U/S LARSON MEETING WITH JORDAN'S DEPUTY PRIME

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 003803

SIPDIS

PASS TO USTR - C. NOVELLI AND E. SAUMS
USDOC 4520/ITA/MAC/ONE/WIEGLER
STATE FOR EB/CBA

E.O. 12958: DECL: 05/15/2014
TAGS: ETRD PREL EAID ECON JO
SUBJECT: U/S LARSON MEETING WITH JORDAN'S DEPUTY PRIME
MINISTER HALAIQA

REF: AMMAN 3425

Classified By: DCM DAVID M. Hale. Reason 1.5 (D).


1. (SBU) SUMMARY: Under Secretary for Economic, Business
and Agricultural Affairs Alan Larson reviewed trade issues
with Government of Jordan (GOJ) Deputy Prime Minister and
Minister of Trade Mohammad Halaiqa on the margins of the
World Economic Forum (WEF) May 15. Halaiqa noted the GOJ's
progress with economic legislation and said that Jordan would
sign an FTA with Singapore on May 16. In response to
expressed U.S. concerns, the GOJ proposed raising its
pre-shipment inspection program at the bilateral trade Joint
Committee in June. Halaiqa launched into a request for more
assistance for Jordan, noting the GOJ's hope for a
supplemental in difficult times. END SUMMARY.


2. (SBU) At the meeting on the margins of the WEF, DPM
Halaiqa noted that the GOJ was calling a two-month,
extraordinary session of the parliament starting in June in
which dozens of bills would be passed, including a number of
key economic bills. He also said that Jordan would sign an
FTA with Singapore on May 16, during the WEF.


3. (SBU) U/S Larson praised Jordan for its progress in
trade, but indicated that the GOJ's pre-inspection program
was raising problems with U.S. businesses. He understood
from a recent letter sent by DPM Halaiqa to Ambassador Gnehm
(Ref A) that the GOJ was looking into the problem with a view
to solving it, for which the USG was grateful.


4. (SBU) Halaiqa responded that after a study of the
matter, the GOJ did not believe the pre-shipment program
(called DAMAN) was a serious issue. But if there were
Jordanian importers who told the government that they were
experiencing problems, then he could look at it again.
According to the profile of U.S. goods imported into Jordan
-- in terms of quantities and value -- the DAMAN pre-shipment
program appeared to be in favor of U.S. trade, he said.
Goods that were rejected under DAMAN were from places such as
Taiwan, he said. If there are some specific issues, then the
GOJ would look into it, he added.


5. (SBU) U/S Larson said that he would take that offer back
to the U.S. Halaiqa suggested the topic might be raised at
the June 8 Joint Committee under the auspices of the Free
Trade Agreement, where the U.S. might raise some cases and
the Government of Jordan could bring an official to respond
(Dr. Ahmad Hindawi of the Jordan Institute of Standards and
Metrology, which runs DAMAN). He also expressed readiness to
meet with U.S. exporters who have voiced complaints on the
margins of the JC. U/S Larson noted that the USG might be
interested in such an arrangement. U/S Larson said that it
might be possible U.S. companies complained loudly to the USG
but more politely to the GOJ. He suggested that a problem
needed to be solved if American companies were unhappy about
it. Halaiqa responded that the GOJ remained open to
discussion.

Boeing Sale
--------------


6. (C) U/S Larson raised the sale of Boeing aircraft, which
he said would be good for Jordan. DPM Halaiqa indicated that
the GOJ was now considering long-term lease arrangements for
aircraft. However, based on a decision made at the highest
levels, if the GOJ were to purchase aircraft equipment, and
the price was competitive, then the GOJ would buy Boeing, he
said.

Request for Assistance
--------------


7. (SBU) Turning to financial assistance for Jordan,
Halaiqa recounted the "still very difficult" circumstances
the country faced. Having just increased in April retail
petroleum prices, and having just increased the Value Added
Tax, Jordan still faced very difficult circumstances despite
the Saudi concessional oil shipments. He asked the USG to
consider helping maintain Jordan as a model in the region.


8. (C) U/S Larson indicated that -- as noted in previous
discussions with Minister of Planning Bassam Awadallah -- the
Administration's current supplemental would be limited to
financing DOD's military operations. He indicated there
might be an opportunity to review additional subsidies for
Jordan this year, but not under the present supplemental.


9. (U) This message was cleared by Under Secretary Larson.
GNEHM