AMBASSADOR DISCUSSES TIFA, BIT WITH ECONOMIC ADVISOR

UNCLAS SECTION 01 OF 02 ABUJA 000476 SENSITIVE SIPDIS DEPT FOR EEB/IFD/OIA AND AF/WA DEPT PASS TO USTR-AGAMA AND USAID/AFR FOR ATWOOD BAGHDAD FOR DUNDAS MCCULLOUGH TREASURY FOR PETERS, IERONIMO AND HALL DOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/CREED USDA/FAS/OCRA FOR MCKINNEL, SIMMERING E.O. 12958: N/A TAGS: ETRD EINV KIPR ECON EAID EAGR PGOV NI SUBJECT: AMBASSADOR DISCUSSES TIFA, BIT WITH ECONOMIC ADVISOR REF: ABUJA 231 SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG ¶1. (SBU) SUMMARY. The Ambassador met with President Yar'Adua's Chief Economic Advisor (CEA) Dr. Tanimu Yakubu on March 12 to discuss upcoming March 30-31 Trade and Investment Framework Agreement (TIFA) Council Meeting in Washington, GON interest in a Bilateral Investment Treaty (BIT) and areas of cooperation under our bilateral Framework for Partnership. The CEA promised to let the Ambassador know whether he would be able to personally attend the TIFA Council. Ambassador thanked Yakubu for providing GON starting position for discussion for a BIT, but stressed that their draft was not something the USG could respond to as it was quite different from the U.S. Model BIT. She noted that the 2004 BIT text was our model and that in the upcoming TIFA talks the USG and GON can have exploratory discussions on how to move forward towards a BIT. She briefed Yakubu on efforts the USG was making to assist Nigerians in exporting to the U.S. under the African Growth and Opportunity Act (AGOA) and encouraged the CEA to urge GON export promotion agencies to coordinate closely among themselves and with USG counterparts. Yakubu said that the GON was putting a renewed emphasis on the agriculture value chain, AGOA and revival of the textiles industry. Ambassador and CEA agreed that GON and Mission teams working on AGOA would meet in advance of the TIFA Council. END SUMMARY. . TIFA Council Meeting -------------- . ¶2. (SBU) Ambassador met with CEA Tanimu Yakubu at the Presidential Villa on March 12 accompanied by the Economic Counselor. Yakubu was joined by Waziri H. Ahmadu, Food Security and America's Officer in the office of the CEA. The Ambassador stressed the importance the U.S. places on the annual TIFA Council Meeting as a venue to exchange information and views towards strengthening economic relations. She urged the CEA to attend personally if at all possible, to help ensure that concrete progress can be achieved at the March 30-31 Council Meeting. Yakubu stated that he would review his calendar and let the Ambassador know shortly whether he can attend. . Bilateral Investment Treaty -------------- . ¶3. (SBU) The Ambassador thanked the CEA for forwarding GON draft BIT text recently (copies sent earlier to EEB and USTR). She noted that BIT's are negotiated treaties and it can often take some time to reach agreement between the parties. She also emphasized that in any negotiation the U.S. side would take the U.S. 2004 Model BIT as the starting point and look to ascertain GON views on its provisions - particularly since key provisions in the Model BIT were absent from the GON text. At the same time, the GON text could help elucidate where the GON might be willing to strengthen protections for investors. Washington colleagues preparing for the TIFA Council had indicated that the two sides could exchange views on core principles each saw as appropriate to a BIT in the TIFA Council Plenary. (NOTE: Yakubu and Ahmadu stated the GON hoped that a BIT could be announced in Abuja in April or May; the Ambassador clarified that such a timeframe was unrealistic but that the TIFA Council Meeting could be the start of the dialogue and exploratory discussion. END NOTE). . Joint Efforts on AGOA -------------- . ¶4. (SBU) Ambassador briefed Yakubu on the many efforts the USG was making to assist Nigerian producers and exporters to take advantage of AGOA, including plans for a new AGOA resource center in Lagos and an agriculture-focused workshop in June. She underscored that the TIFA Council Meeting provided an ideal opportunity for both sides to review efforts and agree on mutual areas of focus, including those products where Nigeria potentially could have comparative advantage. Yakubu said that the GON was looking to revive the textiles sector; Ambassador advised that Nigeria seek niche markets in the U.S. not already dominated by other African exporters which had moved earlier to take advantage of AGOA. Ambassador noted that Nigeria had an uptick in non-oil exports in 2008. Yakubu said that the GON was looking again at the entire agriculture value chain and presented the Ambassador a detailed report drafted by the Ministry of ABUJA 00000476 002 OF 002 Agriculture. Ambassador praised the renewed GON emphasis on Ag-related products and commented that the USAID Global Food Security Response Program complemented GON initiatives in agriculture and agricultural exports. Yakubu reported that he had organized an inter-ministerial group on AGOA, which he would arrange to meet with Mission representatives before the TIFA Council. Framework for Partnership -------------- . ¶5. (SBU) The Ambassador then reported to Yakubu on efforts by joint U.S. Mission-GON working groups under the Framework for Partnership since their last meeting. She mentioned growing engagement on energy issues and agriculture. Yakubu noted ongoing GON interest in improving Nigeria's image and stated that the constructive mutual efforts under the Framework were increasingly appreciated. In that context he cited law enforcement and anti-corruption as opportunities. . Comment -------------- . ¶6. (SBU) While we are still waiting to hear whether CEA Yakubu will personally attend the TIFA Council, we have received written confirmation from the Ministry of Commerce and Industry that Minister Udenwa will lead the delegation. It is unfortunate that after many requests to respond to the U.S. Model Text the GON has produced a completely separate text which diverges significantly from ours. Nonetheless, the GON text makes it somewhat easier to get much-needed doing business/investment climate issues out on the table at the TIFA. The U.S. and Nigeria do have growing engagement on agriculture and AGOA and the latter will certainly be an area of strong mutual interest at the March 30-31 TIFA Council in Washington. ¶7. (U) This message was coordinated with ConGen Lagos. SANDERS