NEPAL: FOREIGN AND COMMERCE SECRETARIES PLEAD

UNCLAS KATHMANDU 000886

SIPDIS

SENSITIVE

DEPT FOR SA/INS
DEPT PLEASE PASS TO USTR, WTO Accessions
GENEVA PLEASE PASS TO USTR

E.O. 12958: N/A
TAGS: ETRD NP
SUBJECT: NEPAL: FOREIGN AND COMMERCE SECRETARIES PLEAD
FOR US ASSISTANCE ON WTO ACCESSION--ACTION REQUEST

Summary
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1. (U) Please see paragraph 4 for action request.

GoN Presses Ambassador and DCM for USG Support
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2. (SBU) On a number of recent occasions, Nepal's
Foreign Secretary Madhu Raman Acharya, and Secretary
for Industry, Commerce, and Supply Lava Devkota, on
instructions, have raised with both the Ambassador and
DCM the extent to which Nepal depends on U.S. support
during the upcoming World Trade Organization (WTO)
accession negotiations. They have assured us that they
are expressing the views of the Foreign Minister,
Finance Minister, and Prime Minister. These separate
entreaties followed similar talking points:
-- The Cabinet process on implementing legislation is
moving forward;
-- The current, interim government of monarchial
appointees is especially well suited to taking the
difficult policy decisions required for accession;
--Any future government formed after the reconstitution
of Parliament, of whatever political complexion, would
honor the WTO commitments made now;
-- The Nepalese leadership believes that Nepal has no
chance of accession without U.S. backing;
-- From the GoN's perspective there are no major issues
in the bilateral negotiations; and
-- Nepal is acutely aware that Cambodia (the other
least developed country candidate up for WTO membership
by the September Ministerial in Cancun) looks better by
comparison.

Comment
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3. (SBU) In Post's review of Nepal's recently
submitted WTO negotiation documents, there appear to be
some efforts to meet WTO mandates and U.S. bilateral
requests. We understand that specific stumbling blocks
to agreement remain. The GoN's earnest entreaties
provide an opportunity to close the gap, using
representations by the Embassy to prepare the GoN
better for the May 23 round of U.S.-Nepal bilateral
negotiations.

Action Request
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4. (SBU) Post requests talking points that respond to
the GoN's pleas to help clarify the outstanding U.S.-
Nepal WTO issues. These talking points could be
delivered to the Secretaries and Ministers of the
Foreign Ministry and the Ministry of Industry, Commerce
and Supply. The messages conveyed could serve two
ends: to deliver the U.S. Trade Representative's
points directly to the Ministries responsible for
writing Nepal's concessions, and to allow the Embassy
to engage GoN principals on more specific items of
contention in the negotiations.


BOGGS