Identifier
Created
Classification
Origin
09BAGHDAD1223
2009-05-10 14:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Baghdad
Cable title:
IRAQ WTO WORKING PARTY: HOPES FADE FOR A JUNE MEETING
how-toVZCZCXRO0592 RR RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK DE RUEHGB #1223 1301451 ZNR UUUUU ZZH R 101451Z MAY 09 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC 2995 INFO RUCNRAQ/IRAQ COLLECTIVE RUEHGV/USMISSION GENEVA 0294
UNCLAS BAGHDAD 001223
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ETRD PGOV EAID WTO ECON EINV IZ
SUBJECT: IRAQ WTO WORKING PARTY: HOPES FADE FOR A JUNE MEETING
REF: (A) BAGHDAD 1176
(B) BAGHDAD 1146
(C) BAGHDAD 636
(D) BAGHDAD 285
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.
UNCLAS BAGHDAD 001223
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ETRD PGOV EAID WTO ECON EINV IZ
SUBJECT: IRAQ WTO WORKING PARTY: HOPES FADE FOR A JUNE MEETING
REF: (A) BAGHDAD 1176
(B) BAGHDAD 1146
(C) BAGHDAD 636
(D) BAGHDAD 285
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.
1. (SBU) SUMMARY: A GOI working group has finished compiling Iraq's
Initial Goods Offer and its new tariff schedule. However,
senior-level approval of the Goods Offer will take another several
weeks, in part because of an unfolding corruption scandal at the
Ministry of Trade (MOT). Long-awaited Customs Tariff legislation --
necessary to implement the schedule -- may also be delayed for
several months. Given these circumstances, the GOI is unlikely to
be ready for its third Working Party in June. however, once the
Goods Offer is approved, it should be ready by the fall. END
SUMMARY.
Good News on the Goods Offer
--------------
2. (SBU) A GOI inter-ministerial working group charged with
compiling Iraq's initial Goods Offer to the World Trade Organization
(WTO) has largely completed its work, following a week-long "off
site" (facilitated by USAID's technical assistance providers) in
Erbil the week of April 27. Basing the Offer on Iraq's recently
completed draft tariff schedule, representatives from the Ministries
of Finance, Trade, Minerals and Industry and Agriculture came to
agreement, and the final draft has now moved to the Ministry of
Trade's (MOT) WTO Unit for final formatting and approval from the
Minister. There are some areas of the Goods Offer that are certain
to attract questions from Working Party members; for example, the
GOI prefers to handle the chapters of the offer covering
"exceptions" by issuing government decrees rather than by enshrining
them in law. Nevertheless, WTO Unit officials (and the USAID
contractors assisting them) say the document stands up well as an
Initial Offer, i.e. it should provide the basis for a good exchange
between the GOI and the WTO once a date for the next Working Party
is actually determined.
3. (SBU) While the Initial Goods Offer looks good, senior-level
approval of it is likely to be delayed. Trade Minister Abd Al-Falah
Al-Sudani must approve it, but an emerging corruption scandal has
rocked the MOT and brought most normal operations to halt (Reftel
A). The alleged corruption occurred within the MOT-administered
Public Distribution System and has nothing to do with the WTO Unit.
Still, arrest warrants have been issued for two of Al-Sudani's
brothers (also MOT employees),and no one expects him to focus on
WTO issues any time soon. And if this drama were not enough, WTO
Unit officials have also suggested that the Initial Goods Offer
might have to go to the Council of Ministers (COM) for approval
before it can be submitted to the WTO -- a step that would likely
cause inordinate delays.
The Wrong Customs Tariff Law
--------------
4. (SBU) The GOI sent its draft tariff schedule to Geneva in
December, but MOT officials report that they have yet to receive the
WTO's comments on it. Nevertheless, USAID's experts found that it
made a good basis for the Initial Goods Offer.
5. (SBU) Unfortunately, the implementing legislation for the tariff
schedule will now likely be significantly delayed. During an April
27 meeting, Finance Minister Bayan Jabr told EMIN that the COM
recently approved the draft Customs Tariff bill it had received in
February, and transmitted it to the Council of Representatives (COR)
for enactment. This appears to be the same bill that the previous
Director General of Iraqi Customs submitted before he was replaced
in February, and which the MOT had judged to be WTO-incompatible
Q(Refs B, C). Although we do not expect to COR to enact the bill any
time soon, the job of recalling it and rewriting it will be made all
the more difficult now that it has moved to this next stage.
Comment
--------------
6. (SBU) Given these delays, it seems very unlikely that the GOI
will submit its Initial Goods Offer in time for it to form a
meaningful basis of discussion at a Working Party Meeting in June.
In addition, the GOI has apparently still not agreed with the WTO on
a candidate to fill the currently vacant Working Party Chair.
However, we are fairly optimistic that if over the summer the Goods
Offer is approved -- and a new Working Party Chair is named -- a
fall working party could prove appropriate. End Comment.
BUTENIS
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ETRD PGOV EAID WTO ECON EINV IZ
SUBJECT: IRAQ WTO WORKING PARTY: HOPES FADE FOR A JUNE MEETING
REF: (A) BAGHDAD 1176
(B) BAGHDAD 1146
(C) BAGHDAD 636
(D) BAGHDAD 285
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.
1. (SBU) SUMMARY: A GOI working group has finished compiling Iraq's
Initial Goods Offer and its new tariff schedule. However,
senior-level approval of the Goods Offer will take another several
weeks, in part because of an unfolding corruption scandal at the
Ministry of Trade (MOT). Long-awaited Customs Tariff legislation --
necessary to implement the schedule -- may also be delayed for
several months. Given these circumstances, the GOI is unlikely to
be ready for its third Working Party in June. however, once the
Goods Offer is approved, it should be ready by the fall. END
SUMMARY.
Good News on the Goods Offer
--------------
2. (SBU) A GOI inter-ministerial working group charged with
compiling Iraq's initial Goods Offer to the World Trade Organization
(WTO) has largely completed its work, following a week-long "off
site" (facilitated by USAID's technical assistance providers) in
Erbil the week of April 27. Basing the Offer on Iraq's recently
completed draft tariff schedule, representatives from the Ministries
of Finance, Trade, Minerals and Industry and Agriculture came to
agreement, and the final draft has now moved to the Ministry of
Trade's (MOT) WTO Unit for final formatting and approval from the
Minister. There are some areas of the Goods Offer that are certain
to attract questions from Working Party members; for example, the
GOI prefers to handle the chapters of the offer covering
"exceptions" by issuing government decrees rather than by enshrining
them in law. Nevertheless, WTO Unit officials (and the USAID
contractors assisting them) say the document stands up well as an
Initial Offer, i.e. it should provide the basis for a good exchange
between the GOI and the WTO once a date for the next Working Party
is actually determined.
3. (SBU) While the Initial Goods Offer looks good, senior-level
approval of it is likely to be delayed. Trade Minister Abd Al-Falah
Al-Sudani must approve it, but an emerging corruption scandal has
rocked the MOT and brought most normal operations to halt (Reftel
A). The alleged corruption occurred within the MOT-administered
Public Distribution System and has nothing to do with the WTO Unit.
Still, arrest warrants have been issued for two of Al-Sudani's
brothers (also MOT employees),and no one expects him to focus on
WTO issues any time soon. And if this drama were not enough, WTO
Unit officials have also suggested that the Initial Goods Offer
might have to go to the Council of Ministers (COM) for approval
before it can be submitted to the WTO -- a step that would likely
cause inordinate delays.
The Wrong Customs Tariff Law
--------------
4. (SBU) The GOI sent its draft tariff schedule to Geneva in
December, but MOT officials report that they have yet to receive the
WTO's comments on it. Nevertheless, USAID's experts found that it
made a good basis for the Initial Goods Offer.
5. (SBU) Unfortunately, the implementing legislation for the tariff
schedule will now likely be significantly delayed. During an April
27 meeting, Finance Minister Bayan Jabr told EMIN that the COM
recently approved the draft Customs Tariff bill it had received in
February, and transmitted it to the Council of Representatives (COR)
for enactment. This appears to be the same bill that the previous
Director General of Iraqi Customs submitted before he was replaced
in February, and which the MOT had judged to be WTO-incompatible
Q(Refs B, C). Although we do not expect to COR to enact the bill any
time soon, the job of recalling it and rewriting it will be made all
the more difficult now that it has moved to this next stage.
Comment
--------------
6. (SBU) Given these delays, it seems very unlikely that the GOI
will submit its Initial Goods Offer in time for it to form a
meaningful basis of discussion at a Working Party Meeting in June.
In addition, the GOI has apparently still not agreed with the WTO on
a candidate to fill the currently vacant Working Party Chair.
However, we are fairly optimistic that if over the summer the Goods
Offer is approved -- and a new Working Party Chair is named -- a
fall working party could prove appropriate. End Comment.
BUTENIS