CHAD'S COMMERCE MINISTER FOLLOWING WASHINGTON VISIT

UNCLAS NDJAMENA 001310

SIPDIS

SIPDIS

DEPT FOR AF, EB, USTR FOR BILL JACKSON, LONDON AND PARIS
FOR AFRICA WATCHERS

E.O. 12958: N/A
TAGS: ECON ELAB ENRG PGOV ETRD CD
SUBJECT: CHAD'S COMMERCE MINISTER FOLLOWING WASHINGTON VISIT



1. SUMMARY: While noting the positive spirit of meetings in
Washington and understanding of the U.S. position in the WTO
trade negotiations, Chad's Minister of Commerce reiterated
Chad's insistence on the specific treatment of cotton in the
context of global trade discussions. He was also critical of
the methodology used in determining Chad's MCC ranking. The
Minister noted Chad's interest in hosting the 2009 AGOA
forum. END SUMMARY.

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POSITIVE WASHINGTON MEETINGS, POSITION ON COTTON REMAINS FIRM
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2. In a meeting with the Ambassador on November 6, Chad's
Commerce Minister Youssouf Abasallah said that his recent
trip to Washington to participate in the Woodrow Wilson
Center's Cotton Roundtable and meet with U.S. officials on
the cotton issue was "extremely fruitful." The minister said
that he appreciated the warm welcome that he received in
Washington, and was pleased to see the United States'
commitment to discussing the cotton issue with African
cotton-producing countries. He added that he understood the
U.S. position on the need for a global trade agreement, and
realized the political pressures that the U.S. faced from its
domestic cotton growers.


3. Nevertheless, Abasallah insisted that the longer the
United States and the Europeans continued to bicker about
reductions in domestic subsidies, the more Africans, who
relied upon cotton production for their livelihoods,
suffered. He noted that cotton needed to be treated in a
"rapid, specific, and ambitious" manner that C-4 countries
had insisted upon prior to last year's WTO negotiations in
Hong Kong. The Ambassador stated that the United States was
prepared to deal with the subsidies issue, but in the context
of a global agreement. He called upon Chad and the other C-4
countries to engage the European Union on the issue on
subsidies.

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COMMENTS ON CHAD'S MCC RANKING
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4. Abasallah said that following his meeting with officials
from the Millennium Challenge Corporation, he was concerned
that Chad's ranking was based on outdated information, and
was possibly influenced by political perceptions of Chad from
international financial institutions such as the World Bank.
The Ambassador assured the Minister that the MCC rankings
were based on objective formulas that focused on specific
criteria, and were not motivated by political perceptions.
Abasallah admitted that Chad needed to improve its
performance in the criteria laid out by the MCC rankings. He
asserted that the United States and the international
community needed to assist Chad in improving its economic and
political environment. He was quick to point out that Chad
was the only C-4 country that did not receive any assistance
from the MCC. The Ambassador responded by pointing out that
Chad's expected revenue windfall in 2007 from income tax
payments from the oil consortium could be used in the
country's development. Chad could demonstrate the country's
commitment to good governance. by managing the revenues
responsibly.

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POSSIBLE PUSH TO HOST AGOA FORUM
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5. Abasallah also noted that Chad was still extremely
interested in hosting the 2009 AGOA forum. He indicated that
his predecessor and other members of the GOC were not pleased
that Chad's proposal to host next year's AGOA forum was not
received favorably. He said that the GOC is considering
beginning discussions with the U.S. and other African
officials to host the 2009 forum. The Ambassador asked the
Minister to remain in contact with the Embassy on the GOC's
intentions with respect to the forum.

WALL