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