SAUDIS ANXIOUS TO COLLABORATE ON CONSUMER

UNCLAS RIYADH 000226 SENSITIVE SIPDIS DEPT FOR NEA/ARP AND EEB DEPT PASS TO SMALL BUSINESS ADMINISTRATION DEPT PASS TO FTC/OFFICE OF INTERNATIONAL AFFAIRS DEPT PASS TO CONSUMER PRODUCT SAFETY COMMISSION/OFFICE OF INTERNATIONAL PROGRAMS E.O. 12958: N/A TAGS: ECON ETRD ECIN ETTC PREL SA SUBJECT: SAUDIS ANXIOUS TO COLLABORATE ON CONSUMER PROTECTION ¶1. (U) This is an action request: please see paragraph 8. ¶2. (SBU) Summary: The DCM met with officials at the Ministry of Commerce and Industry to discuss the Minister of Commerce's interest in visiting Washington DC in the coming months. The Minister is particularly interested in cooperation in the areas of consumer protection and small business promotion. Deputy Minister Akeel highlighted several recent improvements in the Kingdom that promote investment, including the creation of a new center to assist in corporate registration and changes to the Public Investment Fund's loan parameters. End summary. Minister of Commerce goes to Washington -------------- ¶3. (SBU) On January 28, the DCM met with Deputy Minister for Internal Trade Hassan Akeel at the Ministry of Commerce and Industry to discuss a proposed upcoming visit by Minister of Commerce and Industry Abdullah Alireza to the United States (probably to occur in April). In particular, the Minister is interested in meetings with USG agencies involved in consumer protection and small business promotion. The Minister has been very active in these two areas in recent months, creating a new deputy minister position for consumer affairs and establishing a "one-stop" center within the Ministry for the registration of new businesses. Cooperation on consumer protection and commercial law -------------- -------------- ¶4. (SBU) The DCM and Akeel also discussed the possibility of establishing a memorandum of understanding between the consumer protection arm of the Ministry of Commerce and Industry (MoCI) and both the U.S. Consumer Products Safety Commission and the Federal Trade Commission's Bureau of Consumer Protection similar to MOUs these two agencies have with numerous other countries. The Deputy Commerce Minister seemed receptive to this idea, suggesting the Embassy send a letter to the Minister mentioning this possibility. Finally, the DCM suggested the Ministry consider working with us on a technical cooperation agreement to help facilitate commercial law training for judges. Improvements in the investment climate -------------- ¶5. (SBU) Akeel seemed eager to mention several recent improvements in the Kingdom's investment climate. In particular, the MoCI has set up a "one-stop" center for new businesses to register. This center includes representatives from MoCI for commercial registration, from the Ministry of Justice for the notarization of contracts, and from other ministries to make additional start-up arrangements. He also mentioned that the Public Investment Fund had recently changed the maximum size of its loans from SAR 4 billion to SAR 5 billion; and increased the maximum share of project financing it was allowed to provide from 30% to 40%. Also they now allow 20 years to pay off the loan as opposed to the previous 15. Comment -------------- ¶6. (SBU) The Minister's strong interest in working with the U.S. in these key areas is a significant opportunity to strengthen bilateral ties with a key energy supplier and financial partner and to encourage the development of good regulations and strong institutions in this country that has at times (and in some sectors) lacked both. This should be a key U.S. objective. ¶7. (SBU) Moreover, outside of efforts to promote Saudi students studying in the U.S., direct government-to-government cooperation and training provides the USG with its most tangible means of ensuring the next generation of Saudi leaders will continue to prefer working with the U.S. over others. We should do everything possible to facilitate his travel to Washington and to see that officials at the appropriate level are available to meet with him. End comment. Action request -------------- ¶8. (SBU) Post requests the Department's assistance in identifying appropriate officials at the Consumer Products Safety Commission, the Federal Trade Commission's Bureau of Consumer Protection, the Small Business Administration, and the Commercial Law Development Program in the Department of Commerce's Office of General Counsel who would be prepared to meet with the Minister of Commerce in the event he visits Washington in the coming months. Post also would welcome advice on potential additional USG partners in Washington. FRAKER