Identifier
Created
Classification
Origin
05PRETORIA847
2005-02-25 11:36:00
UNCLASSIFIED
Embassy Pretoria
Cable title:  

DTI DISCUSSES DOHA WITH COMMERCE DAS VINEYARD

Tags:  ETRD EAGR KTEX SF USTR 
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UNCLAS SECTION 01 OF 02 PRETORIA 000847 

SIPDIS

SENSITIVE BUT UNCLASSIFIED

DEPT FOR AF/S KGAITHER; AF/EPS; EB/TPP/BTA
USDOC FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND
TREASURY FOR OWHYCHE-SHAW AND BRESNICK
DEPT PASS USTR FOR PCOLEMAN, WJACKSON AND DDWOSKIN
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ETRD EAGR KTEX SF USTR
SUBJECT: DTI DISCUSSES DOHA WITH COMMERCE DAS VINEYARD


(U) This cable is sensitive but unclassified. Not for
Internet Distribution.

UNCLAS SECTION 01 OF 02 PRETORIA 000847

SIPDIS

SENSITIVE BUT UNCLASSIFIED

DEPT FOR AF/S KGAITHER; AF/EPS; EB/TPP/BTA
USDOC FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND
TREASURY FOR OWHYCHE-SHAW AND BRESNICK
DEPT PASS USTR FOR PCOLEMAN, WJACKSON AND DDWOSKIN
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ETRD EAGR KTEX SF USTR
SUBJECT: DTI DISCUSSES DOHA WITH COMMERCE DAS VINEYARD


(U) This cable is sensitive but unclassified. Not for
Internet Distribution.


1. (SBU) Summary. Commerce DAS Holly Vineyard met with
Department of Trade and Industry (DTI) officials on February

18. There is more interest now by South Africa in taking
advantage of the category 9 provisions of AGOA that allow
duty-free import of certain handloomed, handmade and
folkloric items into the United States. Negotiations with
India for a trade agreement may commence in the third
quarter. Vineyard noted continuing U.S. concerns on IPR
protection. South Africa is optimistic on the prospects for
success on the Doha Development Agenda. Xavier Carim was
"quite pleased" with a recent proposal by then USTR
Ambassador Zoellick regarding the coefficients in the
modalities for agriculture negotiations. The bureaucratic
process is one reason why South Africa has not yet submitted
its own services offer, although the Finance Minister has
signed off on financial services sector offer. South Africa
has still not taken an official position on the various
candidates for the WTO Director General position, but sees
resolution of this process as necessary for progress in Honk
Kong at the end of the year. End summary.


2. (SBU) Commerce DAS Holly Vineyard met with Department of
Trade and Industry (DTI) officials Sudhir Sooklal and Thabo
Chauke on February 18 to discuss AGOA, IPR, and the Doha
Development Agenda. Sooklal noted that Chief Director
Xavier Carim and Head of the Americas Desk Victor Mashebela
were not able to attend. They had to go to a SACU meeting
in Namibia where there would be a discussion about AUSTR
Florie Liser's invitation to a March 18 Deputies meeting in
Geneva on the FTA.


3. (SBU) Sooklal also mentioned that Chief Director Iqbal
Sharma had just returned from India in which SACU and India
had agreed on a framework for negotiations of a trade
agreement that would probably start out as a Preferential
Trade Agreement but could eventually become a Free Trade
Agreement. Negotiations with India may begin in the third

quarter of this year. Phase one of the negotiations would
deal with goods and TBTs, while services would be left for
phase two.

AGOA
--------------


4. (SBU) DAS Vineyard opened the meeting indicating that
Senegal would host the next AGOA Forum, probably in July,
and solicited South Africa's active participation and input.
Sooklal agreed on the importance of the AGOA forum and said
he would put it on Minister Mpahlwa's radar screen.


5. (SBU) Sooklal noted that there had recently been renewed
interest in the category 9 provisions of AGOA that allow for
duty-free importation into the United States of certain
handloomed, handmade and folkloric articles. He explained
that SMEs had not been organized when AGOA was first
implemented, with only a few firms showing interest, but
this has changed. DTI would be working with the Chamber of
Business to see how South Africa firms might take advantage
of category 9, particularly given the more liberal
provisions provided by subsequent legislation amending AGOA.
Chauke was hopeful that the process would begin in March.
Vineyard offered assistance in liaising with the Commerce
Department experts on AGOA category 9 items.

IPR
---


6. (SBU) DAS Vineyard underlined the U.S. interest in
improving IPR protection in South Africa, noting the STOP
(Strategy Targeting Organized Piracy) program to stop trade
in pirated and counterfeit goods and the current Special 301
process.

Doha Development Agenda
--------------


7. (SBU) A discussion of the Doha Development Agenda was
the main focus of the meeting. DAS Vineyard reiterated U.S.
views and its commitment to a successful outcome. Sooklal,
who had clearly been briefed by Xavier Carim, made several
points on the Doha Development Agenda. He said that South
Africa is extremely committed to a successful conclusion of
the Doha Development Agenda, which is also important for
NEPAD and the AU. South Africa feels confident that there
is an opportunity to deliver tangible results

Services
--------------


8. (SBU) There is concern about the slow pace of services.
South Africa has itself been embarrassingly slow on services
and has not yet tabled its services offer, which he
attributed to bureaucratic delays, including the Permanent
Trade Forum, a consultation mechanism established in 2003,
and other departments, such as Justice, that do not have a
full appreciation of the WTO agreements. DTI bears some of
the blame for not doing an adequate marketing job, in part
due to capacity constraints. DTI's Director General will
host the inaugural meeting of the Permanent Trade Forum next
month with all the DGs from other departments participating.
The only exception so far to the slow progress on the SAG's
services offer is that Minister of Finance Trevor Manuel has
signed off on South Africa's financial services offer. The
cabinet has prioritized services since January 2004. The
government has commissioned the HSRC (Human Sciences
Research Council) to do research on services, which was
supposed to be completed in January 2005. The second phase
of the work will involve research on specific sectors.

Agriculture
--------------


9. (SBU) South Africa was pleased with the agreement to
phase out export subsidies but was concerned about the EU's
new scheme for wheat exports, which is not conducive to the
negotiation. Sooklal said Carim was "quite pleased" and
"quite positive" about a proposal Ambassador Zoellick had
made recently in Davos regarding modalities on agriculture
that involves two different coefficients for the formula.
South Africa saw this as a step forward.

Trade Facilitation
--------------


10. (SBU) While everyone is happy about having trade
facilitation in the negotiations, the "how" is the difficult
part, especially as it may place burdens on LDCs. It is a
good thing, but implementation and financing will be issues.

NAMA (Non-Agricultural Market Access)
--------------


11. (SBU) The next stage is now deciding on which formula
to use. Sooklal said there is a current understanding about
using the same Swiss formula as in the Uruguay Round, but
there are questions about the coefficients to be used by
developed countries, developing countries, and LDCs.

WTO Director General
--------------


12. (SBU) A timely election of the next WTO DG is essential
for success in Hong Kong. South Africa wants to avoid a
replay of the Moore-Supachai DG succession imbroglio four
years ago. South Africa has not yet taken an official
position on the DG candidates. Given the African group's
support for Minister Cuttarree of Mauritius, South Africa
could fall in line with that. South Africa's Department of
Foreign Affairs is also interested in this issue. So far,
however, the DTI Minister has not given any direction on
which candidate South Africa would support. For example,
because of the IBSA (India, Brazil, South Africa) Forum,
there could be support for the Brazilian candidate,
Ambassador Seixas Correa. In the meantime, Pascal Lamy will
be in South Africa the week of February 22 to advance his
candidacy.


13. (SBU) Overall, South Africa is optimistic that there
can be a successful outcome on Doha, but a lot of substance
remains to be done between now and July, and by December in
Honk Kong.


14. (U) Commerce DAS Holly Vineyard cleared this cable.

FRAZER