Identifier
Created
Classification
Origin
06BAGHDAD2004
2006-06-14 04:54:00
CONFIDENTIAL
Embassy Baghdad
Cable title:
NEW TRADE MINISTER STRONG ON PDS REFORM AND TRADE
how-toVZCZCXRO7933 OO RUEHBC RUEHDE RUEHIHL RUEHKUK DE RUEHGB #2004 1650454 ZNY CCCCC ZZH O 140454Z JUN 06 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC IMMEDIATE 5065 INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEHNSC/WHITE HOUSE NSC WASHINGTON DC PRIORITY
C O N F I D E N T I A L BAGHDAD 002004
SIPDIS
SIPDIS
E.O. 12958: DECL: 06/13/2016
TAGS: ECON ETRD EAID KCOR PGOV IZ
SUBJECT: NEW TRADE MINISTER STRONG ON PDS REFORM AND TRADE
Classified By: Ambassador Zalmay Khalilzad for reasons 1.4 (b) and (d).
C O N F I D E N T I A L BAGHDAD 002004
SIPDIS
SIPDIS
E.O. 12958: DECL: 06/13/2016
TAGS: ECON ETRD EAID KCOR PGOV IZ
SUBJECT: NEW TRADE MINISTER STRONG ON PDS REFORM AND TRADE
Classified By: Ambassador Zalmay Khalilzad for reasons 1.4 (b) and (d).
1. (C) SUMMARY. On June 5, new Minister of Trade Abd
al-Falah al-Sudani shared with Ambassador his strong support
for reform of the Public Distribution System (PDS),reduction
of corruption in the ministry, and economic policies
favorable to international trade and to Iraq's accession into
the World Trade Organization (WTO). Minister al-Sudani said
that the Ministry's Directors General (DGs) will be kept on a
"trial basis" and that he expects to be make substantial
changes in the ministry's leadership, based on performance
rather than family or party affiliation. END SUMMARY.
--------------
MINISTER STRONG ADVOCATE FOR PDS REFORM
--------------
2. (SBU) In a June 5 meeting, Minister of Trade al-Sudani
told Ambassador that the PDS badly needs reform, for which he
welcomes USG assistance. Al-Sudani said that he is concerned
that the current system encourages pervasive corruption and
that he plans to "fix this problem." Minister al-Sudani
added that he would like to see a one-year pilot project in
which food basket items are reduced and the system is
monetized to encourage private sector development. This
pilot project, al-Sudani predicted, will demonstrate the
system's effectiveness to the Council of Ministers and build
trust in the new government.
--------------
OPEN TO ECONOMIC POLICIES FAVORABLE TO TRADE
--------------
3. (SBU) In order to bolster WTO accession efforts, Al-Sudani
noted, Iraq needs economic policies and a legal framework
that encourage free trade and foreign investment. Without
these necessary changes, he added, Iraq's economy will
continue to struggle. The Minister welcomed USG input and
technical assistance on next steps in order to schedule
Iraq's first WTO Working Party. He acknowledged Iraq's
immediate need to appoint a WTO ambassador to Geneva, submit
responses to questions on the Foreign Trade Memorandum (FTM),
and name a permanent DG within MoT to coordinate
inter-ministerial WTO efforts.
--------------
CAPACITY AND STAFFING AT THE MINISTRY
--------------
4. (C) Minister al-Sudani said that he wants to make
"significant" staffing changes and currently is collecting
resumes to fill DG and other leadership positions. Many of
the current MoT DGs are being kept on a "trial basis,"
al-Sudani explained, to ensure that "corruption will not be
tolerated." Al-Sudani assured us he would not appoint or
keep ministry staff based on Dawa Party affiliation, only
those who are effective. The Minister welcomed USG
assistance for capacity building, including a financial
management system to improve internal controls (e.g.,
accounting),and reduce corruption in the Ministry.
--------------
COMMENTS
--------------
5. (C) COMMENT: Minister al-Sudani demonstrated a clear
understanding of the need for PDS reform and the need to work
with the Council of Ministers towards this end. Although he
did not seem very familiar with Iraq's WTO accession efforts,
he did appear eager to learn more and was receptive to USG
assistance in this area. Al-Sudani likely will be a positive
and cooperative interlocutor for the USG, evidenced by our
past relationship with him as the former Minister of
Education in the Iraqi Transitional Government (ITG). We
welcome his "merit-based" approach to staffing and eagerness
to take on corruption, but will wait to see how these plans
translate into action. END COMMENT.
KHALILZAD
SIPDIS
SIPDIS
E.O. 12958: DECL: 06/13/2016
TAGS: ECON ETRD EAID KCOR PGOV IZ
SUBJECT: NEW TRADE MINISTER STRONG ON PDS REFORM AND TRADE
Classified By: Ambassador Zalmay Khalilzad for reasons 1.4 (b) and (d).
1. (C) SUMMARY. On June 5, new Minister of Trade Abd
al-Falah al-Sudani shared with Ambassador his strong support
for reform of the Public Distribution System (PDS),reduction
of corruption in the ministry, and economic policies
favorable to international trade and to Iraq's accession into
the World Trade Organization (WTO). Minister al-Sudani said
that the Ministry's Directors General (DGs) will be kept on a
"trial basis" and that he expects to be make substantial
changes in the ministry's leadership, based on performance
rather than family or party affiliation. END SUMMARY.
--------------
MINISTER STRONG ADVOCATE FOR PDS REFORM
--------------
2. (SBU) In a June 5 meeting, Minister of Trade al-Sudani
told Ambassador that the PDS badly needs reform, for which he
welcomes USG assistance. Al-Sudani said that he is concerned
that the current system encourages pervasive corruption and
that he plans to "fix this problem." Minister al-Sudani
added that he would like to see a one-year pilot project in
which food basket items are reduced and the system is
monetized to encourage private sector development. This
pilot project, al-Sudani predicted, will demonstrate the
system's effectiveness to the Council of Ministers and build
trust in the new government.
--------------
OPEN TO ECONOMIC POLICIES FAVORABLE TO TRADE
--------------
3. (SBU) In order to bolster WTO accession efforts, Al-Sudani
noted, Iraq needs economic policies and a legal framework
that encourage free trade and foreign investment. Without
these necessary changes, he added, Iraq's economy will
continue to struggle. The Minister welcomed USG input and
technical assistance on next steps in order to schedule
Iraq's first WTO Working Party. He acknowledged Iraq's
immediate need to appoint a WTO ambassador to Geneva, submit
responses to questions on the Foreign Trade Memorandum (FTM),
and name a permanent DG within MoT to coordinate
inter-ministerial WTO efforts.
--------------
CAPACITY AND STAFFING AT THE MINISTRY
--------------
4. (C) Minister al-Sudani said that he wants to make
"significant" staffing changes and currently is collecting
resumes to fill DG and other leadership positions. Many of
the current MoT DGs are being kept on a "trial basis,"
al-Sudani explained, to ensure that "corruption will not be
tolerated." Al-Sudani assured us he would not appoint or
keep ministry staff based on Dawa Party affiliation, only
those who are effective. The Minister welcomed USG
assistance for capacity building, including a financial
management system to improve internal controls (e.g.,
accounting),and reduce corruption in the Ministry.
--------------
COMMENTS
--------------
5. (C) COMMENT: Minister al-Sudani demonstrated a clear
understanding of the need for PDS reform and the need to work
with the Council of Ministers towards this end. Although he
did not seem very familiar with Iraq's WTO accession efforts,
he did appear eager to learn more and was receptive to USG
assistance in this area. Al-Sudani likely will be a positive
and cooperative interlocutor for the USG, evidenced by our
past relationship with him as the former Minister of
Education in the Iraqi Transitional Government (ITG). We
welcome his "merit-based" approach to staffing and eagerness
to take on corruption, but will wait to see how these plans
translate into action. END COMMENT.
KHALILZAD