Identifier
Created
Classification
Origin
09PORTLOUIS147
2009-05-13 07:43:00
CONFIDENTIAL
Embassy Port Louis
Cable title:  

TIFA DELEGATION MEETS MAURITIAN PRIME MINISTER

Tags:  ETRD EINV ECON PGOV USTR MP 
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R 130743Z MAY 09
FM AMEMBASSY PORT LOUIS
TO SECSTATE WASHDC 4550
INFO AMEMBASSY PRETORIA 
AMCONSUL JOHANNESBURG 
DEPT OF COMMERCE WASHDC
C O N F I D E N T I A L PORT LOUIS 000147 


DEPT FOR AF/E, AF/EPS, EB/CBA
DEPT PLEASE PASS TO USTR FOR PATRICK COLEMAN
COMMERCE FOR 4510ITA/IEP/ANESA/OA/JED DIAMOND
COMMERCE FOR 3131 USFCS/ANESA/OIO
PRETORIA FOR USDA/FAS
JOHANNESBURG FOR FCS AND TDA

E.O. 12958: DECL: 05/05/2019
TAGS: ETRD EINV ECON PGOV USTR MP
SUBJECT: TIFA DELEGATION MEETS MAURITIAN PRIME MINISTER

Classified By: Charge d'Affaires Virginia Blaser for reasons 1.4 (b,d).

C O N F I D E N T I A L PORT LOUIS 000147


DEPT FOR AF/E, AF/EPS, EB/CBA
DEPT PLEASE PASS TO USTR FOR PATRICK COLEMAN
COMMERCE FOR 4510ITA/IEP/ANESA/OA/JED DIAMOND
COMMERCE FOR 3131 USFCS/ANESA/OIO
PRETORIA FOR USDA/FAS
JOHANNESBURG FOR FCS AND TDA

E.O. 12958: DECL: 05/05/2019
TAGS: ETRD EINV ECON PGOV USTR MP
SUBJECT: TIFA DELEGATION MEETS MAURITIAN PRIME MINISTER

Classified By: Charge d'Affaires Virginia Blaser for reasons 1.4 (b,d).


1. (C) SUMMARY: Assistant U.S. Trade Representative for
Africa Florizelle Liser, accompanied by CDA and other USG
officials, called on Prime Minister Navin Ramgoolam April 20.
Ramgoolam claimed some credit for efforts to diversify
Mauritius exports and the resulting resiliency of his country
in the global economic downturn. The Prime Minister and his
team expressed concern about the proposed New Partnership for
Development Act (NPDA). They also showed strong interest in
increased trade links with the U.S. END SUMMARY.


2. (U) On April 20, on the eve of the Trade and Investment
Framework Agreement (TIFA) Council discussions, the U.S.
delegation, led by Assistant U.S. Trade Representative for
Africa (AUSTR),Florizelle Liser, paid a courtesy call on
Prime Minister Navin Ramgoolam. In addition to AUSTR Liser,
U.S. attendees included Patrick Coleman, Director for African
Affairs in the Office of the USTR, Dan Jacobs, Senior
Negotiator, Office of Investment Affairs, State Department,
and Embassy Charge Virginia Blaser with POLOFF as notetaker.
The Prime Minister (PM) was accompanied by former Mauritian
Ambassador to the United States, Kailash Ruhee, who now
serves as the PM's Chief of Staff.


3. (U) AUSTR Liser set the pragmatic yet optimistic tone of
the meeting, quoting the new USTR, Ambassador Ron Kirk, to
the effect that we should keep up hope despite living in a
world of change and significant economic downturn. The Prime
Minister took this chance to highlight results of his
administration's diversification efforts by noting that
although Mauritius is feeling the ripples of the global
economic crisis in its tourism and textile sectors, it has
remained surprisingly resilient to its effects.


4. (U) AUSTR Liser commended the PM for his vision to
diversify Mauritius' economy away from reliance on textiles

and sugar and mentioned that her delegation would be visiting
operations that embodied this diversification such as,
Compagnie Agricole de Labourdonnais (exports jams, fruit
pastes, and other goods to the U.S.),and Plastinax Austral
(exports eyewear to the U.S.). AUSTR Liser said that her
visit to Ferme Marine Mahebourg (FMM),an aquaculture company
already exporting tuna loins to the U.S., convinced her that
despite the progress, Mauritius still has a huge potential
for expansion and more value-added processing. Likewise,
Liser noticed that although the downturn may have, thus far,
been lenient to the Mauritian economy-at-large, operators
like FMM suffered a huge decrease in their exports to the
U.S. when the dollar began to fall sharply against the rupee.


5. (U) While on the fisheries sector, the PM turned the
conversation to a recurring issue of concern for Mauritians
regarding the Africa Growth and Opportunity Act (AGOA)
exports, "Rules of Origin" as it pertains to exporting canned
tuna. AUSTR Liser said the rules governing the fisheries
sector have been in place a long time, but noted that
Mauritius might either take its concern of value-added to
fish caught by foreign-flagged vessels to U.S. Customs for a
ruling or attempt to add the necessary value to the fish by
canning them in cans from South Africa instead of France.
The PM took this as a noteworthy point and expressed hope
that more on this issue would be discussed at the subsequent
TIFA Council meeting.


6. (C) The conversation then turned to another potential
threat to AGOA exports, the New Partnership for Development
Act (NPDA),a piece of legislation written by Congressman Jim
McDermott (D-Washington) that would extend AGOA-like trade
benefits to other least developed countries (LDCs). The
Prime Minister voiced concern that some of the envisaged LDCs
that would benefit would include countries like Bangladesh
and Cambodia, which are already apparel powerhouses.
Extending more benefits to them, according to opponents,
would devastate the growing textile and apparel sector in
Africa. The PM said the NPDA would be a detriment to AGOA,
and that he had brought this issue directly to Congressman
McDermott. The PM said that during his August 2008 trip to
the Democratic National Convention, he told McDermott that by
attempting to combat poverty in this way you will potentially
impoverish many in Africa by taking away jobs. AUSTR Liser
noted that Bangladesh already exports, by value, five times
as many textile products as all of Sub-Saharan Africa. AUSTR
Liser said that the only compromise she has heard so far is
that countries like Bangladesh and Cambodia would not receive
benefits from the products that African nations are
successful in exporting. She added that while African
Ambassadors are expressing their concerns on the bill. At
this point, Ambassador Ruhee spoke up to assure AUSTR Liser
that this issue will rank high at the next AGOA forum and
that the Africans will harmonize their message and perhaps
send a letter to draw attention to the negative effects of
the NPDA.


7. (C) Discussions then turned to the possibility of a
Bilateral Investment Treaty (BIT) between Mauritius and the
United States. Ambassador Ruhee suggested that he would like
to see a BIT signed in Nairobi at the next AGOA forum. AUSTR
Liser cautioned that the current administration is currently
reviewing all trade agreements, so at the moment no new BIT
negotiations are being started. However, she said, the
exploratory talks are going well and things look positive for
continuing to move forward the current BIT discussions.


8. (C) The Mauritians expressed concerned about Madagascar
having its AGOA eligibility revoked and asked AUSTR Liser if
there was a strong possibility that this could happen. AUSTR
explained the process of a revocation of status and then said
that a way to avoid AGOA revocation would be for Madagascar
to show some substantive action by this Fall. The PM noted
that Mauritius, like many other SADC and AU members, believes
that President Ravolamanana's removal was unconstitutional.
When asked by CDA Blaser what he thinks of the different
timelines for elections in Madagascar set forth by both the
U.S. and AU, the PM responded that he heard these
declarations but since they were released he has not heard
anything else, but above all he believes that Madagascar
should follow its constitution.


9. (C) CDA Blaser encouraged Mauritius to present a united
front, utilizing all of its private operators that have
business interests in Madagascar to maintain pressure on the
Malagasy politicians and to champion democratic ideals. She
added that businesses must not take a parochial view, but
rather speak out because there is a lot at risk for Mauritius
and the region in the long-term. Patrick Coleman, Deputy
Director of African Affairs, USTR, also noted that 50,000
jobs tied to AGOA are on the line for Mauritian firms in
Madagascar, so they should be concerned. The PM and
Ambassador Ruhee took these points on board.

10.(C) The rest of the conversation focused on the site of
this year's upcoming AU summit. The PM offered poignant
insight into the process of choosing this year's venue. The
PM noted that this year is SADC's year to host the summit,
and added that all of the SADC countries want it to be held
in Mauritius. He further noted that Libya sent in its
invitation a day before the coup and was ruled ineligible.
According to the PM, however, after this ruling Libya sent an
envoy to Mauritius, Zambia, and South Africa to persuade them
to let Libya host. The PM said that the South Africa
representative told him that he wants the conference to be
held in the SADC region this year, because Libya is slated to
host next year.


11. (C) Comment: The meeting with the PM provided the
visiting U.S. TIFA delegation with a good context of issues
of concern for Mauritius, including its wider interests in
the SADC region, and set the stage for the subsequent TIFA
Council discussions. The PM has shown a great interest in
increasing trade linkages to the U.S. after the reinstatement
of the Third Country Fabric derogation, for which his
administration and former Ambassador Ruhee have been lauded.
The initial efforts have been commendable. Recent concrete
initiatives to educate and assist local small and medium
enterprises to access the U.S. market include the early April
AGOA week, hosted by the Ministry of Industry, and other
endeavors undertaken by private and public groups such as the
Mauritius Export Association, the Joint Economic Council,
Enterprise Mauritius, and the Board of Investment. The
Embassy believes that with Ambassador Ruhee's return to
Mauritius, the positive momentum from Mauritius to take
advantage of AGOA will likely be sustained. Likewise, we
believe that Mauritius will continue to be a strong partner
in international trade fora. End comment.


12. (U) Note: AUSTR Liser was not able to clear this cable
before her departure.


BLASER