ABU DHABI, 7 March 05 (WAM) -- The UAE's negotiations with the USon a Free Trade Agreement (FTA) don't commit the UAE to any changes inits foreign policy's political stances, a senior UAE economic officialaffirmed today.

''There are no political conditions in the FTA. The aim of enteringinto free trade negotiations with the US is to spur further growth ofthe UAE economy and bolster its standing as a leading regional economicpower, said Dr. Mohammed Khalfan bin Kharbash, Minister of State forFinancial and Industrial Affairs, on the eve of the first round of talksbetween the two countries, starting here tomorrow.

Kharbash, who is also Chairman of the UAE Negotiating Council,told reporters today that the agreement with the US "will grant theUAE access to the largest consuming market in the world and provide excellent opportunities for transfer of technology and attractionof foreign investment.

He indicated that the UAE ''is qualified to conclude an FTA withthe US, given its open-door policy, its ceaseless drive towards diversificationof its sources of national income and its tireless efforts to forge advancedeconomic relations with regional and global economic alliances and groupings.

Kharbash said that tomorrow's first round of negotiations wouldexplore avenues of joint cooperation and mechanisms to further enhancebilateral economic and trade relations. The UAE negotiating team comprises15 specialised committes on various sectors of interest.

Kharbash disclosed that ''It is Washington which demandedconclusion of such agreement on bilateral basis and the same case is with other GCC countries -Bahrain, Kuwait, Qatar and Oman.

He also unveiled that the UAE had informed the GCC of its intentionto negotiate an FTA with the US and the GCC Secretariat General wasaware of the Trade and Investment Framework Agreement (TIFA)the UAE inked with Washington.

On reservations by some GCC member countries on sealing such agreements with the US, the minister reiterated UAE's firm to maintainits strong economic relations with its fellow GCC countries, pointingout that the GCC summit, held last December in Bahrain, had agreed tohandle the issue within the framework of the group's financial and economiccooperation committee.

Kharbash indicated that most of the GCC member countries wereplanning to strike FTAs with the US.

''We hope that they reach coordinated agreements with Washington......the core problem lies with the pace of negotiations from one countryto another,'' he added.

Going back to the negotiating council, the top official said thatthe team had approached the private sector to probe its visionson the FTA agenda of negotiations.

He noted that the issue of liberalisation services -banks and communications- and amendment of laws and legislations would be discussedwith each sector respectively.

''Any decision to be taken in this respect will be the responsibilityof the government alone .......the negotiating team is just a meansof negotiations on behalf of the government and doesn't have any rightto make any commitment to any stance in the frame of the agreement,''he remarked.

Kharbash called on all sectors to interact in a bid to reach a strongcommon negotiating position that reflects the national higher interestbecause commitment to the pact, once sealed, will be of long-termfor all economic and financial sectors.

He emphasised that there will be no time-frame for striking theagreement.

''Rounds of negotiations will continue until a final comprehensiveagreement is reached, taking into account the UAE's interests in allsectors.

He dismissed that negotiations of some GCC countrieswith the US on FTAs had thrown snags before FTA talks with theEuropean Union.

''Negotiations with EU are still going on'' he added.

He explained that the UAE had hired major international consultancycompanies to study potential impact of the FTA on the UAE.

Citing a Maxwell Stamp Consulting study, the minister saidthe FTA would increase UAE's foreign trade exchange, decreaseprices of import commodities, attract US investment and transfer technologyat concessional prices and sharpen competitive edge of UAE companies.

Two-way trade exchange stood at $ 4 billion in 2004. The balanceof trade is in favour of Washington.

US exported goods to the UAE worth $ 3.5 billion, while it importsfrom the GCC country were valued at $ 1.5 billion.