US embassy cable - 02HARARE928

UNCLAS HARARE 000928 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF/S, AF/EX, HR/OE 
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER 
USDOC FOR 2037 DIEMOND 
LONDON FOR CGURNEY 
PARIS FOR NEARY 
NAIROBI FOR PFLAUMER 
PASS USTR - PCOLEMAN, WJACKSON 
RIO FOR WEISSMAN 
TREASURY FOR ED BARBER AND C WILKINSON 
 
E.O. 12958: DECL: N/A 
TAGS: ECON, ETRD, PREL, PHUM, ZI 
SUBJECT: PRESIDENT'S 2002 AGOA REPORT, ZIMBABWE 
RESPONSE 
 
REF: STATE 64055 
 
SENSITIVE BUT UNCLASSIFIED, PLEASE PROTECT ACCORDINGLY. 
NOT FOR INTERNET POSTING. 
 
1.  (SBU) Per reftel request we provide the following 
information: 
 
==  Zimbabwe is not currently an AGOA beneficiary and 
government behavior both before and since the recent 
presidential election continues to drastically reduce the 
prospect of it qualifying in the near and likely medium 
term, absent a change of government.  In all four broad 
areas (market economy, rule of law, poverty reduction and 
human rights) Zimbabwe has been and looks set to continue 
backslidng.  Serious threats to and attacks on an open- 
market economy based on respect for private property 
rights and the rule of law are sponsored and carried out 
by the GOZ.  Politically-driven, disastrous, economic 
policies are still being pursed, causing disposable 
income, the formal job count and standards of living to 
fall precipitously. 
 
==  Examples of such policies are myriad and include: the 
illegal occupation, looting and seizure of commercial 
farms with government sanction and support; violence 
directed at opposition political party members and 
supporters; a fraudulent election; intimidation of the 
judiciary, independent press and labor movement; non- 
equal protection under the law; a blind eye turned to 
corruption and cronyism; price controls and a grossly 
undervalued official currency peg; circumvention of the 
mandated tender processes; the control of hard currency 
proceeds from exports, and threats by President Mugabe to 
seize or nationalize all non indigenous-owned commercial 
and productive assets in the country. 
 
2.  (U) We have conducted no AGOA outreach training or 
programming, and though the private sector and many civil 
servants would like to see policies change so as to enjoy 
AGOA benefits, current conditions and the outlook remain 
far from even minimal compliance from either the spirit 
or letter of the legislation. 
 
WHITEHEAD