USTR TIFA LETTER DELIVERED TO MDIC

UNCLAS TUNIS 001599 SIPDIS SENSITIVE SIPDIS STATE FOR NEA/MAG FOR MAYA HARRIS, EB/TPP/MTA USDOC FOR NATHANIEL MASON STATE PLEASE PASS TO USTR FOR SHAUN DONNELLY AND DOUG BELL E.O. 12958: N/A TAGS: ECON EFIN ETRD KTIA TS SUBJECT: USTR TIFA LETTER DELIVERED TO MDIC ¶1. (SBU) Summary: Ambassador Hudson paid a farewell call on Minister of Development and International Cooperation (MDIC) Mohamed Nouri Jouini on June 20, 2006. The Ambassador delivered a letter from USTR concerning a proposed June 30, 2006 meeting between the minister and Assistant United States Trade Representative (AUSTR) for Europe and the Middle East, Shaun Donnelly. The Ambassador encouraged the minister to attend this meeting and emphasized the opportunity it provided to revitalize the Trade Investment Framework Agreement (TIFA) process. The minister reacted positively, promising to review the contents of the letter and to reply by week's end. End Summary. ¶2. (SBU) Ambassador Hudson met with Minister Jouini on June 20, 2006 and delivered AUSTR Donnelly's TIFA Preparation Committee letter. The Ambassador stressed the importance of seizing this opportunity to dialogue with USG in order to move the TIFA process along. He pointed out that the GOT responses to the U.S. position papers demonstrated that there are several areas where Tunisian regulations and practices differ from U.S. FTA standards. The Ambassador informed the minister that AUSTR Donnelly is willing to meet with him plus 1 or 2 staff on June 30th to discern areas of agreement and areas that require additional work. Ambassador emphasized that the purpose of this meeting would be to lay the foundation for the working groups and charge them with specific tasks to address. The intended outcome would set the preparation for another TIFA Council in the near future. Minister Jouini was receptive to this approach and stressed that dialogue was important. The minister indicated that he would review the USTR letter and let the embassy know what he has decided by the end of the week. On June 26, 2006 MDIC officials told Economic officer that the minister would be unable to attend the proposed TIFA meeting. ¶3. (SBU) On June 26, MDIC officials told Econoff that Minister Jouini would be unable to attend the proposed June 30, 2006 meeting nor the Arab Economic Forum in Houston taking place this week, as the minister is caught up in a ministerial conference concerning the Facility for Euro-Mediterranean Investment and Partnership (FEMIP). The conference is unexpectedly running longer than originally planned. (Note: FEMIP is a financial partnership between the European Union and its Mediterranean neighbors aimed at helping these countries meet the challenges of economic and social modernization and enhancing regional integration. The anticipated end result is the creation of a customs union with the European Union (EU) by 2010. The Mediterranean Countries (Algeria, Egypt, Gaza/west Bank, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey) fear that funds are being diverted to new EU members in Eastern Europe and are calling for greater European investment in North Africa and the Middle East. End Note.) MDIC officials indicated that an official response letter will be delivered to AUSTR Donnelly via the MFA/Tunisian Embassy in D.C.. They hoped that later date for this TIFA Preparation meeting could be agreed upon. MDIC officials also stressed that they need to invest some deep thought and concentration to the TIFA process in order to succeed in making some progress with this agreement. BALLARD