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Cablegate: Usitc Study On U.S.-Sub-Saharan African Trade And

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 PRETORIA 003543

SIPDIS

DEPT FOR AF/S TCRAIG; AF/EPS DKRZYWDA
USDOC FOR 4510/ITA/IEP/ANESA/OA/J DIEMOND
COMMERCE ALSO FOR HVINEYARD
TREASURY FOR JEWEL
DEPT PASS USTR FOR PCOLEMAN
DEPT PASS USITC, ATTN.: L. SCHLITT

E.O. 12958: N/A
TAGS: ETRD EAID XA SF AGOA USTR
SUBJECT: USITC STUDY ON U.S.-SUB-SAHARAN AFRICAN TRADE AND
INVESTMENT

REF: (A) Pretoria 3480 (B) State 137500

1. This cable provides supplementary information on reftel A that
provided post's input for the fifth annual USITC study on AGOA.

B. - Developments in major regional groupings (COMESA, EC, ECOWAS,
IGAD, SACU, SADC, WAEMU, IOC, and CEMAC) (where applicable)
--------------------------------------------- ---------------------

Mozambique has initiated discussions about joining SACU and Zambia is
also considering such a step. However, SACU is deferring discussions
until after the US-SACU FTA is completed.

C. Updated Information on privatization efforts
--------------------------------------------- ----

The new Minister of Public Enterprises, Alec Erwin, has
publicly indicated that the government will proceed with
concessioning the Durban Container Port and greater use of
the public-private partnership model (outsourcing) as a
method of restructuring state-owned enterprises.

E. Examples of U.S. trade capacity-building efforts in the host
country, and associated effects (where applicable)
--------------------------------------------- --------------------

USAID/South Africa has initiated programs leading to an MSc in
economics with a specialization in trade at the Universities of Cape
Town, Stellenbosch and KwaZulu Natal. Thirty-four of the forty-eight
South Africans given full scholarships are in trade.

The Mandela Economic Scholars program has sent 70 historically
disadvantaged South Africans to the United States for advanced
degrees in economics. Twelve of the 59 who have returned are in trade
and related areas and are working in that field in government now.
Two of the eleven still completing their studies in the United States
are in trade and related areas.

USAID, through an agreement with the U.S. Department of
Justice/Federal Trade Commission is providing assistance to the SA
Competition Commission on limiting anti-competitive behavior. The
DoJ/FTC provide advisors for 6 weeks to 6 months at a time. The
advisors also arrange courses for all the staff at the Competition
Commission on investigating anti-competitive behavior. The most
recent course, completed in July 2004, was on ensuring that anti-
competitive behavior does not distort government tendering.

In collaboration with DFID (UK foreign assistance), USAID is
supporting trade research and capacity building at the South African
Institute for International Affairs (SAIIA). This assistance
emphasizes the creation of linkages between negotiators and the South
African business community to expand their understanding of current
trade issues and how they might impact on SA business.

Complementing the work with SAIIA is a similar initiative with South
African labor unions through ACILS (the American Center for
International Labor Solidarity) to improve the knowledge of SA labor
on trade issues through workshops involving a total of 50 labor union
leaders.

USAID has provided assistance to small and black-owned SA businesses
to take advantage of the opportunities offered under AGOA. This
initiative has recently been expanded to include small businesses
throughout southern Africa.

USAID was the lead donor in assisting the SA Department of Public
Enterprises in restructuring (privatization) of selected state
enterprises. USAID also helped the SA National Treasury in developing
the public-private partnership model to the provision of government
services. This approach is now being extended from national to
provincial and municipal governments, and the Office of the
Presidency has requested it also expand its work to assist similar
institutions throughout sub-Saharan Africa.

SATI (the Southern African Tax Institute), funded by USAID and DFID,
has 8 mid-year courses on tax issues for tax officials from
throughout sub-Saharan Africa. This has resulted in the harmonization
of taxes and especially customs procedures. Four separate courses are
offered each September on harmonization of municipal taxation.

USAID's assistance to the SA Parliamentary finance and budget
committees has been extended to similar committees in many SADC
countries. The emphasis on each mid-year two-week course has been on
globalization (macro-issues) and regulation (micro-issues). USAID's
regional center for southern Africa has funded some of the non-SA
participants.

FRAZER

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