Cablegate: Cote D'ivoire Declines to Take 2007 U.S. Sugar

VZCZCXRO2469
RR RUEHMA RUEHPA
DE RUEHAB #1133 3130727
ZNR UUUUU ZZH
R 090727Z NOV 07
FM AMEMBASSY ABIDJAN
TO RUEHC/SECSTATE WASHDC 3723
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS ABIDJAN 001133

SIPDIS

SIPDIS

STATE PASS TO USTR C.HAMILTON

E.O. 12958: N/A
TAGS: EAGR ETRD ECON IV
SUBJECT: COTE D'IVOIRE DECLINES TO TAKE 2007 U.S. SUGAR
QUOTA

REF: SECSTATE 128060

1. (U) Citing a temporary deficit associated with the
political crisis affecting the country since 2002, the
Ivorian Association of Sugar Industries informed Embassy
Abidjan on October 19 that Cote d'Ivoire will be unable to
guarantee sugar deliveries to the U.S. under the quota
allocated by the U.S. government (reftel). The Association
estimates this deficit will be contained to the 2007-2008
commercial year.

2. (U) The Ivorian Sugar Association, comprised of Sucaf
and Sucrivoire (both formed in the 1997 privatization of the
state sugar company and the latter owned by French company
SIFCOM, owner of the largest brewing company in Cote
d'Ivoire) informed Embassy Abidjan that it is busy combating
the illegal entry of sugar into the Ivorian market. In 2004,
two years into the present political crisis, the government
effectively established a ceiling on sugar imports, but has
found it difficult to enforce its limits due to low prices of
competing imports and progressively weaker competitivity
among Ivorian producers.

3. (U) Sugar in Cote d'Ivoire is produced exclusively in
the northern part of the country, which has been effectively
cut off from banking services and most other economic support
infrastructure since 2002.
NESBITT

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