US embassy cable - 04AMMAN3803

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 003803 
 
SIPDIS 
 
PASS TO USTR - C. NOVELLI AND E. SAUMS 
USDOC 4520/ITA/MAC/ONE/WIEGLER 
STATE FOR EB/CBA 
 
E.O. 12958: DECL: 05/15/2014 
TAGS: ETRD, PREL, EAID, ECON, JO 
SUBJECT: U/S LARSON MEETING WITH JORDAN'S DEPUTY PRIME 
MINISTER HALAIQA 
 
REF: AMMAN 3425 
 
Classified By: DCM David M. Hale.  Reason 1.5 (D). 
 
 1.  (SBU)  SUMMARY:  Under Secretary for Economic, Business 
and Agricultural Affairs Alan Larson reviewed trade issues 
with  Government of Jordan (GOJ) Deputy Prime Minister and 
Minister of Trade Mohammad Halaiqa on the margins of the 
World Economic Forum (WEF) May 15.  Halaiqa noted the GOJ's 
progress with economic legislation and said that Jordan would 
sign an FTA with Singapore on May 16. In response to 
expressed U.S. concerns, the GOJ proposed raising its 
pre-shipment inspection program at the bilateral trade Joint 
Committee in June.  Halaiqa launched into a request for more 
assistance for Jordan, noting the GOJ's hope for a 
supplemental in difficult times. END SUMMARY. 
 
2.  (SBU)  At the meeting on the margins of the WEF, DPM 
Halaiqa noted that the GOJ was calling a two-month, 
extraordinary session of the parliament starting in June in 
which dozens of bills would be passed, including a number of 
key economic bills.  He also said that Jordan would sign an 
FTA with Singapore on May 16, during the WEF. 
 
3.  (SBU)  U/S Larson praised Jordan for its progress in 
trade, but indicated that the GOJ's pre-inspection program 
was raising problems with U.S. businesses.  He understood 
from a recent letter sent by DPM Halaiqa to Ambassador Gnehm 
(Ref A) that the GOJ was looking into the problem with a view 
to solving it, for which the USG was grateful. 
 
4.  (SBU)  Halaiqa responded that after a study of the 
matter, the GOJ did not believe the pre-shipment program 
(called DAMAN) was a serious issue.  But if there were 
Jordanian importers who told the government that they were 
experiencing problems, then he could look at it again. 
According to the profile of U.S. goods imported into Jordan 
-- in terms of quantities and value -- the DAMAN pre-shipment 
program appeared to be in favor of U.S. trade, he said. 
Goods that were rejected under DAMAN were from places such as 
Taiwan, he said.  If there are some specific issues, then the 
GOJ would look into it, he added. 
 
5.  (SBU)  U/S Larson said that he would take that offer back 
to the U.S.  Halaiqa suggested the topic might be raised at 
the June 8 Joint Committee under the auspices of the Free 
Trade Agreement, where the U.S. might raise some cases and 
the Government of Jordan could bring an official to respond 
(Dr. Ahmad Hindawi of the Jordan Institute of Standards and 
Metrology, which runs DAMAN).  He also expressed readiness to 
meet with U.S. exporters who have voiced complaints on the 
margins of the JC.  U/S Larson noted that the USG might be 
interested in such an arrangement.  U/S Larson said that it 
might be possible U.S. companies complained loudly to the USG 
but more politely to the GOJ.  He suggested that a problem 
needed to be solved if American companies were unhappy about 
it.  Halaiqa responded that the GOJ remained open to 
discussion. 
 
Boeing Sale 
----------- 
 
6.  (C)  U/S Larson raised the sale of Boeing aircraft, which 
he said would be good for Jordan.  DPM Halaiqa indicated that 
the GOJ was now considering long-term lease arrangements for 
aircraft.  However, based on a decision made at the highest 
levels, if the GOJ were to purchase aircraft equipment, and 
the price was competitive, then the GOJ would buy Boeing, he 
said. 
 
Request for Assistance 
---------------------- 
 
7.  (SBU)  Turning to financial assistance for Jordan, 
Halaiqa recounted the "still very difficult" circumstances 
the country faced.  Having just increased in April retail 
petroleum prices, and having just increased the Value Added 
Tax, Jordan still faced very difficult circumstances despite 
the Saudi concessional oil shipments.  He asked the USG to 
consider helping maintain Jordan as a model in the region. 
 
8.  (C)  U/S Larson indicated that -- as noted in previous 
discussions with Minister of Planning Bassam Awadallah -- the 
Administration's current supplemental would be limited to 
financing DOD's military operations.  He indicated there 
might be an opportunity to review additional subsidies for 
Jordan this year, but not under the present supplemental. 
 
9.  (U)  This message was cleared by Under Secretary Larson. 
GNEHM