CHADIAN COTTON NEGOTIATOR ON HONG KONG MINISTERIAL

UNCLAS NDJAMENA 001737

SIPDIS


SENSITIVE

USTR FOR FLORIE LIZER, BILL JACKSON, AND LAURIE-ANN AGAMA

E.O. 12958: N/A
TAGS: ECON EFIN EAGR PGOV ETRD CD WTO
SUBJECT: CHADIAN COTTON NEGOTIATOR ON HONG KONG MINISTERIAL

REF: A. N'DJAMENA 1706

B. STATE 219191


1. (SBU) SUMMARY. Chad's influential cotton negotiator
sought to allay concerns about the Cotton-4 event at the Hong
Kong WTO Ministerial in a meeting with us December 5. He
also urged concrete actions to cut the domestic subsidy
programs that hurt Africa's cotton producers. END SUMMARY


2. (SBU) During a visit to Moundou in southern Chad
December 5, E/C Officer spoke with CotonTchad Director
General and President of African Cotton Grower's Association
Ibrahim Malloum to convey points in ref B and discuss the
African view of the USG proposal in the lead-up to Hong Kong.
E/C Officer relayed U.S. concerns about the Cotton-4 event
in Hong Kong on December 12. He also reiterated the USG
commitment to assist development of the African cotton sector
through its WTO proposal and technical assistance programs.


3. (SBU) Malloum stated that the United States should not
be worried about the event. He noted that the initiative is
meant to highlight the importance of cotton for African
economies. Malloum pointed out that African cotton producers
understand that Hong Kong is meant to be a forum for
negotiations, not contentious arguments. As a result,
Africans would come to the table prepared to seek a
compromise through constructive mechanisms.


4. (SBU) Malloum also told E/C officer that Africans were
very encouraged by the USG proposal, regarding it as a
positive step toward correcting disparities in the world
cotton markets. Malloum stated that African viewed the
United States as a "great power with great responsibilities,"
and would applaud any USG effort to level the playing field
for African cotton growers. He noted that the regular
contacts by senior USG officials with their African
counterparts demonstrate a willingness to communicate on the
cotton issue, and were well-received by African officials.
Malloum also pointed out that the Africans are disappointed
by European efforts at enhancing dialogue in the run-up to
Hong Kong.


5. (SBU) Malloum stated that African cotton growers are
nevertheless still skeptical of the USG proposal. They
question that the cuts in domestic support will be
implemented, given the strength of the U.S. farm lobby.
Malloum referred to past declarations by the G-8 in Geneva in
2004 to treat cotton in a rapid and unique manner. He noted
that there has been little recent action on the part of
developed countries to develop a "transparent and fair"
international market for cotton. He claimed that C-4
countries in the past year lost over USD 250 million, as a
result of trade barriers by the United States and Europe. In
the meantime, according to Malloum, the Americans and
Europeans appear to be "playing cards" with their WTO
proposals, each side trying to call the other's bluff and
propose a package that neither side knew would be accepted by
its domestic constituencies. He noted that if the developed
countries are serious about alleviating the plight of African
farmers, they would eliminate all barriers to cotton trade
immediately.


6. (SBU) COMMENT: Malloum, an influential figure in
deliberations on the African position on cotton in Hong Kong,
had more conciliatory comments on the outlook for the
ministerial than we have heard from him before. Yet despite
kind words for the USG proposal, he also did not hide his
skepticism that it will lead to serious cuts in domestic
support. We must be prepared to handle questions from
African representatives concerning the possibility of our
proposal falling victim to domestic pressures. The
Ambassador will have an opportunity to probe Malloum further
in a lunch with him December 8.
WALL


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