  Are th ere plans to harmonise food regulation and labelling 
requirements across the Emirates?  Can the UAE confirm that shelf-life requirements have been abolished?  
Legalisation of Documentation 
  Australia is aware that it is often mandatory  to have key export documentation, such as 
phytosanitary certificates, attested by the UAE's emb assy in the exporting country, usually involving a  WT/TPR/M/162/Add.1 
 Page 11 
 
 
processing fee as well as the imposition of a fee based on the invoice value of the goods being 
exported.  This may also be accompanied by a furt her requirement to have documents translated into 
Arabic and pass through approval processes invol ving emirate and federal level agencies (for 
example, certification of professional qualifications).  Australia would welcome information on plans to stream-line or remove these documentation processes, particularly the requirement for the UAE 
embassy in the exporting country to attest doc umentation and levying of the associated fees. 
QUESTIONS BY TURKEY 
II. TRADE AND INVESTMENT REGIMES 
(4) TRADE AGREEMENTS (i) WTO 
 
In Paragraph 19, the Secretariat Report under lines the active participa tion of UAE into NAMA 
Negotiations in general and sectoral tariff negotiations   (sectoral tariff elimination proposal towards 
raw materials, including non-ferrous metals, with primary aliminium at its core) in particular.  
 
 Could UAE Delegation kindly evaluate how it assesses the sectoral tariff negotiations 
 conducted so far with a view to improving industr ial trade relations among developing countries?  
 
(ii) Regional Agreements 
(a) Gulf Cooperation Council 
 
Paragraph 21 states that "since January 2003, GCC states have been in the process of setting up a 
customs union: a common across-the-board tariff of 5 % on most products has been in place since 
then. And a common customs law was also enacted. However, in the same paragraph, it is also 
stressed that "practical details of certain trade issues have yet to be addressed, including fully 
harmonizing the list of products subject to rates higher than 5 %, and standards and technical 
regulations." 
 
 Could UAE please provide further information on the problems that GCC has been 
 facing both on practical and policy level? 
 
(5) INVESTMENT FRAMEWORK 
 
In the Secretariat Report, under paragraph 27, it  is stated that "While the UAE's economic 
environment is generally liberal and business friendly, its investment policy continues to discriminate 
between local and foreign investor s, except in the free zones."  
   Could UAE Delegation kindly elaborate if there are any provision for eliminating this 
 discrimination between local and foreign investors? 
 
In the Secretariat Report, under paragraph 28, it is st ated that "There is no law in the emirate of Dubai 
that regulates land ownership. According to the auth orities, a law is currently being drafted to clarify 
all ambiguities surrounding the legal status of land ow nership and long term leased real estate in the 
exempted areas"  
   Could UAE Delegation give information about th e time that will take to finalize this law, 
 which in turn will give an end to the ambiguities relating to the legal stat us of land ownership in 
 Dubai? 
 
It is mentioned in the Secretariat Report under pa ragraph 34, "certain activities are reserved for UAE 
nationals and companies totally owned by UAE nationa ls: real estate services; rental/leasing services 
relating to cars". WT/TPR/M/162/Add.1 
Page 12  
 
   Could UAE Delegation elaborate on the ra tionale about the selection of these reserved 
 sectors and explain if this reservation is envisaged to continue? 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 (2) MEASURES DIRECTLY AFFECTING IMPORTS 
 (iii) Rules of origin  
 Regarding the imports from Dubai to Turkey of goods subject to trade remedy tools, we have 
been experiencing some difficulties with the orig in issue. Apparently, serious doubts occur on the 
Turkish side about the origin of goods subject to  anti-dumping duties merely transhipped via Dubai. 
Turkey would like to know whether the authorities have  any suggestions to solve this problem in the 
near future. 
 (viii) Government procurement 
 
In the Secretariat Report, under paragraph 49, it is  stated that "According to  certain business sources, 
provisions of the procurement regime may vary fr om contract to contract. The UAE is neither a 
member of nor an observer to the WTO Plurila teral Agreement on Government Procurement" 
 
  Could UAE Delegation give information if there are any measures in order to avoid the 
 discrepancies that may occur due to this applica tion and if it is considered to be a party to the 
 WTO Plurilateral Agreement on Government Procurement? 
  (3) MEASURES DIRECTLY AFFECTING EXPORTS  (ii) Export duties and taxes 
 
Secretariat Report, para  65 mentions that  since 2003, an export tax on stell scrap has been levied at 
the rate of Dh 250 per tonne. 
 
  Could the UAE delegation explain the reason of the tax  application and if there is any plan 
 to abolish it? 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 (4) MEASURES AFFECTING PRODUCTION AND TRADE 
 (iii) Competition policy and Price Controls  
Paragraph 80 of the Secretariat Report states that the UAE does not have competition legislation. It is 
stated in this report that the lack of compe tition results from the market-segmenting effects of 
exclusive agency laws  and that these exclusive rights also constitute a barrier to full GCC integration. 
 
  Is there any plan to enact competition law at the national level ?  
 
QUESTIONS FROM HONG KONG, CHINA 
 
Telecommunication Services 
(WT/TPR/S/162, P. 69, Paras. 107-108)  
While the telecommunication market in the UAE  has been expanding rapidly, the services 
remain to be supplied solely by the state-controlle d monopoly.  We welcome the UAE's plan to allow 
a second full service provider to enter the market in 2006, but apart from this, are there any other plans to further liberalise the market for the be nefit of lowered cost, higher quality services, and 
enhanced economic efficiency?   WT/TPR/M/162/Add.1 
 Page 13 
 
 
Financial Services 
(WT/TPR/S/162, P. 4, Box I.1; and P. 76, Para. 135) 
 
It is stated that the emiratization policy h as been introduced in the UAE since 1998 with the 
objective to increase the number of nationals employe d in private sector activities, and as a result, all 
banks and insurance companies were required to increase the number of UAE staff to a prescribed 
level.  It is however noted from UAE's existi ng GATS Schedule of Specific Commitments that full 
national treatment is granted to the "Banking and Ot her Financial Services" co vered in its schedule.  
Would the UAE advise on the compatibility of emira tization policy in the financial sector with its 
existing GATS commitments?  
We are pleased to note that albeit the introduction of a moratorium on the licensing of new 
foreign banks in the UAE since 1981, the Centra l Bank has reportedly announced that it will be 
issuing new licences to banks and allow existing foreign banks to open new branches provided they 
comply with emiratization quotas.  Would the UAE brief us about its plan for the issue of new banking licences in greater details, including the e ligibility criteria, the licensing conditions, and the 
schedule for the issue of the licences, etc?  Would the UAE consider improving its existing 
commitments in financial services in this round of services negotiations accordingly?  
Maritime Transport Services 
(WT/TPR/S/162, P. 62, Para. 73; P. 64, Para. 83; and WT/TPR/G/162, P. 10, Para. 48) 
 
We note that the UAE has been developed as a regional hub for maritime transportation and 
logistics services.  There have recently been large ou tflows of FDI by Dubai Ports International (now 
DP World) in port services.  The Secretariat has al so pointed out that the UAE does have comparative 
advantage in transport.  All these suggest the read iness and the potential of the UAE's transport sector 
to compete internationally.  In this regard, we note that UAE has newly offered commitments on 
freight transportation under maritime transport ser vices, but have not included any commitments on 
maritime auxiliary as well as port services.  We  would therefore like to encourage the UAE to 
undertake further commitments in the maritime tr ansport sector in accordance with the Maritime 
Model Schedule, as well as in the various sub-sectors in core freight logistics services, including 
through a relaxation of the restrictions on foreign e quity participation.  Would the UAE please advise 
whether it has any plan for improvi ng its offers in these sectors? 
QUESTIONS FROM THE EUROPEAN COMMUNITIES 
 
Report by the Government of the United Arab Emirates  I. ECONOMIC ENVIRONMENT (3) I
NWARD INVESTMENT  
Paragraphs 10 and 56 
Paragraph 10 explains that outside the free zones, foreign ownership is generally set at a ceiling of 
49%, though that is changing with the UAE' commitments to the WTO. Paragraph 56 adds that the reform  of the current investment framework (through amendments to the 
Company Law) is perceived as one of the most important ways to materialize the objectives of further diversification of the economy and attracting more FDI. 
 Could the UAE elaborate on this, especially on prohibition or limits stricter than the 49% 
general cap on foreign investment in sectors re lated to the extraction of natural resources? WT/TPR/M/162/Add.1 
Page 14  
 
I. TRADE AND INVESTMENT REGIME 
(2) T
RADE POLICY FORMULATION  
 
Bilateral, regional and global trad e liberalisation is vital for promoting prosperity, growth and 
development to the benefits of the world at larg e. The EC considers that the WTO and multilateral 
liberalisation is the most certain way for promo ting global interests for industrialised countries and 
developing countries at large.    How does the UAE judge the relative importan ce and weight of bilateral/FTA policies and 
further development of the WTO system in term s of its own trade and development needs?  
 
Sustainable development 
 
 In what ways does the UAE think trade policy can best contribute to sustainable 
development? 
 What plans does the UAE have for adoption of policy strategies in order to enhance 
sustainable development? Does the issue of trade and sustainable development fit into the UAE' 
overall development strategies? 
 What steps does the UAE take to ensure th at its trade policy does not have any negative 
effects on sustainable development in the UAE and elsewhere?  Trade and environment 
 
 What mechanisms does the UAE have in place to ensure adequate coordination of environmental policy and trade policy?  
 
Trade and social development  
 The World Commission on the Social Dimension of Globalisation highlighted the importance of linking trade with sustainable domestic policies, in particular core labour standards. What policies 
is the UAE implementing that specifically address the so cial and labour effects of trade liberalisation?  
WTO Secretariat's Report, page 61,  paragraph 69 
 The EC welcome the MSLA's announcement in June 2005 that on-site construction workers, many of 
whom are foreign workers, would be granted a 4 hour  break starting at 12:30pm from July to August.  
 However, how does the MSLA monitor working hours, conditions and co re labour standards 
at other times of the year? 
 
We further welcome the MLSA's initiative to intr oduce reforms to improve  inspection and penalize 
non-respect of labour legislation with regard to foreign workers.  
 How are labour laws enforced? And how many companies have been penalized under the 
reforms?   WT/TPR/M/162/Add.1 
 Page 15 
 
 
(4) T RADE AGREEMENTS  
Bilateral Agreements    Report by the Government of the United Arab Emirates, paragraph 22 
In March 2005, the UAE officially started negotia tions with the US with the aim to conclude a 
comprehensive Free Trade Agreement (FTA), and si milar negotiations have also been undertaken 
with Australia. 
The UAE is a member of the GCC,  which is a Custom Union since the beginning of January 2003, 
thus applying a common external tariff, and ther e is ongoing work to further harmonize trade and 
commercial policies. 
 How does the UAE reconcile the fact of having entered into and consid ering further bilateral 
FTA negotiations with being a member of a Cust om Union under the Economic Agreement between 
the GCC states? 
 In this sense, what are the consequences of  the GCC Supreme Council meeting in Abu Dhabi 
in December 2005 on the ongoing bilateral negotiati ons of the UAE? Will these negotiations involve 
all GCC states or will the results become applicable to all GCC states? 
WTO Secretariat's Report, page 16, paragraph 21 
 Could the UAE provide further information on the state of play of the finalisation of the GCC 
Common Customs Tariff, and notably as concerns se tting up a common list of goods subject to tariff 
rates higher than 5%? 
(5) I
NVESTMENT FRAMEWORK  
 
Report by the Government of the Unite d Arab Emirates, paragraphs 61-65  
 
 How will the UAE ensure the compatibility of the emiratization policy with the open climate 
for foreign investment the UAE wishes to create?  III. TRADE POLICIES AND PRACTICES BY MEASURE (2) Measures Directly Affecting Imports  Rules of origin  WTO Secretariat's Report, page 24, paragraph 17  
Does the UAE consider making a formal notificati on of its Rules of origin to the WTO in the 
near future? 
R
EGISTRATION AND EXCLUSIVE DISTRIBUTION RIGHTS  
 WTO Secretariat's Report, page 22, paragraph 8 
Under the Trade Agencies Law importing activities and wholesale and retail distribution services are 
reserved for exclusive agents. An agent must be an UAE national or a company owned by an UAE 
national. The agency agreement must be registered with the Ministry of Economy and Planning. Once an agency agreement is registered, it cannot be fi nished without the agent's approval, even when 
initially agreed term has elapsed. It is very diffi cult to terminate this sort of agreements and 
considerable compensation must be paid to the agent as decided in court. WT/TPR/M/162/Add.1 
Page 16  
 
 Does the UAE envisage eliminating this rule, which is creating a de facto  monopoly of import 
on most products and precludes foreign companie s from terminating without compensation their 
agency agreements, even tho se agreed for a fixed term?  
 
C
USTOMS PROCEDURES  
The EC welcome the introduction by the UAE of far-reaching customs reforms. The WTO 
Secretariat's Report notes that customs clearance times in D ubai are reported as among the shortest 
worldwide.  
 What have been the main challenges in ensuri ng the efficiency of its customs procedures and 
does the UAE have plans for further reforms (for exam ple to increase the percentage of declarations 
processed electronically)?  
GOVERNMENT PROCUREMENT  
WTO Secretariat's Report 
 Could the UAE authorities provide statistical da ta or estimates regarding procurements made 
by state-owned companies. Could statistical data also be provided for each Emirate (paragraph 49)? 
 
 When tenders are open to foreign companies and establishments, there are invited to open a 
branch and employ a service agent. Are they require d to do this before tendering or only if they win 
the contract (paragraph 53)?   Do the UAE authorities plan to have all tenders published electronically in one single web-
site, free of charge (paragraph 54)? Where is the notice regarding planned procurement published at 
the beginning of each fiscal year?   Do the UAE authorities eventually plan to pu t in place a standard system for suppliers to 
challenge the award of a contract? Are there an y cases where foreign companies did challenge the 
award of contracts (paragraph 55)? 
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(v) F REE ZONES  
WTO Secretariat's Report, page 38 
Paragraph 72 mentions imports from free zones a nd duty-free shops into the customs territory are 
liable to all the normal customs duties and tax es (except, as mentioned above, the GCC-owned 
companies that meet the 40% rule of origin criterion).  
 This appears to constitute a local content re quirement. Could the UAE please explain how this 
provision is compatible with Article 3 ASCM? 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
Incentives 
WTO Secretariat's Report, page 39 
It is stated under paragraph 75 Box III.1:  Pr ovisions of Federal Law No. 1 of 1979 Organizing 
Industrial Affairs Article 20:  
The Council of Ministers, and the authorities in th e Emirates, may grant projects that meet certain 
conditions, the following privileges and exemptions: subsidies to exports and protective measures for 
local products, taking into considerati on their kind, quality and quantity.  WT/TPR/M/162/Add.1 
 Page 17 
 
 
Article 21:  Priority for the privileges and exemptions  mentioned in Article 20 is given for: 
competitive, export-oriented or export-substitution projects and projects using local raw materials; 
 These provisions appear to constitute export and local content requirements incompatible with 
Article 3 ASCM. Could the UAE please describe these conditions and measures in more detail and explain how they are compatible with Article 3 ASCM? 
C
OMPETITION POLICY  
Report by the Government of the Unite d Arab Emirates, paragraphs 57-58  
 
 Does the UEA have the intention to establish a Competition Policy and if so, within which 
time frame? Could the UEA also, if that is the case,  clarify if this would be  done on a national level 
and/or in the GCC context? 
 
INTELLECTUAL PROPERTY RIGHTS  
Patents  
 Could the United Arab Emirates indicate if it has already implemented the WTO Decision of 
30 August 2003 on the Implementation of Paragr aph 6 of the Doha Declaration on the TRIPs 
Agreement and Public Health in order to allow its generic companies to manufacture pharmaceutical 
products under compulsory licence for export to coun tries with public health problems? If not, please 
indicate when you intend to do so?  Geographical Indications  
In paragraph 98 of the WTO Secretariat's Report it is mentioned that the Trademarks Law does not 
contain a definition of Geographical Indications.   
Does the United Arab Emirates foresee to introd uce in the near future specific provisions for 
the protection of Geographical Indications in accordance with articles 22 to 24 TRIPs? Please 
describe and explain the provisions of your legislation establishing a link, if any, between the characteristics of an indication and its geographi cal origin. Please explain whether or not your 
trademark registration authority refuses a Tradem ark application if it contains a Geographical 
Indication.  Please explain how exceptions under Ar ticle 24 of the TRIPs Agreement are (will be) 
used in your jurisdiction.   
 
Undisclosed information, includ ing trade secrets and test data  
 
 Please explain how your legislation defines da ta submitted to governments or governmental 
agencies. 
 Law No. 4 of 1983 related to pharmaceutical institutions and the pharmacy profession (WTO 
Secretariat's Report, para 100) provides that all in formation submitted must be kept confidential. 
  Does this provision prevent the regulatory authorities from disclosing such data and from 
relying on such data when examining similar products from generic manufacturers during a given 
period of time?  How does the United Arab Emirates construe the words protecting data against unfair 
commercial use of Article 39.3 of the TRIPs Agreement?  
Enforcement 
  Please explain whether specific enforcement authorities have been designated to combat 
counterfeiting and piracy and whethe r they are already operational. 
 WT/TPR/M/162/Add.1 
Page 18  
 
IV. TRADE POLICIES BY SELECTED SECTORS    
(4) M
ANUFACTURING  
Textiles and clothing  
 How does the UAE apply its antifraud policy and which legal regulations are applied in this 
field? 
 Which sectoral policies are applied for the tex tiles and clothing industry, footwear and hides 
and skins?  
(5) S
ERVICES  
Tourism 
 How many people work in the tourism sector a nd what has been the evolution in the last 
years?  
 How much of the FDI attracted by the country in  the last years has been in the tourism sector? 
  What are the UAE' concrete plans to promote the tourism sector, and what measures is the 
government taking to ensure non-discrimin ation of Foreign Service suppliers? 
  What are the UAE' plans for improving professi onal education and training related to the 
tourism sector?   What is the approach of the UAE to the re gulation of tourism-rela ted aspects of general 
interests such as environment, wildlife, urban planning, etc? 
  What is the UAE' assessment of  the effect of the tourism sector on overall economic growth 
and employment, and in particular in other economic sectors like construction, transport, computer 
services, education and professional training. 
Distribution services 
 What existing legislation is applicable to retailing services? 
  How many people work in the distribution sector and what has been the evolution in the last 
years?  
 What is the UAE' assessment  of the effect of the distribution sector on overall economic 
growth, employment and social development, and also on other economic sectors like construction, 
transport, computer services, education and professional training. 
Telecommunication 
Report by the Government of the United Arab Emirates, paragraph 27  
 The UAE state that telecommunication services ha ve been liberalised, but in fact Etisalat 
State monopoly has been replaced by a State duopoly af ter the conditions created by the establishment  
of a new State company, Emirates Integrated Te lecom Company,  and a Regulatory Authority to 
prevent competition in prices between both companies. 
 When do the UAE plan to further liberalise telecommunication services?  WT/TPR/M/162/Add.1 
 Page 19 
 
 
QUESTIONS FROM ARGENTINA 
 
II. TRADE POLICIES AND PRACTICES BY MEASURE 
 Page 21, paragraph 2 of the Report by the Secr etariat states that technical regulations and 
procedures implemented with respect to imports at the border are based on internationally accepted 
standards.  According to the Report, the exclus ive "agency law" has a significant impact on the 
segmentation of the market, and hence would appear to  contribute to the lack of competition.  Could 
you please explain what this law is? 
 Page 27, paragraph 29 of the Report by the Secretariat mentions that in certain cases, imports 
of products are prohibited in some member States but permitted in others.  Could you please tell us 
what products are involved?  How much progress h as been made with the mentioned initiative of 
developing a common list? 
III. TRADE POLICIES BY SECTOR 
 Paragraph 56 on page 59 of the Report by the Secretariat states that there is a UAE Offsets 
Group that provides assistance in promoting industr ial development through Offsets Programmes.  
Could you please tell us what these programmes are and in what sectors this assistance is 
concentrated? 
QUESTIONS FROM THE UNITED STATES OF AMERICA 
 
TRADE POLICIES AND PRACTICES BY MEASURE 
Measures Directly Affecting Imports – Impor t Prohibitions, Licensing, and Controls 
 
Paragraph 31 on page 29 of the Secretariat Repor t stated that the UAE notified the Committee on 
Import Licensing that the UAE maintains no import licensing requirements.  The Secretariat Report also stated that "certain goods require prior authorization for, inter alia , health, security, moral, 
religious, and safety control purposes certain goods require prior authorization for, inter alia , health, 
security, moral, religious, and safety control purposes."   
 
What are the application processes and the fees associated with obtaining prior authorization 
to import such goods?  
Measures Directly Affecting Imports – Contingency Trade Remedies 
 In paragraph 32 on page 30, the Secretariat Report indicated that the UAE has adopted the provisions 
of anti-dumping and countervailing, and safeguard m easures contained in the GCC Treaty, for which 
implementing regulations have yet to be finalized.    
When will the UAE finalize th ese implementing regulations?  
 
Measures Directly Affecting Imports – Standards and Other Technical Requirements – Standards, 
Testing, and Certification 
 
We appreciate the information in paragraphs 33 and 35 on page 30 of the Secretariat Report regarding 
UAE standards and technical regulations.   
  Please provide further information as to how interested parties in all WTO members are able to participate in the development of UAE standards and technical regulations. 
 
 What steps is the UAE taking to notify the WTO of its standards and technical regulations? WT/TPR/M/162/Add.1 
Page 20  
 
The Secretariat Report stated in paragraph 34 on page 30 that "The law provides for ESMA to become 
financially and administratively indepe ndent, with revenues increasingly from, inter alia , sales of 
standards, conformity assessment program s, accreditation, and quality marks." 
 
Please provide further information on how ESM A determines the fees that it charges. 
 
According to paragraph 35 on pa ge 30 of the Secretariat Report, UAE standards are based on GCC 
standards, including food standards.   We understand that in the ab sence of GCC approved standards, 
the UAE's General Secretariat of Municipalities (GSM) sets food safety regulations based on recommendations made by National Committees. 
 
 Please describe the role of the GSM and its relation, if any, to ESMA.   Please describe the process by which the GSM interacts and ensures that all eleven 
municipalities adhere to estab lished food safety standards 
 
Paragraph 36 on page 30 of the Secretariat Repor t provides information on conformity assessment. 
  Is accreditation open to foreign laboratories?  If so, what is the process?  If not, why not? 
 In paragraphs 40 & 41, the Secretariat Report indicated that most agricultural imports must be 
accompanied by a veterinary or phytosanitary (as appropriate) certificate issued by the competent 
authority in the exporting country and that the certificate must be "attested by an Arab country's embassy."  
Please explain why the certificate needs to be verified by an Arab country's embassy. 
 
Measures Directly Affecting Imports – Standards an d Other Technical Requirements – Marketing, 
Labelling, and Packaging 
 
As reported in paragraph 44 on page 32 of the S ecretariat Report, the UAE abolished the half-life 
shelf-life requirement on imported products in 2004.   
 
 Please identify the legislation or Ministerial Decree that ended this requirement.  
Is this legislation enforced throughout all municipalities?  
It is our understanding that at least two muni cipalities have issued decrees requiring production and 
expiry dates in the health certificates for all imported foods.     Please explain the coordination process between the GSM, the municipalities, and the inquiry point, in the issuance of import regulations.    
 Are there any efforts underway to ensure regulatory compliance and collaboration among all 
federal and municipal entities as they implement changes in food standards and measures?    
 
Measures Directly Affecting Imports – Government Procurement 
 The Secretariat Report stated in paragraph 49 on page 33 that procurements by "other public bodies, 
including state-owned enterprises and municipaliti es, appears to be relatively opaque".   
  Are the procurement rules and regulations appli cable to these entities accessi ble to the public?   
  WT/TPR/M/162/Add.1 
 Page 21 
 
 
 If so, where can they be found?  If not, does the UAE intend to make them available to the 
public?   Are the tender notices and contract awards of these entities accessible to the public?  If so, 
where can they be found?  If not, does the UAE intend to make them available to the public? 
 
Measures Directly Affecting Exports – Export Subsidies, Finance, Insurance, and Assistance 
 
The Secretariat Report indicated in paragraph 67 on page 37 that the Emirate Industrial Bank provides 
financing "at reasonable terms" for the industrial sector , including export credits and equity financing.   
 
Please provide further information regarding the terms of financing provided by the Emirate 
Industrial Bank.  For example, what is meant by the term "financing at reasonable terms?" 
 According to paragraph 68 on page 37 of the Secret ariat Report, export promotion is the responsibility 
of each emirate.   
  Please provide further information regarding UAE and individual emirate export promotion 
programs.  In paragraph 70 on page 37, the Secretariat Report related that one type of license granted in UAE's 
free zones, the "national industrial license," allows duty-free sales inside the UAE customs territory.   
  Please explain in more detail the requirements that must be met for a company to receive a "national industrial license."  Measures Affecting Production and Trade – Stat e-Owned Enterprises, State Trading, and 
Privatization 
 
Paragraph 76 on page 39 of the Secretariat Repor t noted that "quite a few state-owned companies 
appear to be engaged in interna tional trade", and paragraph 77 goes a dds that "in general, the emirate 
governments retain a large and direct control ove r the economy, and consequently over external 
trade."     
  Please advise whether any of the companies specified in paragraph have special and/or exclusive trading privileges granted by the UAE govern ment and/or any of the emirates governments.   
 
Please advise if any UAE firms have special and/or exclusive trading privileges.   
 In paragraph 77 on page 39, the Secretariat Report advised that some state enterprises are both operators and regulators.   As part of its economic reform, does the UAE intend to separate regulatory activities from 
commercially active state enterprises?  If so, wh at would be the timetable for such actions? 
 
Measures Affecting Production and Trade – Intellectual Property Rights 
 
 Please explain how plant varieties are protected in the UAE. 
 
In paragraph 100 on page 43, the S ecretariat Report advised that confidential information relating to 
pharmaceutical products submitted to the registration aut hority must be kept confidential, and that the 
term of protection is five years.  TRIPS Article  39(3) also requires the protection of undisclosed 
information required for the marketing approval of pharmaceutical and agricultural chemical products 
containing new chemical entities from unfair commercial use. WT/TPR/M/162/Add.1 
Page 22  
 
 Please explain the system, if any is in place,  for protecting such information from unfair 
commercial use.  
Measures Affecting Production and Trade – In tellectual Property Rights – Geographical 
Indications 
 
Paragraph 98 on page 43 of the Secr etariat Report indicated that "geographical indications can be 
considered as trademarks if they are used to di stinguish goods or services with regard to their 
production, selection or commercialization.   
 Does this statement mean that UAE protects GIs through its trademark system, where the 
same mechanisms that are used for trademarks, e.g.  application, examination, opposition, registration, 
cancellation, are also used for geographical indications?   Also, please confirm the means by which the exclusive rights of trademark owners, consistent 
with Articles 16(1) and 24(5) of the TRIPs Ag reement, are protected under UAE's laws from 
confusingly similar and later in  time geographical indications. 
 
Measures Affecting Production and Trade – Intellectual Property Rights – Enforcement 
 
Paragraph 101 on page 43 of the Secretariat Report specifies that UAE's IP measures are aimed at 
preventing violation of intellectual property righ ts and cover topics such as seizure, removal, 
destruction, and compensation.   Does "compensation" include the authorization of  the judicial authorities to order the payment 
of monetary damages in an amount adequate to co mpensate the right holder for the injury suffered by 
as a result of the infringement?  
 Paragraph 101 on page 43 of the S ecretariat Report specifies that the UAE's IP measures allow for 
preventive seizure.   Does this mean judicial authorities may adopt provisional measures inaudita altera parte  (ex 
parte)?  
 
QUESTIONS FROM THE REPUBLIC OF KOREA 
 
1 Economic Environment(WT/TPR/S/162, p.2, para.5)   
 
 The UAE government requires foreign compani es which employ equal to or more than 100 
people to hire Emirati Public Relations Officials
* (PROs) from 2006. On the other hand, foreign 
companies which employ less than 100 people are required to hire PROs irrespective of their 
nationality. However, the fee for obtaining a PRO license differs depending on the nationality of the 
applicant. The fee for foreigners is Dhs 2000 whereas the fee for UAE nationals is Dhs 500. 
Consequently, this system makes foreign compan ies with employees less than 100 hire an Emirati 
PRO instead of a foreigner. Does the UAE government have any future plans to abolish the 
discriminatory regime on PRO employment?   
 
2. Intellectual Property Rights (IPRs)(WT/TPR/S/162, p. 43 para. 102)   
 Principally, the UAE government protects IPRs including trademarks, but there still remains the piracy of trademarks. For example, blankets a nd seat covers made in de veloping countries are sold 
with made in Korean mark. Does the UAE government have any future plans to reinforce the 
protection of IPRs?   
  WT/TPR/M/162/Add.1 
 Page 23 
 
 
3. Certification of commercial invoices system  
 
 UAE customs procedure requires commercial invoices to be certified by the UAE Embassy in the country of origin. The fees that the UAE Emba ssy charges in some countries seem unreasonably 
high and burdensome. Please explain the UAE's releva nt laws and regulations, along with any future 
plans to revise current certification system.  WT/TPR/M/162/Add.1 
Page 24  
 
WRITTEN REPLIES BY THE UNITED ARAB EMIRATES 
FIRST DAY (24 APRIL 2006) 
 
ANSWERS TO QUESTIONS FROM AUSTRALIA 
 Competition Legislation 
 Australia notes that the UAE does not have competiti on legislation.  We would welcome information 
on plans for competition legislation, includi ng scope and timeframes for development and 
implementation. 
 In order to protect consumers from gr oundless price increases, the UAE Government is 
currently assessing enacting a Competition Law. This is in line with the strategy of the UAE 
government to create an enabling business environment that is conducive to economic growth. Sector 
specific competition policies do exist and are enfo rced.  In particular, the Telecommunications 
Regulatory Authority (TRA) issues policies and when necessary, directives concerning competition 
within the telecom sector.  Some of the regulato ry instruments for overseeing competition within the 
telecom sector can be found on the TRA's website:  www.tra.ae 
 Different model laws are being considered. Th e GCC Secretariat has submitted a draft for a 
unified GCC competition law, which the UAE is currently examining. In addition, several regional 
experiences are being considered.  
 The Ministry of Economy is likely to have the mandate to develop and implement the 
Competition Law. In addition, a consumer protection law is in its final stages of ratification.  
 
GCC Free Trade Area 
 Further to the discussion at (II), paragraph 21 of the GCC free trade area, and in particular the 
observation that the full harmonisation of the list of pr oducts subject to rates higher than 5% has yet to 
be addressed, can the UAE advise when it is exp ected that full harmonisation will take place.  
  The full harmonization of the list of products  subject to higher rate than 5% is under 
discussion within the GCC, and is subject to further analysis, but we can note that this issue will be solved in the nearest future.   
 Agriculture 
 Further to the observation at (IV), paragraph 10 that agriculture contributes 2.7% of GDP (2003) 
whilst employing approximately 9% of the UAE work force, and also recognising the significant water 
depletion, poor soil quality and the hot and arid clim ate in the UAE, Australia would be grateful for 
advice on the UAE's future agricultura l policy in light of these issues.  
  Special attention was given to promoting agriculture and combating desertification despite 
the hard climatic conditions and the scarcity of water resources, which c onsiderably increased the 
area of cultivated land in the UAE. In order to emphasise its commitment to the principle of 
protection of the environment and achievement of sustainable development, the UAE finalised its 
National Environmental Strategy and the National Environmental Action Plan in accordance with 
agenda for the 21st century.  
 The United Arab Emirate's key policy objectives fo r agriculture are, inter alia: developing the 
sector by managing natural resources in an effic ient and sustainable manner, encouraging the 
production of products of compar ative advantage, improving the pr oductivity, desertification control, 
and emphasizing environmental issues.  WT/TPR/M/162/Add.1 
 Page 25 
 
 
 The government is working to achieve th e policy objectives through the investment on 
infrastructural services, including: water supply fa cilities, dams, drainage and irrigation facilities, 
issue legislation related to water use and other natural resource management, provide advice for the 
farmers on how to reduce their water consumpti on, encouraging the use of modern irrigation 
methods, promotion of the use of treated water, and monitoring current rates of extraction of aquifers. 
The government also invested in infrastructural works associated with environmental programmes, 
encouraging more use of bio-fertilizers and bio-pes ticides in order to limit environmental damage, 
improve roads, market and port facilities. The go vernment also concentrates on research, pest and 
disease control, quarantine, extension and adviso ry services, inspection servi ces,  veterinary services, 
desert  forestation, capacity building as means for effecting development and growth.  
 
Food Regulation and Labelling Requirements  
 Australia notes the discussion on marking, labe lling and packaging at III, paragraphs 43 and 
44.  In addition, Australia is aware that there are varying food expiration dates between Emirates, 
requiring different labelling requirements.  Are th ere plans to harmonise food regulation and labelling 
requirements across the Emirates?  Can the UAE c onfirm that shelf-life requirements have been 
abolished?  
 UAE has national standards for food expirati ons and for labelling and these are implemented 
in all Emirates, and it is not accurate that th ere are varying food expiration dates between emirates; 
also it is not accurate that different labelling requirements are implemented across the Emirates. 
  While for the shelf–life requirements, it has been amended and not abolished, the amendment 
which was approved by UAE cabinet decision no. 29 for the year 2004 dated 26
th September 2004 
was with regard to the abolishment of the requirem ent that it is not allowed for products that 
exceeded half shelf life to access markets in UAE.  
ANSWERS TO QUESTIONS FROM TURKEY 
 
II. TRADE AND INVESTMENT REGIMES (4) TRADE AGREEMENTS 
(i) WTO 
 
In Paragraph 19, the Secretariat Report under lines the active participa tion of UAE into NAMA 
Negotiations in general and sectoral tariff negotiations   (sectoral tariff elimination proposal towards 
raw materials, including non-ferrous metals, with primary aliminium at its core) in particular.  
 
  Could UAE Delegation kindly evaluate how it assesses the sectoral tariff negotiations 
 conducted so far with a view to improving industr ial trade relations among developing countries?  
 
 The United Arab Emirates' sectoral initiative s ubmitted to the World Trade Organization with 
respect to the non-agriculture market  access negotiations proposes the elimination of all customs 
tariffs on raw materials, including non-ferrous metals with strategic priority for primary aluminum.   
  The initiative supports the diversification of exports, especially in sectors where developing 
countries have a comparative advantage. It is expected that the elimination of tariffs on raw materials 
would increase the demand of such materials in th e world market and allow for a fair level playing 
field for those commodities.   The initiative aims at reaching a balanced  approach between tar iff reductions through a 
formula approach - which does not in many cases fo cus on areas of interest to developing countries - 
and the aim of increasing exports of raw materials that many developing countries consider an WT/TPR/M/162/Add.1 
Page 26  
 
essential element of the economy. Exports of raw ma terials contribute to more than 50% of the GDP 
of many developing countries.   The United Arab Emirates reaffirms its fu ll support of the "less than full reciprocity" 
approach accorded to developing countries as a speci al and differential treatment, and notes that the 
initiative falls under the development aspect of th e Doha Agenda. Sectoral initiatives have been a 
point of divergence among developing and developed countries during the fifth Ministerial meeting of the WTO Members in Cancun 2003, the differences mainly  relate to whether or not participation of 
WTO Members in such initiatives shoul d be mandatory or voluntary. 
 
 In this respect, and based upon the positions of WTO Members and with regard to the past 
experiences on the Zero to Zero initiative of the ASEAN countries, the United Arab Emirates fully 
supports the position of the developing countries w ith regard to the voluntary approach of the 
sectoral initiative. This reflects the flexibility  referred to in the July package of 2004.  
 
 With the aim of addressing the sensitive issues existing in handling a sectoral initiative, the 
UAE would like to also point out that developing countries who decide to participate in the initiative may look for a selective participation approach, which would provide the necessary flexibilities and allow these countries the possibility to exclude sen sitive materials and ask for longer transitional 
periods for application or adoption of the initiative.     
 Primary aluminum can account for up to 50%  of the cost of an aluminum semi-finished 
product, a duty free primary aluminum would th erefore, stimulate consumption and support the 
competitiveness of this material. The initiative w ould allow for a reduction in the speculative and 
distortive pricing of raw materials, which in turn  would provide more predictability in the operation 
of the aluminum market and secures a more trans parent environment in connection thereto.  
 A sectoral agreement on raw materials, including primary aluminum, can be considered an 
example of cooperation and convergence between  the interests of both developed and developing 
countries of the WTO, noting at the same time that it is important for all Member states to maintain 
the objective of a balanced agreement on all points of negotiations.      
(ii) Regional Agreements 
(b) Gulf Cooperation Council 
 
Paragraph 21 states that "since January 2003, GCC states have been in the process of setting up a 
customs union: a common across-the-board tariff of 5 % on most products has been in place since 
then. And a common customs law was also enacted. However, in the same paragraph, it is also 
stressed that "practical details of certain trade issues have yet to be addressed, including fully harmonizing the list of products subject to rates higher than 5 %, and standards and technical 
regulations." 
 
  Could UAE please provide further information on the problems that GCC has been 
 facing both on practical and policy level?  
 The full harmonization of the list of products  subject to higher rate than 5% is under 
discussion within the GCC, and is subject to further analysis, but we can note that this issue will be solved in the near future.   
 
(5) INVESTMENT FRAMEWORK 
 
In the Secretariat Report, under paragraph 27, it  is stated that "While the UAE's economic 
environment is generally liberal and business friendly, its investment policy continues to discriminate 
between local and foreign investor s, except in the free zones."  
  WT/TPR/M/162/Add.1 
 Page 27 
 
 
  Could UAE Delegation kindly elaborate if there are any provision for eliminating this 
 discrimination between local and foreign investors? 
 The UAE is keen on progressive liberalization in a wide range of its services sectors.  This is 
especially important given that services now make up over 50% of its GDP. The UAE's initial offer on 
services, is in line with the policy objectives set by the Government and its reform process that is 
currently under way. The Federal Companies Law is in the process of being amended allowing the 
Council of Ministers to determine the sectors that non-nationals can operate in and the foreign equity participation thereof, which may be up to 100% in sectors that would be specified in a Cabinet's 
decision. Once a decision has been issued secto rs included and foreign equity participation may not 
be reduced. 
 
In the Secretariat Report, under paragraph 28, it is st ated that "There is no law in the emirate of Dubai 
that regulates land ownership. According to the auth orities, a law is currently being drafted to clarify 
all ambiguities surrounding the legal status of land ow nership and long term leased real estate in the 
exempted areas"  
   Could UAE Delegation give information about th e time that will take to finalize this law, 
 which in turn will give an end to the ambiguities relating to the legal stat us of land ownership in 
 Dubai? 
 
  With regard to real estate registration in the Emirate of Dubai, the Law no. (7) of 2006 was 
 issued in March 13
th 2006.  
 
  Article 4 of the Law provides that non-natio nals may be granted, pursuant to the approval 
 of the ruler of the Emirate, the following  rights in designated areas in the Emirate: 
 
- Freehold ownership of a real estate. - Lease of a real estate for a period not exceeding (99) years. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(iii) Rules of origin 
 
Regarding the imports from Dubai to Turkey of goods  subject to trade remedy tools, we have been 
experiencing some difficulties with the origin i ssue. Apparently, serious doubts occur on the Turkish 
side about the origin of goods subject to an ti-dumping duties merely transhipped via Dubai. 
  Turkey would like to know whether the authoriti es have any suggestions to solve this problem 
in the near future. 
 The UAE issues non-preferential certificates of or igin for locally produced goods only if  they 
 need a minimum added value requirement of 40% of its ex-works price calculated in accordance with 
 the fall-down method if they are produced by a manu facturer officially registered with the Ministry of 
 Finance and Industry and the Chambers of Commerce. There is no other way that goods exported 
 from the UAE can get a certificate of origin, theref ore the UAE has never participated in any practice 
 to circumvent any trade remedy measures adopted by any other country.   
 
(viii) Government procurement 
 
In the Secretariat Report, under paragraph 49, it is  stated that "According to  certain business sources, 
provisions of the procurement regime may vary fr om contract to contract. The UAE is neither a 
member of nor an observer to the WTO Plurila teral Agreement on Government Procurement" 
 WT/TPR/M/162/Add.1 
Page 28  
 
  Could UAE Delegation give information if there are any measures in order to avoid the 
 discrepancies that may occur due to this applica tion and if it is considered to be a party to the 
 WTO Plurilateral Agreement on Government Procurement? 
   At the Federal Level, all procurement is subject to a single federal legislation. The UAE 
 federal government through the Ministry of Fi nance and Industry procures all goods and services 
 electronically. 
 
  As for public works, the UAE laws allow th e Ministry of Public Works to electronically 
 procure. A full-fledged system is curren tly underway to tackle this endeavor.   
 
  The report notes in paragraph 49 of Part III that the procurement regime may vary from 
 contract to contract, what is meant, we believe, is  that each Emirate, pursuant to the constitution, has 
 its own legal instrument that govern procurement,  but in all cases transparency, international best 
 practices and efficiency rules applies in the Emirates.    
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(ii) Export duties and taxes 
 
Secretariat Report, para  65 mentions that  since 2003, an export tax on stell scrap has been levied at 
the rate of Dh 250 per tonne. 
 
  Could the UAE delegation explain the reason of th e tax application and if there is any plan to 
 abolish it? 
   The construction sector is booming in the UAE and according to recent studies there would 
 be investments reaching US$ 300 billion during the next few years. The shortage in construction 
 materials including steel is very much a concern , and the introduction of the export duty on steel 
 scrap comes from the fact that, currently, the availabl e steel scrap in the UAE is estimated to be 400 
 thousand tonnes which, in turn, would assist in partially solving this concern. The export duties on 
 steel scrap are applied to satisfy the need of economic development and are not directed to increase 
 the exports of or the protection afforded to domestic industry. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) MEASURES AFFECTING PRODUCTION AND TRADE (iii) Competition policy and Price Controls 
 
Paragraph 80 of the Secretariat Report states that the UAE does not have competition legislation. It is stated in this report that the lack of compe tition results from the market-segmenting effects of 
exclusive agency laws  and that these exclusive rights also constitute a barrier to full GCC integration. 
 
  Is there any plan to enact competition law at the national level ?  
 In order to protect consumers from gr oundless price increases, the UAE Government is 
currently assessing enacting a Competition Law. This is in line with the strategy of the UAE 
government to create an enabling business environment that is conducive to economic growth. Sector 
specific competition policies do exist and are enfo rced.  In particular, the Telecommunications 
Regulatory Authority (TRA) issues policies and when necessary, directives concerning competition 
within the telecom sector.  Some of the regulato ry instruments for overseeing competition within the 
telecom sector can be found on the TRA's website:  www.tra.ae  WT/TPR/M/162/Add.1 
 Page 29 
 
 
 Different model laws are being considered. Th e GCC Secretariat has submitted a draft for a 
unified GCC competition law, which the UAE is currently examining. In addition, several regional 
experiences are being considered.  
 The Ministry of Economy is likely to have the mandate to develop and implement the 
Competition Law. In addition, a consumer protection law is in its final stages of ratification.  
 
ANSWERS TO QUESTIONS FROM HONG KONG, CHINA 
 Telecommunication Services (WT/TPR/S/162, P. 69, Paras. 107-108) 
  While the telecommunication market in the UAE  has been expanding rapidly, the services 
remain to be supplied solely by the state-controlle d monopoly.  We welcome the UAE's plan to allow 
a second full service provider to enter the market in 2006, but apart from this, are there any other plans to further liberalise the market for the be nefit of lowered cost, higher quality services, and 
enhanced economic efficiency?  
 
 In addition to the GATS and the Telecom Reference Paper, the UAE has submitted its 
Schedule of Commitments regarding market liberalization. 
 
Financial Services (WT/TPR/S/162, P. 4, Box I.1; and P. 76, Para. 135) 
 
 It is stated that the emiratization policy h as been introduced in the UAE since 1998 with the 
objective to increase the number of nationals employe d in private sector activities, and as a result, all 
banks and insurance companies were required to increase the number of UAE staff to a prescribed 
level.  It is however noted from UAE's existi ng GATS Schedule of Specific Commitments that full 
national treatment is granted to the "Banking and Ot her Financial Services" co vered in its schedule.  
Would the UAE advise on the compatibility of emira tization policy in the financial sector with its 
existing GATS commitments?    The UAE's emiratization policy in the financial services sector is compatible with its existing 
GATS commitments regarding National Treatment. This policy is applicable to all banks and financial institutions operating in the UAE whether they are national banks or branches of foreign 
banks. 
  We are pleased to note that albeit the introduction of a moratorium on the licensing of new 
foreign banks in the UAE since 1981, the Centra l Bank has reportedly announced that it will be 
issuing new licences to banks and allow existing foreign banks to open new branches provided they 
comply with emiratization quotas.  Would the UAE brief us about its plan for the issue of new banking licences in greater details, including the e ligibility criteria, the licensing conditions, and the 
schedule for the issue of the licences, etc?  Would the UAE consider improving its existing 
commitments in financial services in this round of services negotiations accordingly?  
 
 The issue of granting new licenses to banks or  allowing existing foreign banks to open 
additional branches is a policy decision that is u nder consideration by the Board of Directors of the 
Central Bank of the UAE. The Board of Directors of  the Central Bank of the UAE sets the policies for 
the financial sector for the country, and as such th e Board of Directors would be reviewing the UAE's 
existing commitments in financial services.  WT/TPR/M/162/Add.1 
Page 30  
 
Maritime Transport Services 
(WT/TPR/S/162, P. 62, Para. 73; P. 64, Para. 83; and WT/TPR/G/162, P. 10, Para. 48) 
 
 We note that the UAE has been developed as a regional hub for maritime transportation and 
logistics services.  There have recently been large ou tflows of FDI by Dubai Ports International (now 
DP World) in port services.  The Secretariat has al so pointed out that the UAE does have comparative 
advantage in transport.  All these suggest the read iness and the potential of the UAE's transport sector 
to compete internationally.  In this regard, we note that UAE has newly offered commitments on 
freight transportation under maritime transport ser vices, but have not included any commitments on 
maritime auxiliary as well as port services.  We  would therefore like to encourage the UAE to 
undertake further commitments in the maritime tr ansport sector in accordance with the Maritime 
Model Schedule, as well as in the various sub-sectors in core freight logistics services, including 
through a relaxation of the restrictions on foreign e quity participation.  Would the UAE please advise 
whether it has any plan for improvi ng its offers in these sectors? 
  Foreign investment in port services must be ha ndled, reviewed and decided at the individual 
Emirate level. In line with the international practi ces, the tendency is to separate the Authority from 
the commercial operation of the ports within the United Arab Emirates. This has happened in Dubai 
and is happening in Abu Dhabi as well. Some examples include:   DP World as a commercial global operator is running three terminals in UAE.  
 In Emirate of Sharjah there is a private company (Gulftainer) running their container 
 terminal.  In Ras Al Khaimah there is also a private Kuwaiti company awarded to run their terminal. 
  This demonstrates that the UAE is open to foreign investment; nevertheless, the UAE believes 
that FDI ought to be handled carefully at the va rious Emirate level specifically due to the small 
percentage of UAE nationals vis-à-vis total population.  
 
ANSWERS TO QUESTIONS AND COMMENTS FROM THE EUROPEAN COMMUNITIES 
 
I. E
CONOMIC ENVIRONMENT  
(3) I NWARD INVESTMENT  
Paragraphs 10 and 56 
Paragraph 10 explains that outside the free zones, foreign ownership is generally set at a ceiling of 
49%, though that is changing with the UAE' commitments to the WTO. Paragraph 56 adds that the reform  of the current investment framework (through amendments to the 
Company Law) is perceived as one of the most important ways to materialize the objectives of further 
diversification of the economy and attracting more FDI. 
 Could the UAE elaborate on this, especially on prohibition or limits stricter than the 49% 
general cap on foreign investment in sectors re lated to the extraction of natural resources? 
 The UAE is keen on progressive liberalization in a wide range of its services sectors.  This is 
especially important given that services make up o ver 50% of its GDP. The UAE's initial offer on 
services is in line with the policy objectives set by  the Government and the reform process that is 
currently under way. The Federal Companies Law is in the process of being amended allowing the 
Council of Ministers to determine the sectors that non-nationals can operate in and the foreign equity participation thereof, which may be up to 100% in sectors that would be specified in a Cabinet's 
decision. Once a decision has been issued secto rs included and foreign equity participation may not 
be reduced. 
 As for natural resources, this sector is excl uded from the Federal Companies Law of the 
UAE, and according to Article (23) of the Fed eral Constitution of the UAE ownership of natural  WT/TPR/M/162/Add.1 
 Page 31 
 
 
resources is vested in each Emirate and not the Fe deral Government. The foreign equity in projects 
related to natural resources in the UAE is to be de termined by the competent authorities of the local 
government of the Emirate, in which natural resources are located. Each Emirate practices its 
right in accordance with its development need s, requirements for investment, technology, and 
technical know-how. Currently, there are some companies working in the natural resources sector 
(including the petroleum sector) in the UAE with foreign equity up to 100%. 
II.  T RADE AND INVESTMENT REGIME  
(2) T RADE POLICY FORMULATION  
 
Bilateral, regional and global trad e liberalisation is vital for promoting prosperity, growth and 
development to the benefits of the world at larg e. The EC considers that the WTO and multilateral 
liberalisation is the most certain way for promo ting global interests for industrialised countries and 
developing countries at large.    How does the UAE judge the relative importan ce and weight of bilateral/FTA policies and 
further development of the WTO system in term s of its own trade and development needs?  
 
 The UAE is a staunch advocate of multilateralism.  As a developing economy that thrives on 
free trade (as evidenced by a total trade that constitutes around 145% of GDP), the UAE believes that 
it is essential to have a strengthened international tr ade system which is fully legitimate, fulfils the 
aspirations of most (if not all) of its members, and lays down the principles and rules for promoting 
international trade liberalization. To fulfil that ro le, the WTO occupies a unique position that no other 
forum can equal.    Notwithstanding its commitment to multilateralism, the UAE adopted a more open-minded approach in pursuing high-standard, WTO-consistent FTAs with its  trading partners, in recognition 
of the potential of such agreements to reinforce global trade liberalization.   
 Sustainable development 
 In what ways does the UAE think trade policy can best contribute to sustainable 
development?  
 What plans does the UAE have for adoption of policy strategies in order to enhance 
sustainable development? Does the issue of trade and sustainable development fit into the UAE' 
overall development strategies?   What steps does the UAE take to ensure th at its trade policy does not have any negative 
effects on sustainable development in the UAE and elsewhere? 
 
 Sustainable development has been an increasi ngly important objective of public policy, and 
sustainable development is now an essential com ponent of government policy. Environmental 
concerns are an important element in sustainable de velopment in UAE. The government established a 
new ministry, the "Ministry of Environment and Irri gation", to integrate the activates done in the past 
by the former Ministry of Agriculture and Fish eries with activities carried  out by the Federal 
Environment Agency, enhance sustainable develop ment, and coordinate the work of different 
government institutions working in the field of su stainable development, and strategies, policies and 
programs.  
 The UAE recognizes that sustainable development is only possible through the provision of 
employment for both nationals and expatriates ali ke. Construction activities do not fully create 
sustainable employment in the long run; neither do es oil, which is a depletable resource. For this 
reason, the UAE is actively pursuing a diversifica tion strategy into manufactured industries and 
services over the short and medium run. WT/TPR/M/162/Add.1 
Page 32  
 
 
Remarkable growth has been registered in air and maritime transportation, tourism, IT, financial 
services and a host of other services. In addition, el ectronic assembly, cement and blocks, ceramics, 
textiles and clothing, pharmaceuticals, gold and jewelry, and other industries are rising in prominence, especially in the numerous  free zones and commercial clusters.  
 
 Today, countries can export just about any servi ce capable of being carried by fibre-optic 
cable; examples include cartoon animation,  legal research, financial services, and research and 
development. It is for this reason that the UAE is currently focusing on improving its educational 
services at both the primary, secondary and tertiary stag es with a view to increase the significance of 
the knowledge economy in the overall UAE gross national output.  
Trade and environment 
 
 What mechanisms does the UAE have in place to ensure adequate coordination of 
environmental policy and trade policy?  
 
 The UAE adopted the "Johannesburg Declara tion on Sustainable Development", and had 
always recognised the importance of conserving envir onmental resources, something that became one 
of the important bases in its environmental polic ies for the present and future generations. The UAE 
has finalized its National Environmental Strategy  and the National Environmental Plan in line with 
international best practice.  
 During the past three decades, the UAE has achi eved major steps in sustainable development 
covering economic, social and environmental fields.  The country sought to promote investments and 
diversify the sources of its national income to redu ce dependency on oil industry as its only source of 
income. It also promoted environmentally-friendly industries. 
 The UAE also signed many regional and inter national conventions that  are concerned with 
climate, protection of the environment from pollu tion, and combating desertification, underlining the 
commitment of the UAE towards environmental protection. 
 The UAE is one of the leading countries in the region with regard to protection of 
environment and had successfully managed to br ing about a balance between development and 
environment protection. 
Trade and social development 
 
 The World Commission on the Social Dimension of Globalisation highlighted the importance of linking trade with sustainable domestic policies, in particular core labour standards. What policies 
is the UAE implementing that specifically address the so cial and labour effects of trade liberalisation?  
 The UAE is convinced that trade liberaliz ation necessitates countervailing protection of 
vulnerable groups, facilitation of social dialogue  and empowerment where needed to strike a balance 
among competing interests of the various stakeholders. The Ministry of Labour (MOL) has already recommended to the competent authorities that workers should be allowed to form trade unions and 
to bargain collectively. The Council of Minist ers of the UAE has approved MOL recommendations 
and a legislative Bill is now being presented for en actment. In the meantime MOL has strengthened 
workers protection measures and revamped its entire pr ocedures in order to make prompt fulfilment 
of workers rights by employers a precondition for entitle ment to the services provided to employers by 
MOL.  WT/TPR/M/162/Add.1 
 Page 33 
 
 
WTO Secretariat's Report, page 61,  paragraph 69 
 
The EC welcome the MSLA's announcement in June 2005 that on-site construction workers, many of 
whom are foreign workers, would be granted a 4 hour  break starting at 12:30pm from July to August.  
 However, how does the MSLA monitor working hours, conditions and co re labour standards 
at other times of the year? 
Monitoring of working hours, health and safety standards, medical care and other core labour 
standards are effected through the following: 
- Field inspection of places of work in accor dance with the ILO Convention 81/1947 ratified by 
the UAE. These inspections are random in full conformity with the ILO standards. 
- Decentralized worker friendly indivi dual grievances complaint system. 
- Collective labour disputes resolution system.  
 We further welcome the MLSA's initiative to  introduce reforms to improve inspection and 
penalize non-respect of labour legislation with regard to foreign workers.  
 How are labour laws enforced? And how many companies have been penalized under the 
reforms? 
Labour laws are enforced at various levels as follows: 
- Preventative and Pre-emptive measures:  MOL exerts administrative efforts and undertakes 
 administrative measures to prevent violations occurring. This is done inter alia through a 
 system of an electronic track record of offending employers, holding performance bonds 
 against employers, and compulsory audited reporti ng of monthly payment of wages and field 
 inspection.   
- Administrative resolution of individual griev ances: MOL provides a labour  relations tribunal 
 in each one of its 11 labour UAE offices endowed with the task of receiving individual  complaints by workers and employers and amicabl y settling them. The tribunal has the power 
 to summon parties, hear the case of the complainant and the defendant and issue its 
 judgment. 
- Tripartite resolution of collective labour dis putes: MOL provides a mechanism for settlement 
 of collective labour disputes in each one of its labour offices in the UAE.   
 Litigation in the labour courts of the UAE: If  either party is not willing to accept judgment of 
the above mentioned labour tribunal, the tribunal will refer the judgment creditor to the labour court 
which eventually issue a judicially binding judgment. It should be noted that not a single company in 
violation of the core labor standards can avoid the penalties prescribed by the law.  
(4) T
RADE AGREEMENTS  
Bilateral Agreements Report by the Government of the United Arab Emirates, paragraph 22 
In March 2005, the UAE officially started negotia tions with the US with the aim to conclude a 
comprehensive Free Trade Agreement (FTA), and si milar negotiations have also been undertaken 
with Australia. 
The UAE is a member of the GCC,  which is a Custom Union since the beginning of January 2003, 
thus applying a common external tariff, and ther e is ongoing work to further harmonize trade and 
commercial policies. WT/TPR/M/162/Add.1 
Page 34  
 
 How does the UAE reconcile the fact of having entered into and consid ering further bilateral 
FTA negotiations with being a member of a Cust om Union under the Economic Agreement between 
the GCC states? 
 In this sense, what are the consequences of  the GCC Supreme Council meeting in Abu Dhabi 
in December 2005 on the ongoing bilateral negotiati ons of the UAE? Will these negotiations involve 
all GCC states or will the results become applicable to all GCC states? 
 On the two questions raised by the EC on "Bilateral Agreements":  
 The UAE, either individually or collecti vely with other GCC members, had commenced 
negotiations to establish FTAs; these discussions are still on-going.  
 By strengthening external linkages, the UAE hopes to create an external wing for its economy 
and encourage its companies to expand their activiti es as well as to secure propitious and conductive 
environment for its foreign investments.   The FTAs negotiations were initially conducte d on an individual basis with the US and 
Australia. The UAE believes that these negotiations  draw their reference from an approach, which 
demonstrated its efficiency in other regional groupi ngs such as the ASEAN. This approach, known as 
the "Open Regionalism," have the merit to not alter the credibility and the cohesion of regional 
economic agreements.   Consequently, the commitments of the UAE vis-à-vis the GCC remain irreversible. To avoid 
any potential conflict between those policies (i ndividual versus collective), the UAE will undertake 
any new negotiations as a member of the GCC, as  decided by the last GCC Supreme Council meeting 
in Abu Dhabi in December 2005.  WTO Secretariat's Report, page 16, paragraph 21 
 Could the UAE provide further information on the state of play of the finalisation of the GCC 
Common Customs Tariff, and notably as concerns se tting up a common list of goods subject to tariff 
rates higher than 5%? 
 
 The full harmonization of the list of products s ubject to higher rate than 5% is a subject under 
discussion with the GCC countries, and is subject to fu rther analysis. This issue will be resolved in the 
near future.   
 
(5) I
NVESTMENT FRAMEWORK  
Report by the Government of the Unite d Arab Emirates, paragraphs 61-65  
 
 How will the UAE ensure the compatibility of the emiratization policy with the open climate 
for foreign investment the UAE wishes to create? 
 
 The UAE is committed to a liberal investment  climate and is exerting every effort to ensure 
that countervailing social policies for protection of vulnerable groups that may sometimes prove inevitable will not necessarily contradict ethos of free trade. It is from this perspective that the UAE is 
approaching the programme of emiratization and will see to it that it is reconcilable with free trade.  
  Given the recent history of the UAE, the go vernment is especially keen on protecting the 
interests of its nationals, especially when one considers that nationals constitute less than 15% of 
total employment in the country.    WT/TPR/M/162/Add.1 
 Page 35 
 
 
III.  T RADE POLICIES AND PRACTICES BY MEASURE  
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
RULES OF ORIGIN  
WTO Secretariat's Report, page 24, paragraph 17  
 Does the UAE consider making a formal notificati on of its Rules of origin to the WTO in the 
near future? 
 Due to the fact that the UAE is a Member of  the GCC Customs Union, it has to follow the 
GCC rules of origin which is still under review, yet the UAE is considering adopting a set of general 
principles to regulate the matters of origin. At this stage, the UAE does not have detailed set of non-preferential rules of origin as is the case with many other countries (the EC for example issues non-
preferential certificates of origin for most of its goods in accordance with the substantial 
transformation test which is done on a case by case basis). 
R
EGISTRATION AND EXCLUSIVE DISTRIBUTION RIGHTS  
WTO Secretariat's Report, page 22, paragraph 8 
Under the Trade Agencies Law importing activities and wholesale and retail distribution services are 
reserved for exclusive agents. An agent must be an UAE national or a company owned by an UAE 
national. The agency agreement must be registered with the Ministry of Economy and Planning. Once an agency agreement is registered, it cannot be fi nished without the agent's approval, even when 
initially agreed term has elapsed. It is very diffi cult to terminate this sort of agreements and 
considerable compensation must be paid to the agent as decided in court. 
 Does the UAE envisage eliminating this rule, which is creating a de facto  monopoly of import 
on most products and precludes foreign companie s from terminating without compensation their 
agency agreements, even tho se agreed for a fixed term?  
 
 The Federal Law concerning Commercial Ag encies does not necessitate that importing 
activities, wholesale and retail distribution services should be reserved for exclusive agents; there are 
other types of agencies. But in the case of exclusive agents, it merely provides that whenever an 
agency contract is concluded and registered in the Ministry of Economy, the importing of the subject 
matter of the contract to the geographical area specified in the agency contract should be reserved 
for the exclusive agent.    The UAE would like to note that the above genera l rule has been diminished by the Cabinet's 
Decree that was recently adopted which amends Article 23 of the Federal Law concerning 
Commercial Agencies to provide that "no commerci al agency might be the subject matter of any 
commercial item liberalised by a decree of the Cabine t and therefore, all registered agencies for such 
items should be cancelled.  
 A further amendment to the Law is currently  proposed: any commercial agency of a specific 
period should be terminated by the lapse of its period unless renewed by the mutual agreement of both 
parties . It also added that registered agencies of such nature should be cancelled unless the 
authorities receive a notification of renewal before six months of the lapse of the duration.   
 
CUSTOMS PROCEDURES  
The EC welcome the introduction by the UAE of far-reaching customs reforms. The WTO 
Secretariat's Report notes that customs clearance times in D ubai are reported as among the shortest 
worldwide.  WT/TPR/M/162/Add.1 
Page 36  
 
 What have been the main challenges in ensuri ng the efficiency of its customs procedures and 
does the UAE have plans for further reforms (for exam ple to increase the percentage of declarations 
processed electronically)?  
 The main challenges in ensuring the e fficiency of the customs procedures were: 
 standardization of common process in all locati ons, applying management information principle 
 supported by risk management techniques. 
 
G
OVERNMENT PROCUREMENT  
WTO Secretariat's Report 
 Could the UAE authorities provide statistical da ta or estimates regarding procurements made 
by state-owned companies. Could statistical data also be provided for each Emirate (paragraph 49)? 
 In the near future, there will be one unifie d portal for all federal ministries and other 
organizations, which should include statistic al data of government procurement.  
 When tenders are open to foreign companies and establishments, there are invited to open a 
branch and employ a service agent. Are they require d to do this before tendering or only if they win 
the contract (paragraph 53)? 
 Companies must have a presence in the country in  order to be eligible to tender. Their 
presence could in one of the following methods: 
- Establish an office in the UAE by way of  a partnership agreement with a UAE national 
as per a contract documented by government authorities 
- A joint venture agreement with a company op erating in the UAE in the same field of 
competence for the purpose of executing a certain project 
- Through a Service Agent, who should be a UAE national 
 Do the UAE authorities plan to have all tenders published electronically in one single web-
site, free of charge (paragraph 54)? Where is the notice regarding planned procurement published at 
the beginning of each fiscal year? 
 Tenders for projects of local and federal organizations are announced through their own 
respective web sites. In the near future there will be one unified portal for all federal ministries and 
other organizations.  
Do the UAE authorities eventually plan to put in place a standard system for suppliers to 
challenge the award of a contract? Are there an y cases where foreign companies did challenge the 
award of contracts (paragraph 55)? 
 All parties that have submitted tenders are notified of the award decision. Suppliers may 
challenge such decisions including through the co mpetent committee and judiciary.  The federal 
procurement authority indicates that in the last tw enty years there were no cases brought by foreign 
companies with regard to any of its international tenders. 
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(v) F REE ZONES  
WTO Secretariat's Report, page 38 
Paragraph 72 mentions imports from free zones a nd duty-free shops into the customs territory are 
liable to all the normal customs duties and tax es (except, as mentioned above, the GCC-owned 
companies that meet the 40% rule of origin criterion).   WT/TPR/M/162/Add.1 
 Page 37 
 
 
 This appears to constitute a local content re quirement. Could the UAE please explain how this 
provision is compatible with Article 3 ASCM? 
 The federal government of UAE, in coordi nation with competent authorities, is currently 
reviewing its policies, strategies and legal framew ork regarding free zones to ensure international 
best practice in special economic zones operations en suring at the same time the consistency with the 
UAE commitments under the WTO.  
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
Incentives 
WTO Secretariat's Report, page 39 
It is stated under paragraph 75 Box III.1:  Pr ovisions of Federal Law No. 1 of 1979 Organizing 
Industrial Affairs Article 20:  
The Council of Ministers, and the authorities in th e Emirates, may grant projects that meet certain 
conditions, the following privileges and exemptions: subsidies to exports and protective measures for 
local products, taking into considerati on their kind, quality and quantity. 
Article 21: Priority for the privileges and exem ptions mentioned in Article 20 is given for: 
competitive, export-oriented or export-substitution projects and projects using local raw materials; 
 These provisions appear to constitute export and local content requirements incompatible with 
Article 3 ASCM. Could the UAE please describe these conditions and measures in more detail and explain how they are compatible with Article 3 ASCM? 
 The provisions of the Federal Law No. 1 of  1979 (Articles 20 & 21) have not been enforced. 
Below is some insight on the applicati on of the provisions in question. 
 
Below is a commentary on Article 20 of the Law and its application:  
"The Council of Ministers, and the authorities in the Emirates, may grant projects that meet certain 
conditions, the following privileges and exemptions: 
 - assignment of a building-site for the project, either free or at a reduced price or a 
symbolic rent with optimal conditions; Comment: The Federal Government has no jurisdicti on on assigning building-sites.  Therefore local 
authorities in the Emirates have full power as to how they want to dispose of or lend their properties.  
There is no evidence that the authorities in the Emir ates applied the criteria outlined in Article 21 of 
the Law to assign a building-site.   - rent on the necessary industrial buildings at optimal conditions, in the industrial 
areas established by the Government; 
Comment: Again, there is no evidence that either the Federal Government or the local Emirate 
Governments determine the rent on industrial buildings  based on the criteria outlined in Article 21. 
  - supply of electricity and water at incentive rates; Comment: The rates charged for water and electric ity is the same for all commercial users and is 
measured at a discounted rate to encourage i ndustrial projects and facilitate their development.  
However, Article 21 is not a criteria for these incentive rate.. 
  - customs-free imports of:   (a) machinery, equipment, spare par ts and building materials required for  
   project; 
Comment: Input required for the construction and erecti ng of a factory, if directly imported, may be 
duty exempt.  The government does not, however, appl y the criteria outlined in Article 21 for 
exempting the duty. WT/TPR/M/162/Add.1 
Page 38  
 
 
  (b) raw and intermediate materials, semi-products, packing and wrapping     materials used at production level Comment: As with imports of machinery and equipmen t for the factory, duty on raw material for the 
purpose of use in the factory is also zero.  Agai n, Article 21 is not a criteria for the exemption. 
 
 - tax-exemption for the profits made by the project as well as the reserve amounts deducted from these profits to be re-invested in  the project, for a renewable period of five years 
starting from the date when production becomes effective; Comment: The UAE does not have a tax regime.  As  such, this clause has not been applied in 
practice. 
  - exemption of locally made products – wh en exported – from export duties and taxes; 
Comment: The UAE does not apply export taxes to any of  its exports.  Therefore, this clause has not 
been applied in practice. 
 
 - subsidies to exports;  and Comment: The UAE does not provide subsidies for exports.  Therefore, this clause has not been 
applied in practice.   - protective measures for local products, ta king into consideration their kind, quality 
and quantity." 
Comment: As of date, there are no measures taken by the local or federal government to protect local 
production through any measure agains t imports.  Therefore, this clause has not been applied in 
practice.  
 In summary, the practices of the UAE government  at both the federal and emirate level do not 
seem to violate Article 3 of the WTO Agreement on Subsidies and Countervailing Measures.  This is because for Article 3 to apply, the UAE must be s ubsidizing its producers with the intent to make them 
more competitive domestically against foreign imports, or subsidize UAE exporters so that they could 
unfairly capture foreign markets, or require certain loca l content to for products sold in the UAE so 
that a barrier is created against imports.  Clearly th is is not the case and has never been the practice 
of the UAE government. The UAE would be reviewing this Law to ensure its incorporation of best 
practices in industrial development and making sure of  its consistency with the UAE commitments 
under the WTO.  
 
C
OMPETITION POLICY  
Report by the Government of the Un ited Arab Emirates, paragraphs 57-58  
 
 Does the UEA have the intention to establish a Competition Policy and if so, within which 
time frame? Could the UEA also, if that is the case, clarify if this would be done on a national level 
and/or in the GCC context? 
 In order to protect consumers from gr oundless price increases, the UAE Government is 
currently assessing enacting a Competition Law. This is in line with the strategy of the UAE 
government to create an enabling business environment that is conducive to economic growth. Sector 
specific competition policies do exist and are enfo rced.  In particular, the Telecommunications 
Regulatory Authority (TRA) issues policies and when necessary, directives concerning competition 
within the telecom sector.  Some of the regulato ry instruments for overseeing competition within the 
telecom sector can be found on the TRA's website:  www.tra.ae  WT/TPR/M/162/Add.1 
 Page 39 
 
 
 Different model laws are being considered. Th e GCC Secretariat has submitted a draft for a 
unified GCC competition law, which the UAE is currently examining. In addition, several regional 
experiences are being considered.  
 The Ministry of Economy is likely to have the mandate to develop and implement the 
Competition Law. In addition, a consumer protection law is in its final stages of ratification.  
 
INTELLECTUAL PROPERTY RIGHTS  
Patents  
 Could the United Arab Emirates indicate if it has already implemented the WTO Decision of 
30 August 2003 on the Implementation of Paragr aph 6 of the Doha Declaration on the TRIPs 
Agreement and Public Health in order to allow its generic companies to manufacture pharmaceutical 
products under compulsory licence for export to coun tries with public health problems? If not, please 
indicate when you intend to do so? 
 
 The UAE is firmly committed  to the WTO Decision of 30 August 2003 on the Implementation 
of Paragraph 6 of the Doha Declaration on the TRIPs Agreement and Public  Health, and that the 
compulsory licence to manufacture pharmaceutical products shall be only for diseases as mentioned 
in the Decision and for the local use only and not fo r exportation. This will be reflected in the UAE 
relevant legislation in the near future.   
 
Geographical Indications  
In paragraph 98 of the WTO Secretariat's Report it is mentioned that the Trademarks Law does not 
contain a definition of Geographical Indications.  
 
 Does the United Arab Emirates foresee to introd uce in the near future specific provisions for 
the protection of Geographical Indications in accordance with articles 22 to 24 TRIPs? Please 
describe and explain the provisions of your legislation establishing a link, if any, between the characteristics of an indication and its geographi cal origin. Please explain whether or not your 
trademark registration authority refuses a Tradem ark application if it contains a Geographical 
Indication.  Please explain how exceptions under Ar ticle 24 of the TRIPs Agreement are (will be) 
used in your jurisdiction.   
 
 The UAE is about to sign the Unified Law of Trademarks for GCC Countries, which shall contain– upon the recommendation of the technical committee– provisions regarding geographical 
indications. 
  To date, the UAE does not protect GIs through its trademark system, but UAE Trademarks Law protects the Geographical names as registered trademarks or as a component if the use thereof 
may not cause confusion as to the origin  or source of the goods, products or services. 
 
 The owner of a trademark has the right to preven t the use of an identical or similar trademark 
to distinguish products or services which are simila r, identical or related to the products and services 
in respect of which the trademark was registered such as to cause confusion among the consumer 
public consistent with Article (16/1) of the TRI Ps Agreement are protected under UAE's Law. Article 
(3) of the Federal Trademarks Law no. (37/1992) stat es that: "The following shall not be registered 
as trademarks or as components thereof: 3- Ge ographical names which would create uncertainly as 
to the origin or source of the goods, products or services".   WT/TPR/M/162/Add.1 
Page 40  
 
Undisclosed information, includ ing trade secrets and test data  
 
 Please explain how your legislation defines da ta submitted to governments or governmental 
agencies.   Law No. 4 of 1983 related to pharmaceutical  institutions and the pharmacy profession (WTO 
Secretariat's Report, para 100) provides that all in formation submitted must be kept confidential. 
 
 Does this provision prevent the regulatory authorities from disclosing such data and from relying on such data when examining similar products from generic manufacturers during a given 
period of time?  How does the United Arab Emirates construe the words protecting data against unfair 
commercial use of Article 39.3 of the TRIPs Agreement?  
 This provision does prevent the regulatory aut horities from disclosing such data and from 
relying on such data when examining similar produc ts from generic manufacturers during a given 
period of time. 
 Enforcement  
 Please explain whether specific enforcement authorities have been designated to combat 
counterfeiting and piracy and whethe r they are already operational. 
 
 There is a special department in the Copyri ghts and IPR Office for combating counterfeiting 
and piracy, and this department directly coordinat es with different sectors of the government like 
Municipalities and Police. Thus far, the Departmen t has shown competency, efficiency and firmness 
in performing its duties.  
 
IV. T
RADE POLICIES BY SELECTED SECTORS    
(4) M ANUFACTURING  
Textiles and clothing  
 Which sectoral policies are applied for the tex tiles and clothing industry, footwear and hides 
and skins? 
 
 There are no sectoral public policies pertaining to textiles and clothing , footwear and hides 
and skins per se.   (5) S
ERVICES  
Tourism 
 How many people work in the tourism sector a nd what has been the evolution in the last 
years? 
 Direct employment in the tourism sector is d ifficult to assess as the services consumed by the 
tourists vary. Religious tourism, for instan ce, is very different than traditional tourism or 
business/MICE tourism (meetings, incentives, conv entions and exhibitions). Moreover, the services 
consumed by tourists are often consumed by locals, which add to the complexity of assessing 
employment in the tourism sector.  
 However, employment in restaurants and hotels has witnessed a substantial increase over the 
last few years, both as an average annual growth rate  (7.7%) and relative to total employment in the 
UAE. 
  WT/TPR/M/162/Add.1 
 Page 41 
 
 
The table below illustrates the trend: 
Year Number of Employees in 
Restaurants and Hotels Total Employment in all 
Sectors in the UAE Percentage Working in the Sector 
2001 84001 1929022 4.4% 
2002 94930 2176300 4.4% 
2003 98509 2334312 4.2% 
2004 109931 2459145 4.5% 
2005* 126995 2596614 4.9% 
average annual growth rate 10.9% 7.7%  
* Source:  Ministry of Economy- Statistics De partment- data for 2005 is preliminary. 
 How much of the FDI attracted by the country in  the last years has been in the tourism sector? 
 The Ministry of Economy is currently engaged in an extensive project with the ESCWA to 
map FDI trends in the UAE.  
 What are the UAE' concrete plans to promote the tourism sector, and what measures is the 
government taking to ensure non-discrimin ation of Foreign Service suppliers? 
 The UAE boasts more than 5 million tourists  in 2005, a figure that has been rising 
exponentially over the last few years. These ambitions  are not merely "wishful thinking"; already 
hotels boast occupancy rates of around 95% in the first half of 2005, and several hotels have started 
to construct new branches to cater to the significant growth in demand. While the availability of hotel 
rooms is the main concern for the UAE, however,  the UAE government realizes that accommodation 
alone is not the only challenge in the medium r un. Other facilities and attractions, such as shopping 
malls, museums, and even golf courses are n ecessary to keep vi sitors pleased.  
 
 The sector has witnessed unprecedented growth  in the last few years, and therefore the 
government is currently of the view, pursuant to the re quest of the local private sector, that this sector 
be given some more time to be able to compete in the local market and abroad.  
 
 What are the UAE' plans for improving professi onal education and training related to the 
tourism sector? 
 Several professional education programs exist and are planned that are directly or indirectly 
related to the tourism sector. The list below is not necessarily exhaustive:  
1- United Arab Emirates University (UAEU)  
 The United Arab Emirates University does not have any programs that directly deal with 
travel and tourism but operates several that touch upon it.  UAEU's Remote Sensing and GIS Master's 
program uses site selection for real estate devel opments in the UAE and these developments are 
frequently associated with travel and tourism. 
 The Food Service Management program in U AEU's College of Food and Agriculture will 
commence shortly in cooperation with Michigan St ate University, and will be a distance education 
program.  Food Service Management in the UAE will very likely be associated with aspects of travel 
and tourism.    
 The UAEU MBA program includes an emphasis  on global and international management and 
is also relevant to international tourism. 
 The Archaeology program that is a part of  UAEU's History degree program may have a 
travel and tourism component.  The University  is considering developing it with academic 
programming in tourism.  Current program devel opment efforts are for baccalaureate and graduate 
programs and some continui ng education offerings.  WT/TPR/M/162/Add.1 
Page 42  
 
2- Zayed University (ZU)
 
 Zayed University has some activity in the area of tourism and special events at the 
undergraduate level in the College of Communica tion and Media Sciences which also has some 
connections with the College of Business Sciences.   
 Beyond the undergraduate program offered  in both Abu Dhabi and Dubai, ZU is 
investigating introduction of a master's degree in  Tourism Management.  At present ZU has had very 
productive and promising conversations with the top tourism and hotel m anagement and hospitality 
programs in the US. They have also been sampling local interest in travel and tourism programs and 
have found much interest.  This effort is being le d by the members of ZU's National Advisory Councils 
in each city.  
 ZU also has a small group of faculty members in both the College of Business and the College 
of Communication and Media who have research interest s and credentials in this field. They too have 
had contacts with several of the same universities referred to above and in Australia and Europe as 
well.  
3- UAE Higher Colleges of Technology  
 The UAE Higher Colleges of Technology has  a Higher Diploma Program in Travel and 
Tourism that is offered at Dubai Women's College (DWC).   It is a final year specialization on a 
common Higher Diploma matrix. There are currently 6 students in the program and the indication for 
next semester is 8 students. There is also a bache lor program at DWC for Travel and Tourism which 
has about 15 potential students (former HD students) wishing to take the program.  However, at this time, DWC does not have the funding to run the bachelor program and there has been discussion of 
obtaining sponsors to enable this bachelor specialization to be offered. 
Distribution services 
 What existing legislation is applicable to retailing services? 
 Commercial transactions law no. 18 of 1993 since retailing servic es is considered one of the 
commercial activities covered by this law.  
Telecommunication 
Report by the Government of the United Arab Emirates, paragraph 27  
The UAE state that telecommunication services have been liberalised, but in fact Etisalat State 
monopoly has been replaced by a State duopoly after the conditions created by the establishment  of a 
new State company, Emirates Integrated Telecom Company,   and a Regulatory Authority to prevent 
competition in prices between both companies. 
 When do the UAE plan to further liberalise telecommunication services? 
 At the outset, the UAE does not agree with the statement" and a Regulatory Authority to 
prevent competition in prices between companies" whic h is referred to in the above question.  This 
may be a typographical error in the question because, on the contrary, the TRA views that its role is 
to promote competition between operators.  In so doing, the TRA issued a retail Price Control Policy 
and Procedures to prevent anti-competitive prici ng behaviors, and these documents can be found on 
the TRA's website www.tra.ae. 
 In answer to the specific question, in additi on to the GATS and the Telecom Reference Paper, 
the UAE has submitted its Schedule of Co mmitments regarding market liberalization. 
  WT/TPR/M/162/Add.1 
 Page 43 
 
 
ANSWERS TO QUESTIONS FROM ARGENTINA 
 
IV. TRADE POLICIES AND PRACTICES BY MEASURE 
 Page 21, paragraph 2 of the Report by the Secr etariat states that technical regulations and 
procedures implemented with respect to imports at the border are based on internationally accepted 
standards.  According to the Report, the exclus ive "agency law" has a significant impact on the 
segmentation of the market, and hence would appear to  contribute to the lack of competition.  Could 
you please explain what this law is? 
 In accordance with the UAE Commercial Ag encies Law (Federal Law No. 18 of 1981, as 
amended by Federal Law No. 14 of 1988), foreign investors may decide to have an agent represent 
their interests in the U.A.E. instead of estab lishing a permanent presence. The Law regulates and 
governs the appointment of commercial agents, sal es representatives, and distributors in the U.A.E. 
This law defines a commercial agency as any a rrangement whereby a foreign company is represented 
by an agent to "distribute, sell, offer, or pr ovide goods or services within the UAE for a commission 
or profit" (Article 1 of the Law). 
 
 The Commercial Code (Federal Law No. 18 of 1993) augments the Commercial Agencies 
Law and establishes the regulatory framework for th e various types of commercial agencies permitted 
under the law. The most common type of agen cy is the contracts agency, whereby the agent 
undertakes "on a permanent basis and in a specific a rea of activity, the instigation and negotiation of 
the conclusion of deals, to the advantage of the principal and in return for payment" (Article 217 of 
the Code). Distributor contracts are treated like contracts agencies when they involve one agent as 
the sole distributor (Article 227 of the Code).   The primary requirements and characteristics of commercial agencies are:  
1. Commercial agents must be UAE nationals or companies incorporated in the UAE and owned 
entirely by UAE nationals. 
 
2. Commercial agents must be registered with the UAE Ministry of Economy to engage in 
commercial agency activities. 
 
3. The agency agreement must be registered in or der for the agent to avail itself of the 
protections afforded under the law and to have the agency relationship recognized under 
UAE law. 
 
4. Commercial agents are entitled to an exclusive t erritory encompassing at least one Emirate 
for the specified products (Article 5(1) of the Law).  
 
5. Unless otherwise agreed, commercial agents a re entitled to receive commissions on sales of 
the products in their designated territory irrespec tive of whether such sales are made by or 
through the agent (Article 7 of the Law).  
 
6. Commercial agents are entitled to prevent produc ts subject to their agency from being 
imported into the UAE if the agent is not the consignee. 
 
7. Commercial agents are entitled to receive compensa tion from the principal if the agency is 
terminated without substantial justification or  if the agency is not renewed by the foreign 
principal, and the agent may be able to p reclude the foreign party from appointing a 
replacement agent in such circumstance.  
 WT/TPR/M/162/Add.1 
Page 44  
 
 The Commercial Agency Law prov ides for compensation of the agents terminated without due 
cause only if the agency agreement has been registered  with the federal Ministry of Economy. Many 
UAE commercial agents will insist on a registered a rrangement in order to avail themselves of the 
protection of the Commercial Agencies Law.   
 The UAE would like to note that the Fed eral Law concerning commercial agencies does not 
necessitate that importing activities, wholesale and retail distribution services should be reserved for 
exclusive agents; there are other types of agencies.  But in the case of exclusive agents, it merely 
provides that whenever an agency contract is concl uded and registered in the Ministry of Economy, 
the importing of the subject matter of the contract  to the geographical area specified in the agency 
contract should be reserved for the exclusive agent. This general rule has been diminished by the 
Cabinet's Decree that was recently adopted which ame nds Article 23 of the Federal Law concerning 
Commercial Agencies providing that "no commercial agency might be the subject matter of any commercial item liberalised by a decree of the Cabi net and therefore, all registered agencies for such 
items should be cancelled. 
 A further amendment to the Law is proposed so  that commercial agencies of a specific period 
shall be terminated by the lapse of its period unl ess renewed by the mutual agreement of both parties. 
It also added that registered agencies of such nature should be cancelled unless the authorities receive a notification of renewal before six months of the lapse of the duration.   
GCC Common List of Prohibited Products 
 Page 27, paragraph 29 of the Report by the Secretariat mentions that in certain cases, imports 
of products are prohibited in some member States but permitted in others.  Could you please tell us 
what products are involved?  How much progress h as been made with the mentioned initiative of 
developing a common list? 
 - Products involved are like liquor and pork. 
 - The progress which has been made with th e mentioned initiative of developing a common list 
is that, the concerned committees on GCC level are working on this in order to have a unified 
common list before end of December 2007. 
V. TRADE POLICIES BY SECTOR 
 Paragraph 56 on page 59 of the Report by the Secretariat states that there is a UAE Offsets 
Group that provides assistance in promoting industr ial development through Offsets Programmes.  
Could you please tell us what these programmes are and in what sectors this assistance is 
concentrated? 
 Please refer to the Government Procurement sec tion in Part III of the Secretariat Report, 
which has detailed description of the UAE Offset s Group activities including reference to projects 
implemented by the Group, which are set out in Table III.4 of the Part III.  
ANSWERS TO QUESTIONS FROM THE REPUBLIC OF KOREA 
1. Economic Environment(WT/TPR/S/162, p.2, para.5)   
 
 The UAE government requires foreign compani es which employ equal to or more than 100 
people to hire Emirati Public Relations Officials
* (PROs) from 2006. On the other hand, foreign 
companies which employ less than 100 people are required to hire PROs irrespective of their 
nationality. However, the fee for obtaining a PRO license differs depending on the nationality of the 
applicant. The fee for foreigners is Dhs 2000 whereas the fee for UAE nationals is Dhs 500.  WT/TPR/M/162/Add.1 
 Page 45 
 
 
Consequently, this system makes foreign compan ies with employees less than 100 hire an Emirati 
PRO instead of a foreigner. Does the UAE government have any future plans to abolish the 
discriminatory regime on PRO employment?  
 
 The UAE does not distinguish between emplo yers or workers on basis of nationality or 
otherwise. We would like to point out that the United Arab Emirates constitution is one of the few 
constitutions in the world that expressly provides, "foreigners present in th e UAE are entitled to the 
rights and freedoms and are subject to the correl ative duties provided for under the respective 
international instruments or under conventions and treaties to which the UAE is a Party".  
  As for the PROs issue, it is the employer wh ich applies for a PRO license. The fee charged to 
the employer of a PRO is the same whether the employer is 100% UAE owned company or 100% 
foreign owned. However, the fee differs depending on  whether or not the PRO prospective employee 
is a UAE national. This practice of a higher fee fo r the employment of foreigners in occupations 
where there are available, willing and better qu alified nationals is consistent with the UAE 
Emiratization programme and social policies, and do es not contravene any of the UAE commitments.  
 
2. Intellectual Property Rights (IPRs)(WT/TPR/S/162, p. 43 para. 102)   
 Principally, the UAE government protects IPRs including trademarks, but there still remains the piracy of trademarks. For example, blankets a nd seat covers made in de veloping countries are sold 
with made in Korean mark. Does the UAE government have any future plans to reinforce the 
protection of IPRs?   
 
 Since the formation of the UAE in 1971, prot ection of IPR has been placed in the general 
principle of law and since 1992 various pieces of legislation where enacted with regard to the 
protection of the Intellectual Property Rights with the aim of further strengthening and enforcing such protection. This has been the practi ce and is still the practice of the UAE. 
 
 We would like to note that the UAE is among the leading countries in the protection of IPR as confirmed by recent international reports. WT/TPR/M/162/Add.1 
Page 46  
 
WRITTEN REPLIES BY THE UNITED ARAB EMIRATES 
SECOND DAY (26 APRIL 2006) 
 
ANSWERS TO QUESTIONS FROM THE GOVERNMENT OF CANADA 
 
Summary Observations, (1) The Economic Environment, paragraph 3: 
 
 The summary observations section to the Secretariat Report refers to the "emiratization 
programme" which introduced minimum quotas of Emirati staff in some services sectors.  The 
Secretariat Report notes that this policy could even tually become and impediment to doing business in 
the United Arab Emirates (UAE) because of the lack  of skilled nationals in some professions.  Does 
the UAE plan to remedy this potential impedime nt by introducing a new domestic policy aimed at 
increasing educational opportunities for UAE nationals in these professions? 
 
 A plan is already in place aiming at the expansion of education opportunities. Education 
opportunities are already ever expanding at high ac ademic, vocational, university and postgraduate 
levels. This is at both federal and emirate levels.  However some Emirates like the Emirate of Dubai 
has made education, technical and vocational training a priority investment and allocated an 
exclusive off-shore "knowledge city" for this pur pose. Many internationa lly renowned education 
institutions has already established campuses and started classes in the Emirates. Since 1999 the 
UAE has established a National Human Res ources Development and Employment Authority 
(TANMIA) a federal body specifically endowed w ith the task of maximizing job opportunities through 
training and logistical assistance. Similar bodies have also been established at emirate level in 
Sharjah, Dubai and Abu Dhabi . 
Part III. Trade Policies and Practices by Measure, (2) Measures Directly Affecting Imports, (iv) 
Tariffs, other duties, and taxes, paragraph 23: 
 Paragraph 23 states: "For most products, MF N applied rates are well below the final bound 
rates; however, on 33 tariff lines at the HS eight-digit level, the applied MFN rate of 5% is above the 
final bound rate of zero (as of April 2006). Accordi ng to the authorities, this has resulted from the 
implementation of the GCC [Gulf Cooperation Council]  tariff in 2003, with rates higher than those 
previously levied or bound by the UAE." Since main taining applied tariffs that are higher than bound 
rates is contrary to the UAE's obligations under GATT Article II, what steps are being taken to correct 
this situation? 
 The UAE has been a member of the WTO since 1996, and became a member of the GCC 
Custom Union since 2003. The UAE is firmly comm itted to carry out its commitments under the WTO, 
and the Council of Ministers took a decision to this e ffect ensuring that the 33 tariff in question are in 
line with the UAE commitments, and we would be revi ewing this issue with the GCC countries in the 
next GCC Customs Union meeting that would be he ld at the end of April 2006. The UAE would be 
notifying the WTO shortly thereafter.   Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 33:  
  When does the UAE expect to commence no tifications to the Committee on Technical 
Barriers to Trade (TBT Committee)? For example, paragraph 43 refers to a new law on the labelling 
of chemicals and industrial products.  Does the UAE intend to notify the draft law and provide the minimum 60-day comment period to allow other WTO members the opportunity to comment on its contents?  
  WT/TPR/M/162/Add.1 
 Page 47 
 
 
 According to TBT agreement requirements UAE is obliged to notify WTO as set out in 
Articles (2.9, 2.10, 3.2, 5.6, 5.7, 7.2 and paragraph C of Annex III), we would like to point out that the 
following notifications were al ready made to the WTO: 
 
- G/TBT/N/ARE/1 : Lubricating oils, 28 Feb 2006 
- Acceptance of the code of the good practice for preparations and adoption of standards.  
  We would also like to reiterate that ESMA Information Center is the national enquiry point 
for WTO, and would be handling all enquiries of WTO members on the UAE' s commitments under the 
TBT Agreement, (E-mail: uaetbt@esma.ae). 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 34: 
 Can the UAE please provide details regarding th e Emirates Authority for Standardization and 
Metrology's (ESMA) new organizational structure? 
 
 ESMA organization structure was approved by the Cabinet on 3
rd of January 2005, ESMA is 
composed of four technical departments (St andards, Conformity, Metr ology, Accreditation) and 3 
supporting departments (H uman and Financial Resources Department, Technical Office, Information 
Center). (Annex 1) 
 
 How does the ESMA work to ensure the inde pendence of its accreditation function from its 
conformity assessment function? 
 
 ESMA does not have any laboratories or insp ection bodies, thus there is no conflict of 
interest. ESMA Accreditation Department that is  responsible for accreditation was established in 
accordance with International standard ISO 17011: 2005, and the organization structure of accreditation (Annex 2) was designed in such a way to ensure independence of ENAS activities from 
ESMA conformity assessment activities. In the accreditation process the subcontracted assessors 
recommend accreditation to the technical committee which in turn recommend accreditation to the 
general accreditation committee (both committees ar e composed of members not from ESMA). 
 
 In addition to the Minister of Finance and Industry, who are the other members of the ESMA's Board of Directors?  How are these pe ople selected? How long is a term of service? 
 
 The Law no. 28 of 2001 (Law of establishment of ESMA) defines who and how members of 
ESMA board of directors are selected from UAE nati onals, and the members of the board should have 
the necessary qualifications and exp eriences in their fields. Th ey represent federal government 
bodies, local governments bodies, and from private sector. 
 
 We are not aware that the ESMA has notified the ISO/IEC Information Centre of its acceptance of Annex 3 of the TBT Agreement (Code of Good Practice for the Preparation, Adoption 
and Application of Standards).  Can the UAE please clarify what is meant by the second to last 
sentence of paragraph 34?  
 
 ESMA has accepted  Annex 3 of the TBT Agreement (Code of Good Practice for the 
Preparation, Adoption and Application of Stan dards) more than a year ago, and notification was sent 
then to WTO through UAE representa tive in Geneva. ESMA confirmed its acceptance of Annex (3) of 
TBT agreement in a new notification which was sent to  ISO/IEC information center (Geneva) in 16 
April 2006.   WT/TPR/M/162/Add.1 
Page 48  
 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 35:  
 What is the percentage of UAE standards wh ich are identical to or based on international 
standards? 
 
 Most of the UAE standards are GCC standards and are either identical to international 
standards, or based on international standards, excep t in the cases where international standards are 
not suitable for the country due to issues related to  climate, environment, technological problem and 
others, and this is according to Article 2.4 of the WTO/TBT Agreement,  nevertheless the UAE 
standards in general are subject to continuous updating and revision to ensure that it serves UAE 
needs and is harmonized with international standards.  
 
 Of the approximately 600 standards which are technical regulations, what is the process used 
to develop these draft technical regulations? Are th ere timely opportunities for interested domestic 
stakeholders to provide comments which are then  taken into account in the drafting process? Are 
these standards published in the Official Gazette in both draft and final form or final form only? 
 
 The process of developing a standard by ESMA is composed of: 
 
- Preparation of the initial draft standard by  the technical committees (in Arabic and English). 
- Collection of comments within 60 days after distribution of the draft standards and inviting 
the relevant bodies from the private and public sect or to attend a meeting of the technical 
committee for reaching an amicable soluti on in the case of disputable remarks. 
- Submittal of the draft standard, elaborated in th e light of what has been agreed upon, to the 
related general committee, accompanied by  a report indicating the approving and 
disapproving bodies, including the actions taken as regards the remarks and proposals 
related to the disputable remarks which have not yet been settled. 
- The General Committee shall review the dra ft standard and the report. In the case of 
approval, the draft standard s hall be submitted by the general committee to the Standards 
Department in ESMA. Should there be disputable  items, it may return the draft back to the 
technical committee concerned to review it or to invite both the chairman and the secretary of 
the concerned committee to discuss the va rious viewpoints for reaching an agreement 
thereupon. 
- The Standards Department shall prepare the dr aft submitted from the general committees to 
be reviewed by the sub-committees emanating fr om the Board of Directors, and shall ensure 
that these drafts be checked by the translation section. These necessary measures shall be 
taken to ensure compliance with the procedure applied by ESMA with regard to its directives. 
- If the sub-committees of the Board of Director s approve the draft, it shall be submitted to the 
Board of Directors for final approval. However, should there be disputable items, the draft may be returned to the General Committee, with a report indicating the sub-committee's 
viewpoint, or an invitation may be extended to both the chairman and secretary of the 
General Committee to attend the meeting held by the sub-committee. 
- For a standard to be mandatory (technical re gulation), a decision need to be taken by the 
Council of Ministers.  
  All interested stakeholders can provide co mments within 60 days on the draft standards and 
technical regulations; only final form of standar ds and technical regulations are published in the 
official Gazette.  
 
 Since the UAE has not yet notified any draft technical regulations or mandatory conformity assessment procedures to the WTO, ho w are interested foreign stakeholders able to learn about draft 
standards and comment on those in which they have an interest?  WT/TPR/M/162/Add.1 
 Page 49 
 
 
 Kindly refer back to the UAE reply of questions  no. 3 of the Government of Canada, it should 
be noted that ESMA established a website (www.esma.ae) and launched a quarterly Bulletin 
(Standards Bulletin) where the standards' work progra mme is available and can be viewed by any 
interested body. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 36:  
 Could the UAE explain what is meant by "interna tionally recognized standards" in relation to 
acceptance of the Supplier's Declaration of Confor mity? Are these international standards in the 
context of the TBT Agreement? 
 
 UAE accepts standards issued by international  bodies responsible for standards such as ISO, 
Codex, and other international bodies, in addition to standards of other foreign bodies responsible for standardization as long as these standards meet the needs of UAE and are in accordance with the 
WTO-TBT Agreement and its definitions of international standards.  Certificates of Conformity are 
issued for products that comply with the National or GCC Standards . Whenever National or GCC 
standards are not available, other approved standar ds such as international, or foreign standards 
such as European or American st andards can be used, with special consideration to the UAE's 
special national requirements. 
 
 Could the UAE elaborate on its post market su rveillance regime and compliance mechanisms 
with respect to the Supplier's Declaration of Conformity?   
 ESMA does not practice market surveillance by  its departments; the responsibility for market 
surveillance lies with the municipalities of Emirate.  ESMA coordinates with municipalities for this 
purpose. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 38: 
 Does the UAE use international standards and guides as the basis of its conformity 
assessment regime? 
 
 UAE does use international standards and guideli nes as basis for its conformity assessment 
programs e.g. (ISO guides 65, 28, ISO/IEC 17011,…).  
 
 Are any of the laboratories which are accredite d, approved and recognized located outside of 
the UAE? Have these laboratories received foreign accreditation?  
 
 None of the laboratories which are accredited by ENAS are outside the UAE, while for the 
accredited labs within UAE only one is accredited by a foreign accreditation body. 
  Can the ESMA please provide the details of the process which is followed to review 
submitted test report information? What appeal pro cess is in place to deal w ith circumstances where a 
certificate of conformity is not issued?  
 ESMA initially checks whether the issuing l ab of the report is accredited or approved, and 
then reviews the dates of expiry of the test reports  and general information for accuracy, afterwards 
the results are compared with spec ified technical requirements of the standard. As for appeals, it is 
part of ESMA's general procedures, and the Aut hority adheres to answering questions or resolving 
difficulties and has an active procedure to deal w ith such cases. Any important queries can be 
discussed with customers.  
 WT/TPR/M/162/Add.1 
Page 50  
 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 41: 
 
 Can the UAE please clarify for what reason all official veterinary health certificates and other required documents for consignments of animals, thei r products or offal are required to be attested by 
an Arab country's embassy?  Please clarify who and what is being attested to. 
 
 These documents and certificates are required to be attested in order to be sure and confident 
about the validity of these documents and that th ey are issued by governmental agencies in the 
exporting country, this should be done by a Unite d Arab Emirates Embassy and in case if there is no 
UAE Embassy in the exporting country then it shoul d be attested by an Arab Embassy as matter of 
facilitation.   Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (vii) 
Standards and other technical requirements, paragraph 44: 
 
 Could the UAE please clarify the 11 goods that require both production a nd expiration dates? 
 
 The information in Paragraph 44 of Part III of the Secretariat Report is not accurate, due to 
the fact that the UAE has national standards for la belling and for shelf life of  all food products (that 
are in categorized in 11 groups of products), and not only for 11 goods.  
 
 Canada would like to know what the UAE means by production dates and whether manufacturer's production codes are acceptable? 
 
 The UAE follows international standards (Cod ex no. 1) with regard to the definition of 
production date which normally is declared by producers, in addition to necessary national 
requirements such as level of awa reness in community, safety, health of  residents in UAE. What is in 
compliance with the above is also cons idered to be accepted by the UAE. 
 
 Does the UAE allow manufacturer set expiration dates, as is allowed in other Gulf Cooperation Council countries such as Bahrain and Oman?  If not, what is the UAE doing to allow 
manufacturer set expiration dates? 
 
 The UAE follows GCC standards according to the GCC Standards no. 150 and 1023, with 
regard to the expiration dates. The manufacturers should follow these standards. 
 
 Could the UAE please confirm the elimination of the shelf-life related import requirements? 
 
 There was no elimination of the shelf-life, it has been amended and the amendment was 
approved by UAE Cabinet decision no. 29 fo r the year 2004. The amendment abolished the 
requirement that products exceeding the half she lf-life are not allowed to access the UAE markets.  
 
Part III. Trade Policies and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(iv) Intellectual property (IP) rights, paragraph 94: 
 
 Paragraph 94 notes that the 2002 amendmen t of the 1992 Copyrights and Neighbouring 
Rights Law No. 40 "is designed to meet the obligations arising from Article 9 of the TRIPS 
Agreement (Berne Convention, Articles 1-21, except Article 6 bis), through the extension of the 
works and types of expression covered as well as the nature of the protection." Can the UAE please provide more details?   WT/TPR/M/162/Add.1 
 Page 51 
 
 
 The 2002 amendment of the UAE 1992 Copyri ghts and Neighboring Rights Law no. 40 is 
consistent with Berne convention and the TRIPS Ag reement, the details of which may be summarized 
as follows:  
Extension of the works that enjoy the protection to cover: 
 
1. Books, pamphlets, essays and other written works. 2. Computer programs and applications, databases and works analogous to them as 
defined by the Minister's decision no. 8217. 
3. Lectures, addresses, sermons and other works of similar nature. 
4. Dramatic, dramatico-musical works and dumb shows. 
5. Music compositions with or without words. 6. Sound and audiovisual works. 7. Architecture works, engineering plans and layouts. 8. Works of drawing, painting, sculpture and lithography (fabric, metal, stones, wood) 
and engrave or a similar works in the scope of fine arts. 
9. Photographic works and works analogous to photography. 10. Works of applied and plastic art. 11. Illustrations, geographical maps, sketches, three-dimensional works relative to 
geography, topography and architecture designs etc. 
12. Derived works without prejudice to the protection stipulated for the works been 
derived from. The protection includes the title of the work if innovated and the 
innovated theme written fo r a broadcasting program.  
 
 The author enjoys literary rights not subject to prescription or assignment of the work and 
economic rights.  
 
 The holders of the neighboring rights are the performers, producers of phonograms and broadcasting organizations.  
 
 The performers and their gen eral successors enjoy a literary right, which is not assignable, 
prescribeable, but authorize them the following: 
 
(i) The right of having the performance in their names whether live or recorded. 
(ii) The right to suspend any distortion, mutilation, modification or derogation action, 
which would be prejudicial to their status.  
 
 The performers only shall enjoy the following economic rights: 
 
- The right to transmit their unfixed p erformance and communicating it to the public. 
- The right to fix their performance on a phonogram. - The right to reproduce their fixed performance on a phonogram. 
 
 The producers of phonograms shall only enjoy the following economic rights: 
 
- The right to prohibit any exploitation of their phonograms by any means without 
their authorization.  Copying, rental, br oadcasting, re-broadcasting, availability to 
the public via computer or other media is an exploitation prohibited to be used by 
third parties.  
- The right to disseminate their recordings  via wire, wireless, computer or other 
means. 
 WT/TPR/M/162/Add.1 
Page 52  
 
The broadcasting organizations shall only enjoy the following economic rights: 
 
- The right to grant licenses for exploitation of their recordings and broadcasting 
program. 
- The right to prohibit any communication of their programs or recordings to the 
public without their authorization.  Reco rding of such programs, copying or re-
copying their recordings, rental, re-broadc asting, and communication to the public 
by any means are prohibited to the third parties in particular.  
  
 The term of protection is 50 years.  
 
Part III. Trade Policies and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(iv) Intellectual property (IP) rights, paragraph 95:  
 Canada understands that the 1992 Trademarks Law No. 37 "also contains provisions on well-
known marks." Would the UAE please provide furt her details, particularly as to whether non-
registered marks could qualify as well-known marks?  
 Well known Trade Mark are protected in the UAE, however the ministry of Economy does not 
accept an application for the domestic registrati on of the well known Trade Mark in the UAE 
(including non registered Trade Mark), unless the application has been submitted by original 
proprietor or its authorize representative.   
Part III. Trade Policies and Practices by Measure,  (4) Measures Affecting Production and Trade, 
(iv) Intellectual property (IP) rights, paragraph 96:  
 Canada understands that "the 2002 amendment of the law [the Trademarks Law] added that 
the non-use of the trade mark should not be a reason fo r the deletion, if it is due  to reasons not related 
to the ownership of the trade mark." Can the UAE please provide further details? 
 
 The non –use of Trade Mark could be in cases of force majeure like war, or natural disasters.  
In addition, the competent civil courts in the UAE may at the request of any interested party order 
that a trademark registration be cancelled if est ablished that the trademark has not been used 
continuously for 5 years, unless the owner is able to  prove that the non-use of the trademark was due 
to external interference such as import restrictions  or other government conditions imposed on the 
goods or services that are distinguished by the trade mark. And the use of a trademark includes its use 
by someone so authorized by its owner.  
 
Part IV. Trade Policies by Sector, (5) Servic es, (iii) Telecommunica tions, paragraph 108: 
 
 The Secretariat Report indicates that, while li censees are obliged to keep separate accounts, it 
is difficult to determine whether the 60% state-owned monopoly and incumbent, Etisalat, funds one line of business with another as there is no separat e accounts for domestic and international activities 
or, for that matter, for fixed and mobile services.  Is the UAE considering any measures that would 
require the incumbent to identify whether it funds one  line of business with another or, at least, to 
improve transparency in relation to how it ope rates these different elements of its business? 
 
 The Telecommunications Regulatory Authority (T RA) issued guidelines to Etisalat in April 
2005 to establish a system of cost accounting and a ccounting separation.  The guidelines require a 
system that adheres to the principles of cost caus ality, accounting standards and transparency.  The 
final outcome will be a cost accounting and accounting separation model using current cost 
accounting and giving rise to long run incremental co st (LRIC) figures for designated interconnection 
services.  Etisalat is required to complete the final  model, including the LRI C figures, by April 2007. 
  WT/TPR/M/162/Add.1 
 Page 53 
 
 
The Secretariat Report notes that a second full service provider is expected to enter the market in 2006 
but that it would also involve some  federal government participation. 
  Can the UAE provide any further details on the scope of offerings of this second provider and 
the anticipated range of government involvement? 
 
 A second provider has been awarded a full service  telecom license, which includes fixed net, 
mobile, international and internet, in February 2006 .  The new operator expects to launch service in 
the second half of 2006.  The anticipated governme nt involvement in the second operator is a 40 
percent ownership share by the UAE Federal Government.   
 
 Is the UAE considering allowing any further competition?   
 In addition to the GATS and the Telecom Re ference Paper, the UAE has submitted its 
Schedule of Commitments regarding market liberalization.   
 
Part IV. Trade Policies by Sector, (5) Servic es, (iii) Telecommunica tions, paragraph 112: 
 
The Secretariat Report notes that the Telecommuni cations Regulatory Authority (TRA) has "full 
authority for issuing and implementing regulations for telecom services and all licensed operators," 
which includes price regulation and interconnection.  It also notes that the TRA is responsible for 
establishing and implementing standards for type approval of equipment. 
 
 Could the UAE comment on the Secretariat Report's observation that, in 2005, these approvals were still performed by the incumbent Eti salat (under contract with the TRA)?  How is the 
UAE ensuring independence of the regulator in relation to such decisions? 
 
 The TRA has full responsibility for type approv als and standards for the telecommunications 
sector.  The TRA currently uses the UAE Lab facilities for some of its testing.  Independence is 
assured since all tests are perfor med at the direction of the TRA, all results are sent directly to the 
TRA for analysis and review and all decisions to approve or disapprove equipment is done solely by 
the TRA.  For some type approvals the TRA has  adopted equipment registration schemes where 
manufacturer/dealer declarations of conform ity are used as a basis for approvals. 
 
 Could the UAE address the question of in terconnection and price regulations?  The 
Secretariat Report notes that, in practice, new prices for telecom services were set by the incumbent, 
subject to prior approval by the TRA. 
 
 The Secretariat report refers to retail pri ces and the TRA must approve every retail price 
change proposed by the incumbent.  To this e ffect, please see the TRA's Price Control Policy and 
Price Control Procedures on its website: www.tra.ae
 
  As a matter of practice, the TRA scrutinizes eve ry retail price change proposal for evidence of 
anti-competitive pricing behaviors, bundling monopol y services with competitive services, or cross 
subsidization.     With regard to interconnection pricing, the TRA allows the incumbent to set its prices but if 
there is a dispute between the incumbent and an other licensee during the commercial interconnect 
negotiations, the other licensee may come to the TRA for adjudication of the dispute, in which case, 
the TRA could set the interconnection prices on either an interim and/or a permanent basis.  For more details about this process, refer to the In terconnection Dispute Resolution Procedures on the 
TRA's website: www.tra.ae
    
 WT/TPR/M/162/Add.1 
Page 54  
 
 There are other instances where the TRA could set the incumbent's in terconnection prices, 
such as when the incumbent deli vers cost-based interconnection prices  early in 2007, at which time 
the TRA will be involved in the finality of  the proposed interconnection prices.   
  Therefore, in the case of retail and interconn ection prices, both are regulated by the TRA. 
 
 Does the UAE have any plans for limiting the incumbent's involvement in these types of 
regulatory decisions? 
 
 During the investigatory phase of certain regulato ry policies, the TRA may invite the industry, 
which would include the incumbent, to make comments.  
 Part IV. Trade Policies by Sector, (5) Servic es, (iii) Telecommunica tions, paragraph 116: 
 
The Secretariat Report refers to a recent report th at found the UAE cellular market to be among the 
least competitive in the region. 
 
 Does the UAE agree with this finding?  
 The Arab Advisors report cited in the TPR was released in September 2005.  At that time, of 
the 18 countries surveyed, the UAE and Qatar we re the only countries with monopoly mobile 
markets.  As such, it is not surprising that the report found the UAE market to be among the least 
competitive.  Since that time, the UAE has granted  a full service telecom license to a second operator 
in February 2006.  That operator exp ects to launch service in the second half of 2006.  At that time, 
the UAE expects the level of competition to intens ify significantly, especially since the new operator 
will also have the opportunity to enter all telecom lines of business, including international calls.  
Competition in the fixed net and international segments is not typical in the region.    
 Does the UAE have any indication of the role that the relatively high state involvement plays in the competitiveness of this market?  
 The UAE observes that the UAE mobile sector has led the region.  Penetration exceeds 95 
percent, among the highest in the world, 3G services are widely available and prices, according to 
another report by the same Arab Advisors group, are among the lowest in the region (Arab Advisors, 
'Cellular Rates in the Arab World: A Regional Comparison,' March 2005).     It must be noted that the TRA is bound by law to oversee the telecom sector, including the 
status of competition within the UAE.  The TRA is totally independent from the UAE Cabinet.  It 
reports to no Ministry or Government body.  The TRA grants no special consideration to companies 
with state participation. 
 
Part IV. Trade Policies by Sector, (5) Services, (iv) Tourism services, paragraph 118: 
  According to the Secretariat Report, the large investment in hotels was one of the factors 
behind the growth of the sector in 2000-04.  What kind of incentives have been provided to encourage such investments by local and foreign entities?  
 Local and foreign investments were attracted so lely by the huge demand for tourism services 
(accommodation, restaurants, etc.).  
  The sector has witnessed unprecedented growth  in the last few years, and therefore the 
government is currently of the view  pursuant to the request of the local private sector that this sector 
be given some more time to be able to  compete in the local market and abroad.  
  WT/TPR/M/162/Add.1 
 Page 55 
 
 
Part IV. Trade Policies by Sector, (5) Services, (iv) Tourism services, paragraph 120: 
 
 The Secretariat Report states that as of January 2006 Dubai's law on foreign real estate ownership was still in draft form.  Please advise when this law is expected to be finalized and describe 
what its likely elements will be.   With regard to real estate registration in the Emirate of Dubai, the Law no. (7) of 2006 was issued in March 13
th 2006. A translated copy is attached. 
 
 Article 4 of the Law provides that non-national s may be granted, pursuant to the approval of 
the ruler of the Emirate, the following ri ghts in designated areas in the Emirate: 
 
- Freehold ownership of a real estate. - Usufruct or lease of a real estate for a period no exceeding (99) years.  
 
Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, 
paragraph 142: 
 
 Paragraph 142 notes that "91% of the UAE work force is foreign."  Does the UAE believe 
that the introduction of the "emiratization programme " has been effective in reducing the percentage 
of foreigners in the work force in the UAE?  Can the UAE please provide an indication of what 
percentage of the UAE work force was foreign prior to the introduction of this programme? 
 
 The emiratization programme is effective in  increasing the number of Emaraties in the 
targeted employment sectors. But the contribution of the programme towards reducing the percentage 
of foreign workers in the UAE is not yet ostensible because: 
 - The programme is relatively recent. - The sectors so far selected fo r emaratization are not necessa rily those accountable for the 
 highest percentage of foreign workers presence. 
 
Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, paragraph 143: 
 
 Paragraph 143 notes that foreign professionals  are permitted to practice business services in a 
number of professions, "provided they hold a va lid UAE residence permit."  Can the UAE please 
clarify whether this implies a residency requirement or a licensing requirement?  
 A foreigner desiring to practice business in  professions will need a licensing permit apart 
from and in addition to other requirements for a residence permit .Some aspects of licensing are 
federal namely, those relating to educational cum pr ofessional qualifications to practice in the field of 
advocacy, medicine , pharmaceuticals , vet medi cine , teaching and auditing and accounting . The 
applicant must have a certificate of graduation in th e specific field in addition to a certificate of 
membership of the respective professional body. Other aspects of licensing are local, specifically 
those relating to professions not   mentioned above and those relating to the licensing of the premises 
of the firm or company.  
 
 Professional services may be practiced through any of the following business arrangements provided that the above requirement:    
 - Establish an office in the UAE by way of a partnership agreement with a UAE  
  national as per a contract documented by the relevant government authorities. WT/TPR/M/162/Add.1 
Page 56  
 
 - A joint venture agreement with a company op erating in the UAE in the same field of 
  competence for the purpose of executing a certain project. 
 - Through a Service Agent who should be a UAE national. 
 
Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, (a) Legal services, paragraph 146: 
  Paragraph 146 notes that "[l]aw firms must be 100% owned by UAE nationals."  Can the 
UAE please clarify whether the emiratization policy of 1997, which states that foreign ownership in foreign firms established in the UAE is limited to 75% (referenced in paragraph 151), includes law 
firms? In other words, is foreign ownership in law firms now permitted, but limited to 75%? 
  Regarding foreign Legal Consultation Offices t hat may be established in UAE, the foreign 
ownership of could be up to 100% subject to getting the license from the Municipality. Please note that paragraph 151 of Part IV of the Secretariat Report refers to the establishment of foreign auditing firms in the UAE and not other professional services.   
 Law firms ( conducting both barrister and solicito rs works ) must be wholly owned by a UAE 
lawyer . Non UAE barristers were permitted to appe ar before preliminary and appeal courts for 
maximum period of four years which   expired on 19/3/2006 with respect to the court of appeal and a maximum of 8 years which will expire on 19/3/2010 w ith respect to preliminary courts. UAE lawyers 
are pressing for the expired court of appeal perm ission not to be renewed. Foreign barristers may 
thereafter only work from within a UAE wholly ow ned firm and with no right to appear before UAE 
courts.  So called Legal Consultancies Firms (c onducting legal advice, preparation of deeds –not 
authentication- and other out of court legal work) are not strictly falling within the above limitation. 
  In practice however foreigners may be licensed to  carry out legal consultancy work provided 
that they have a UAE partner or agent. Agency is th e suitable arrangement if the foreign applicant is 
a branch of a mother firm in the applicant's country of  origin in which case100% foreign ownership is 
possible. In such a case the UAE agent need not be itself a lawyer. If the applicant is not a branch it will have to register as a UAE business association in which case the existing foreign component is 
maximum 49%. In this latter case the U AE partner must himself be a lawyer. 
 Part IV. Trade Policies by Sector, (5) Services, (vi) Trade in business and professional services, (b) 
Accounting and auditing services, paragraph 151:  
 Paragraph 151 notes that under the emiratiza tion policy of 1997, foreign firms established 
prior to 1995 have been given a transition period of  until 2007 to find local partners.  Have the UAE 
introduced any new programmes or mechanisms that assist foreign firms in finding local partners, in 
order to ensure that this policy is not seen as an impediment to foreign direct investment? 
 
 Paragraph 151 of Part IV of the Secretariat Report refers to the Ministerial Resolution no. 7 
of 1997 regarding the registration of Foreign Offices and Companies in the Register of Auditors, this Resolution relates to the requirements included in paragraph 153 but it does not include any 
reference to 75% foreign equity limitation. The referen ce to the 75% foreign equity limitation is in a 
draft law that is still under review by the Council of Ministers. Should the Law be adopted the limitation would not apply to branches of foreign companies which still be allowed to have 100% 
foreign with the requirement of having a service agent . Therefore, the foreign firms established in the 
UAE before 1995, which are all branches as indi cated in paragraph 150 of the Secretariat Report, 
would not be affected.  
  WT/TPR/M/162/Add.1 
 Page 57 
 
 
 It should be noted that adopting a draft La w that would allow higher foreign equity for 
auditing companies to be established in the UAE shoul d be considered as further liberalisation of the 
sector and not "an impediment to foreign direct investment".    
 
Report by the Government (WT/TPR/G/162) 
 
Part III. Sectoral Developments, (2) Telecommunication, paragraph 39: 
 
 The Government Report notes that mobile pene tration ("m-penetration") exceeded 95% of the 
population in 2005.  This is incredibly high by any standard.  Could the UAE share any of its 
strategies for increasing mobile penetration to such a degree? 
 
 The UAE TRA went into effect in November 2004, and as such, did not develop strategies for 
the telecom sector during the time when mobile penetration was increasing dramatically.  The 
strategies involved were determin ed by the incumbent, and who upon request stated that it considers 
strategies to be commercially sensitive.  
 
The Government Report notes that the UAE has taken " various initiatives to accelerate the 
advancement of the telecom sector."  As an exam ple, it refers to Decree No. 3 of 2003 and it's 
Executive Order, which "initiated the telecom liber alization process and established an independent 
Telecommunications Regulatory Authority (TRA)." 
 
 What other types of initiatives has the UAE taken to support liberalization in this sector? 
 
 Since its inception in November 2004, the TRA has created telecom licenses for the two full 
service operators.  The licenses incl ude specific prohibitions regardi ng anticompetitive behaviors.  
The TRA has issued a robust set of polici es and procedures regarding interconnection, 
interconnection pricing, a reference interconn ection offer (RIO), dispute resolution and 
anticompetitive pricing.  The TRA requires Etisalat to  offer national roaming to the new operator.  
Operators must provide for number portability and carrier selection and carrier pre-selection.  The 
TRA has created a new national spectrum plan, est ablished a policy for spectrum pricing and has 
taken responsibility for all spectrum issues previously  handled by the Ministry of Communications.  
The TRA is in the process of developing various policies for improving the efficiency of spectrum 
usage in the UAE.  The TRA has taken respons ibility for numbering and has produced a national 
numbering plan.  The TRA has taken responsibility for type approval.  The TRA has taken responsibility for internet domain name administr ation and has produced the UAE's policy for 
domain name administration. 
 
 Does the UAE have speci fic time-frames in mind? 
  Can the UAE provide any indication of whether it is considering binding this new level of 
openness in the current GATS negotiations by making an offer on telecoms to reflect the 2004-05 reforms? 
 
 The answer of the above questions b. and c. are as follows:  
 In addition to the GATS and the Telecom Reference Paper, the UAE has submitted its 
Schedule of Commitments regarding market liberalization.   
 
Part IV. Future Direction, (1) Reform of the Investment Framework, paragraph 54: 
 The Government Report indicates that the UAE plans to re-examine its Federal Commercial 
law, which limits foreigners to minority stakes in local firms.  Could the UAE explain what this 
review of the Federal Commercial law would enta il and the impact this review will have on the 
foreign ownership cap of 49%? WT/TPR/M/162/Add.1 
Page 58  
 
 The foreign ownership cap of 49% is not stated  in the Federal Commercial Law but rather in 
the Federal Companies Law. The la tter law is in the process to be amended allowing the Council of 
Ministers to determine the sectors that non-na tionals can operate in and the foreign equity 
participation thereof, which may be up to 100% in sectors that would be specified in the Decision. Once a Decision has been issued sectors included and foreign equity participation may not be decreased.  
Part IV. Future Direction, (1) Reform of the Investment Framework, paragraph 56:  
 In order to diversify the economy and in an effo rt to attract more foreign direct investment, 
the UAE is proposing reforms to the current invest ment framework by amending the Company Law.  
Could the UAE identify the proposed reforms a nd expected outcomes from the changes to the 
Company Law? 
The Federal Companies Law is in the process of be ing amended allowing the Council of Ministers to 
determine the sectors that non-nationals can operate  in and the foreign equity participation thereof, 
which may be up to 100% in sectors that would be specified in a Cabinet's Decision. Once a Decision 
has been issued sectors included and foreign e quity participation may not be reduced.  
The daft new Law includes other areas of reform: 
- Providing the Companies Registrar with authority to register and inspect companies 
- Introducing the system of preferred shares. 
- Allowing the establishment of a single shareholder company 
- Introducing the company's employees' participation system.  
 
ANSWERS TO QUESTIONS FROM THE SEPARATE CUSTOMS TERRITORY OF 
TAIWAN, PENGHU, KINMEN AND MATSU 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
(page 39, paragraph 75)  
As indicated in Box III. 1 of the report, a number  of investment incentives are available under the 
UAE's "Federal Law No. 1 of 1979 - Organizing I ndustrial Affairs", ranging from duty-free imports to 
supply of utilities at low prices.  According to Article 20 of the Law, "the Council of Ministers and 
the authorities in the United Arab Emirates (UAE) may grant projects that meet certain conditions, 
privileges and exemptions, such as subsidies to ex ports and protective measures for local products".  
Article 21 states, in addition, that priority for the privileges and exemptions mentioned in Article 20 is 
given for: "competitive, export-oriented or expor t-substitution projects", "projects using local raw 
materials", "projects established in areas determin ed by the Government" and "any other projects that 
may be of specific economic importance, and in cluded in the government development plan." 
  We wonder whether the above-mentioned schemes  may be considered as "revenue foregone", 
benefiting as they do those enterprises that meet certain conditions, and which would make them a 
subsidy subject to notification under Article 25 of the SCM Agreement?  
  Would the UAE kindly explain the "conditions" and describe the "beneficiaries" of the 
measures, as well as provide detailed statistical in formation of the government 's contribution towards 
such industrial projects in accordance with Articles 20 and 21 of the Federal Law?   
  WT/TPR/M/162/Add.1 
 Page 59 
 
 
 Furthermore, it would be appreciated if the UAE could also provide further clarification on 
whether the measures at issue constitute prohibited subsidies within the scope of Article 3 of the 
WTO Agreement on Subsidies and Countervailing Measures?   
 
 The provisions of the Federal Law No. 1 of  1979 (Articles 20 & 21) have not been enforced. 
Below is some insight on the application of the provisions in question. 
 
 Below is a commentary on Article 20 of the Law and its application:   
 "The Council of Ministers, and the authorities in  the Emirates, may grant projects that meet 
certain conditions, the following privileges and exemptions:   - assignment of a building-site for the proj ect, either free or at a reduced price or a 
symbolic rent with optimal conditions; Comment: The Federal Government has no jurisdicti on on assigning building-sites.  Therefore local 
authorities in the Emirates have full power as to how th ey want to dispose of or lend their properties.  
There is no evidence that the authorities in the Emir ates applied the criteria outlined in Article 21 of 
the Law to assign a building-site.   - rent on the necessary industrial buildings at optimal conditions, in the industrial 
areas established by the Government; 
Comment: Again, there is no evidence that either the Federal Government or the local Emirate 
Governments determine the rent on industrial buildings  based on the criteria outlined in Article 21. 
  - supply of electricity and water at incentive rates; 
Comment: The rates charged for wa ter and electricity is the same for all commercial users and is 
measured at a discounted rate to encourage indus trial projects and facilitate their development.   
  However, Article 21 is not a criteria for these incentive rate..   - customs-free imports of: 
  (a) machinery, equipment, spare parts  and building materials required for  
   project; Comment: Input required for the construction and erecti ng of a factory, if directly imported, may be 
duty exempt.  The government does not, however, appl y the criteria outlined in Article 21 for 
exempting the duty. 
 
  (b) raw and intermediate materials, semi-products, packing and wrapping     materials used at production level Comment: As with imports of machinery and equipmen t for the factory, duty on raw material for the 
purpose of use in the factory is also zero.  Again, Article 21 is not a criteria for the exemption.  
 - tax-exemption for the profits made by the project as well as the reserve amounts 
deducted from these profits to be re-invested in the project, for a renewable period of five years 
starting from the date when production becomes effective; Comment: The UAE does not have a tax regime.  As  such, this clause has not been applied in 
practice. 
 
 - exemption of locally made products – wh en exported – from export duties and taxes; 
Comment: The UAE does not apply export taxes to any of its exports.  Therefore, this clause has not 
been applied in practice.  
 - subsidies to exports;  and WT/TPR/M/162/Add.1 
Page 60  
 
Comment: The UAE does not provide subsidies for exports.  Therefore, this clause has not been 
applied in practice.   - protective measures for local products, ta king into consideration their kind, quality 
and quantity." 
Comment: As of date, there are no measures taken by the local or federal government to protect local 
production through any measure agai nst imports.  Therefore, this clause has not been applied in 
practice.   In summary, the practices of the UAE governme nt at both the federal and emirate level do not 
seem to violate Article 3 of the WTO Agreement on Subsidies and Countervailing Measures.  This is 
because for Article 3 to apply, the UAE must be subs idizing its producers with the intent to make them 
more competitive domestically against foreign imports, or subsidize UAE exporters so that they could 
unfairly capture foreign markets, or require certain loca l content to for products sold in the UAE so 
that a barrier is created against imports.  Clearly th is is not the case and has never been the practice 
of the UAE government. The UAE would be reviewing this Law to ensure its incorporation of best 
practices in industrial development and making sure of its consistency with the UAE commitments 
under the WTO.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
iv) Intellectual property (IP) rights  (i) Enforcement (page 43, paragraph 101) 
 It is indicated that, "Customs is entitled to take measures at the border to prevent any violation of 
intellectual property rights, in accordance with the above-mentioned laws as well as under Customs 
regulations.  These measures can be taken upon demand of  the right holder based on a judicial order."   
 
 Does this mean that Customs will not take measures on its own initiative to prevent 
violations of intellectual property rights? 
  No, the customs will take measures on its ow n initiative to prevent violations of IPR. 
  Does Customs provide to rights holders at their request in order to facilitate legal action, the 
name, address and relevant information of the consignor, exporter and importer, as well as the 
quantity of the counterfeit or pirated goods, or  even samples of the items in question? 
 
 Yes, that is the practice of the Federal Customs Authority. 
 
IV. TRADE POLICIES BY SECTOR 
(3) MINING, ENERGY, AND WATER 
(iii) Developments regarding selected products 
(pages 53 and 54, paragraphs 35, 38, 40 and 41)  
As indicated in the Report, about 40% of oil production is carried out by concessionaries wholly 
owned by foreign interests, and foreign investment is not a prior limitation.   
  We strongly approve of the UAE's efforts to lib eralize trade, and the results achieved with 
foreign participation are increasingly impressive. Do es the UAE have any plans to further open up the 
downstream sector of the petroleum and gas industry?   The Natural Resources Sector  is excluded from the Federal Companies Law of the UAE. 
According to Article (23) of the Federal Constitu tion of the UAE ownership of natural resources is  WT/TPR/M/162/Add.1 
 Page 61 
 
 
vested in each Emirate. The foreign equity in project s related to natural resources in the UAE is to be 
determined by the competent authorities of the lo cal government of the Emirate, in which natural 
resources are located. Each Emirate practices its right in accordance with its development needs, 
requirement for investment, technology, and te chnical know-how. Currently, there are some 
companies working in the natural resources sector (i ncluding the petroleum sector) in the UAE with 
foreign equity up to 100%.  
(5) SERVICES 
(ii) Transport (b) Maritime transport services 
(page 63, paragraph 79) 
 
The UAE shipping agency and freight forwardi ng market comprises numerous companies.  In 
addition, the UAE has developed as a regional hub fo r maritime transportation and logistics (page 8, 
paragraph 48 of the Governme nt Report WT/TPR/G/162).  
 
 We would appreciate knowing whether there are any restrictions on establishing a foreign 
company, such as a shipping company, shipping agency , freight forwarder or container terminal?  If 
so, could the UAE please further clarify the restrictions, and describe in detail the qualifications required of the company manager? 
 
 In the free zones there are no  restrictions on establishing a foreign shipping company, freight 
forward or shipping agency. Outside free zon es, a joint venture between a local company and a 
foreign company can be established as well. Other than that, a local sponsor is the only requirement 
necessary to establish any company or a branch of  a foreign company for marine services activities. 
  
 The Government has no specific requirements fo r the qualifications of the company manager. 
In addition, the board of directors for every company is free to determine the qualifications of its 
manager.  (page 63, paragraph 81)  
 Most port handling services, including crane lifting, loading, discharging, stevedoring and stowage, 
storage and warehousing, as well as pilotage appear to be supplied exclusively by the Emirates' port 
authorities. 
 
 In the interests of promoting further liber alization and efficiency, please could the UAE 
advise whether there is a plan and a schedule to open up these services to private enterprise? 
 
 This is subject to each of the UAE Emirat es. The possibility of having joint ventures, which 
would benefit its parties,  would be considered. 
 
(iv) Tourism service (page 72, paragraph 121)  
The report indicates that the commercial presence of hotels and restaurants is permitted with a 
maximum foreign equity participation of 49% in the UAE.  
 Does the UAE have plans to  ease the above-mentioned limitation on foreign equity 
participation?  If yes, please provide  us with the relevant details. 
  In addition to UAE's initial o ffer to the WTO that would allow foreign hotels and restaurants 
to establish foreign branches in the UAE with no limitation on foreign equity, the UAE government WT/TPR/M/162/Add.1 
Page 62  
 
will be willing to consider further liberalization of this sector with regard to hotel management 
services, subject to the overall balance of  the trade in services negotiations. 
 
(v) Financial services (b) Banking (page 76, paragraph 13) 
 As indicated in the report, every commercial bank,  including branches of foreign banks, must have a 
minimum paid-up capital of Dh 40 million (US$10.9 m illion), or 10% of risk weighted assets in the 
UAE, whichever is the greater. 
 
 We believe that the quality of the parent bank's assets, the commitment and financial support 
from the parent bank to its branches, and the cl ose cooperation between the supervisors of home and 
host countries are more important than the capital requirements for the foreign bank branches.  May 
we suggest, therefore, that the United Arab Emir ates might review the necessity for setting such a 
high level of capital requirements? 
 
 Capital requirement for branches of foreign banks: The minimum paid up 
capital requirements for all banks (national banks and branches of foreign banks) operating in the UAE is determined by UAE federal law no. (10) of 1980, in Article (80) thereof. 
 
 However, the central bank of the UAE exercises a certain amount of flexibility regarding large exposures which is a per party limit of 7%, by permitting foreign branches of banks from OECD 
and GCC countries to calculate this limit based on their global capital. 
 
ANSWERS TO QUESTIONS FROM THE UNITED STATES OF AMERICA 
 
TRADE POLICIES AND PRACTICES BY MEASURE 
 
In paragraph 32 on page 30, the Secretariat Report indicated that the UAE has adopted the provisions 
of anti-dumping and countervailing, and safeguard m easures contained in the GCC Treaty, for which 
implementing regulations have yet to be finalized.   
  When will the UAE finalize th ese implementing regulations?  
 
 The UAE is working closely with the other GCC member state to develop the implementing 
regulation of the anti-dumping and countervailing meas ures legislation. This should be done in the 
near future. 
 
Measures Directly Affecting Imports – Standards and Other Technical Requirements – Standards,  
Testing, and Certification 
 We appreciate the information in paragraphs 33 and 35 on page 30 of the Secretariat Report regarding 
UAE standards and technical regulations.     Please provide further information as to how interested parties in all WTO members are able to participate in the development of UAE standards and technical regulations. 
 
 The UAE started to notify WTO members thr ough the UAE national enquiry point, and in 
accordance with the TBT requirements, notifications were sent to the WTO and circulated to WTO 
members, including: G/TBT/N/ARE1: Lubricating Oi ls 28 Feb 2006. In this respect, the UAE does 
give a 60 day period for WTO members to comment on proposed technical regulations. 
 
 What steps is the UAE taking to notify the WTO of its standards and technical regulations?  WT/TPR/M/162/Add.1 
 Page 63 
 
 
 According to transparency principles of the TBT agreement, it is the UAE's policy to notify its 
proposed standards, technical regulations and confor mity assessment procedures in the early stages 
of preparation of same, taking into considerati on that the UAE has established a national enquiry 
point within ESMA/Information Center to be responsib le for dealing with a ll enquiries received from 
WTO members. 
 
The Secretariat Report stated in paragraph 34 on page 30 that "The law provides for ESMA to become 
financially and administratively indepe ndent, with revenues increasingly from, inter alia , sales of 
standards, conformity assessment program s, accreditation, and quality marks." 
 
 Please provide further information on how ESMA determines the fees that it charges. 
 
 Since ESMA is a non-profit organization, there are different elements taken by it in 
determining fees for its services and programs. These elements include:  
 - Actual cost of ESMA services. 
 - Standard of living in the UAE.  - Comparison with fees and costs charged by governmental bodies and private sector 
  that provide similar services in the GCC region. 
 
 According to paragraph 35 on page 30 of the Secretariat Report, UAE standards are based 
on GCC standards, including food standards.  We understand that in the absence of GCC approved 
standards, the UAE's General Secretariat of Municipa lities (GSM) sets food safety regulations based 
on recommendations made by National Committees.   The GSM does not set food safety regulations. GSM, along with ESMA, is the coordinating 
body between municipalities in impl ementing food safety regulations. 
 
 Please describe the role of the GSM and its relation, if any, to ESMA.  
 ESMA is the national body responsible for setting standards and tec hnical regulations. It 
coordinates with relevant parties related to its work in UAE, both GSM and ESMA participates in the 
other party committees, GSM coordinates with munici palities for the implementation of the technical 
regulations. 
 
 Please describe the process by which the GSM interacts and ensures that all eleven 
municipalities adhere to estab lished food safety standards 
 
 GSM has different mechanisms for interac ting with municipalities, including regular 
meetings, circulars, in addition to having join t committees with all municipalities, for ensuring 
harmonized implementation of technical regulations. 
 
Paragraph 36 on page 30 of the Secretariat Repor t provides information on conformity assessment. 
 
 Is accreditation open to foreign laboratories?  If so, what is the process?  If not, why not? 
 
 ENAS accreditation is open for any applicant from any conformity assessment body including 
applicants from outside the UAE, as  long as this does not contradict with ENAS's obligations within 
ILAC with regard to Cross Frontier Accreditation Principles for Avoiding Duplication (ILAC G 21). 
As for the process for getting accreditation, kindly refer to the website of ENAS: www.esma.ae/enas
, 
for detailed information. 
 
In paragraphs 40 & 41, the Secretariat Report indicated that most agricultural imports must be 
accompanied by a veterinary or phytosanitary (as appropriate) certificate issued by the competent WT/TPR/M/162/Add.1 
Page 64  
 
authority in the exporting country and that the certificate must be "attested by an Arab country's embassy."   Please explain why the certificate needs to be  verified by an Arab country's embassy. 
  These documents and certificates are required to be attested in order to be sure and confident 
about the validity of these documents and that th ey are issued by governmental agencies in the 
exporting country, this should be done by a Unite d Arab Emirates Embassy and in case if there is no 
UAE Embassy in the exporting country then it shoul d be attested by an Arab Embassy as matter of 
facilitation.  
 
Measures Directly Affecting Imports – Standards an d Other Technical Requirements – Marketing, 
Labelling, and Packaging 
 
As reported in paragraph 44 on page 32 of the S ecretariat Report, the UAE abolished the half-life 
shelf-life requirement on imported products in 2004.   
  Please identify the legislation or Ministerial Decree that ended this requirement.  
 It is the Decision no. 29 of 2004, dated 26th September 2004, issued by the Council of 
Ministers. 
 
 Is this legislation enforced throughout all municipalities?    
 
 This decision has been circulated to all municipalities to be implemented. 
 It is our understanding that at least two muni cipalities have issued decrees requiring production and 
expiry dates in the health certificates for all imported foods.     Please explain the coordination process between the GSM, the municipalities, and the inquiry point, in the issuance of import regulations.    
 Are there any efforts underway to ensure regulatory compliance and collaboration among all 
federal and municipal entities as they implement changes in food standards and measures?    
 
 ESMA is the national body responsible for setting the national standard. The GSM, ESMA 
and municipalities coordinate together to enforce implementation of standards and technical 
regulations. ESMA enquiry point started a survey on all bodies in the UAE that issue technical 
regulations, and required them to send ESMA any dr afts for technical regulations in early stages 
before approval, so that ESMA can notify them pursuant to WTO-TBT.  
 
Measures Directly Affecting Imports – Government Procurement 
 The Secretariat Report stated in paragraph 49 on page 33 that procurements by "other public bodies, 
including state-owned enterprises and municipaliti es, appears to be relatively opaque".   
  Are the procurement rules and regulations appli cable to these entities acces sible to the public?  
If so, where can they be found?  If not, does the UAE  intend to make them available to the public? 
 
 At the Federal Level, all procurement is subject to a single federal legislation. The UAE 
federal government through the Ministry of Fi nance and Industry procures all goods and services 
electronically.  
  WT/TPR/M/162/Add.1 
 Page 65 
 
 
 As for public works, the UAE laws allow the Ministry of Public Works to electronically 
procure. A full-fledged system is currently  underway to tackle this endeavour.   
 
The report notes in paragraph 49 of Part III that th e procurement regime may vary from contract to 
contract, what is meant, we believe, is that each  Emirate, pursuant to the constitution, has its own 
legal instrument that governs procurement, but in all cases, transparency, international best practices 
and efficiency rules apply in the Emirates.   Are the tender notices and contract awards of these entities accessible to the public?  If so, 
where can they be found?  If not, does the UAE intend to make them available to the public? 
 
 In the near future there will be one unifie d portal for all federal ministries and other 
organizations. Tenders for projects of local and fe deral organizations are announced through their 
own respective web sites.  
 
Measures Directly Affecting Exports – Export Subsidies, Finance, Insurance, and Assistance 
 
The Secretariat Report indicated in paragraph 67 on page 37 that the Emirate Industrial Bank provides 
financing "at reasonable terms" for the industrial sector , including export credits and equity financing.   
  Please provide further information regarding th e terms of financing provided by the Emirate 
Industrial Bank.  For example, what is meant by the term "financing at reasonable terms?" 
 
 The Emirates Industrial Bank's objective is to  promote the growth of manufacturing sector in 
the UAE.  It extends loans or credit facilities onl y to manufacturing units located in the UAE and 
having at least 51% UAE or GCC equity.  The bank  offers the following products to its customers: 
 
 1. Long-term loans for financing new manufacturing projects or for expansion of an   existing manufacturing project  2. Working capital loans for an existing manufacturing unit in the following forms:   (a) Direct loans for a project's working capital requirement   (b) Revolving credit facility to fi nance a project's working capital needs 
  (c) Special working capital contract that is linked to a large order a 
manufacturer might have received for which finance is required 
  (d) Raw material financing of a manufacturer   (e) Export credit financing of up to 80% of the value of an export order a 
manufacturer might have received (Note: as to date the Bank has not financed even a 
single transaction. Therefore, this facility remains dormant) 
 3. Islamic loan in the form of Mur abaha for financing machinery and raw material 
 4. Islamic loan in the form of Istisnaa for financing the civil works of a project   The Bank charges a fixed interest rate of 4.5%  for all types of loans (Islamic or Otherwise). 
This interest rate could vary depending on the inter- bank lending rates in the UAE.  It is possible for 
this interest rate to be sometimes below and some times above the inter-bank borrowing rate as it does 
not fluctuate on a daily basis.  The interest rate is reviewed periodically by the Bank and adjusted accordingly to reflect the market realities.  In add ition to the interest rate, the Bank also adds on 
certain service charges at its discretion.  In the past, the Bank was required by a Federal Law to charge no more than 4% interest rate but no restricti ons applied to service charge rates that could be 
loaded on to a specific loan. Therefore, depending on prevailing market conditions the Bank loaded 
the overall charges in order to refl ect the prevailing market conditions.   
  More recently the requirement of a fixed int erest rate of 4.5% has been waved and therefore 
the bank is free to set rates acco rding to the market conditions.  As indicated above, as of today's 
date, the bank is charging 4.5% per annum.  This  clarifies part of what is considered as reasonable WT/TPR/M/162/Add.1 
Page 66  
 
terms.  The other part of the reasonable term is the period for which a loan is financed.  The period is 
normally determined by the Bank.  It could be for a minimum of six months to 10 years.  For instance, 
it is possible for a factory to receive loans that extend beyond 10 years – This however is uncommon.  
A third part of the term is the collateral.  All lo ans are backed by collaterals in the form or bank 
guarantees or assets.  Depending on the Bank's hi story with the customer, the bank may accept a 
personal guarantee for part of the loan.  A fourth part of the loan is the grace period before the loan 
principal instalments have to be paid. The grace period could stretch  anywhere between six months to 
three years depending on the project's projected cash flow requirement. 
 
According to paragraph 68 on page 37 of the Secret ariat Report, export promotion is the responsibility 
of each emirate.   
  Please provide further information regarding UAE and individual emirate export promotion 
programs.   We are unaware of any export pr omotion programs at either the Emirate or the Federal level 
that may be directly linked to a specific business in th e form of a subsidy.  The only Export promotion 
program that Individual Emirates are involved in is  promoting their local Emirates as a destination 
for tourism, business or residence.  Such informat ion is transmitted throug h web-sites, brochures, 
media advertisements, and participation in international exhibitions. 
 In paragraph 70 on page 37, the Secretariat Report related that one type of license granted in UAE's 
free zones, the "national industrial license," allows duty-free sales inside the UAE customs territory.   
  Please explain in more detail the requirements that must be met for a company to receive a "national industrial license." 
 
 The Jebel Ali Free Zone introduced the "Nati onal Industrial License" that allowed eligible 
enterprises to benefit of the exemptions promulgat ed in GCC agreement. To be eligible to the 
"National Industrial License", GCC equity in the firm shall be at least 51% and the value added 
within the free zone shall be at least 40%. 
 
Measures Affecting Production and Trade – Stat e-Owned Enterprises, State Trading, and 
Privatization 
 
In paragraph 77 on page 39, the Secretariat Report advised that some state enterprises are both operators and regulators. 
 
 As part of its economic reform, does the UAE intend to separate regulatory activities from commercially active state enterprises?  If so, wh at would be the timetable for such actions? 
 
 The government is looking at this issue at high level. Already, the UAE has, in different 
sectors, created independent regulatory authoriti es. One example is the telecommunications 
regulatory authority, an authority that is tota lly independent and is responsible to oversee the 
telecommunications sector.  
 
Measures Affecting Production and Trade – Intellectual Property Rights 
  Please explain how plant varieties are protected in the UAE. 
 
 The UAE would like to point out the following: 
  (a) The cabinet of the UAE has recently issued a decree agreeing  to accede to the 
International Union for the Protection of New Varieties of Plants (UPOV).  WT/TPR/M/162/Add.1 
 Page 67 
 
 
 (b) The cabinet also directed the Mini stry of Agriculture and Fisheries (currently  
  Ministry of Environment and Water) to draft a law on the Protection of Plant    Varieties.  (c) The draft law is now ready and is in the final ratification stages. 
 In paragraph 100 on page 43, the S ecretariat Report advised that confidential information relating to 
pharmaceutical products submitted to the registration aut hority must be kept confidential, and that the 
term of protection is five years.  TRIPS Article  39(3) also requires the protection of undisclosed 
information required for the marketing approval of pharmaceutical and agricultural chemical products 
containing new chemical entities from unfair commercial use.   
 
 Please explain the system, if any is in place,  for protecting such information from unfair 
commercial use.  
 The Drug Control Department (DCD) at the Ministry of Health (MoH) is the assigned 
authority for the evaluation and granting of marke ting approvals for pharmaceuticals in the UAE.  
  In this context, DCD, through its set pr ocedures and regulations fulfills its obligations 
towards international agreements of which it is a si gnatory. These Federal laws are framed through 
Ministerial Decree (404/2000) and Administrative Circular (34/2003): 
 
Federal (IPR) Law No. 1/2002   Section 6 (Know How); Articles 39, 40, 41 and 42, indicates "the (know how) has the benefit 
of protection from any illegal us age or disclosure or announcement from third parties", based on the 
following conditions:  
 
(Scientific Knowledge) To be undisclosed, un-published for the public.    Subject to a written contract including full description for the scope and the terms of 
protection.   
 In this context, parties (companies) whose undisclosed test data for Pharmaceutical products 
containing New Chemical Entities granted "UAE-Marke ting Approval" to subm it an official request 
to DCD to protect their own submitted material agai nst use from other parties (given they signed a 
legal contract with the concerned authority.)   
Ministerial Resolution No. (404) for the year 2000, declared by MOH/UAE indicates: 
  Any pharmaceutical product with a valid patent at Country of Origin will get the full protection by not approvin g any product with similar composition un til the validity of the patent at the 
Country of Origin expires.   
 The concerned Departments in the Ministry shall maintain the confidentiality of the 
information attached to any applic ation for registration of medici ne or pharmaceutical composition. 
 DCD/MOH actions and procedures:   
 Administrative Decision 34/2003, issued by DCD/MOH. 
  For a patented pharmaceutical product granted  UAE-Marketing Approval based on other 
recognized Reference Country's evaluation (Country of Origin); Protection for such product will 
expire at the time its patent expires at the Reference Country (country of origin).  WT/TPR/M/162/Add.1 
Page 68  
 
 DCD will not approve any product of similar composition unless the patent of the originator 
expires at the Reference Country.   Applications validation upon submission  
 DCD will validate all applications at the time of submission for any valid patent in the USA 
(orange book) as a recognized reference country.    Generic product application will not be accepted unless the originator's patent had expired in 
the USA.  
 
C – Confidentiality of Information   All submitted confidential information at the tim e of the Marketing Approval Application will 
be treated as confidential and will not be disclosed to any third party.  
 
 Test Data related to safety and efficacy of the approved originator product would not be 
considered as undisclosed after the patent expiration at the Reference Country.  
 
Measures Affecting Production and Trade – In tellectual Property Rights – Geographical 
Indications 
 
Paragraph 98 on page 43 of the Secr etariat Report indicated that "geographical indications can be 
considered as trademarks if they are used to di stinguish goods or services with regard to their 
production, selection or commercialization."    
 Does this statement mean that UAE protects GIs through its trademark system, where the 
same mechanisms that are used for trademarks, e.g.  application, examination, opposition, registration, 
cancellation, are also used for geographical indications?   Also, please confirm the means by which the exclusive rights of trademark owners, consistent with Articles 16(1) and 24(5) of the TRIPs Ag reement, are protected under UAE's laws from 
confusingly similar and later in  time geographical indications. 
 
 The UAE will soon sign the Unified Law of Trademarks for GCC Countries, which shall 
contain – upon the recommendation of the technica l committee – provisions  regarding geographical 
indications. 
 
 To date, the UAE does not protect GIs th rough its trademark system, but UAE Trademarks 
Law protects the Geographical names as registered trademarks or as a component if the use thereof 
may not cause confusion as to the origin or source of the goods, products or services. 
   The owner of a trademark has the right to preven t the use of an identical or similar trademark 
to distinguish products or services which are similar, identical or related to the products and services 
in respect of which the trademark was registered su ch as to cause confus ion among the consumer 
public consistent with Article (16/1) of the TRI Ps Agreement are protected under UAE's Law. Article 
(3) of the Federal Trademarks Law no. (37/1992) states that: "The following shall not be registered as trademarks or as components thereof: 3- Geogr aphical names which would create uncertainly as 
to the origin or source of the goods, products or services".    WT/TPR/M/162/Add.1 
 Page 69 
 
 
Measures Affecting Production and Trade – Intellectual Property Rights – Enforcement 
 
Paragraph 101 on page 43 of the Secretariat Report specifies that UAE's IP measures are aimed at 
preventing violation of intellectual property righ ts and cover topics such as seizure, removal, 
destruction, and compensation. 
 
 Does "compensation" include the authorization of  the judicial authorities to order the payment 
of monetary damages in an amount adequate to co mpensate the right holder for the injury suffered by 
as a result of the infringement?    The Judicial Authorities may order – upon the req uest of the injured party – the payment of 
monetary damages, and "In all cases the compensati on shall be assessed on the following basis: the 
amount of harm suffered by the injured party togeth er with loss of profit, provided that that is a 
natural result of the harmful act" (Article 292 of the Federal UAE Civil Code).    
 Paragraph 101 on page 43 of the S ecretariat Report specifies that the UAE's IP measures allow for 
preventive seizure.   Does this mean judicial authorities may adopt provisional measures inaudita altera parte  (ex 
parte)?    The Judicial Authorities may order provisional me asures related to materials suspected to be 
infringed, and in the case of discovering that the materials were legitimate, the party who has had 
measures taken up against it shall have the right to  request for a compensation for the injuries 
incurred.   
 
 The relevant provisions of the Federal Law No. (7) of the year 2002 concerning copyrights, 
neighboring states rights states that:     The Chairman of the lower court in reply to the author or his successor may order on the petition the following for any work published or exhibited without written authorization from the 
author or his successors.  
 
 - Preparing a detailed description of the work.   - Suspension of publication, exhibition or reproduction of the work.   - Imposing seizure on the original work and reproducing it (whether book, pictures,   drawing, performance, photograph, pho nogram, broadcasting prog ram or otherwise) 
  and on the materials to be used in repub lishing this work or reproducing copies of it 
  provided that such materials are only good for republishing work.   - Proving public performance of acting or  communicating a work orally in public and 
  prohibiting continuation of show then and in the future.   - Calculating the income resulted from p ublication or exhibition by an expert, to be 
  appointed if necessary in addition to impos ing seizure on this revenue in all cases.  
 - Recording the violation against the protected rights according to the provisions of 
  this law.    The chairman of the first instance court in all cases may order appointment of an expert and to impose a reasonable bond to be deposited by the applicant.  
 
 The applicant must submit the dispute to the co mpetent court within the following fifteen days 
after the delivery of judgment. If it fails to do so it  will seize to be effective. Please refer as well to 
Articles 35-36 of the Law, and Articles 62-63 from th e Federal Law No. (17) of 2002 pertaining to the 
Industrial Regulation and Protection of Patents, Industrial Regulation and Protection of Patents, WT/TPR/M/162/Add.1 
Page 70  
 
Industrial Drawings and Designs, in addition to  Articles 39-42 from the UAE – Trademark Law 
Federal Law No. 37/1992. 
 
ANSWERS TO THE QUESTIONS FROM JAPAN  
 
Report by the Secretariat (WT/TPR/S/161)  II TRADE AND INVESTMENT REGIMES (4) Trade Agreements (ii) Regional agreements 
(a) Gulf Cooperation Council (GCC) 
(Pages 16-17, paragraph 22)  
The Report by the Secretariat states, "The GCC is negotiating bilateral trade agreements with the EC, 
China, and Turkey, and is considering such negotiations with EFTA, MERCOSUR, India, and 
Pakistan."   
  In this regard, please provide the latest in formation on the negotiations of bilateral trade 
agreements by the GCC.  Has the GCC already star ted the negotiations with India and Pakistan?  Is 
the GCC negotiating with the EC and EFTA separately?   The UAE is a strong advocate of multilateralism.  As a developing economy that thrives on free trade (as evidenced by a total trade that constitutes around 145% of GDP), the UAE believes that 
it is essential to have a strengthened international tr ade system which is fully legitimate, fulfils the 
aspirations of most (if not all) of its members,  and lays down the principles and rules for promoting 
international trade liberalization. To fulfill that role, the WTO occupies a unique position that no 
other forum can equal.   
 Notwithstanding its commitment to multila teralism, the UAE adopted a more open-minded 
approach in pursuing high-standard, WTO-consistent  FTAs with its trading partners, in recognition 
of the potential of such agreements to  reinforce global trade liberalization.   
 
 Having said that, the GCC has already begun a first round of negotiation with both India and 
Pakistan. The GCC is also negotiating separately with the EC and with EFTA.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(4) Measures Affecting Production and Trade  
(iii) Competition policy and price controls 
(Page 40, paragraph 80)  
The Report by the Secretariat states, "The UAE does not have competition legislation.  Anti-
competitive practices are dealt with on a case-by-case basis by the MEP, in consultation with the MFI 
and the chambers of commerce." 
 
 Please indicate the specific basis for the judgm ent of anti-competitive practices.  Is such 
judgment based on sectoral regulations or on the disc retion of the relevant authorities?  Please also 
indicate the specific areas and numbers of anti-comp etitive practices which have been already dealt 
with in the UAE. 
 
 The UAE Government is currently assessing th e possibility of enacting a Competition Law. 
This is in line with the strategy of the UAE government to create an enabling business environment 
that is conducive to economic growth.    WT/TPR/M/162/Add.1 
 Page 71 
 
 
 Different draft laws are being considered. Th e GCC has submitted a draft for a unified GCC 
competition law, which the UAE is currently exami ning. In addition, several regional experiences are 
being considered.   Notwithstanding the absence as yet of a co mpetition law in the UAE, sector specific 
competition policies do exist and are enforced.  In  particular, the Telecommunications Regulatory 
Authority (TRA) issues policies and when necessary, directives concerning competition within the 
telecom sector.  The anti-competition is dealt with in some regulatory instruments such as the Price 
Control Policy and the Price Control Procedure t hat can be found on the TRA's website:  www.tra.ae
 
and it is currently implemented.  The TRA reviews th e Licensees retail price request for the following: 
 
 - Licensees shall not put into effect any ret ail or wholesale prices that involve bundling 
  together monopoly services with services that  competitive or considered by the TRA 
  to become competitive wi thin a reasonable timeframe. 
 - Licensees shall not put into effect any retail or wholesale prices which are cross- 
  subsidized. 
 - Licensees shall not put into effect any retail or wholesale prices which are anti-   competitive.   In the UAE, the Ministry of Economy has been  proactive in taking concrete actions against 
anti-competitive practices. For ex ample, recently 16 products (B asic Food Products) have been 
liberalized by a resolution taken by the Council of Ministers on the basis of a pre-submitted proposal 
by the Ministry of Economy.    The Ministry of Economy is likely to have the mandate to develop and implement the 
Competition Law. In addition, a consumer protectio n law is in its final stages of ratification.  
 
VI. TRADE POLICIES BY SECTOR 
(5) Services (Pages 61-80, paragraphs 66-159)  
In the horizontal commitments of the current o ffer by the UAE under the GATS, maximum foreign 
equity participation is limited to 49% or 75%, ac quisition of land and real estate is not permitted to 
foreigners or to companies in which foreign nationa ls have a share holding, and foreign nationals or 
companies with foreign share holdings may be requi red to pay direct taxes on income derived from 
work or operations in the UAE, whereas local servi ces suppliers or local UAE companies may not be 
required to pay similar taxes keeping in view th e provisions of paragraph (d) of Article XIV. 
 
 Does the UAE intend to reduce or eliminate th ese reservations in the future offer under the 
GATS?  
 In the Initial Offer presented by the UAE in th e current services negotiations, it is stipulated 
that foreign companies authorized to carry on their activities in the UAE may own land or real estate 
only to the extent necessary to conduct their ac tivities in accordance with laws and regulations 
governing ownership of real estate at the Emirate level. 
 
(i) Construction 
(Pages 61-62, paragraphs 66-69) 
  Please indicate the specific measures taken by the UAE for the liberalization of construction 
services.  In particular, please indicate whether the UAE  intends to relax the 49% limitation of foreign 
capital participation in mode 3 of this sector in the future offer. 
 WT/TPR/M/162/Add.1 
Page 72  
 
 In the Initial Offer presented by the UAE, in the horizontal commitm ents, foreign branches 
(including construction) can be 100% owned by foreigners, prov ided that it has a UAE services agent. 
 
(ii) Transport 
(b) Maritime transport services 
(Pages 62-65, paragraphs 74-88) 
 
 Please indicate the specific measures taken by the UAE for the liberalization of maritime 
transport services.  In particular, please indicate the specific views of the Government of the UAE on 
the model schedule on maritime transport services.  Please also indicate whether the UAE intends to 
relax the 49% limitation of foreign equity in mode 3 of this sector in the future offer. 
 
 In the free zones there are no restrictions on est ablishing a foreign shipping company, freight 
forward or shipping agency. Outside free zon es, a joint venture between a local company and a 
foreign company can be established as well. Other than that, a local sponsor is the only requirement 
necessary to establish any company or a branch of  a foreign company for marine services activities. 
  The Government has no specific requirements fo r the qualifications of the company manager. 
In addition, the board of directors for every company is free to determine the qualifications of its 
manager.  
 Examples of liberalization of the mariti me transport services include the following: 
  - In the Emirate of Sharjah, there is a pr ivate company (Gulftainer) running their  
  container terminal.  - - In the Emirate of Ras Al Khaimah, ther e is also a private Kuwaiti company that has 
  been awarded the running of that terminal.   
(iii) Telecommunications 
(Pages 69-71, paragraphs 107-116)  
 Please indicate the specific measures taken by the UAE for the liberalization of telecommunications services. 
 
 The UAE has issued a Federal Law by Decr ee number 3 of 2003 "Telecom Law" which calls 
for the creation of an independent Telecommunicati ons Regulatory Authority (TRA) www.tra.ae .  The 
TRA is a competent body to oversee the telecommuni cations sector in the UAE and all Licensees and 
has already taken the first step towards market lib eralization  by introducing competition to the UAE. 
  The issuance of the national telecom policy al so function as a catalyst towards accelerating 
the growth and development of the te lecommunications sector. www.tra.ae.  
  In addition to the GATS and the Telecom Re ference Paper, the UAE has submitted its 
Schedule of Commitments regarding market liberalization.   WT/TPR/M/162/Add.1 
 Page 73 
 
 
ANSWERS TO THE REMAINING QUESTIONS 
 
QUESTIONS RAISED BY THE EC THAT ARE NOT YET ANSWERED: 
 
IV. T RADE POLICIES BY SELECTED SECTORS    
(4)  MANUFACTURING  
Textiles and clothing  
 How does the UAE apply its antifraud policy and which legal regulations are applied in this 
field? 
 
 Antifraud is governed by the Federal Law no. (4 ) of 1979 in addition to the general rules and 
conditions that are referred to in the Federal La w no. (5) of 1985 concerning civil law and Federal 
Law no. (3) of 1983 concerning the penal code.   
 Violation of any rules of the above mentione d laws would result to any of the following: 
  - Confiscation of the product  - Destruction of the instruments used in the production.   Imprisonment and fine  - Compensation of the injured party, including lost profit 
 
Tourism related questions:  
 What is the approach of the UAE to the re gulation of tourism-rela ted aspects of general 
interests such as environment, wildlife, urban planning, etc? 
 
 The environment and the conservation of wildlife  are both very high priorities for the UAE. 
Our environmental law adheres to best practices and is commended in international forums. Tourism 
related projects must take into account environmenta l implications. To that end, the tourism related 
authorities that grant licenses have environmental experts that oversee this important element.  
 
 To this measure, certain programs that prot ect the environment include: The Sheikh Zayed 
Falcon Release program that has been in operati on for over 11 years. In 2005, the late President, 
Sheikh Zayed was awarded with a "Champion of  the Earth" award by the United Nations 
Environment Program. We have also ra tified the Kyoto Protocol in 2005. 
 
 Furthermore, National Conservatori es for Wildlife, such as rare desert birds, as well as rare 
species of oryx and others have been established in  different parts of the Emirates to conserve and 
protect wildlife.   
 What is the UAE' assessment of  the effect of the tourism sector on overall economic growth 
and employment, and in particular in other economic sectors like construction, transport, computer 
services, education and professional training. 
 
 The UAE maintains that tourism has several direct and indirect effects on overall economic 
growth and employment. Tourism results in increased  demand for transportation services, hotels and 
restaurants, recreation services, and other services, which results in increased employment and 
foreign exchange. The UAE attracts more than 6 million tourists a year.  
 
Distribution services related questions: 
 
 How many people work in the distribution sector and what has been the evolution in the last 
years? WT/TPR/M/162/Add.1 
Page 74  
 
 The Ministry of Economy is working acti vely on upgrading capacity in the Statistics 
Department to collect key economic information (gro ss output, employment and value added) for this 
sector and a host of other economic activities, which w ould in turn assist in assessing the evolution of 
sectors.  
  What is the UAE' assessment  of the effect of the distribution sector on overall economic 
growth, employment and social development, and also on other economic sectors like construction, 
transport, computer services, education and professional training.   
 The distribution sector is crucial in overall ec onomic growth. The efficiency of this sector 
leads to increased savings for the end co nsumers, be they locals or expatriates. 
  The Ministry of Economy is working acti vely on upgrading capacity in the Statistics 
Department to collect key economic information (gro ss output, employment and value added) for this 
sector and a host of other economic activities, which woul d in turn assist in any sectoral assessment.  
 
QUESTIONS RAISED BY CANADA THAT ARE NOT YET ANSWERED: 
 
Engineering Consultancy 
 
 Paragraph 157 notes a licensing requirement fo r the practice of engineering consultancy 
which provides that a license can only be obtained by UAE nationals.  The Secretariat Report notes, 
however, that "information was available only for the Emirate of Dubai."  Can the UAE please provide information on the cond itions for supplying engineering services in other emirates? 
 
 The conditions for obtaining a license to ca rry engineering consultancy services by non-UAE 
nationals (in Abu Dhabi and Dubai) are as follows: 
  The license should be sought for practicing hi ghly technical and specialized engineering 
undertakings in the following fields:  
 
Architectural and Civil Engineering. 
 
 - Specialized Engineering feasibility studies.   - Specialized building projects.  - Recreation and public utilities.  - Roads, Bridges, Airports, Marine  projects, Tunnels and Railways. 
 - Sewage Irrigation and Water treatment plants and Dams.  
 Mechanical engineering.   - Production transport and distribution in to networks of energy.  - Commutation and high electric towers. 
 - Mechanical and electromechanically systems for specialized projects. 
 Mining, Geological, Chemical and Carbohydrates Engineering.   - Projects and systems of production, tran sport and distribution of Oil and Gas. 
 - Projects and plants of petrochemicals. 
  As for the fields not listed above, which are of  general none speciali zed nature, are licensed 
only to UAE nationals. None UAE nationals ma y only carry on business in these non-specialized 
fields through any of the following methods:  
  WT/TPR/M/162/Add.1 
 Page 75 
 
 
 - Establish an office in the UAE by way of a partnership agreement with a UAE 
national as per contract documented by government authorities. 
 - A joint venture agreement with accompany op erating in the UAE in the same field of 
competence for the purpose of executing a certain project.  
 - Through a Service Agent (who should be a UAE national). 
 
 In all other Emirates there are no special licenses for highly specialized projects and 
undertakings. Hence professional engineering services in these other Emirates may only be licensed 
through one of the three methods mentioned above.  
 
Tourism  
 The Secretariat Report notes the GATS commitments made by the UAE in the provision of 
hotel and restaurant services.  The initial services o ffer also cites commitments in respect of tourist 
guide services.  Is the UAE considering commitments in respect of travel agency and tour operator 
services? 
 
 In addition to UAE's initial o ffer to the WTO the UAE government is willing to consider 
submitting a commitment under the tour operator service s subject to the overall balance of the trade 
in services negotiations.  
 The Secretariat Report states that the Gove rnment of Dubai has instituted pro-business 
policies combined with an investor-friendly environm ent.  In addition to allowing property ownership 
by foreigners in certain cases, what other exam ples of pro-business policies have been introduced? 
 
 The UAE believes in a pro-business environment that welcomes foreign investment. As such, 
pro-business policies which encourage this  investment-friendly climate include:  
 
 - No income or corporate tax.   - No restrictions in repatriation of capital.  
 - No restriction on employment.  
 - No restriction on type of industry or innovation   - One-stop shops for businesses to find a ll their information needs / licensing and 
registration requirements etc.  
 - Electronically enabled portals to facilitate businesses transactions.  
 - Considerably low transaction fees as they pertain to registration and otherwise.  
 
QUESTIONS RAISED BY TURKEY THAT ARE NOT YET ANSWERED: 
 
 It is mentioned in the Secretariat Report unde r paragraph 34, "certain activities are reserved 
for UAE nationals and companies totally owned by UAE nationals: real estate services; rental/leasing 
services relating to cars,.." Could UAE Delegation el aborate on the rationale about the selection of 
these reserved sectors and explain if this  reservation is envisaged to continue? 
 
 Those activities have been taken into consid eration under the new company law which would 
be announced in the near future.  
QUESTIONS RAISED BY THE UNITED STATES THAT ARE NOT YET ANSWERED: 
 
Measures Directly Affecting Imports – Contingency Trade Remedies 
 Paragraph 31 on page 29 of the Secretariat Repor t stated that the UAE notified the Committee on 
Import Licensing that the UAE maintains no import licensing requirements.  The Secretariat Report also stated that "certain goods require prior authorization for, inter alia , health, security, moral, WT/TPR/M/162/Add.1 
Page 76  
 
religious, and safety control purposes certain goods require prior authorization for, inter alia , health, 
security, moral, religious, and safety control purposes."     What are the application processes and the fees associated with obtaining prior authorization 
to import such goods? 
 
 The UAE is currently working with the GCC members states on a common "prohibited and 
restricted list" of goods. This list requires impor t licensing through many administrations with 
different fee schemes.  In this regard, the UAE w ould like to seek technical assistance that would meet 
these needs, in the context of the GCC customs union taking into consideration our commitments 
under the WTO.  
QUESTIONS RAISED BY AUSTRALIA THAT ARE NOT YET ANSWERED: 
 
Legalisation of Documentation 
  Australia is aware that it is often mandatory  to have key export documentation, such as 
phytosanitary certificates, attested by the UAE's emb assy in the exporting country, usually involving a 
processing fee as well as the imposition of a fee based on the invoice value of the goods being 
exported.  This may also be accompanied by a furt her requirement to have documents translated into 
Arabic and pass through approval processes invol ving emirate and federal level agencies (for 
example, certification of professional qualifications).  Australia would welcome information on plans 
to stream-line or remove these documentation processes, particularly the requirement for the UAE embassy in the exporting country to attest doc umentation and levying of the associated fees. 
 
 The documents and certificates are required to be at tested in order to be confident about the 
validity of these documents and that they are issu ed by governmental agencies in the exporting 
country. This should be done by a United Arab Emirates Embassy and in case if there is no UAE 
Embassy in the exporting country then it should be attested by an Arab Embassy as matter of facilitation. This is subject to reasonable fees fo r services rendered. The government is ready to 
review any specific concerns that Members may have and will take appropriate actions.  
 
QUESTIONS RAISED BY KOREA THAT ARE NOT YET ANSWERED: 
 
Certification of commercial invoices system  
 
 UAE customs procedure requires commercial invoices to be certified by the UAE Embassy in the country of origin. The fees that the UAE Emba ssy charges in some countries seem unreasonably 
high and burdensome. Please explain the UAE's releva nt laws and regulations, along with any future 
plans to revise current certification system.   
 The documents and certificates are required to be at tested in order to be confident about the 
validity of these documents and that they are issu ed by governmental agencies in the exporting 
country. This should be done by a United Arab Emirates Embassy and in case if there is no UAE 
Embassy in the exporting country then it should be attested by an Arab Embassy as matter of facilitation. This is subject to reasonable fees fo r services rendered. The government is ready to 
review any specific concerns that Memb ers may have and will take appropriate actions. 
 
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