COTE D'IVOIRE DECLINES TO TAKE 2007 U.S. SUGAR

UNCLAS ABIDJAN 001133 SIPDIS SIPDIS STATE PASS TO USTR C.HAMILTON E.O. 12958: N/A TAGS: EAGR ETRD ECON IV SUBJECT: COTE D'IVOIRE DECLINES TO TAKE 2007 U.S. SUGAR QUOTA REF: SECSTATE 128060 ¶1. (U) Citing a temporary deficit associated with the political crisis affecting the country since 2002, the Ivorian Association of Sugar Industries informed Embassy Abidjan on October 19 that Cote d'Ivoire will be unable to guarantee sugar deliveries to the U.S. under the quota allocated by the U.S. government (reftel). The Association estimates this deficit will be contained to the 2007-2008 commercial year. ¶2. (U) The Ivorian Sugar Association, comprised of Sucaf and Sucrivoire (both formed in the 1997 privatization of the state sugar company and the latter owned by French company SIFCOM, owner of the largest brewing company in Cote d'Ivoire) informed Embassy Abidjan that it is busy combating the illegal entry of sugar into the Ivorian market. In 2004, two years into the present political crisis, the government effectively established a ceiling on sugar imports, but has found it difficult to enforce its limits due to low prices of competing imports and progressively weaker competitivity among Ivorian producers. ¶3. (U) Sugar in Cote d'Ivoire is produced exclusively in the northern part of the country, which has been effectively cut off from banking services and most other economic support infrastructure since 2002. NESBITT