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Cablegate: Gsp Review Competitive Need Limitation Waiver:

VZCZCXRO4858
RR RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #1114 2511024
ZNR UUUUU ZZH
R 081024Z SEP 06
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 0576
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHUJA/AMEMBASSY ABUJA 1308
RUEHAR/AMEMBASSY ACCRA 1158
RUEHDS/AMEMBASSY ADDIS ABABA 1312
RUEHBY/AMEMBASSY CANBERRA 0573
RUEHDK/AMEMBASSY DAKAR 0938
RUEHKM/AMEMBASSY KAMPALA 1366
RUEHNR/AMEMBASSY NAIROBI 3740
RUEHFR/AMEMBASSY PARIS 1135
RUEHRO/AMEMBASSY ROME 1783
RUEHBS/USEU BRUSSELS
RUEHGV/USMISSION GENEVA 0584
RHEHNSC/NSC WASHDC
RUCNDT/USMISSION USUN NEW YORK 1529
RUEKJCS/JOINT STAFF WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEKDIA/DIA WASHDC//DHO-7//
RUCPDOC/DEPT OF COMMERCE WASHDC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK//DOOC/ECMO/CC/DAO/DOB/DOI//
RUEPGBA/CDR USEUCOM INTEL VAIHINGEN GE//ECJ23-CH/ECJ5M//

UNCLAS HARARE 001114

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ETRD
SUBJECT: GSP REVIEW COMPETITIVE NEED LIMITATION WAIVER:
GOVERNMENT OF ZIMBABWE RESPONSE

REF: STATE 128359

1. The following are comments received from the Government of
Zimbabwe's (GOZ) Ministry of Industry and International Trade
on September 6, 2006 concerning the General System of
Preferences (GSP) Review as they pertain to Zimbabwe in
response to talking points delivered per reftel.

2. "As you may be aware, Zimbabwe has not been exporting
ferrosilicon to the American market for the past few years.
This is basically because we have not been producing the
product, in view of the fact that we could not export it
competitively given the prevailing world market prices. The
cost of production, on the other hand, had also risen and we
could not sustain it on the basis of the low international
prices. It is pleasing to note that there has since been an
improvement in the price levels and the producers of
ferrosilicon have once again decided to revisit exports of
ferrosilicon.

It is against this background that the Government of the
United States of America is kindly requested to consider
extending Zimbabwe's GSP eligibility for ferrosilicon into
the next calendar year. Exports of ferrosilicon would
certainly contribute to economic growth in Zimbabwe and
generate the much needed foreign exchange for sustainable
economic development." Signed, Mrs. Beatrice Mutetwa for
Secretary for Industry and International Trade.

SIPDIS
DELL

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