Identifier
Created
Classification
Origin
08ALGIERS689
2008-06-12 08:23:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Algiers
Cable title:  

COMMERCE MINISTER NONCOMMITTAL ON WTO PROGRESS

Tags:  ETRD PREL AG 
pdf how-to read a cable
VZCZCXRO7286
RR RUEHTRO
DE RUEHAS #0689/01 1640823
ZNR UUUUU ZZH
R 120823Z JUN 08
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC 5993
INFO RUEHRB/AMEMBASSY RABAT 2396
RUEHTRO/AMEMBASSY TRIPOLI
RUEHTU/AMEMBASSY TUNIS 7251
RUEHCL/AMCONSUL CASABLANCA 3453
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHGV/USMISSION GENEVA 0428
UNCLAS SECTION 01 OF 02 ALGIERS 000689 

SENSITIVE
SIPDIS

STATE PASS TO USTR PBURKHEAD AND BGRYNIEWICZ
CAIRO PASS TO TREAS ASEVERENS

E.O. 12958: N/A
TAGS: ETRD PREL AG
SUBJECT: COMMERCE MINISTER NONCOMMITTAL ON WTO PROGRESS

REF: ALGIERS 481

UNCLAS SECTION 01 OF 02 ALGIERS 000689

SENSITIVE
SIPDIS

STATE PASS TO USTR PBURKHEAD AND BGRYNIEWICZ
CAIRO PASS TO TREAS ASEVERENS

E.O. 12958: N/A
TAGS: ETRD PREL AG
SUBJECT: COMMERCE MINISTER NONCOMMITTAL ON WTO PROGRESS

REF: ALGIERS 481


1. (SBU) SUMMARY: In a long-awaited meeting on June 8,
Commerce Minister El Hachemi Djaboub and his lead WTO
negotiators offered us little in terms of concrete actions
that the Algerians would take to accelerate their bid to join
WTO. We received some indications of willingness to adjust
Algerian negotiating stances, but the Minister and his team
pledged no dramatic changes in economic policy that would
facilitate joining the WTO. The Algerians said they had
contacted a Swiss firm to translate 1,500 pages of documents
into English, but offered no date by which the task may be
completed nor assurances that future offers would be in
English. Likewise, the Minister instructed his staff to
create a legislative action plan similar to the Vietnam
model, but his team leader suggested that the lists of
Algerian laws already provided should be sufficient. The
Algerian negotiators admitted that the lack of convertibility
of the Dinar remains a problem for Algeria's WTO bid, but
gave no hint that Algeria would change that policy and they
insisted that there is no discrimination against foreign
companies in Algerian law today. In general, the Algerians
feel there are only a dozen or so outstanding issues to
negotiate, and are waiting for USTR to provide them a list of
priority goods market access items on which to focus. The
Minister lamented the long, slow process that WTO
negotiations have become for Algeria, and said that Algeria
continues to make gradual progress toward economic and
financial reform that should help its WTO bid. The
Ambassador underlined several times in the meeting that while
we support Algeria joining the WTO, the Algerians - not the
Americans - must decide to take steps forward. Regarding
MEPI/IESC programming, the Minister's team said they may
still be interested, but that any such programming must be in
French if it is to be effective. END SUMMARY.


2. (SBU) On June 8, the Ambassador delivered a demarche to
Commerce Minister El Hachemi Djaboub regarding Algeria's bid
to join the World Trade Organization (WTO). (NOTE: The
appointment to meet the Minister was granted more than four
months after the Embassy officially requested it by
Diplomatic Note and informally through follow-on calls. The
meeting had been canceled twice by the Algerians. END NOTE).

The Ambassador spoke from talking points provided from
Washington that suggested specific steps that Algeria could
take to accelerate the negotiations leading toward its WTO
accession.

ALMOST THERE?
--------------


3. (SBU) Minister Djaboub and his lead WTO negotiators were
at first upbeat, claiming that out of approximately 170
original questions to negotiate for WTO accession, only a
dozen or so remained outstanding. The Ambassador expressed
surprise, saying there were a variety of issues still
outstanding. Chief WTO negotiator and Director General of
Foreign Trade Cherif Zaaf admitted that the limited
convertibility of the Algerian dinar remained a stumbling
block between the United States and Algeria, as the lack of
convertibility makes it impossible for companies doing
business in Algeria but registered outside of Algeria to
repatriate profits. Zaaf and his Minister insisted that
Algerian law does not discriminate against foreign firms,
however.


4. (SBU) The Ambassador suggested Algeria formulate
comprehensive offers for goods and services to generate
momentum among its bilateral negotiating tracks, rather than
extending bilateral negotiations over a long period. Zaaf
indicated that Algeria was waiting for a list of priority
goods sectors from USTR because his last offers in services
and agriculture were not considered priorities by U.S.
negotiators. The Ambassador reminded the Algerians that, if
USTR were to create such a list of priority discussion items
for Algeria, the Algerians would need to negotiate them with
genuine flexibility. He also told the Minister that the
Algerian negotiators needed sufficient authority and
flexibility to make commitments and negotiate new topics that
might arise during a fruitful round of talks. The Minister
lamented the slow, arduous pace of WTO negotiations, and
noted that Algeria has been gradually reforming its economy

ALGIERS 00000689 002 OF 002


and financial system, but that residual fears from the 2004
Khalifa banking scandal still curb the enthusiasm in some
parts of government for greater reform and privatization.
Ambassador noted that there are steps the Algerian
negotiators can take now that are simple enough, such as
listing in detail its existing sanitary and phyto-sanitary
regime. (The Minister looked at his negotiator Zaaf who
nodded and said this could be done.)

LEGISLATIVE ACTION PLAN - GOT ONE
--------------


5. (SBU) The Ambassador told the Minister that, so far, the
Algerian legislative action plans had not had enough detail
to explain when and how new legislation would go into force
and how that new legislation would resolve issues raised in
WTO negotiations. We gave the Minister the sample
legislative action plan for Vietnam provided by USTR, and
encouraged the Algerians to create a similar tracking device.
Zaaf defended Algeria's previous efforts, saying they have
already produced lists of laws related to WTO that were
passed during the period 2001-2005. Minister Djaboub,
nonetheless, directed Zaaf to create a new legislative action
plan along the lines of the Vietnam model.

IN ENGLISH, PLEASE
--------------


6. (SBU) The Ambassador stressed that Algeria should
translate its offers and documents into English to make it
easier to conclude negotiations with a number of parties, not
just the United States. Chief negotiator Zaaf said that
Algeria has contacted a Swiss firm with experience in WTO
terminology to translate Algeria's documents into English,
but noted that it would take some time and be expensive
because there are over 1,500 pages to translate. Zaaf said
they would prioritize the translation of documents generated
from the last Working Party meeting that were most important,
but we were given no timelines nor assurances that future
offers would be in English. The Minister, meanwhile,
expressed unhappiness over the cost but said the Algerian
government would go forward.

BUT TRAINING IN FRENCH
--------------


7. (U) We also reiterated a proposal for a MEPI funded
program to be implemented by the International Executives
Service Corps (IESC) that would bring private experts to
Algeria to offer workshops and counseling sessions specific
to WTO accession (reftel). Zaaf and the Minister stressed
that for such a program to be effective, it should be
conducted in French to reach the target audience at the
Ministry.

COMMENT: HERE WE ARE AGAIN
--------------


8. (SBU) While cordial and friendly, Minister Djaboub did
not offer any particular assurances that Algeria will
accelerate trade and investment regime changes to speed along
WTO access negotiations. The Algerians seemed a bit more
serious about providing documentation in English, but Zaaf's
indication that he is waiting for USTR to create a priority
list for goods access negotiations, and his reluctance to
create a new legislative action plan like the Vietnam model,
hint that he'll argue that the Algerians are doing all that
they need to do if only Algeria's partners would make
political decisions. When the Ambassador suggested that it
would be more effective for the Algerians to submit
comprehensive offers that would be acceptable to multiple WTO
parties rather than trying to conclude a series of bilateral
negotiations, Djaboub laughed and said, "In reality, if we
conclude negotiations with you, everyone else will agree to
let us accede." The government is a bit embarrassed that it
cannot conclude the WTO accession talks, but not enough to
accelerate economic reforms.
FORD