LIBERIA: PESTS and AGOA: SPS STRUCTURE ESSENTIAL FOR

UNCLAS SECTION 01 OF 03 MONROVIA 000154 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR AF/W DAKAR FOR APHIS FRENCH LAGOS FOR USDA ABDI USDA/FAS FOR JUDITH PHILLIPS USDA/FAS FOR RON VERDONK E.O. 12598: N/A TAGS: EAGR EAID ECON ETRD LI SUBJECT: LIBERIA: PESTS and AGOA: SPS STRUCTURE ESSENTIAL FOR AGRICULTURAL EXPORTS ¶1. (SBU) Summary: The GOL is counting on agricultural exports, including timber projects, to jump-start the economic recovery. In meetings with GOL officials, USDA and APHIS regional representatives made it clear that an effective and internationally recognized sanitary and phytosanitary (SPS) system is an essential prerequisite for food or agriculture exports and an important safeguard for the domestic agricultural sector. The visitors also met with private sector traders in agricultural products to learn of commercial constraints and obstacles, discussed with USAID counterparts ways to better coordinate complementary programs, and visited Liberia's veterinary lab. Recovery of Liberia's agricultural sector and growth in exports depends on the creation of a robust sanitary and phytosanitary regime and rationalization of overall trade regulations. End summary. ¶2. (SBU) Responding to a request made by Minister of Agriculture Christopher Toe, USDA Attache Ali Abdi, resident in Lagos, and APHIS Regional Director Assistant Dr. Cheryl French, based in Dakar, visited Monrovia the week of January 28 to discuss SPS and trade issues. Dr. French received a solid overview of the state of the GOL's initiatives with regard to SPS and ways to coordinate with other partners, such as the FAO. She encouraged Liberia to participate in international standards-setting organizations and regional bodies and suggested APHIS could provide quick assistance in compiling a pest list. ¶3. (SBU) In addition to three meetings with the Ministry of Agriculture (with the Minister, the Deputy Minister for Planning, and technical experts),and with the Forestry Development Agency to sound them out on the state of SPS systems as Liberia resumes timber exports, the pair met with officials in the Ministry of Commerce Office of Foreign Trade and with representatives of the private sector who trade, or will potentially trade, in agricultural products and equipment. Abdi was also able to meet with USDA's implementing agency Visions In Action and discuss with USAID counterparts and GOL officials ways in which USDA's food aid and monetization programs could be better integrated into complementary programs. Dr. French visited the FAO lab and toured a large farm outside Monrovia. MINISTRY OF AGRICULTURE ON BOARD, BUT NEEDS HELP -------------- -------------- ¶4. (SBU) The Ministry of Agriculture is engaged, from the top, on the need to establish SPS regulations and systems and then train and develop its staff in regulatory functions. Agriculture Minister Christopher Toe noted that SPS legislation either does not exist or is decades out of date. Dr. French stressed a priority should be determining the plant and animal disease status of Liberia, and offered APHIS assistance in developing a national pest list for Liberia. She urged that Liberia take part in international, especially regional, SPS standards-setting bodies. ¶5. (SBU) Deputy Minister for Planning James Logan noted his ministry has completed a comprehensive agricultural sector assessment, with draft recommendations for the top priorities for Liberia's poverty reduction strategy. They are: ¶A. Inputs for the sector (he is very concerned),both traditional and non-traditional. (Note: The nature of the Deputy Minister's specific concern was not clear. End note.) ¶B. Agriculture Ministry capacity-building: they need statistics and a monitoring framework. ¶C. Capacity-building for farmer-based organizations. ¶D. Full exploitation of Liberia's abundant paddy rice production assets to produce rice for food self-sufficiency and for export. (Only 2% of possible sites are currently utilized. He acknowledged there needs to be an environmental assessment.) ¶E. Post-harvest/value-added measures, such as upgrading rice threshers. Logan explained the GOL should provide farm to market roads and regional storage locations so the private sector can do the rest. ¶6. (SBU) Dr. French noted that APHIS receives a small fee from travelers entering the United States to cover some SPS implementation (agricultural quarantine inspection fees),and suggested the GOL could consider a similar program. ¶7. (SBU) Ministry officials requested inspection equipment for MONROVIA 00000154 002 OF 003 border posts and confirmed they have no plant protection bureau (just plant quarantine) and no agricultural research station. They would like to establish four labs (one in each region of the country),receive international training, and receive help with veterinarian services. As an initial step, they need to develop SPS structure and policy in coordination with other GOL agencies. Dr. French agreed to provide copies of information on planning and staff. She urged them to submit specific requests via the Embassy, but noted the importance of clear coordination to avoid duplication of effort with other donors. APHIS plans to work closely with the FAO on establishing Liberia's SPS regime. Abdi also informed the Deputy Minister of the upcoming Agricultural trade mission to Accra and invited the Ministry to propose candidates for the Cochrane Fellowships. Action items: -------------- -- The Ministry of Agriculture will provide name and contact information for Liberia's SPS Inquiry Point. -- The Ministry will provide a copy of the national agricultural policy, currently in draft form, and Dr. French will provide APHIS's strategy. -- The Ministry will send a letter to the Embassy, for transmittal to APHIS, requesting assistance in establishing the pest list. -- Dr. French requested a skills list of Ministry employees to assist APHIS in targeting training opportunities. USAID will provide three long-term technical advisors to support Ministry of Agriculture policy and institutional development. Through this technical assistance program, SPS could be addressed. -- Dr. French will forward APHIS information on changes in SPS regulations. -- Abdi sought input from USAID and Minister Toe on suitable candidates' for USDA's Cochrane Fellowships. Forestry Development Agency: SPS and Timber Exports -------------- -------------- ¶8. (SBU) UN sanctions on Liberian timber were removed in 2006, which has opened the door to resumption of exports. At the Forestry Development Agency, Dr. French explained to officials responsible for commercial forestry the urgency of establishing internationally-recognized SPS procedures as a prerequisite to exports and to protect Liberia's forest and agricultural resources. She agreed to provide them with information on ISPM 15 and CITES restrictions for imports to the United States. Noting their close working relationship with U.S. Forest Service experts, the FDA officials welcomed any assistance the USG could provide in SPS issues. Ag Trade Remains Murky -------------- ¶9. (SBU) During meetings with Ministry of Commerce officials responsible for Foreign Trade it became clear that simplification of GOL trade procedures is essential. Although GOL officials recognize the role of the Ministries of Agriculture and of Health in ensuring the safety of goods imported to or exported from Liberia, there remains an unacceptable level of discretion in the system. ¶10. (SBU) The MCI officials showed us a booklet on trade regulations that is being revised but did not have available printed copies of existing regulations or procedures. (Note: In a conversation February 4, the Minister of Commerce told Econoff the booklet is being revised, will be re-issued soon, and that they plan to establish a web site that will include all trade-related information. End note.) ¶11. (SBU) The MCI officials further explained that although trade statistics for 2007 have been compiled, they have not yet been published. The Director for Foreign Trade, while discussing food safety, made an off-hand comment that he was sure the GOL would have problems with GMOs, but clearly had very little understanding of what the term covered. Private Sector - not quite at full potential -------------- ¶12. (SBU) Abdi and French met potential importers and exporters over lunch to discuss the upcoming Agricultural Trade Mission to Accra MONROVIA 00000154 003 OF 003 and general issues affecting trade in agricultural products. Liberian producers have not yet reached a level of quality where they can compete on the international market, but the meeting provided useful information on the measures, such as SPS standards, that will be necessary to export successfully. ¶13. (SBU) The participants, who included farmers, members of farm cooperatives, and importers of grocery products, cited the increasing cost of imports, the difficulties caused by lack of direct air transport from most markets, and the inefficiencies of the GOL's pre-shipment inspection contractors. Sample prices include $8 per kilo for hatching eggs from Holland, and $31 per bag for chicken feed. Farmers cannot buy feed and other inputs on an as-needed basis, as they must be prepared for long delays (of at least three weeks) between ship arrivals. The complex and arbitrary import regulations affect the agricultural sector as they do all others. ¶14. (SBU) The lack of veterinarians was cited as an obstacle. There are two in Liberia, both in Monrovia and neither of whom practices regularly. One farmer has a vet in Ghana on contract, and e-mails photos of her distressed livestock for remote diagnosis, a procedure that is not helpful for urgent or serious problems. The state-owned Liberia Produce Marketing Corporation (LPMC) also hampers productivity and exports. The LPMC sets a price (for cocoa, for example) for delivery at the port of Monrovia. Given the high cost of transport within Liberia, farmers earn 5 Liberian dollars a kilo (about 10 cents U.S.) compared to US$70 a kilo in Guinea and Sierra Leone, which leads to smuggling of much of the crop. We were told the GOL may allow one cocoa cooperative to export directly, as a pilot program, rather than being required to sell to LPMC. It was clear that recovery of Liberia's agricultural sector depends on rationalization of overall trade regulations. USDA Food Aid Projects -------------- ¶15. (SBU) USDA Attache Abdi visited Visions in Action(VIA),for an orientation into their Liberia projects. VIA uses funds from USDA Food for Education Program to conduct teacher training programs. (The representative for USDA's other partner, ACDI/VOCA, arrived after the conclusion of the visit.) In discussion of USDA programs and implementing partners, Deputy Minister Logan acknowledged there could be better communication between them and the Ministry. He noted the GOL is considering re-activating the Rice Commission to avoid import problems such as the one encountered by U.S.-donated rice last year. ¶16. (SBU) Abdi met with USAID's Economic Growth and the Education officers during his visit, and confirmed USDA will provide resources, such as the Cochrane fellowships, in enhancing Mission Monrovia objectives. USAID officials explained the problems that had arisen last year due to obtaining government clearance for the importation of rice. Abdi committed to reminding both VIA and ACDI/VOCA of their obligation to coordinate with the Embassy and with the Ministries on proposed for rice imports and planned education programs. ¶17. (SBU) Comment: Liberia is counting on the agriculture and forestry sectors to provide early impetus to its economic recovery and Poverty Reduction Strategy. However, an effective and internationally recognized SPS system is essential to permit exports and protect domestic industry. The ministry of Agriculture will be the lead agency, but others, including the Ministry of Commerce, the Ministry of Health, and the Legislature, will have to be closely involved. The USG is completing renovation of the building that will house a national lab (UNIDO is providing the equipment). There is also an urgent need for training and capacity building, as well as exposure to the current state of SPS regulation and monitoring after a 14-year absence from the international standards community,. ROBINSON