MINISTER OF FOREIGN TRADE AND AMBASSADOR DISCUSS

UNCLAS CAIRO 008081

SIPDIS

SENSITIVE

NEA FOR FO, ELA, RA
NEA PLEASE PASS USTR

E.O. 12958: N/A
TAGS: ETRD PREL EAGR EG WTRO
SUBJECT: MINISTER OF FOREIGN TRADE AND AMBASSADOR DISCUSS
FTA, WTO, AND ANTI-CORRUPTION

The following is Sensitive but Unclassified. Please protect
accordingly.

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Summary
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1. (SBU) In an October 17 meeting, Minister of Foreign Trade
and Industry Rashid Rashid pressed for a specific date for
the start of FTA negotiations, and said that Egypt supports
the U.S. on WTO Ag reform. Rashid took on board the
Ambassador's call to make anti-corruption a plank of the NDP
parliamentary campaign. End Summary.



2. (U) On October 17, Ambassador and Econoff met with
Minister of Foreign Trade and Industry Rashid Rashid in his
office. First Assistant to the Minister Dr. Samiha Fawzy and
First Undersecretary Dr. Ashraf El Rabiey also attended.

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TIFA/FTA
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3. (SBU) Rashid said he feels that things are moving on the
FTA front, but needs clarity on a potential notification date
in order to coordinate Egyptian next steps, including his
travel to the U.S. Rashid is amenable to including a TIFA
Council meeting during his visit, but again said this should
be linked to an FTA announcement. He plans to discuss this
further with USTR Portman when he sees him in Switzerland
Nov. 7 - 8. Rashid added that a delegation drawn from the
Egyptian membership of the Egyptian-American Business Council
members would like to join on his visit. He hopes for
meetings at State, Commerce, NSC and Congress.

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WTO Ag Proposal
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4. (SBU) Responding to our demarche on U.S. WTO agriculture
reform proposals (demarche report septel),Rashid said he had
pressed the Europeans on US proposals and would continue to
do so. He said he made it very clear in Zurich that Egypt
seeks more market access, and added that Ambassador Portman
"made a big step" with the U.S. proposal.

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Anti-Corruption
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5. (SBU) Ambassador pressed Rashid and the NDP to go on the
offensive in fighting corruption in Egypt and take concrete
steps to ensure credibility of the effort. With President
Mubarak leading the effort, the U.S. stands ready to support
through technical or other assistance more directly targeted
to supoort GOE anti-corruption efforts. Deputy Minister
Samiha Fawzy commented that Gamal Mubarak would be the one to
grab the reins on this issue and run with it. She said he is
well versed in the G-8 process and would respond positively.
Rabiey commented that some arrests would also help get the
message out. Commenting on electoral transparency, Rashid
predicted positive steps regarding transparent ballot boxes
and local observers.

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Corporate Complaints
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6. (SBU) Referring to concerns brought to us by
Northrup-Grumman regarding their feeling "locked out" of
contracts tendered by the Ministry of Civil Aviation, the
Ambassador asked Rashid to ensure that Northrup-Grumman, and
all American firms, get a fair shake in bidding for civair
contracts. While Boeing had recently been successful in an
aircraft sale to EgyptAir, there appeared to be a string of
contracts where U.S. firms either were not invited to bid or
invited only very late in the game. Rashid said that he had
been "involved" with the Ministry of Civil Aviation on
Northrup's case since he took office over a year ago. He
would continue to follow the issue and he endorsed
Ambassador's intent to take up the issue with Minister Shafik
directly.


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