PROGRESS ON EFTA-SACU FTA NEGOTIATIONS

C O N F I D E N T I A L PRETORIA 005293 SIPDIS PLEASE PASS TO USTR ZOELLICK DELEGATION E.O. 12958: DECL: 12/08/2014 TAGS: ETRD SF SUBJECT: PROGRESS ON EFTA-SACU FTA NEGOTIATIONS REF: PRETORIA 2676 Classified By: ECON M/C JEFF HARTLEY FOR REASONS 1.4 (B) and (D). ¶1. (C) EFTA and SACU FTA negotiators met in Pretoria December 1 -7. Reliable contact in Swiss Embassy (please protect) told econoff that the round made "considerable progress" but that it required compromises on services and IPR. There will be a chapter on services but not much substance. It will not go beyond the WTO and the GATS. In an issue that remains open, EFTA is still trying to get an MFN clause in the services chapter that would provide EFTA with the same benefits SACU might extend to others as a result of future agreements. Similarly, EFTA was not able to get any TRIPS-Plus treatment. The dispute settlement issue is not yet resolved. SACU wants dispute settlement for some issues but not for others. ¶2. (C) EFTA and SACU aim to have a final round to conclude the FTA agreement by the end of February 2005 in Geneva. As in the U.S.-SACU FTA negotiations, Xavier Carim is SACU's lead negotiator in the FTA talks with EFTA FRAZER