US embassy cable - 05CAIRO8081

UNCLAS CAIRO 008081 
 
SIPDIS 
 
SENSITIVE 
 
NEA FOR FO, ELA, RA 
NEA PLEASE PASS USTR 
 
E.O. 12958: N/A 
TAGS: ETRD, PREL, EAGR, EG, WTRO, corruption 
SUBJECT: MINISTER OF FOREIGN TRADE AND AMBASSADOR DISCUSS 
FTA, WTO, AND ANTI-CORRUPTION 
 
The following is Sensitive but Unclassified.  Please protect 
accordingly. 
 
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Summary 
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1. (SBU) In an October 17 meeting, Minister of Foreign Trade 
and Industry Rashid Rashid pressed for a specific date for 
the start of FTA negotiations, and said that Egypt supports 
the U.S. on WTO Ag reform.  Rashid took on board the 
Ambassador's call to make anti-corruption a plank of the NDP 
parliamentary campaign.  End Summary. 
 
 
2. (U) On October 17, Ambassador and Econoff met with 
Minister of Foreign Trade and Industry Rashid Rashid in his 
office.  First Assistant to the Minister Dr. Samiha Fawzy and 
First Undersecretary Dr. Ashraf El Rabiey also attended. 
 
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TIFA/FTA 
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3. (SBU) Rashid said he feels that things are moving on the 
FTA front, but needs clarity on a potential notification date 
in order to coordinate Egyptian next steps, including his 
travel to the U.S.  Rashid is amenable to including a TIFA 
Council meeting during his visit, but again said this should 
be linked to an FTA announcement.  He plans to discuss this 
further with USTR Portman when he sees him in Switzerland 
Nov. 7 - 8.  Rashid added that a delegation drawn from the 
Egyptian membership of the Egyptian-American Business Council 
members would like to join on his visit. He hopes for 
meetings at State, Commerce, NSC and Congress. 
 
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WTO Ag Proposal 
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4. (SBU) Responding to our demarche on U.S. WTO agriculture 
reform proposals (demarche report septel), Rashid said he had 
pressed the Europeans on US proposals and would continue to 
do so.  He said he made it very clear in Zurich that Egypt 
seeks more market access, and added that Ambassador Portman 
"made a big step" with the U.S. proposal. 
 
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Anti-Corruption 
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5. (SBU) Ambassador pressed Rashid and the NDP to go on the 
offensive in fighting corruption in Egypt and take concrete 
steps to ensure credibility of the effort.  With President 
Mubarak leading the effort, the U.S. stands ready to support 
through technical or other assistance more directly targeted 
to supoort GOE anti-corruption efforts.  Deputy Minister 
Samiha Fawzy commented that Gamal Mubarak would be the one to 
grab the reins on this issue and run with it.  She said he is 
well versed in the G-8 process and would respond positively. 
Rabiey commented that some arrests would also help get the 
message out.  Commenting on electoral transparency, Rashid 
predicted positive steps regarding transparent ballot boxes 
and local observers. 
 
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Corporate Complaints 
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6. (SBU) Referring to concerns brought to us by 
Northrup-Grumman regarding their feeling "locked out" of 
contracts tendered by the Ministry of Civil Aviation, the 
Ambassador asked Rashid to ensure that Northrup-Grumman, and 
all American firms, get a fair shake in bidding for civair 
contracts.  While Boeing had recently been successful in an 
aircraft sale to EgyptAir, there appeared to be a string of 
contracts where U.S. firms either were not invited to bid or 
invited only very late in the game.  Rashid said that he had 
been "involved" with the Ministry of Civil Aviation on 
Northrup's case since he took office over a year ago.  He 
would continue to follow the issue and he endorsed 
Ambassador's intent to take up the issue with Minister Shafik 
directly. 
 
 
RICCIARDONE