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