US embassy cable - 05NDJAMENA1737

UNCLAS NDJAMENA 001737 
 
SIPDIS 
 
 
SENSITIVE 
 
USTR FOR FLORIE LIZER, BILL JACKSON, AND LAURIE-ANN AGAMA 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, EAGR, PGOV, ETRD, CD, Cotton-WTO 
SUBJECT: CHADIAN COTTON NEGOTIATOR ON HONG KONG MINISTERIAL 
 
REF: A. N'DJAMENA 1706 
     B. STATE 219191 
 
1.  (SBU)  SUMMARY.  Chad's influential cotton negotiator 
sought to allay concerns about the Cotton-4 event at the Hong 
Kong WTO Ministerial in a meeting with us December 5.  He 
also urged concrete actions to cut the domestic subsidy 
programs that hurt Africa's cotton producers.  END SUMMARY 
 
2.  (SBU)  During a visit to Moundou in southern Chad 
December 5, E/C Officer spoke with CotonTchad Director 
General and President of African Cotton Grower's Association 
Ibrahim Malloum to convey points in ref B and discuss the 
African view of the USG proposal in the lead-up to Hong Kong. 
 E/C Officer relayed U.S. concerns about the Cotton-4 event 
in Hong Kong on December 12.  He also reiterated the USG 
commitment to assist development of the African cotton sector 
through its WTO proposal and technical assistance programs. 
 
3.  (SBU)  Malloum stated that the United States should not 
be worried about the event.  He noted that the initiative is 
meant to highlight the importance of cotton for African 
economies.  Malloum pointed out that African cotton producers 
understand that Hong Kong is meant to be a forum for 
negotiations, not contentious arguments.  As a result, 
Africans would come to the table prepared to seek a 
compromise through constructive mechanisms. 
 
4.  (SBU)  Malloum also told E/C officer that Africans were 
very encouraged by the USG proposal, regarding it as a 
positive step toward correcting disparities in the world 
cotton markets.  Malloum stated that African viewed the 
United States as a "great power with great responsibilities," 
and would applaud any USG effort to level the playing field 
for African cotton growers.  He noted that the regular 
contacts by senior USG officials with their African 
counterparts demonstrate a willingness to communicate on the 
cotton issue, and were well-received by African officials. 
Malloum also pointed out that the Africans are disappointed 
by European efforts at enhancing dialogue in the run-up to 
Hong Kong. 
 
5.  (SBU)  Malloum stated that African cotton growers are 
nevertheless still skeptical of the USG proposal.  They 
question that the cuts in domestic support will be 
implemented, given the strength of the U.S. farm lobby. 
Malloum referred to past declarations by the G-8 in Geneva in 
2004 to treat cotton in a rapid and unique manner.  He noted 
that there has been little recent action on the part of 
developed countries to develop a "transparent and fair" 
international market for cotton.  He claimed that C-4 
countries in the past year lost over USD 250 million, as a 
result of trade barriers by the United States and Europe.  In 
the meantime, according to Malloum, the Americans and 
Europeans appear to be "playing cards" with their WTO 
proposals, each side trying to call the other's bluff and 
propose a package that neither side knew would be accepted by 
its domestic constituencies.  He noted that if the developed 
countries are serious about alleviating the plight of African 
farmers, they would eliminate all barriers to cotton trade 
immediately. 
 
6.  (SBU) COMMENT:  Malloum, an influential figure in 
deliberations on the African position on cotton in Hong Kong, 
had more conciliatory comments on the outlook for the 
ministerial than we have heard from him before.  Yet despite 
kind words for the USG proposal, he also did not hide his 
skepticism that it will lead to serious cuts in domestic 
support.  We must be prepared to handle questions from 
African representatives concerning the possibility of our 
proposal falling victim to domestic pressures.  The 
Ambassador will have an opportunity to probe Malloum further 
in a lunch with him December 8. 
WALL 
 
 
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