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Cablegate: Drc Will Not Export Sugar to the Us in Fy 2010

INFO LOG-00 EEB-00 AF-00 AGRE-00 AID-00 CIAE-00 COME-00
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NCTC-00 FMP-00 EPAE-00 IIP-00 SCRS-00 DSCC-00 PRM-00
G-00 NFAT-00 SAS-00 FA-00 SWCI-00 SEEE-00 /000W

R 021609Z NOV 09
FM AMEMBASSY KINSHASA
TO SECSTATE WASHDC 0267
INFO RWANDA COLLECTIVE
HQ USEUCOM VAIHINGEN GE

UNCLAS KINSHASA 000982


PASS TO USTR (LESLIE O'CONNOR)
PASS TO USDA/FAS (RONALD LORD)
DEPT FOR DRL/ILCSR (TDANG)

E.O. 12958: N/A
TAGS: EAGR ETRD ECON PREL CG
SUBJECT: DRC WILL NOT EXPORT SUGAR TO THE US IN FY 2010

REF: STATE 106302

1. (U) Econoff delivered reftel talking points to GDRC Ministry of
Economy and Trade Chief of Staff Bavon Nsamputu on October 20 and
CEO of the La Sucrerie de Kwilungongo sugar plant Gilbert Musala on
October 21. Nsamputu reported to Econoff on October 30 that the DRC
does not plan to export any sugar to the United States in FY 2010.

2. (U) La Sucrerie de Kwilungongo sugar plant confirmed information
from the Ministry of Economic and Trade that the DRC does not plan
to export sugar to the United States in FY 2010. The company,
located in Bas-Congo province, is one of three sugar plants in DRC.
The other two sugar plants are located in Kliba (South Kivu
Province) and in Lotokila (Oriental Province). However, only the
Kwilungongo sugar plant is presently active, as the other two plants
are idle due to lack of security and mismanagement. The Kwilungongo
plant exported 6,000 metric tons of sugar to the European Union in
2008, but did not export any sugar in 2009. The company plans to
export 6,000 metric tons of sugar to the European Union in 2010, but
does not plan to export any sugar to the United States in FY 2010.

3. (U) While the GDRC confirmed that the DRC will not export sugar
to the United States in 2010, Nsamputu requested guidance on U.S.
standards for foreign sugar imports. He said that such guidance
would be very beneficial for DRC sugar companies in preparing for
future exports to the United States. At present, in order to export
any sugar from the DRC, the sugar company must obtain authorization
from the Ministry of Economy and Commerce. Each shipment of sugar
must also be tested by the Congolese Office of Control (OCC) in
order to make sure it meets the quality standards of the importing
country. (Note: The OCC is housed within the Ministry of Industry
and is in charge of developing and enforcing trade-related
standards. End note.)

4. (U) Nsamputu noted that the World Trade Organization (WTO) has
fixed the DRC's world-wide sugar quota at 12,000 metric tons per
year, but the DRC has the capacity to only export 5,000-6,000 metric
tons. He added that in FY 2009, the DRC did not export any sugar
because a severe drought devastated domestic sugar production. In a
typical year, the DRC produces a total of 90,000 metric tons of
sugar, most of which is sold on the domestic market.

GARVELINK

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