LIBERIA'S COMMERCE MINISTER AND TIFA/AGOA UPDATE

UNCLAS SECTION 01 OF 03 MONROVIA 000052

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR EEB/IFD/OIA AND AF/W
DEPARTMENT PLEASE PASS USTR FOR CONNIE HAMILTON
PLEASE PASS OPIC FOR JOHN SIMON
TREASURY FOR OREN WYCHE-SHAW, RICHARD HALL, AND JOHN RALYEA
COMMERCE FOR STEVEN GARDNER AND SALIHA LOUCIF
ACCRA FOR KEVIN MCCOWAN
DAKAR FOR USDA AND FAA

REF A) 07 MONROVIA 1260
REF B) 07 MONROVIA 1201

E.O. 12598: N/A
TAGS: ETRD EAID EAGR ECON EAIR OPIC USTR PGOV LI
SUBJECT: LIBERIA'S COMMERCE MINISTER AND TIFA/AGOA UPDATE


1. (SBU) SUMMARY: The Minister of Commerce is committed to progress
under TIFA and is already planning for the AGOA workshop and an AGOA
Resource Center. Plans are underway for a standards lab in Monrovia
that will permit sanitary and phyto-sanitary tests. The Minister
supports establishment of commercial courts. However, Liberia still
faces many challenges before exports are likely to reach
international standards. END SUMMARY.


2. (U) The Ambassador and Econoff met January 11 with Frances
Johnson Morris, Minister of Commerce, to review the status of items
on the Trade and Investment Framework Agreement (TIFA) work plan and
other trade issues. Following is a summary of some of the work plan
topics (with numbers referencing the "U.S.-Liberia TIFA Council
Meetings Action Items for Follow-Up" list).

Interagency AGOA Workshop (items 5 and 14)
--------------


3. (SBU) The Ambassador conveyed USTR's proposal of a February 7-8
event, and asked whether the GOL would be able to support and
organize a workshop during that period. The Minister said planning
for an event the first week of February was well underway but she
would confirm the dates with the stakeholders. She provided a draft
agenda, proposed participant list, and status report for the
workshop. We will encourage to GOL to include members of the
legislature in the workshop (per item 14 of the work plan). (Note:
The Minister's office confirmed the February 7-8 dates on January

14. However, we will be consulting with the Ministry on possible
March dates in light of recent information from Washington. End
note)


4. (SBU) For the AGOA workshop, the GOL is planning an exhibition
of Liberian products, including arts and crafts that might be
suitable for export under AGOA. Chili peppers that are being grown,
on the advice of the West African Trade Hub, have already found a
buyer in Europe.

March Trade Mission to Ghana (Item 3)
--------------


5. (SBU) The Accra Trade Hub reports it has worked with USDA and
the Accra-based contractors (selected to assist in the USDA March
Trade and Investment Mission (TIM)),for matchmaking opportunities
between regional firms and U.S. companies and investors. The Trade
Hub made specific matchmaking suggestions to USDA and Brooks
Associates; however, no Liberian companies were found to be suitable
matches for the U.S. companies on the TIM.


6. (U) Embassy Monrovia is still consulting with trade
professionals and agricultural experts in Liberia and will forward a
few more candidates this week. However, most of the possible
candidates would be importers (and not eligible for USG sponsorship)
rather than exporters.

AGOA Resource Center (Item 10)
--------------


7. (SBU) The Minister told us they had received communication on
the proposal for an AGOA Resource Center and understood the host
should be a private, rather than a government, entity. They are
suggesting the Liberian Chamber of Commerce. The Accra Trade Hub
reported January 16 that it had scheduled a one-day AGOA Workshop in
Liberia to coincide with the opening of the new AGOA Resource Center
(ARC) in Monrovia for April, but is now working to move that to
March to possibly coincide with the interagency AGOA workshop.
Embassy Monrovia requests closer coordination with the WATH/A office
as neither State nor USAID officers in Monrovia had received any
information on this initiative.

Commercial Court system (Item 11)
--------------


8. (SBU) The Ambassador asked about interest in establishing a
commercial court system for Liberia. The minister, who is a lawyer
and was previously the Minister of Justice, said the proposal had
been around since the 1990s. She had been a debt court judge and
was well aware of the ineffectiveness of the current system and its
impact on banks and other companies. She said that in addition to
working with Commerce, the proposal should be pursued with the

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Supreme Court and the Bar Association. (Note: Post welcomes the
ongoing contact with the Department Of Commerce's Commercial Law
Development Program and looks forward to working with them to move
this very important initiative forward. Another promising initiative
includes assistance in streamlining the public procurement process.
End note.)

Standards Lab (Item 2)
--------------


9. (SBU) The USG is funding rehabilitation of the Ministry of
Public Works, which will include space for a standards lab. UNIDO
has committed $250,000 to equipping the lab (and has hired away the
Minister's very efficient personal assistant). The GOL already has
people undergoing training in Ghana. The lab will allow the GOL to
build cases against purveyors of dangerous or counterfeit products
(particularly pharmaceuticals) and will be an essential step in
attaining the sanitary and phyto-sanitary standards necessary for
export of agricultural products and seafood.

Boston Seafood Show (Item 6)
--------------


10. (SBU) On that note, the Minister confirmed that there are no
Liberian firms that are at a level where participation at the Boston
Seafood Show next month would be feasible. Having consulted widely
with business and government contacts, we support her opinion.
However, we will work with the Liberian business community and
USAID's Trade Hub to identify participants, either exporters or
importers, for next year.

--------------
Other outstanding issues
--------------

Cargill and cocoa processing (Item 8):
--------------


11. (U) We have heard nothing from USDA on this proposal.

Harmonizing Customs Data with ECOWAS (Item 9) and transitioning to
the ECOWAS Common Tariff (Item 16)
-------------- --------------


12. (SBU) According to a previous meeting with the Deputy Minister
of Finance for Revenue, the GOL is aiming for a national plan on the
ECOWAS common external tariff (CET) by May and would like to start
implementation sometime this year. They don't anticipate political
obstacles, as there are not many discrepancies between the CET and
Liberia's current tariffs.

Air travel to Liberia by U.S. airlines (Item 12)
--------------


13. (SBU) Since signing an Open Skies agreement with the United
States in February 2007, the GOL has been eager to initiate direct
air service between the United States and Liberia. However, the
security, safety, systems, and immigration shortfalls at the Roberts
International Airport (RIA) outside Monrovia remain a formidable
challenge for the initiation of non-stop flights to and from the
United States. USAID has funded $3 million in airport equipment and
the World Bank is providing navigational aid support. Other
improvements are planned but it is unlikely these will be sufficient
to meet standards required by U. S. aviation authorities and
airlines in the near term. Post has requested assistance from the
Federal Aviation Authority (FAA),and the Department of Homeland
Security (DHS) Transportation Safety Agency (TSA) to assess the
status and needs of the RIA and Liberian Civil Aviation Authority
(LCAA) with an eye towards preparing Liberia for potential direct
air service to the United States.


USTDA feasibility study on privatizing port management
-------------- --------------
(Item 13)


14. (U) A USTDA-funded feasibility study on privatizing port
management is no longer required. On December 6, 2007, the GOL
signed a Memorandum of Understanding (MOU) with the World Bank, the

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United States, and the United Nations for a comprehensive reform of
the port sector in Liberia. Under the agreement, the GOL has
committed itself to a process of holistic reform of the port sector
based on a Public Private Partnership concept which embraces a
long-term, Build-Operate-Transfer (BOT) arrangement for the Port of
Monrovia. The World Bank has pledged $5 million for infrastructure
investments and the technical assistance necessary to assess the
port sector and prepare for the BOT investment while the United
States is contributing up to $5 million for technical assistance to
port financial management, as well as the purchase of a tugboat.

OPIC support for Liberian businesses (Item 15)
--------------


15. The OPIC-funded Liberian Enterprise Development Fund has been
licensed, hired staff, and starts disbursing the initial $1.7
million in loans to Liberian SMEs on January 25. (REF A)


16. (SBU) COMMENT: There has been progress on the TIFA agenda, but
Liberia is several steps away from taking full advantage of AGOA.
USG support for building business capacity, improving infrastructure
(especially roads, electricity, the airport and seaport),and
implementing quality standards will all boost eventual export
capacity. We should also support efforts, such as those recommended
by the International Finance Corporation and the Center for
International Private Enterprise (CIPE),that increase the broader
business community's influence and advocacy.


17. (SBU) Minister Morris seems more in command of her portfolio
than at the time of the October TIFA meetings in Washington, and
eager to move forward with trade-enhancing initiatives, but Commerce
is not her first love. She is developing her staff, but there is
still a disconnect at the ministry between the policy level and the
working level. Proposals on improving the investment climate and
facilitating trade that are being discussed with donors and among
cabinet members have not filtered down to those who will implement
the new policies. END COMMENT

Booth