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Cablegate: Commerce Minister Addresses Af-Pak Transit Trade Agreement

VZCZCXYZ0013
PP RUEHWEB

DE RUEHBUL #3571 3091734
ZNR UUUUU ZZH
P 051734Z NOV 09
FM AMEMBASSY KABUL
TO RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 8069
RUEHC/SECSTATE WASHDC PRIORITY 2906
RUEHGV/USMISSION GENEVA PRIORITY 6770

UNCLAS KABUL 003571

SIPDIS

STATE FOR S/SRAP, SCA/A AND EEB/BTA
STATE PASS USTR FOR DELANEY AND DEANGELIS

E.O. 12958: N/A
TAGS: ETRD ECON EAID PREL PK AF
SUBJECT: COMMERCE MINISTER ADDRESSES AF-PAK TRANSIT TRADE AGREEMENT
AND WTO ACCESSION BID

REF: KABUL 3441 AND PREVIOUS

1. (SBU) Summary: Commerce Minister Shahrani commented briefly
November 4 on the status of the Afghanistan-Pakistan Transit Trade
Agreement (APTTA) and his Ministry's plans to seek World Trade
Organization (WTO) membership. Shahrani said he personally proposed
to the Pakistan side two sets of dates for the next round of
technical talks (November 10-11 and November 16-17) and that the
Pakistani negotiators were receptive to the later dates. However,
President Karzai's approaching inauguration, now anticipated on
November 18-19, would complicate logistics. Shahrani added he was
highly flexible on the venue of talks, willing to hold them in
Islamabad if Foreign Minister Spanta approves. Shahrani reported
that he plans to seek Cabinet approval November 23 to present his
Ministry's action plan for WTO accession to the upcoming WTO
inter-ministerial in Geneva on November 30. End summary.

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AF-PAK TRANSIT TRADE AGREEMENT (APTTA)
- - - - - - - - - - - - - - - - - - -

2. (SBU) Minister of Commerce and Industries (MOCI)Wahidullah
Shahrani briefly discussed APTTA and WTO accession issues at a
November 4 international donors conference devoted to reviewing
progress on private sector development programs. On APTTA, Shahrani
summarized the state of play: he had obtained Foreign Ministry
approval October 26 to invite the Pakistan side formally to Kabul for
the fourth round of technical talks and to convey the Terms of
Reference (TOR) for the study of unauthorized trade (reftel). The
Pakistani chief negotiator's prior commitments and the anticipated
announcement of President Karzai's inauguration within the November
17-19 time frame have complicated both sets of proposed dates (Nov.
10 - 11 and Nov. 16 - 17). Shahrani noted he is flexible on the
venue of the talks "since progress on APTTA is more important than
its process." Accordingly, he said he was willing to hold the next
round in Islamabad, if that was helpful for the Pakistan side and if
Foreign Minister Spanta approved the new venue and the delegation's
travel during the President's inauguration.

3. (SBU) In response to a question, Minister Shahrani said he
remains confident the APTTA can be wrapped up by the end of 2009. He
noted the APTTA is "more than 90 percent completed," with three main
issues -- the transport protocol, dispute settlement, and the TOR --
still to be worked out. However, he foresees another four rounds
still necessary to complete the agreement.

WORLD TRADE ORGANIZATION (WTO) ACCESSION
- - - - - - - - - - - - - - - - - - - -

4. (SBU) Shahrani reported he plans to seek Cabinet approval
November 23 to present his Ministry's action plan for WTO accession
to the upcoming WTO inter-ministerial in Geneva in late November.
The Ministry has completed a draft action plan and is circulating it
for comments. He said the Afghan government had committed in
December 2004 to seek WTO membership, but little progress had been
made, chiefly because the Cabinet had repeatedly postponed debate on
the issue. Shahrani said the Cabinet prefers to defer its decision
until working-level discussions had amplified the pro's and con's of
the bid and set out what Afghanistan would need to agree to in order
to join. While acknowledging other Ministries will be involved in
any future WTO accession process, Shahrani said he is leading the
effort to secure Cabinet approval for his WTO action plan and feels
he has President Karzai's support. Shahrani also met with WTO
Director-General Pascal Lamy in Tanzania during the LDC conference in
mid-October to discuss Afghanistan's accession.

5. (SBU) The MOCI has constituted a WTO unit as the nucleus of an
interagency negotiation team. Shahrani previously told EmbOffs
Mozammil Shinwari, Head of MOCI's International Trade Department,
would oversee the WTO unit. Shinwari recently completed a WTO
training course in Geneva as preparation for the accession process.
In addition, Shahrani is seeking Cabinet approval to appoint a Trade
Envoy to Geneva, mainly to support Afghanistan's WTO bid.

COMMENT
- - - -

6. (SBU) Minister Shahrani spoke confidently about his APTTA and
WTO initiatives, proudly citing Presidant Karzai as their principal
supporter. Shahrani is projecting an image of someone who expects to
keep his portfolio, pushing a clear set of priorities designed to
promote Afghanistan's economic growth and private sector development.
At the same time, the make-up of the next Karzai Cabinet is by no
means certain. End comment.

EIKENBERRY

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