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 -------------- ¶1. (U) Please see paragraph 4 for action request. GoN Presses Ambassador and DCM for USG Support -------------- - ¶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 -------------- ¶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 -------------- ¶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