MALAWI: DEMARCHE DELIVERED ON RAW SUGAR TARIFF

UNCLAS LILONGWE 000230 SIPDIS USTR FOR LESLIE O'CONNOR USDA/FAS FOR RONALD LORD DEPT FOR EB/TPP/ABT/ATP JOHN MENARD E.O. 12958: N/A TAGS: EAGR ETRD MI SUBJECT: MALAWI: DEMARCHE DELIVERED ON RAW SUGAR TARIFF RATE QUOTA REF: A. SECSTATE 31013 ¶B. 08 LILONGWE 410 ¶1. Econoff delivered Ref.A demarche to the Principle Secretary for Industry and Trade Newby Kumwembe. According to information subsequently provided in writing, as clarified by telecon, Malawi does/does expect to ship its full allocation of sugar for FY 2009. If there is a reallocation, Malawi would not/not be able to supply additional raw sugar by September 30, 2009. ¶2. As of April 26, Malawi has already shipped 8,016 metric tons of its 10,530 metric ton quota allocation. ¶3. The GOM in its written response notes that 2009/2010 production estimates indicate that an excess of 10,000 metric tons beyond the FY 2009 quota will be available. The GOM therefore requests that the quota for Malawi be increased for FY 2010. ¶4. As reported in 2008 (Ref.B),Malawi continues to expand its sugar sector. Mr. Kumwembe reported that a second sugar company has been established in Malawi. The new company has planted roughly 3,000 hectares of sugar in 2009, and expects to plant over 10,000 hectares in 2010. Processing is expected to begin in 2010. BODDE