US embassy cable - 03KUWAIT5138

UNCLAS KUWAIT 005138 
 
SIPDIS 
 
STATE PASS TO USTR JASON BUNTIN 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, ETRD, IZ, KU, USTR, GCC 
SUBJECT: KUWAIT TO SIGN TIFA 
 
REF: A. STATE 285162 
     B. KUWAIT 4842 
     C. CARRIG/BUNTIN SEPTEMBER EMAIL TRAFFIC 
     D. BUNTIN/CARRIG OCTOBER EMAIL TRAFFIC 
 
1.  Action request at para 4. 
 
2.  In a diplomatic note dated 27 October, the GOK informed 
Embassy that it intends to sign a Trade and Investment 
Framework Agreement with USG, requested the nomination of a 
USG official authorized to sign on behalf of the United 
States and asked for a proposed date for the signing.  Copy 
of dip note and unofficial translation will be scanned and 
emailed to NEA/ARP.  In Ambassador's meetings with Minister 
of Finance on 6 November and Minster of Commerce on 8 
November, the ministers confirmed (Ref D request) that Kuwait 
is prepared to sign the TIFA as presented (Ref A), without 
further negotiation or modification.  GOK will prepare a 
first-cut Arabic translation of the TIFA as requested Ref D 
as well. 
 
3.  From mid-September, Embassy has promoted the Ref C copy 
of a model TIFA with appropriate officials in the Ministries 
of Finance, Commerce and Industry, and Foreign Affairs.  The 
Secretariat of the High Committee for Development and 
 
SIPDIS 
Economic Reform, Central Bank and the Kuwait Chambers of 
Commerce and Industry were lobbied as well.  Reception across 
the board has been positive and forward-leaning.  Our Kuwaiti 
counterparts are ready to move forward on the broad range of 
issues that successfully must be addressed in preparation for 
a possible FTA.  As evidence of this, the Council of 
Ministers recently approved a regulatory change that will 
allow foreign investors to establish wholly owned enterprises 
in Kuwait. 
 
4.  Action Request.  Minister of Commerce will sign for the 
GOK.  He asks for dates in December available to USTR for a 
Washington signing ceremony.  GOK anticipates fielding a team 
of finance and trade officials to visit Coalition capitals in 
the run-up to a Kuwait venue "Reconstruct Iraq" exhibition 
and conference scheduled for 19-23 January 2004.  Commerce 
Minister plans to head that delegation for its December visit 
to Washington.  The GOK would like to feature the TIFA 
signing there as a public demonstration of Kuwait's 
commitment to meaningful economic reform.  They anticipate 
across-the-board liberalization of law and administrative 
procedures the better to assure broad Kuwaiti private sector 
participation in the coming years' Iraq reconstruction 
program.  End action request. 
JONES