Identifier
Created
Classification
Origin
09CAIRO1793
2009-09-15 14:35:00
CONFIDENTIAL
Embassy Cairo
Cable title:
TRADE MINISTER INTENT ON EXPANDING US-EGYPT TRADE TIES
how-toVZCZCXYZ0001 PP RUEHWEB DE RUEHEG #1793/01 2581435 ZNY CCCCC ZZH P 151435Z SEP 09 FM AMEMBASSY CAIRO TO RUEHC/SECSTATE WASHDC PRIORITY 3629 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
C O N F I D E N T I A L CAIRO 001793
SIPDIS
COMMERCE FOR VINEYARD, DEPT PASS TO USTR WILSON AND MOWREY
E.O. 12958: DECL: 09/15/2019
TAGS: ETRD, ECON, PREL, PGOV, EG
SUBJECT: TRADE MINISTER INTENT ON EXPANDING US-EGYPT TRADE
TIES
REF: A. CAIRO 1522
B. CAIRO 1550
Classified By: Ambassador Margaret Scobey for reasons 1.4 (b) and (d)
C O N F I D E N T I A L CAIRO 001793
SIPDIS
COMMERCE FOR VINEYARD, DEPT PASS TO USTR WILSON AND MOWREY
E.O. 12958: DECL: 09/15/2019
TAGS: ETRD, ECON, PREL, PGOV, EG
SUBJECT: TRADE MINISTER INTENT ON EXPANDING US-EGYPT TRADE
TIES
REF: A. CAIRO 1522
B. CAIRO 1550
Classified By: Ambassador Margaret Scobey for reasons 1.4 (b) and (d)
1. (C) Key Points:
-- Minister of Trade and Industry (MOTI) Rachid Mohamed
Rachid is engaging the USG on several fronts in an effort to
deepen and expand bilateral trade relations.
-- Rachid has requested meetings with Secretary Locke and
USTR Kirk during his November 2-5, 2009 visit to Washington,
DC.
-- Rachid has written to USTR Kirk separately seeking
agreement on procedures needed to complete QIZ area expansion
to Al Minya and Beni Sueif in Upper Egypt.
-- Rachid recently requested Ambassador's support in
expediting USTR-MOTI agreement on a work plan for the
US-Egypt Strategic Economic Partnership MOU signed in May
2009.
Talking Trade
--------------
2. (SBU) In the latest in a series of trade-related events
featured prominently in the local press, Minister of Trade
and Industry (MOTI) Rachid met with MERCOSUR ambassadors
August 31 to reaffirm Egypt's commitment to a free trade
agreement with the South American trade bloc, affirmed as
African Group Coordinator for the WTO Ministerial meeting in
New Delhi September 3-4 the need to expeditiously conclude
the Doha Round, and discussed on September 8 with EU
ambassadors Egypt-EU economic ties. Rachid has spoken
frequently of efforts to expand US-Egypt trade ties,
including his early August announcement of a revived US-Egypt
Business Council (ref. A) as well as the ongoing "Strategic
Trade Dialogue" with USTR (ref. b).
Washington Visit
--------------
3. (SBU) Rachid in late August wrote separately to Secretary
Locke and USTR Kirk advising both of his plans to travel to
Washington, DC in early November and requested appointments
with each during his visit. In a separate letter, Rachid
invited USTR Kirk to participate in the informal African
Ministerial meeting to be held in Cairo October 27-79, 2009.
(Note: We have confirmed that the Egyptian Embassy conveyed
the letters to Commerce and USTR. End Note.)
QIZ Areas
--------------
4. (SBU) In an August 23 letter to USTR Kirk, Rachid
expressed his appreciation for USTR's designation of Al Minya
and Beni Sueif in Upper Egypt as QIZ areas, but reiterated
MOTI opposition to limiting qualified companies to those
already producing in the two cities. Rachid explained that
the MOTI's request to place QIZ areas in Upper Egypt was
intended as a means of encouraging investment and greater
business activity in this economically depressed part of the
country. He said that preventing new companies and companies
currently operating elsewhere from locating or expanding to
these QIZ areas area "negates completely the objectives for
which we requested the inclusion of Upper Egypt." (Note:
Rachid has stated publicly that he hopes to add additional
QIZ sites "all the way to Aswan." End Note.) Rachid also
offered assurances that QIZ area expansion will not be to the
detriment of U.S.-based industries. He also asserted that
Egyptian authorities are adhering to the QIZ protocol,
particularly in regard to trans-shipments and employment of
non-Egyptian labor.
Strategic Dialogue Action Plan
--------------
5. (SBU) In a letter received August 31, Rachid requested
Ambassador's support in expediting USTR-MOTI agreement on a
work plan intended to finalize areas of cooperation under a
May 2009 MOU for a Strategic Economic Partnership on
Trade-related and Investment Issues. He noted that meetings
in early August between visiting USTR officials and the MOTI
has been "very constructive and fruitful" but the MOTI is
still waiting for new draft work plan from USTR. Rachid said
that the MOU's deadline for this process was about to expire.
Comment
--------------
6. (C) Rachid has been tenacious in advancing an expanded
trade relationship with the US but may not be fully informed
on the status of some initiatives. One current impediment to
movement on QIZ areas, for example, is the MOTI's QIZ
office's failure to provide USTR with a revised list of
qualified companies for the two Upper Egypt sites. During
their August 2-3 meetings with MOTI advisors (ref. B),USTR
officials indicated that, due to a number of factors,
including differences over treatment of labor, investment and
environment issues, it would be 6-8 weeks before new draft
action plan would be provided. Rachid appears genuinely
committed to achieving progress in US-Egypt trade ties,
although an FTA "remains off the table."
Scobey
SIPDIS
COMMERCE FOR VINEYARD, DEPT PASS TO USTR WILSON AND MOWREY
E.O. 12958: DECL: 09/15/2019
TAGS: ETRD, ECON, PREL, PGOV, EG
SUBJECT: TRADE MINISTER INTENT ON EXPANDING US-EGYPT TRADE
TIES
REF: A. CAIRO 1522
B. CAIRO 1550
Classified By: Ambassador Margaret Scobey for reasons 1.4 (b) and (d)
1. (C) Key Points:
-- Minister of Trade and Industry (MOTI) Rachid Mohamed
Rachid is engaging the USG on several fronts in an effort to
deepen and expand bilateral trade relations.
-- Rachid has requested meetings with Secretary Locke and
USTR Kirk during his November 2-5, 2009 visit to Washington,
DC.
-- Rachid has written to USTR Kirk separately seeking
agreement on procedures needed to complete QIZ area expansion
to Al Minya and Beni Sueif in Upper Egypt.
-- Rachid recently requested Ambassador's support in
expediting USTR-MOTI agreement on a work plan for the
US-Egypt Strategic Economic Partnership MOU signed in May
2009.
Talking Trade
--------------
2. (SBU) In the latest in a series of trade-related events
featured prominently in the local press, Minister of Trade
and Industry (MOTI) Rachid met with MERCOSUR ambassadors
August 31 to reaffirm Egypt's commitment to a free trade
agreement with the South American trade bloc, affirmed as
African Group Coordinator for the WTO Ministerial meeting in
New Delhi September 3-4 the need to expeditiously conclude
the Doha Round, and discussed on September 8 with EU
ambassadors Egypt-EU economic ties. Rachid has spoken
frequently of efforts to expand US-Egypt trade ties,
including his early August announcement of a revived US-Egypt
Business Council (ref. A) as well as the ongoing "Strategic
Trade Dialogue" with USTR (ref. b).
Washington Visit
--------------
3. (SBU) Rachid in late August wrote separately to Secretary
Locke and USTR Kirk advising both of his plans to travel to
Washington, DC in early November and requested appointments
with each during his visit. In a separate letter, Rachid
invited USTR Kirk to participate in the informal African
Ministerial meeting to be held in Cairo October 27-79, 2009.
(Note: We have confirmed that the Egyptian Embassy conveyed
the letters to Commerce and USTR. End Note.)
QIZ Areas
--------------
4. (SBU) In an August 23 letter to USTR Kirk, Rachid
expressed his appreciation for USTR's designation of Al Minya
and Beni Sueif in Upper Egypt as QIZ areas, but reiterated
MOTI opposition to limiting qualified companies to those
already producing in the two cities. Rachid explained that
the MOTI's request to place QIZ areas in Upper Egypt was
intended as a means of encouraging investment and greater
business activity in this economically depressed part of the
country. He said that preventing new companies and companies
currently operating elsewhere from locating or expanding to
these QIZ areas area "negates completely the objectives for
which we requested the inclusion of Upper Egypt." (Note:
Rachid has stated publicly that he hopes to add additional
QIZ sites "all the way to Aswan." End Note.) Rachid also
offered assurances that QIZ area expansion will not be to the
detriment of U.S.-based industries. He also asserted that
Egyptian authorities are adhering to the QIZ protocol,
particularly in regard to trans-shipments and employment of
non-Egyptian labor.
Strategic Dialogue Action Plan
--------------
5. (SBU) In a letter received August 31, Rachid requested
Ambassador's support in expediting USTR-MOTI agreement on a
work plan intended to finalize areas of cooperation under a
May 2009 MOU for a Strategic Economic Partnership on
Trade-related and Investment Issues. He noted that meetings
in early August between visiting USTR officials and the MOTI
has been "very constructive and fruitful" but the MOTI is
still waiting for new draft work plan from USTR. Rachid said
that the MOU's deadline for this process was about to expire.
Comment
--------------
6. (C) Rachid has been tenacious in advancing an expanded
trade relationship with the US but may not be fully informed
on the status of some initiatives. One current impediment to
movement on QIZ areas, for example, is the MOTI's QIZ
office's failure to provide USTR with a revised list of
qualified companies for the two Upper Egypt sites. During
their August 2-3 meetings with MOTI advisors (ref. B),USTR
officials indicated that, due to a number of factors,
including differences over treatment of labor, investment and
environment issues, it would be 6-8 weeks before new draft
action plan would be provided. Rachid appears genuinely
committed to achieving progress in US-Egypt trade ties,
although an FTA "remains off the table."
Scobey