IMPLEMENTATION OF RECONSTRUCTION OPPORTUNITY ZONES REQUIRES IMMEDIATE COORDINATED INTER-AGENCY ACTION

UNCLAS SECTION 01 OF 03 ISLAMABAD 000016 SIPDIS SENSITIVE BUT UNCLASSIFIED DEPT - PLEASE PASS TO USAID, USTR, USTDA SIPDIS E.O. 12958: N/A TAGS: ECON PGOV PK ETRD EAID PREL AFGHAN SUBJECT: IMPLEMENTATION OF RECONSTRUCTION OPPORTUNITY ZONES REQUIRES IMMEDIATE COORDINATED INTER-AGENCY ACTION ISLAMABAD 00000016 001.3 OF 003 //////////////ZFR//////////ZFR///////////ZFR/ /////////////// //////////PER DRAFTER, PLS ZFR IMI ZFR (CANCEL) ISLAMABAD//// /////////MRN 0016 SECTIONS 01 THRU 03 DTG 030523Z JAN 08//// /////////AND BLANK IMI BLANK ALL ASSOCIATED MCNS. MSG WILL ////////BE RESENT UNDER NEW MCNS/MRN. SORRY FOR ANY AND ALL// ////////INCONVENIENCES/////////////////////// //////////////// ///////////////////////////////////////////// //////////////// ISLAMABAD 00000016 002 OF 003 ¶6. (SBU) Transit Trade. Recommendations include USG support to update the bilateral 1965 Afghan Transit Trade Treaty which governs the movement of goods between Afghanistan and Pakistan. TDY exports are requested to coordinate and develop a mutually acceptable working draft. ¶7. (SBU) Labor. Recommendations include improvements in labor inspections, labor standards, and best practices for companies on both sides of the border. TDY technical experts are requested to assist in training and reestablishing labor inspections. ¶8. (SBU) Investment Incentives. Recommendations include working with the Governments of Afghanistan and Pakistan to develop their internal incentives to lure investment to the targeted ROZ locations. ¶9. (SBU) Financing. Recommendations include development of creative financial incentives and structures which will allow multinational corporations and smaller local business to operate in these difficult areas. ¶10. (SBU) Infrastructure Upgrades. Existing industrial parks in Afghanistan and in the border areas of Pakistan will make ideal locations to designate as the initial ROZ sights, however some infrastructure upgrades will be necessary to meet safety codes and ensure attractiveness to international companies. ¶11. (SBU) Training and Institutional Development. Vocational and skills training targeted specifically to the product sectors which will receive duty free preferences has the potential to transform the region by employing the scores of youth seeking a positive focus. ¶12. (SBU) Market Outreach and Trade Promotion. Duty free preferences are not successful if not included as part of a coordinated plan to help move goods to awaiting markets. Capacity building for local producers and buyers will open doors and connect these isolated regions to the world economy. ¶13. (SBU) Agriculture and Forestry. Recommendations include capacity building for agricultural development of best practices, improved production, safety standards and livelihood empowerment of women and youth. TDY technical experts are requested to assist in assessing the current agricultural situations and determining areas where USG assistance would be most effective in the ROZs. ¶14. (SBU) Embassy Islamabad would also request that the SCA bureau lead the efforts for outreach to the Afghan and Pakistani Embassies in Washington. Close coordination with Afghan and Pakistani counterparts in Washington will be essential not only for Congressional approval but also for reinforcing the implementation coordination taking place with Ministries in Islamabad and Kabul. ¶15. (SBU) This message and the supporting initiatives chart has been coordinated with Embassy Kabul. The supporting initiatives chart has been sent via unclassified email to the following people in Washington: For the Department of State: Richard Boucher; Caitlin Hayden; Don Camp; Allysa Aries; John Fox; Edward Wittenstein; Daniel Sullivan; Bill Craft; Christian DeAngelis; Colin Guest; Edwin Sagurton; Alfred Anzaldua; Mark Mittlehauser; Leo Gallagher; Jack Spillsbury; Neil Kromash; Shamila Chaudhary; Michael O'Malley; Richard Sacks; Rozina Damanwala For USTR: Claudio Lillenfeld; Scott Quesenberry, Lewis Karesh, James Murphy; Aaron Rosenberg For Commerce: Susan Hamrock, Awinash Bawle For Treasury: Stephaine Segal, Gordona Earp, Timothy Skud, Andrew Bauckol, For OPIC: Dolce Zahnister, Kevin Callahan ISLAMABAD 00000016 003 OF 003 For US Agriculture: Mark Keenum, Ellen Terpstra, Michael Yost, Constance Jackson, Kirk Miller, Pat Sheikh, Chuck Alexander, Frank Lee, Ross Kreamer, James Dever For AID: Mark Ward, Lisa Chiles, Kay Freeman, Nitin Madhav, James Walker, William Butterfield, For NSC: Elizabeth Millard, Patricia Mahoney, John Harriman For Labor: Charlotte M. Ponticelli, Lawrence W. Casey, Rachel Rigby For Department of Homeland Security: Marisa Lino, Karen Marmaud, Michael Feinberg, Jamie Zuieback, Mark Mullen, Luke Bellocchi, Janet Labuda, Brian Fennessy PATTERSON