MINISTER OF COMMERCE DISCUSSES COTTON ISSUES

UNCLAS NDJAMENA 000653

SIPDIS


LONDON AND PARIS FOR AFRICAWATCHER, USTR FOR WILLIAM JACKSON

E.O. 12958: N/A
TAGS: EAGR ECIN ECON ETRD CD WTO
SUBJECT: MINISTER OF COMMERCE DISCUSSES COTTON ISSUES


1. Summary: During a meeting with the Ambassador April 6,
the Minister of Commerce discussed plans for an early-May
meeting in N'djamena among Cotton-4 trade ministers to
prepare a unified strategy for the upcoming WTO Ministerial
in Hong Kong. The Minister reiterated the GOC's appeal for
eliminating U.S. cotton subsidies. The Ambassador urged Chad
to support U.S. efforts to address the cotton issue in the
context of WTO negotiations on agricultural trade
liberalization. End Summary.


2. Minister of Commerce Roulouany Yoma Golom raised Chad's
concerns as a sizable regional cotton producer in his meeting
with the Ambassador April 6. He said Chad would host a
meeting of trade ministers of Africa's Cotton-4 countries in
N'djamena in early May. The Minister explained that the
meeting was intended to discuss strategies to generate
support for the elimination of cotton subsidies. According
to the Minister, Cotton-4 countries decided after Cancun that
an organized position will be much more effective in
convincing the international community of their objectives.


3. The Minister asked the Ambassador why the United States
position had not changed on cotton after the presidential
elections. He argued that since the elections last November,
there was no reason to maintain cotton subsides, which he
felt was a politically-motivated policy. The Ambassador
noted that cotton subsidies are indeed an expense for the
United States. He stressed that the issue must be dealt with
as part of an international agreement that opens markets for
all agricultural and livestock products. The Ambassador said
it is difficult for the United States to reduce subsides on
cotton when Europe and Japan restrict trade for many
products. He called for Africa's support in engaging with
Europe and Japan on this issue. The Ambassador also observed
that progress on reducing cotton subsidies will not solve
Chad's cotton problems. It also needs to lower production
costs, attract technology, upgrade transport links, and deal
with the financial woes of Cotontchad, the soon-to-be
privatized marketing parastatal, he stressed.


4. COMMENT: In its plans for the meeting of African cotton
producers next month, Chad is showing initiative it has not
demonstrated in the past on this issue. Ibrahim Malloum,
Chad's energetic new director-general of Cotontchad, is no
doubt behind its new enthusiasm. Post welcomes any further
guidance on the cotton issue. END COMMENT.
WALL


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