US embassy cable - 05NDJAMENA1500

UNCLAS  NDJAMENA 001500 
 
SIPDIS 
 
 
DEPARTMENT FOR AF, EB, USTR FOR CHAMILTON 
 
E.O. 12958: N/A 
TAGS: ETRD, PREL, ELAB, PHUM, CD, AGOA, USTR, Economic Trends, Human RIghts 
SUBJECT: AGOA ELIGIBILITY REVIEW FOR CHAD 
 
REF:  STATE 170577 
 
1. Post recommends that Chad continue to be deemed compliant 
with AGOA eligibility requirements.  The government continues 
to support the Revenue Management Process, and is taking 
measures to improve the human rights situation, reform the 
military, and curb corruption.  The country also continues to 
be a strong U.S. partner in the war on terrorism.  However, 
irregularities in a recent referendum, a critical verification 
report by the Revenue Management College, and continued human 
rights violations all indicate that Chad's record on democracy 
and good governance requires improvement.  Post will continue 
to work with the host government to improve the capacity of 
its democratic institutions.  Remarks on each specific 
criterion follow. 
 
2. Country Background Summary:  Population of 8.9 million. 
2004 GDP was estimated at $4 billion and per capita income at 
$257.  A public referendum was held in June 2005 to alter the 
Constitution to allow the President to run for a third term. 
Several ministers changed positions in August 2006. 
 
3.  Market-based Economy: A World Bank-proposed plan to 
privatize the country's cotton parastatal was approved this 
year.  The government is also planning to work with the Bank 
to develop plans to privatize the telecommunication and energy 
sectors.  Foreign interest in other economic sectors in Chad 
continues to grow as a result of the new oil export 
activities. Unfortunately, an investment code to encourage and 
support foreign investment has still not been developed. 
 
 
4. Political Reforms/Rule of Law/Anti-Corruption: The 
government has identified problems within its judicial and 
democratic institutions and is working to implement 
recommendations from the internal review of the judiciary. 
The Oil Revenue Management College continued to oversee the 
expenditure of oil revenues in priority sectors.  The College 
completed its first project verification report in May 2005 
and has made recommendations to priority sector ministries to 
correct deficiencies.  The Government hosted an internal 
review of the military with the aim of downsizing and 
professionalizing the military in April 2005.  It also created 
an anti-corruption Ministry that is developing ethics codes 
for the various ministries, reaching out to religious groups 
and civil society to encourage values of anti-corruption, and 
beginning to sensitize the population to the negative effects 
of corruption. 
 
5.  A public referendum to amend the Constitution to allow 
unlimited presidential terms held in June 2005 was flawed and 
marred by numerous irregularities.  The opposition and civil 
society refuse to participate in upcoming communal, 
legislative, and presidential elections.  These groups are 
pursuing a dialogue on the modalities of a political 
transition to make the electoral process more transparent. 
Finally, the Oil Revenue Management College's project 
verification report identified serious problems with contracts 
in several priority sectors. 
 
6.  Poverty Reduction: The IMF re-implemented its Poverty 
Reduction Growth Facility program in Chad in February, and 
gave a positive review of the program in August. 
Additionally, oil investment activities have generated 
economic growth in the southern region, as well as attracted 
new foreign investment.  Unfortunately, a weak budgetary 
system makes the implementation of poverty reduction projects 
extremely challenging, and transportation and communication 
deficiencies continue to make timely data collection a 
challenge.  Over the past year, Government officials have 
expressed their desire to amend the oil revenue management law 
to include security services and the military as priority 
sectors. 
 
 
7.  Workers' Rights/Child Labor/Human Rights:  Worker and 
children's rights are legally protected. .   The Government is 
currently harmonizing its legal code with international labor 
conventions.  Labor unions continue to play an important role 
in promoting workers rights and promoting government reform. 
The Government recently created a position of "Minister of 
Human Rights" to advise the government on the promotion of 
human rights.  The new Minister's first priority is to improve 
the situation of Chad's prisons and releasing prisoners who 
are awaiting trial for minor offenses. 
 
8.  Several journalists were arrested in the past year under 
questionable pretenses, but all have been released.  Child 
Labor laws have been very difficult to enforce due to lack of 
capacity and cultural factors.  Security forces operate with 
impunity and are responsible for numerous extrajudicial 
killings.  Violence and societal discrimination against women, 
 
trafficking in persons, and forced child labor are still 
common practices. 
 
 
9.  International Terrorism/U.S. National Security: 
Counterterrorism is an important priority for the Chadian 
Government.  Chad continues to be an important partner in 
combating international terrorism.  TSTCI and ATA assistance 
has led to the training of several military and police units. 
The Government has identified its weaknesses in securing its 
borders and the need for more training and equipment for 
border and airport security and the importance of undertaking 
an anti-corruption campaign.  This year, Chad has ratified 
three of the twelve counterterrorism conventions.  Three 
others are in the process of ratification.  In June 2004, Chad 
worked with the United Nations Drug Control's Terrorism Branch 
to begin the ratification of all twelve conventions.  The 
country's rugged terrain, porous borders, and the lack of 
equipment for the military and national police hinder the 
Government's ability to combat terrorist activity. 
 
 
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