Identifier
Created
Classification
Origin
09MBABANE294
2009-10-29 12:57:00
UNCLASSIFIED
Embassy Mbabane
Cable title:  

SWAZILAND DECLINES FY 2010 SUGAR QUOTA

Tags:  EAGR ETRD WZ 
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VZCZCXYZ0000
RR RUEHWEB

DE RUEHMB #0294 3021257
ZNR UUUUU ZZH
R 291257Z OCT 09
FM AMEMBASSY MBABANE
TO RUEHC/SECSTATE WASHDC 3755
INFO RUEHSA/AMEMBASSY PRETORIA 2749
UNCLAS MBABANE 000294 

SIPDIS

DEPT FOR EEB/TPP/MTAA/ABT JOHN MENARD
USTR FOR LESLIE O'CONNOR
USDA/FAS FOR RONALD LORD

E.O. 12958: N/A
TAGS: EAGR ETRD WZ
SUBJECT: SWAZILAND DECLINES FY 2010 SUGAR QUOTA

REF: SECSTATE 106302

UNCLAS MBABANE 000294

SIPDIS

DEPT FOR EEB/TPP/MTAA/ABT JOHN MENARD
USTR FOR LESLIE O'CONNOR
USDA/FAS FOR RONALD LORD

E.O. 12958: N/A
TAGS: EAGR ETRD WZ
SUBJECT: SWAZILAND DECLINES FY 2010 SUGAR QUOTA

REF: SECSTATE 106302


1. On October 27, PolOff delivered demarche per reftel to the
Swaziland Sugar Association (SSA),Swaziland's official authority
governing sugar exports. SSA CEO Mike Matsebula indicated in
writing that, although Swaziland has always fulfilled the U.S. sugar
quota in the past, it does not have plans to do so before March 31,

2010.


2. Mr. Matsebula told PolOff that changes in European Union sugar
importation policies and in exchange rates made it more profitable
for SSA to ship exports to the EU. He indicated that SSA may
revisit its decision in February 2010.


3. The following is the text of the letter from CEO Matsebula on
the decision.

Dear Sir,

Tariff Rate Quota (TRQ) for FY 2010

This letter follows on our meeting of 27 October 2009 and provides
the response to the questions contained in your memo dated 27
October 2009 handed to us at the meeting. We note that the
Swaziland TRQ for FY 2010 amounts to 16,849 metric tons raw value
and we would like to express our gratitude to it. The Swaziland
Sugar Association (SSA) is responsible for selling under the US
TRQ.


We also note that the US FY ending 30 September 2010 overlaps with
the SSA TY ending 30 March 2010. At the beginning of each FY, SSA
determines the quantities to sell into its different markets. Thus,
whilst SSA has made a determination for its FY ending 30 March 2010,
it has not firmed it for the FY ending 30 March 2010 (which overlaps
with six months of US FY 2010). In the past, SSA has always filled
its TRQ.

Based on current information, SSA decided it will not be shipping
the TRQ (or portion thereof) for FY 2010. However, in light of the
overlap between the FYs for US and SSA, the situation will be
assessed in February 2010 to determine whether this decision needs
to be modified. If modified, it would be for implementation during
the period April-September 2010.

Yours sincerely,

Mike Matsebula
Chief Executive Officer


IRVING