AMBASSADOR DISCUSSES FTA; IPR; KUWAIT'S INVESTMENT

UNCLAS SECTION 01 OF 02 KUWAIT 000700

SENSITIVE
SIPDIS

NEA/ARP; USTR JASON BUNTIN

E.O. 12958: N/A
TAGS: PGOV PTER PINR GTIP KTFN KHUM KU
SUBJECT: AMBASSADOR DISCUSSES FTA; IPR; KUWAIT'S INVESTMENT
CLIMATE WITH NEW MINISTER OF COMMERCE & INDUSTRY

REF: KUWAIT 689


1. (U) Summary: Ambassador met on July 9 with newly
appointed Minister of Commerce & Industry Ahmad Rashed
Al-Haroun. Ambassador applauded the GOK's efforts to
implement IPR enforcement but stressed the need to implement
legislation. The Minister was optimistic that with a more
"approachable" and "knowledgeable" Parliament, essential IPR
legislation would be passed. The Minister told Ambassador he
shared her interest in growing the commercial relationship to
match the political/military relationship already present.
Ambassador applauded reported talks between Iraq and Kuwait,
and expressed confidence the GoK would be creative in
addressing outstanding debt issues. Al-Haroun was
accompanied by Under Secretary Rasheed Al-Tabtabaei, and
Assistant Under Secretary for Foreign Trade Affairs Abdulaziz
Al-Khaldi. End Summary.


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IPR
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2. (SBU) In a July 9 introductory meeting with Kuwaiti
newly and first-time appointed Minister of Commerce and
Industry, the Ambassador commended the GoK on its IPR
enforcement efforts, but highlighted the need to have laws
that complement those efforts. U/S Al-Tabtabaei asked
Ambassador if Kuwait remained on the Special 301 Watchlist,
pointing out increased enforcement efforts by the GoK.
Ambassador told Al-Tabtabaei that while she commended the GoK
for its obvious commitment to improving its enforcement
efforts, Kuwait would remain on the Special 301 Watchlist
absent the passage of relevant legislation.

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Capital Market Authority and Investment
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3. (SBU) Ambassador offered that the government's decision
to establish a Capital Markets Authority (CMA) for Kuwait's
Stock Exchange was a step in the right direction. The
Minister said he was pleased with the plans for the CMA and
hoped the Ambassador would have the opportunity to be present
when he signed the agreement. Turning to investment,
Ambassador noted that the cancellation of the USD 11.2
Billion K-Dow deal, together with the canceling of the Fourth
Refinery tender, had given U.S. companies pause when
considering investment in Kuwait, and emphasized the GoK's
need to create a better climate for investment; the
commercial relationship should mirror our substantial
political/military relationship. Al-Haroun said he shared
the Ambassador's interest in growing the commercial
relationship and building a stronger bilateral trade
partnership.

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TIFA and FTA
--------------


4. (SBU) U/S Al-Tabtabaei raised Kuwait's interest in TIFA
and FTA with Ambassador, underscoring that TIFA was an
important issue for Kuwait. He told Ambassador that the
government was surprised and disappointed during the third
round of TIFA talks when the GoK was told the US
Administration's Trade Promotion Authority (TPA) had expired
(Note: The third round of TIFA talks took place in February
2008 and was headed by then USTR Shaun Donnelly. TPA expired
July 1, 2007. End Note.) Ambassador said she knew how
important this issue was to the government, but given the
present economic situation in the U.S. and other priorities,
it was highly unlikely that Congress would re-instate "fast
track" FTA negotiating authority any time soon. She
underscored the need for the government to lay the groundwork
and re-engage with the USG, to include Congress. The
Minister told Ambassador that Kuwait needed more lobbying
efforts and acknowledged the need to establish a trade office
in Washington. He responded enthusiastically to Ambassador's
suggestion that he take a trade delegation to the United
States and expand on the trade relationship. (Note: There
has been minimal engagement on TIFA issues since the last
formal meeting in Kuwait in February 2008 and limited
progress has been made on the copyright law, but there has
been no substantive response to comments provided by USTR in
February 2009. End Note.)


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Iraq/Kuwait Discussions

KUWAIT 00000700 002 OF 002


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5. (SBU) Ambassador also took this opportunity to applaud
recent positive exchanges between senior GoK officials and
visiting Iraqi Parliamentary Speaker Iyad al-Samarrai
(Reftel). She urged the GoK to be creative in addressing
Iraq's debt issue and reiterated that to do so would only
strengthen and enhance security between the two countries.


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Biographical Note
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6. (SBU) This is Al-Haroun's first ministerial appointment.
He previously served as secretary for the financial committee
of the National Assembly, as Deputy Chief of the Public
Authority for Social Security (PAFSS) and since 1994 as Chair
of the Kuwaiti Chamber of Commerce. Al-Haroun is politically
independent and hails from a well-known family of
politicians. His brother Musaid Al-Haroun is the current
Ambassador to Canada and Former Minister of Education and
Higher Education and Abd Al-Wahab Al-Haroun was a former MP.
He was born in 1943 and earned a B.A. from Arab Beirut
University in 1973. He is married with four children and his
eldest son Hamad, studied at Pacific Lutheran University in
Washington State.





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