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Cablegate: Discussions in Egypt On Poultry Imports

VZCZCXYZ0009
PP RUEHWEB

DE RUEHEG #5445 2431212
ZNR UUUUU ZZH
P 311212Z AUG 06
FM AMEMBASSY CAIRO
TO RUEHRC/USDA FAS WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 1003

UNCLAS CAIRO 005445

SIPDIS

SENSITIVE

SIPDIS

FOR USDA/FAS/ITP/PSHEIKH/JFLEMMINGS, DLP/HWETZEL,
FAA/RHAGER
USTR FOR JUSTIN BUNTIN

E.O. 12958:N/A
TAGS: EAGR ETRD BEXP USTR EG
SUBJECT: DISCUSSIONS IN EGYPT ON POULTRY IMPORTS

Ref: CAIRO 4481

Sensitive but unclassified. Not for internet
distribution.

1. (SBU) The Ambassador and FAS Minister Counselor met
with Minister of Agriculture Amin Abaza August 8 to
discuss Egypt?s previously announced plans to temporarily
lift poultry tariffs and restrictions in advance of
Ramadan (reftel), and to relay USG dissatisfaction
regarding the conditions under which imports would
resume. The Ambassador emphasized the U.S. is pleased
about eased tariffs for whole chickens, but expressed
disappointment that poultry parts imports are still
banned. Abaza responded that allowing the entry of
poultry parts would destroy Egypt's domestic industry,
and stressed the industry and the press would be highly
critical. The Ambassador said he understood local
political concerns, and that was not in the U.S. interest
to harm Egypt?s poultry industry, but that the U.S. wants
market access. Abaza countered that lifting tariffs is a
temporary measure, through the end of December, and
questioned whether the U.S. will be interested in trade
when the 32 percent import tariff is re-implemented.

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2. (SBU) The Ambassador responded that the USG and
industry are interested in trade, but noted that
provisions set forth for resuming trade are restrictive
and burdensome, particularly the requirement that each
shipment be inspected by Egyptian authorities. Since
Egypt has accepted that the U.S. meat safety system is
equivalent to its own, additional inspection requirements
are redundant. Abaza pointed out that the Ministry of
Trade has authority to set the parameters for poultry
imports. In the end, Abaza said he would reconsider the
matter. He then asked about assistance from the American
Soybean Association to restructure Egypt?s poultry
industry. (Note: FAS had discussed this with Abaza
previously.) The Ambassador said the U.S. industry would
be open to discuss ways to assist Egypt?s poultry
industry, but with a view toward the eventual easing of
restrictions on poultry imports.

3. (SBU) In a separate meeting, FAS Minister Counselor
met with Egypt?s Under-Secretary for Animal Production
Fekry el Karaby, Senior Advisor to the Minister Saad
Nassar, and Chief Veterinary Officer (CVO) Ahmad Tawfik
to obtain more information on Egypt?s rationale for the
current onerous requirements on whole bird imports. The
officials said the Ministry of Trade had set conditions
for resuming imports, and the CVO claimed not to be
familiar with the technical requirements. (NOTE:
Veterinary Services is generally considered the competent
authority for establishing technical requirements on meat
and poultry imports; not the Ministry of Trade). FAS
left a set of written questions about the new
requirements. The officials said they would review the
questions and respond in a timely manner. In the
meantime, however, a US exporter will be shipping 5000 mt
of frozen whole chickens to Egypt in the near future.
The Agriculture Ministry has issued a decree authorizing
two Egypt inspectors to go to the US and oversee the
Halal procedures for these chickens.

4. (SBU) COMMENT: FAS does not expect the US exporter
will have any problem complying with Halal procedures,
and will facilitate travel to the US by the Egyptian
inspectors. We hope to convince the GOE that Halal for
chicken parts is a non-issue as well, although we expect
continued opposition from domestic industry which fears
the competition, even in this period of short domestic
supply. In our view, absent continued severe domestic
poultry shortages and a steep increase in prices, Egypt
is unlikely to remove the ban on parts imports.

Ricciardone

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