United Arab Emirates (UAE) and the United States officials said that the negotiations for a Free Trade Agreement (FTA) would continue, local daily Gulf News reported on Wednesday.

U.S. Ambassador to the UAE Michele J. Sison said that the talks are not suspended but "the documentation will not be ready by the March 31 deadline," which is imposed by the U.S. Congress if the deal is to be considered under President George W. Bush's trade promotion authority that expires at the end of June.

"The president has already applied for a renewal of his authority to sign such agreements at the new Congress," Sison said, explaining that the issue is not suspending the talks, but changing the timeframe set earlier.

UAE Minister of State for Financial and Industrial Affairs Mohammad Khalfan Bin Kharbash said earlier that "both countries are committed to the negotiations."

But there are difficulties in settling differences over the investment chapter of the agreement, which remains the source of the delays in signing the agreement, the report said.

"We made significant progress during the past six months in relation to core issues, but we haven't reached any breakthrough in relation to the investment chapter in particular," a member of the U.S. negotiating team was quoted as saying.

The next round of talks will take place in spring, probably by April, although the exact timing and location have not been set.

FTA talks between the U.S. and UAE started in March 2005, but were damaged by a furore in early 2006 over Dubai Ports World's purchase of U.S. port operations.

Source: Xinhua