Identifier
Created
Classification
Origin
06ALGIERS454
2006-03-18 06:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Algiers
Cable title:  

NEA A/S WELCH AND PM OUYAHIA'S DISCUSSION OF WTO

Tags:  ETRD EINV AG 
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VZCZCXYZ0000
PP RUEHWEB

DE RUEHAS #0454/01 0770602
ZNR UUUUU ZZH
P 180602Z MAR 06
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC PRIORITY 0534
INFO RUEHGV/USMISSION GENEVA PRIORITY 0336
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHRB/AMEMBASSY RABAT 1221
RUEHTU/AMEMBASSY TUNIS 6058
RUEHLO/AMEMBASSY LONDON 1168
RUEHFR/AMEMBASSY PARIS 1688
RUEHCL/AMCONSUL CASABLANCA 2646
UNCLAS ALGIERS 000454 

SIPDIS

SENSITIVE
SIPDIS

STATE PASS USTR

E.O. 12958: N/A
TAGS: ETRD EINV AG
SUBJECT: NEA A/S WELCH AND PM OUYAHIA'S DISCUSSION OF WTO
ACCESSION

SUMMARY
--------

UNCLAS ALGIERS 000454

SIPDIS

SENSITIVE
SIPDIS

STATE PASS USTR

E.O. 12958: N/A
TAGS: ETRD EINV AG
SUBJECT: NEA A/S WELCH AND PM OUYAHIA'S DISCUSSION OF WTO
ACCESSION

SUMMARY
--------------


1. (SBU) During a March 14 meeting with Prime Minister
Ouyahia on other issues (septel),NEA A/S Welch affirmed U.S.
support for Algeria's reform process and WTO accession bid.
Ouyahia expressed appreciation for U.S. support of its
economic modernization efforts, including U.S. technical
support for WTO accession, and asked for "political support"
as well for its WTO accession. Ambassador, noting
frustrations on both sides with the pace of progress, urged
that "strategic direction" be provided to Algeria's
negotiating team so that progress could move forward at an
accelerated pace. (End Summary.)


2. (SBU) In a March 14 meeting devoted to several issues,
NEA A/S Welch told PM Ouyahia that the U.S. wanted to help
support Algeria's ambitious reform plan and understood
Algeria's interest in attracting U.S. and other foreign
investment. Noting that Algeria's accession to WTO would be
a key step for the country's economic modernization, Welch
underscored the importance of moving forward briskly.
Remarking that there would always be resistance, the A/S
encouraged Ouyahia to overcome that challenge.

U.S. INVESTMENT WELCOMED
--------------


3. (SBU) PM Ouyahia thanked Welch for his comments and
agreed that trade exchange contributed to economic
modernization. WTO accession, he added, had been a key item
on President Bouteflika's agenda for reform since he took
office in 1999. At the same time, it had to proceed
carefully in order to avoid exacerbating social and economic
issues. Ironically, Algeria's plentiful reserves from high
energy prices had left the country with "too much money" (and
pressure to use the money to fund consumption). Everyone
wanted a part of those reserves, but the government was
drawing on them to build infrastructure and create jobs.
These were important because investment in these areas had
been put on hold for so long because of insecurity from
terrorism. Algeria, thankfully, was now implementing
reforms, and the situation was improving, although on the
international front Algeria was still affected by once
understandable but now outdated concerns about its security
situation. That said, these concerns were being overcome.
In terms of economic cooperation, Ouyahia welcomed Bechtel's

strong interest in participating in the (1200 kilometer)
East-West Highway construction project and underlined
Algeria's interest in investment outside of the hydro-carbon
area, added Ouyahia.

APPRECIATION OF U.S. TECHNICAL SUPPORT ON WTO ACCESSION
-------------- --------------



4. (SBU) Ouyahia noted that the GOA had held "good
discussions" with the U.S. on WTO accession and looked for
U.S. support in becoming a member of that organization. He
then noted that he was leading the national interministerial
committee overseeing Algeria's responses to questions from
other governments related to WTO accession. Despite his
previous experience in diplomacy, commented Ouyahia, he had
discovered that the diplomacy of WTO accession had its own
unique requirements. Returning to matters of investment, the
Prime Minister said the GOA had on its agenda a duty-free
zone for trade and continued to develop its oil and natural
gas production. Algeria sought to build a modern economy and
had all the needed materials, including its considerable
exchange reserves. He viewed Algeria's being at the "back of
the train" on accession to the WTO as understandable, given
Algeria's long-standing socialist orientation and the
problems with terrorism in the 1990s.

WOULD BE GRATEFUL FOR U.S. POLITICAL SUPPORT AS WELL
-------------- --------------


5. (SBU) Turning to the realities of accession to WTO,
Ouyahia said from the political perspective revising many of
the laws was difficult. Algeria appreciated the Embassy
support in making these adjustments and was grateful for
USG-supplied experts and consultants on the accession issue.
Ouyahia said Algeria would also "appreciate U.S. political

support" for accession to WTO if Algeria "could agree to 90%
or so of the technical changes required."


6. (SBU) Ambassador added that the drawn-out nature of
Algeria's accession process -- over 7-8 years -- had created
frustrations for both the Algerian and U.S. negotiators and
had raised questions in Geneva about the seriousness of
Algeria's commitment to WTO membership. Given the importance
of WTO accession to Algeria's economic modernization
progress, Ambassador strongly urged that Algeria's
negotiating team be given "strategic direction" to take the
steps necessary to complete the process. (Note: In a
conversation later in the day with MFA Secretary General
Lamamra, Ambassador made the same point, noting that
Algeria's negotiating team had prolonged the process by not
being willing or prepared to answer questions at the working
party rounds in Geneva. This had resulted in further delay
and questions having to be posed and answered in writing.
Reminding that the accession process was about demonstrating
acceptance of international trade norms, not negotiating
those norms, Ambassador said we were offering to provide a
technical expert to help in the preparation of answers to
questions posed by member states. Hopefully, this would
expedite the process. Lamamra welcomed the offer of
assistance.)


ERDMAN