DEMARCHE ON WTO ACCESSION DELIVERED TO ALGERIAN

UNCLAS ALGIERS 001331 SIPDIS SENSITIVE SIPDIS STATE PASS TO USTR E.O. 12958: N/A TAGS: ETRD ECON WTRO AG SUBJECT: DEMARCHE ON WTO ACCESSION DELIVERED TO ALGERIAN WTO COORDINATOR REF: A. STATE 108034 ¶B. ALGIERS 1299 ¶1. (SBU) PolEC Chief delivered Ref A demarche July 17 to Ministry of Commerce Director General for Foreign Trade Cherif Zaaf, who serves concurrently as Algeria's WTO coordinator. Ambassador previously delivered the same demarche to MFA Americas Director General Selmane (Ref B). Leaving behind non-papers in French and English, PolEc Chief highlighted strong U.S. support for Algerian WTO accession, our extensive technical assistance designed to facilitate the accession process, and our favorable view in principle of FM Bedjaoui's proposal to schedule expert-level discussions. At the same time, PolEc Chief also conveyed our conclusion, with regret, that absent revised Algerian offers in certain areas, there did not seem to be a basis for bilateral talks at this time. PolEc Chief explained that Ambassador, before departing country, had delivered this demarche to the MFA in the first instance because it was our response to the proposal that FM Bedjaoui had made during his April visit to Washington. A FRUSTRATING PROCESS FOR BOTH SIDES -------------- ¶2. (SBU) After presenting PolEc Chief a thorough, detailed history of Algeria's efforts to accede to the WTO, Zaaf underscored the GOA's readiness to clarify any and all aspects of its responses. He noted that former Deputy Secretary Zoellick, during an April meeting in Washington SIPDIS with FM Bedjaoui, had accepted to form a U.S.-Algerian working group on WTO issues, as proposed by the FM. Zaaf said face-to-face encounters with USTR personnel in Geneva were essential to satisfying the concerns of the U.S. negotiators. Zaaf complained that U.S. negotiators often failed at the last minute to show up to meetings with their Algerian counterparts. He cited as an example the October 21, 2005, meeting at which he said the U.S. team did not appear. Zaaf concluded that the GOA could not understand what the U.S. wanted absent meetings where precise requests could be made. At the same time, Zaaf stressed the GOA desire for advice and expertise from the U.S. ¶3. (SBU) Reiterating departed Ambassador Erdman's points to MFA, PolEc Chief explained that Algerian slowness in responding to questions left the impression that Algeria was not taking this issue seriously. PolEc Chief acknowledged that the accession process had been frustrating for both sides. The Algerian side was frustrated with the slowness of the process and the repeated questions seeking clarification. For its part, the United States was disappointed because we felt we had gone to great lengths to assist the Algerian side, providing technical assistance and expertise, furnishing analytical papers, coaching on how to answer questions, and proposing to accelerate the question and answer process by informally vetting proposed answers before they were sent to Geneva for formal circulation. ¶4. (SBU) PolEc Chief understood the quality of the Algerian responses reviewed to date had not been what we had hoped. It was important to answer questions in a way that did not raise additional questions needing clarification, PolEc Chief advised. Another source of delay in the accession process was the reluctance of the Algerian delegation, during sessions in Geneva, to answer questions on the spot. Insisting on written questions and responses was a much more time-consuming method. PolEc Chief urged Zaaf to emphasize the quality of the responses over the quantity submitted and encouraged less formality in the Algerian approach. Americans, like Algerians, valued frankness and clarity, observed PolEc Chief. NO POSSIBILITY OF ACCESSION IN 2006 -------------- ¶5. (SBU) PolEc Chief noted that the target dates for WTO accession continued to slip. When PolEc Chief was first assigned to his current job, Algeria was expected to accede by the end of 2005. At the end of that year, the target date slipped to 2006. There was now virtually no possibility of Algeria achieving accession this year. PolEc Chief underscored that it was in Algeria's interest to accede as soon as possible, since the accession of each new member state potentially raised the bar for what would be expected of candidate countries. Saudi Arabia, for example, had made a generous offer on energy services, and this meant the international community would now not be prepared to accept a less generous offer from newer members. ¶6. (SBU) Zaaf said Algeria wanted to accede to WTO as soon as possible. Noting there were 111 sub-sectors in the Algerian services sector, Zaaf asked that the U.S. provide him a list of our priority sub-sectors. Zaaf said there had been many Algerian efforts to address U.S. concerns over time, in close dialogue and cooperation with the U.S. If Algerian responses to date were considered insufficient, Zaaf offered to furnish supplementary materials for any sectors of interest to the U.S. He also observed that USTR owed Algeria a response in the agricultural area. Zaaf concluded that Algeria's greatest need was to continue dialogue and discussion with USTR as well as continue to benefit from U.S. technical assistance and expertise. SIEVERS