US embassy cable - 04PRETORIA3543

UNCLAS SECTION 01 OF 02 PRETORIA 003543 
 
SIPDIS 
 
DEPT FOR AF/S TCRAIG; AF/EPS DKRZYWDA 
USDOC FOR 4510/ITA/IEP/ANESA/OA/J DIEMOND 
COMMERCE ALSO FOR HVINEYARD 
TREASURY FOR JEWEL 
DEPT PASS USTR FOR PCOLEMAN 
DEPT PASS USITC, ATTN.: L. SCHLITT 
 
E.O. 12958: N/A 
TAGS: ETRD, EAID, XA, SF, AGOA, USTR 
SUBJECT: USITC STUDY ON U.S.-SUB-SAHARAN AFRICAN TRADE AND 
INVESTMENT 
 
REF:  (A) Pretoria 3480 (B) State 137500 
 
1. This cable provides supplementary information on reftel A that 
provided post's input for the fifth annual USITC study on AGOA. 
 
B. - Developments in major regional groupings (COMESA, EC, ECOWAS, 
IGAD, SACU, SADC, WAEMU, IOC, and CEMAC) (where applicable) 
--------------------------------------------- --------------------- 
 
Mozambique has initiated discussions about joining SACU and Zambia is 
also considering such a step. However, SACU is deferring discussions 
until after the US-SACU FTA is completed. 
 
C.  Updated Information on privatization efforts 
--------------------------------------------- ---- 
 
The new Minister of Public Enterprises, Alec Erwin, has 
publicly indicated that the government will proceed with 
concessioning the Durban Container Port and greater use of 
the public-private partnership model (outsourcing) as a 
method of restructuring state-owned enterprises. 
 
E.  Examples of U.S. trade capacity-building efforts in the host 
country, and associated effects (where applicable) 
--------------------------------------------- -------------------- 
 
USAID/South Africa has initiated programs leading to an MSc in 
economics with a specialization in trade at the Universities of Cape 
Town, Stellenbosch and KwaZulu Natal. Thirty-four of the forty-eight 
South Africans given full scholarships are in trade. 
 
The Mandela Economic Scholars program has sent 70 historically 
disadvantaged South Africans to the United States for advanced 
degrees in economics. Twelve of the 59 who have returned are in trade 
and related areas and are working in that field in government now. 
Two of the eleven still completing their studies in the United States 
are in trade and related areas. 
 
USAID, through an agreement with the U.S. Department of 
Justice/Federal Trade Commission is providing assistance to the SA 
Competition Commission on limiting anti-competitive behavior. The 
DoJ/FTC provide advisors for 6 weeks to 6 months at a time. The 
advisors also arrange courses for all the staff at the Competition 
Commission on investigating anti-competitive behavior. The most 
recent course, completed in July 2004, was on ensuring that anti- 
competitive behavior does not distort government tendering. 
 
In collaboration with DFID (UK foreign assistance), USAID is 
supporting trade research and capacity building at the South African 
Institute for International Affairs (SAIIA). This assistance 
emphasizes the creation of linkages between negotiators and the South 
African business community to expand their understanding of current 
trade issues and how they might impact on SA business. 
 
Complementing the work with SAIIA is a similar initiative with South 
African labor unions through ACILS (the American Center for 
International Labor Solidarity) to improve the knowledge of SA labor 
on trade issues through workshops involving a total of 50 labor union 
leaders. 
 
USAID has provided assistance to small and black-owned SA businesses 
to take advantage of the opportunities offered under AGOA. This 
initiative has recently been expanded to include small businesses 
throughout southern Africa. 
 
USAID was the lead donor in assisting the SA Department of Public 
Enterprises in restructuring (privatization) of selected state 
enterprises. USAID also helped the SA National Treasury in developing 
the public-private partnership model to the provision of government 
services. This approach is now being extended from national to 
provincial and municipal governments, and the Office of the 
Presidency has requested it also expand its work to assist similar 
institutions throughout sub-Saharan Africa. 
 
SATI (the Southern African Tax Institute), funded by USAID and DFID, 
has 8 mid-year courses on tax issues for tax officials from 
throughout sub-Saharan Africa. This has resulted in the harmonization 
of taxes and especially customs procedures. Four separate courses are 
offered each September on harmonization of municipal taxation. 
 
USAID's assistance to the SA Parliamentary finance and budget 
committees has been extended to similar committees in many SADC 
countries. The emphasis on each mid-year two-week course has been on 
globalization (macro-issues) and regulation (micro-issues). USAID's 
regional center for southern Africa has funded some of the non-SA 
participants. 
 
FRAZER