Identifier
Created
Classification
Origin
05ACCRA2512
2005-12-09 12:31:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Accra
Cable title:  

OPPORTUNITY MISSED: GHANA UNLIKELY TO BACK U.S.

Tags:  ETRD ECON PREL KDEM GH PROV WTRO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS ACCRA 002512 

SIPDIS

SENSITIVE

PLEASE PASS USTR FOR LAURIE-ANNE AGAMA

E.O. 12958: N/A
TAGS: ETRD ECON PREL KDEM GH PROV WTRO
SUBJECT: OPPORTUNITY MISSED: GHANA UNLIKELY TO BACK U.S.
WTO AGRICULTURE PROPOSAL

REF: A. ACCRA 2484


B. STATE 204611

UNCLAS ACCRA 002512

SIPDIS

SENSITIVE

PLEASE PASS USTR FOR LAURIE-ANNE AGAMA

E.O. 12958: N/A
TAGS: ETRD ECON PREL KDEM GH PROV WTRO
SUBJECT: OPPORTUNITY MISSED: GHANA UNLIKELY TO BACK U.S.
WTO AGRICULTURE PROPOSAL

REF: A. ACCRA 2484


B. STATE 204611


1. (U) Summary: Ambassador Bridgewater met with Minister of
Trade and Industry Alan Kyerematen December 7 to discuss the
upcoming WTO ministerial in Hong Kong. Kyerematen confirmed
Ghana's intention to negotiate as a bloc with other African
Union (AU) WTO members --despite serious differences within
the AU and between the G-90 and G-20 groups of nations-- and
reiterated the AU's calls for an end to export subsidies in
developed countries, elimination of trade-distorting domestic
support, and maintenance of tariff preferences for African
countries. The Minister said the GoG and AU hoped the US and
EU would harmonize their agriculture proposals, but would not
openly favor either. Kyerematen also said he anticipated
that expectations will be lowered for Hong Kong in order to
avoid the appearance of failure. Ambassador Bridgewater
stated that failure to support the ambitious US agriculture
proposal would be a lost opportunity for developing nations,
and African countries in particular. End Summary.


2. (U) Ambassador delivered ref b points on the US WTO
Agriculture proposal to Minister of Trade and Industry Alan
Kyerematen December 7, and asked for details of the GoG's
position. Kyerematen said the GoG would negotiate in Hong
Kong as part of bloc with other AU members. The groups'
positions for Hong Kong, he said, would be almost identical
to those it took during the formation of the "July Package"
(ref a). The Minister went on to say that meetings of the
G-90 and ACP in Europe had been unable to reach consensus
because of disagreements over several issues, mainly related
to "tariff preference erosion," with AU countries taking the
position that extending AGOA-like benefits to non-African
G-90 and G-20 countries would disadvantage AU countries.


3. (U) Kyerematen declined to support either the US or EU
agriculture proposals. He said success in Hong Kong would be
contingent upon "greater convergence" of the US and EU
agriculture proposals, consensus among G-20 and G-90
countries, and "better management" of the Ministerial to
ensure "transparency, inclusiveness, and balance." He
concluded by saying he anticipated that expectations for Hong
Kong will be lowered to keep the meeting from being portrayed
as a failure, and to lay the groundwork for more meaningful
negotiations before the end of the Doha Round in 2006.
Ambassador Bridgewater closed by saying the US would continue
to work in good faith with its European allies to make Hong
Kong a meaningful meeting, adding that the US proposal should
be seen as a once-in-a-generation opportunity for developing
nations.


4. (SBU) Comment: While Kyerematen would not back either
proposal, he reserved his only specific criticisms for the US
proposal -- stating US food aid programs could be considered
a subsidy that had been left out of the equation.
Previously, Ministry of Trade officials -- including the
Minister -- have agreed on more that one occasion that food
aid should not be regulated under the WTO. The EU's "US food
aid is a subsidy" argument has clearly gained traction in
Africa, despite its relative insignificance when compared to
the large gains that could be had under the US proposal, and
the obvious weaknesses of the EU plan. The EU is still by
far Ghana's largest trading partner and Ghana does not want
to jeopardize its trading relationship with EU markets. End
Comment.
BRIDGEWATER