Identifier
Created
Classification
Origin
07RABAT1812
2007-12-05 17:23:00
CONFIDENTIAL
Embassy Rabat
Cable title:  

AMU SYG INSISTS ECONOMIC COOPERATION KEY TO

Tags:  ECIN ETRD ECON PREL XA 
pdf how-to read a cable
VZCZCXRO4403
PP RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHRB #1812 3391723
ZNY CCCCC ZZH
P 051723Z DEC 07
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 7844
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUEHMD/AMEMBASSY MADRID 5849
RUEHFR/AMEMBASSY PARIS 4854
RUEHCL/AMCONSUL CASABLANCA 3719
C O N F I D E N T I A L RABAT 001812 

SIPDIS

SIPDIS

DEPARTMENT FOR P, NEA/RA, AND NEA/MAG

E.O. 12958: DECL: 12/03/2017
TAGS: ECIN ETRD ECON PREL XA
SUBJECT: AMU SYG INSISTS ECONOMIC COOPERATION KEY TO
MAGHREB UNITY

Classified by Ambassador Thomas Riley for reasons 1.4 (b) and
(d).

C O N F I D E N T I A L RABAT 001812

SIPDIS

SIPDIS

DEPARTMENT FOR P, NEA/RA, AND NEA/MAG

E.O. 12958: DECL: 12/03/2017
TAGS: ECIN ETRD ECON PREL XA
SUBJECT: AMU SYG INSISTS ECONOMIC COOPERATION KEY TO
MAGHREB UNITY

Classified by Ambassador Thomas Riley for reasons 1.4 (b) and
(d).


1. (C) Summary: AMU Secretary-General El-Habib Benyahya
recently outlined for the Ambassador his view that economic
cooperation was the most promising driver for unity and
integration in the Maghreb. The agenda for a December 10
economic ministerial in Tripoli would include a draft
regional free trade agreement, and proposals to harmonize
customs and investment regimes among member states, he
related. The business community is a critical constituency
and key source of support in the cause of AMU integration,
Benyahya underlined. End summary.


2. (C) During a November 26 meeting at the Arab Maghreb Union
Secretariat in Rabat, Secretary-General (and former Tunisian

SIPDIS
Foreign and Defense Minister) El-Habib Benyahya discussed
with the Ambassador ongoing efforts to promote regional
integration in the Maghreb region. Acknowledging that the
Sahara question posed a formidable obstacle to regional unity
(septel),Benyahya explained that his overall strategy was
to help leaders of the region identify their broad areas of
common interest and focus efforts on advancing them.


3. (C) Benyahya emphasized that economic cooperation, more
than any other issue, was key to advancing the broader agenda
of regional integration. The December 10 meeting of AMU
Ministers of Economy and Trade in Tripoli would be a
particularly important opportunity to advance the agenda of
common interest among member states, Benyahya suggested. At
the meeting, the ministers would be discussing a draft AMU
Free Trade Zone Agreement (FTA). He also expected the
ministers to discuss harmonization of member states' customs
codes and investment regulations. Benyahya saw a pressing
need to increase intra-regional trade, which is currently
estimated at a paltry 3 percent of the overall trade of
countries in the region. Worse, more than 80 percent of this
total is Tunisian-Libyan bilateral trade, Benyahya said,
which highlights how little economic interaction there is
between the other AMU states.


4. (C) A prospective AMU FTA was only one of a growing
"preponderance of (proposed) free trade agreements" that
could impact the Maghreb region, Benyahya allowed. The
(partially implemented) Agadir Accord (which linked Egypt,
Morocco, Jordan, and Tunisia in a free trade pact),and the
broader (proposed) Arab Free Trade Zone are also still active
efforts, he noted. Benyahya singled out the Barcelona
Euro-Mediterranean process, aiming to establish a
Mediterranean free trade zone by 2010, as a driver of
economic reform for the AMU states. By imposing standards,
the Euro-Med process is "helping us put our house in order,"
he asserted.


5. (C) Benyahya saw free trade as critical to stimulating
economic growth in the region, itself key to promoting
long-term social stability. He estimated that to keep up
with youth entering the job market, the AMU countries
combined need to create one million jobs/year. Noting that
the AMU had recently established an institutional dialogue
with the Gulf Cooperation Council, Benyahya expressed hope
that growing interest on the part of investors from the Gulf
could help finance major infrastructure projects needed in
the AMU states, such as upgraded road and rail networks.
Libya, he observed, currently has no rail network at all.


6. (C) Business has been more supportive of this agenda than
other interest group, as it sees the opportunities created by
regional cooperation. The recently established AMU
employers' union, seated in Algiers, is actively promoting
cross investment and joint ventures within the region.
Benyahya saw Morocco and Tunisia as having the region's most
dynamic private sectors, with the other three states lagging
behind.



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Visit Embassy Rabat's Classified Website;
http://www.state.sgov.gov/p/nea/rabat
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Riley