US embassy cable - 05NDJAMENA653

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Identifier:	05NDJAMENA653
Wikileaks:	View 05NDJAMENA653 at Wikileaks.org
Origin:	Embassy Ndjamena
Created:	2005-04-25 09:32:00
Classification:	UNCLASSIFIED
Tags:	EAGR ECIN ECON ETRD CD Cotton
Redacted:	This cable was not redacted by Wikileaks.

UNCLAS NDJAMENA 000653 
 
SIPDIS 
 
 
LONDON AND PARIS FOR AFRICAWATCHER, USTR FOR WILLIAM JACKSON 
 
E.O. 12958: N/A 
TAGS: EAGR, ECIN, ECON, ETRD, CD, Cotton-WTO 
SUBJECT: MINISTER OF COMMERCE DISCUSSES COTTON ISSUES 
 
 1.  Summary:  During a meeting with the Ambassador April 6, 
the Minister of Commerce discussed plans for an early-May 
meeting in N'djamena among Cotton-4 trade ministers to 
prepare a unified strategy for the upcoming WTO Ministerial 
in Hong Kong.  The Minister reiterated the GOC's appeal for 
eliminating U.S. cotton subsidies.  The Ambassador urged Chad 
to support U.S. efforts to address the cotton issue in the 
context of WTO negotiations on agricultural trade 
liberalization.  End Summary. 
 
2.  Minister of Commerce Roulouany Yoma Golom raised Chad's 
concerns as a sizable regional cotton producer in his meeting 
with the Ambassador April 6.  He said Chad would host a 
meeting of trade ministers of Africa's Cotton-4 countries in 
N'djamena in early May.  The Minister explained that the 
meeting was intended to discuss strategies to generate 
support for the elimination of cotton subsidies.  According 
to the Minister, Cotton-4 countries decided after Cancun that 
an organized position will be much more effective in 
convincing the international community of their objectives. 
 
3.  The Minister asked the Ambassador why the United States 
position had not changed on cotton after the presidential 
elections.  He argued that since the elections last November, 
there was no reason to maintain cotton subsides, which he 
felt was a politically-motivated policy.  The Ambassador 
noted that cotton subsidies are indeed an expense for the 
United States.  He stressed that the issue must be dealt with 
as part of an international agreement that opens markets for 
all agricultural and livestock products.  The Ambassador said 
it is difficult for the United States to reduce subsides on 
cotton when Europe and Japan restrict trade for many 
products.  He called for Africa's support in engaging with 
Europe and Japan on this issue.  The Ambassador also observed 
that progress on reducing cotton subsidies will not solve 
Chad's cotton problems.  It also needs to lower production 
costs, attract technology, upgrade transport links, and deal 
with the financial woes of Cotontchad, the soon-to-be 
privatized marketing parastatal, he stressed. 
 
4. COMMENT:  In its plans for the meeting of African cotton 
producers next month, Chad is showing initiative it has not 
demonstrated in the past on this issue.  Ibrahim Malloum, 
Chad's energetic new director-general of Cotontchad, is no 
doubt behind its new enthusiasm.  Post welcomes any further 
guidance on the cotton issue. END COMMENT. 
WALL 
 
 
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