The relationship clearly has been characterized by
rapidly expanding trade and investment flows. The near
total absence of serious bilateral trade and investment
disputes with the U.A.E. is indicative of the health
and stability of this mutually beneficial association.
There have been no instances of either country bringing
the other to the WTO for review by the Trade Dispute
Body. This reflects both the lack of serious frictions
between the two trade partners and suggest that if trade
disputes do arise, they can be handled without recourse
to formal WTO procedures. The most important major
controversy to arise between the two countries occurred
when Dubai Ports planned to invest in U.S. port facilities.
There also have been continuing Congressional concerns
about transshipment of U.S. goods through the U.A.E.
to Iran, in violation of U.S. economic sanctions. U.A.E.
authorities have taken concrete actions to ensure that
individuals do not circumvent these sanctions. However,
geographical proximity and traditional commercial ties
between Iran and the U.A.E. necessarily make a complete
cessation of trade very problematic.