SACU Secretariat Praises US-SACU Relationship

UNCLAS WINDHOEK 000193


SIPDIS

PLEASE PASS TO USTR/WILLIAM JACKSON

E.O. 12958: N/A
TAGS: ECON PGOV WA
SUBJECT: SACU Secretariat Praises US-SACU Relationship

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Summary
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1. (SBU) A May 14 Namibian newspaper article alleged that the USG
had abandoned its commitment to continuing trade discussions under
the July 2008 Trade, Investment and Development Cooperation
Agreement (TIDCA) signed by the United States and the Southern
African Customs Union (SACU). In a public meeting on May 27, SACU
Executive Secretary Tswelopele Cornelia Moremi strongly refuted the
allegations. Moremi stressed that U.S.-SACU relations are good,
that SACU is a major beneficiary of the African Growth and
Opportunity Act (AGOA),and that trade consultations were on-going.
USTR's prompt response to the initial article appears to have helped
Moremi correct an inaccurate story with negative public relations
potential. End Summary.


2. (SBU) In its May 14 edition Namibian newspaper Informante
published a wildly inaccurate article titled "Obama sends SACU to
hell!" Informante, a free weekly newspaper, tends to focus on
sensationalist news. While its stories are often not completely
accurate, the paper is free and enjoys a wide circulation. The
opening sentence of the article read, "The new Barack Obama-led US
administration revealed this week that it would not participate in
further talks with the Southern African Customs Union (SACU) member
states regarding a possible free trade agreement (FTA) between the
two parties." The article implied the USG had abandoned the Trade,
Investment and Development Cooperation Agreement (TIDCA) signed in
July 2008, referring to the agreement in the past tense. The USG's
alleged action was called a "heavy blow to SACU member countries."



3. (SBU) On May 27, at a meeting open to the public, SACU Executive
Secretary Tswelopele Cornelia Moremi refuted the allegations made in
the Informante article. Moremi, who was addressing a larger forum
on the general state of the customs union, dedicated at least five
minutes of her 45-minute discussion to clear the record on U.S.-SACU
relations. Several media outlets attended the event, including the
Namibian Broadcasting Company (the national radio and TV service).


4. (SBU) Moremi praised trade ties between SACU and the United
States. She stressed that SACU is one of the largest beneficiaries
of the African Growth and Opportunity Act (AGOA). Moremi explained
that AGOA is a unilateral trade preference granted by the United
States, and she underscored that sub-Saharan African countries do
not reciprocate the benefits provided by the U.S. SACU pursued a
Free Trade Agreement (FTA) with the United States to "lockin" AGOA's
benefits, emphasized the SACU Executive Secretary. She noted that
during the 2003-2007 negotiations, both sides (parties) recognized
some issues were not easy to overcome, so a consensus emerged that
it made sense to develop the TIDCA. Moremi explained that
consultations under the TIDCA continue and that relations between
SACU and U.S. are very positive and very important. She concluded
by dismissing the (Informante) news article as completely
inaccurate.


5. (SBU) On May 28, The Namibian newspaper, one of Namibia's two
English-language daily newspapers, provided a mostly accurate report
of Moremi's comments. However, the Namibian article was not without
error as well. The first paragraph closed with the phrase that the
U.S. and SACU "will not conclude a preferential trade agreement, but
will opt for an investment and trade cooperation agreement instead,"
implying that negotiations to reach the TIDCA were on-going.

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Comment
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6. (SBU) After we brought the Informante article to USTR's
attention, USTR engaged with the SACU Secretariat to clarify the
record. USTR provided assurances that the USG remains committed to
the TIDCA and U.S.-SACU trade negotiations. USTR also provided the
Secretariat with talking points on the benefits SACU has accrued
from AGOA. USTR's prompt interventions appear to have informed SACU
Executive Secretary Moremi's public comments on the state of
U.S.-SACU trade relations and played a key role in correcting an
inaccurate story with negative public relations potential. End
Comment.
MATHIEU