POST INPUT TO REPORT THE OPERATION OF THE CARIBBEAN BASIN

UNCLAS SECTION 01 OF 03 PARAMARIBO 000577

SIPDIS

SIPDIS

DEPT FOR WHA/CAR: JROSHOLT; USTR FOR KENT SHIGETOMI

E.O. 12958: N/A
TAGS: ETRD AMGT XK XL NS
SUBJECT: POST INPUT TO REPORT THE OPERATION OF THE CARIBBEAN BASIN
ECONOMIC RECOVERY ACT

REF: STATE 143212

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1. (U) Post submits input for the report on the Operation of the
Caribbean Basin Economic Recovery Act. Answers are keyed to
reftel.


2. (U) Paragraph 6. (1) WHETHER THE BENEFICIARY COUNTRY HAS
DEMONSTRATED A COMMITMENT TO UNDERTAKE ITS OBLIGATIONS UNDER THE WTO
UNDER OR AHEAD OF SCHEDULE AND PARTICIPATES IN NEGOTIATIONS TOWARD
THE COMPLETION OF A FREE TRADE AGREEMENT.

Suriname is an actively participating member of the WTO and CARICOM
and has under these agreements participated in the discussions of a
free trade agreement. The actual implementation of obligations
under these agreements has, however, been slow. Implementation of
obligations usually drags on until the deadline is reached and is
then usually achieved.

(2) THE EXTENT TO WHICH THE COUNTRY PROVIDES PROTECTION OF
INTELLECTUAL PROPERTY RIGHTS CONSISTENT WITH OR GREATER THAN THE
PROTECTION AFFORDED UNDER THE AGREEMENT ON TRADE- RELATED ASPECTS OF
INTELLECTUAL PROPERTY RIGHTS

Although Suriname is a signatory to the WTO TRIPS agreement, the
country has not yet ratified this agreement. IPR protection is very
limited due to the limited legislation on this issue.
The Ministry of Justice and Police has committed itself to
implementing all necessary legislation that would make Suriname
TRIPS compliant and would provide for the necessary protection
against music and brand piracy. The Ministry is also working
strengthening its Intellectual Property Bureau. Draft legislation
prepared in 2004 is currently under review by a special commission
for further revisions and, once completed, will be sent on to the
Council of Ministers and the National Assembly for approval.

(3) THE EXTENT TO WHICH THE COUNTRY PROVIDES INTERNATIONALLY
RECOGNIZED WORKER RIGHTS INCLUDING:
(I) THE RIGHT OF ASSOCIATION;
(II) THE RIGHT TO ORGANIZE AND BARGAIN COLLECTIVELY;
(III) A PROHIBITION ON THE USE OF ANY FORM OF FORCED OR COMPULSORY
LABOR;
(IV) A MINIMUM AGE FOR THE EMPLOYMENT OF CHILDREN; AND
(V) ACCEPTABLE CONDITIONS OF WORK WITH RESPECT TO MINIMUM WAGES,
HOURS OF WORK, AND OCCUPATIONAL SAFETY AND HEALTH.

(I) The right of association: Suriname law allows workers to form
and join unions of their choice without previous authorization or
excessive requirements.
(II) The right to organize and bargain collectively: The law allows
unions to conduct their activities without interference, and the
government generally protects this right in practice.
(III) A prohibition on the use of any form of forced or compulsory
labor: While the law prohibits all forms of forced or compulsory
labor, including by children, there were reports of child labor and
trafficking in persons in Suriname.
(IV) A minimum age for the employment of children:
In Suriname there is a discrepancy between the minimum age for
labor, which is 14 years, and the Compulsory Education Age, which is
12 years. The law restricts working hours for minors to day shifts
but does not specify the length of such day shifts. Children younger
than 18 are prohibited from doing hazardous work, defined as work
dangerous to their life, health, and decency; those younger than 14
are only allowed to work in a family or special vocational setting
or for educational purpose.
(V) Acceptable conditions of work with respect to minimum wages,
hours of work, and occupational safety and health: Suriname does not
have legislation providing for a minimum wage. Work in excess of 45
hours per week on a regular basis required special government
permission, which was granted routinely. Employees received overtime
pay for these excess hours. The law requires a 24-hour rest period
per week.

A 10- to 12-member inspectorate in the Occupational Health and
Safety Division of the Ministry of Labor is responsible for
enforcing occupational safety and health regulations.

(4) WHETHER THE COUNTRY HAS IMPLEMENTED ITS COMMITMENTS TO
ELIMINATE THE WORST FORMS OF CHILD LABOR

Suriname has ratified ILO Convention 182, regarding the worst forms
of child labor. The country's labor laws, however, do not define
the worst forms of child labor or hazardous work.

In December 2006, the Government installed the National Commission
dealing with Child Labor, consisting of officials from various
Ministries, representatives from the labor unions, the private
sector and NGOs. This commission is primarily tasked with
establishing an authority on child labor, as provided for in Article
4 of Convention 182. Once established, the authority will advise the

PARAMARIBO 00000577 002.2 OF 003


Government on the issue of child labor, review the existing labor
legislation, and draft new legislation regarding the worst forms of
child labor.

(5) THE EXTENT TO WHICH THE COUNTRY HAS MET U.S.
COUNTER-NARCOTICS CERTIFICATION CRITERIA UNDER THE FOREIGN
ASSISTANCE ACT OF 1961

In 2006, Suriname was not considered a major illicit drug producing
and/or drug transit country as per sections 489 (a)(3),481 (e)(2),
and 481 (e)(5) of the Foreign Assistance Act of 1961.

(6) THE EXTENT TO WHICH THE COUNTRY HAS TAKEN STEPS TO BECOME A
PARTY TO AND IMPLEMENT THE INTER-AMERICAN CONVENTION AGAINST
CORRUPTION

Suriname signed and ratified the Inter-American Convention. In
September 2007 an intergovernmental commission to combat corruption
was established. The Government of Suriname recently signed a
Memorandum of Understanding with the Organization of American States
on cooperation in the fight against corruption.

(7) THE EXTENT TO WHICH THE COUNTRY APPLIES TRANSPARENT,
NONDISCRIMINATORY AND COMPETITIVE PROCEDURES IN GOVERNMENT
PROCUREMENT, AND CONTRIBUTES TO EFFORTS IN INTERNATIONAL FOR A TO
DEVELOP AND IMPLEMENT RULES ON TRANSPARENCY IN GOVERNMENT
PROCUREMENT

Suriname applies transparent, nondiscriminatory and competitive
procurement procedures in most cases. Particularly in cases where
the financing of the project have been from an outside source, the
procurement procedures have been very transparent. There have been
some instances, however, where cases of preferential treatment have
come to light. These instances have mostly occurred in the
rendering of projects related to public works.


3. Paragraph 7. - HAS THE COUNTRY NATIONALIZED OR EXPROPRIATED THE
PROPERTY OF U.S. CITIZENS? IF SO, IS THE COUNTRY TAKING STEPS TO
RESOLVE THE ISSUE(S)?

There are no known cases of nationalization or expropriation of
property in Suriname.

- HAS THE COUNTRY FAILED TO ACT IN GOOD FAITH IN RECOGNIZING
ARBITRAL AWARDS IN FAVOR OF U.S. CITIZENS?

There are no known cases where the government has failed to act in
good faith in recognizing arbitral awards in favor of U.S. citizens.


- DOES THE COUNTRY AFFORD PREFERENTIAL TREATMENT TO THE PRODUCTS
OF A DEVELOPED COUNTRY, OTHER THAN THE UNITED STATES, WHICH HAS OR
IS LIKELY TO HAVE AN ADVERSE EFFECT ON U.S. COMMERCE?

The country has never afforded preferential treatment to the
products of any developed country and has left the source of import
up to the private sector. The United States is currently Suriname's
largest trading partner, with the majority of imports coming from
the United States.

- DO GOVERNMENT-OWNED ENTITIES BROADCAST COPYRIGHTED MATERIAL
BELONGING TO U.S. COPYRIGHT HOLDERS WITHOUT THEIR EXPRESS CONSENT?

Both government-owned and private entities broadcast copyrighted
material without the express consent of the owner. The lack of
adequate copyright legislation has made it difficult to combat this.
The Ministry of Justice and Police is currently working on
preparing all necessary legislation that will provide regulation.

- IS THE COUNTRY A SIGNATORY TO A TREATY OR OTHER INSTRUMENT
REGARDING THE EXTRADITION OF U.S. CITIZENS

On June 2nd, 1887, an extradition treaty was signed between the
United States and The Kingdom of The Netherlands which entered into
force on July 18th, 1889. An amendment to this treaty followed in

1904. As Suriname was a colony of the Kingdom of the Netherlands at
that time, the enforcement of this treaty also applied to Suriname.
Upon its independence in 1975, Suriname automatically adopted this
treaty into its own legislation and it still serves as the
extradition treaty between the United States and the Republic of
Suriname.

- WHAT ARE THE GENERAL ECONOMIC CONDITIONS IN THE COUNTRY? (A ONE
OR TWO PARAGRAPH SUMMARY WILL BE SUFFICIENT);

In 2006, Suriname's macroeconomic growth was better than expected,
benefiting from a continued favorable external environment. Real
GDP grew by an estimated 6 percent. Inflation dropped to below 5
percent, from 16 percent in 2005, aided by tight credit policies by

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the Central Bank and a stable exchange rate. The external current
account reported a surplus of 5 percent of GDP, while net
international reserves rose sharply to 2 months of imports of goods
and services. The GDP in 2006 was estimated to be USD 2.1 billion,
with average GDP per Capita of USD 4,000.

Inflation for the first six months of 2007 was estimated at 6
percent. Even though the IMF has repeatedly warned Suriname about
its economic dependence on minerals, the macroeconomic performance
is expected to grow even further due to record international market
prices for gold, aluminum, and oil. In the financial sector, the
Central Bank lowered the reserve requirement for the commercial
banks from 27 percent to 25 percent on January 1, 2007. This led to
an increase in available local currency, and to a drop in interest
rates for local currency from 15 percent to approximately 10
percent.
In 2005 the government of Suriname embarked on a bold plan to reduce
all of its outstanding bilateral debt. By August 2007, after
repaying its largest creditor the Netherlands, Suriname only has 2
major creditors, the United States and Brazil.

In the non-mineral sector, Suriname's major exporting products are
bananas, wood, shrimp and fish.

- TO WHAT EXTENT HAS THE COUNTRY ASSURED THE U.S. IT WILL PROVIDE
EQUITABLE AND REASONABLE ACCESS FOR U.S. GOODS AND SERVICES TO ITS
MARKET?

There is no limitation on the access of U.S. goods in the Surinamese
market. The market for U.S. services in Suriname is relatively
small and has so far been limited to services provided in the oil
sector and the bauxite/mining sector. The need and interest for
these services is, however, growing. The cost of these services has
been a greater issue than the access for these services.

Through its membership in CARIFORUM, negotiations are currently
ongoing that will establish an Economic Partnership Agreement (EPA)
with the European Union. As part of this EPA Exclusion Lists,
Phased Reduction Lists, and Zero Lists will go into effect that will
significantly reduce, or completely eliminate, the import tariffs on
goods from Europe, making them cheaper and thus more attractive.
The EPA is expected to go into effect on January 1, 2008.

- WHAT IS THE EXTENT OF THE COUNTRY'S USE OF EXPORT SUBSIDIES OR
TRADE-DISTORTING EXPORT PERFORMANCE OR LOCAL CONTENT REQUIREMENTS?

Suriname has no export subsidies, trade distorting export
performance or local content requirements. The only sector that has
received significant lobbying assistance from the government for its
place in the international market is the banana sector. The sole
destination of this product has been Europe, and the placement for
this product has been arranged through EU - ACP agreements.

- DO THE TRADE POLICIES OF THE COUNTRY CONTRIBUTE TO
REVITALIZATION OF THE CBI REGION AS A WHOLE?

The trade policies of Suriname do not specifically contribute to the
revitalization of the CBI region as a whole. Suriname is not a
member of the CBI or CBERA.

- IS THE COUNTRY UNDERTAKING SELF-HELP MEASURES TO PROMOTE ITS
OWN ECONOMIC DEVELOPMENT?

Self-help measures for the promotion of the local economic
development have been very limited and have been on a macro/monetary
level. The private sector has taken a primary role in the
development of business opportunities.

- IS THE COUNTRY COOPERATING WITH THE U.S. IN THE ADMINISTRATION
OF CBERA?

Suriname has no cooperation with the United States on the
administration of CBERA.


4. (U) The point of contact at post is:

Geneve Menscher
Section Head
Political- Economic Section
Tel. (597) 472-900 ext. 2205
Fax (597) 420-800
menscherge@state.gov

WEBB