US embassy cable - 05ACCRA2512

UNCLAS ACCRA 002512 
 
SIPDIS 
 
SENSITIVE 
 
PLEASE PASS USTR FOR LAURIE-ANNE AGAMA 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, PREL, KDEM, GH, PROV, WTRO 
SUBJECT: OPPORTUNITY MISSED: GHANA UNLIKELY TO BACK U.S. 
WTO AGRICULTURE PROPOSAL 
 
REF: A. ACCRA 2484 
 
     B. STATE 204611 
 
1. (U) Summary: Ambassador Bridgewater met with Minister of 
Trade and Industry Alan Kyerematen December 7 to discuss the 
upcoming WTO ministerial in Hong Kong.  Kyerematen confirmed 
Ghana's intention to negotiate as a bloc with other African 
Union (AU) WTO members --despite serious differences within 
the AU and between the G-90 and G-20 groups of nations-- and 
reiterated the AU's calls for an end to export subsidies in 
developed countries, elimination of trade-distorting domestic 
support, and maintenance of tariff preferences for African 
countries.  The Minister said the GoG and AU hoped the US and 
EU would harmonize their agriculture proposals, but would not 
openly favor either.  Kyerematen also said he anticipated 
that expectations will be lowered for Hong Kong in order to 
avoid the appearance of failure.  Ambassador Bridgewater 
stated that failure to support the ambitious US agriculture 
proposal would be a lost opportunity for developing nations, 
and African countries in particular.  End Summary. 
 
2. (U) Ambassador delivered ref b points on the US WTO 
Agriculture proposal to Minister of Trade and Industry Alan 
Kyerematen December 7, and asked for details of the GoG's 
position.  Kyerematen said the GoG would negotiate in Hong 
Kong as part of bloc with other AU members.  The groups' 
positions for Hong Kong, he said, would be almost identical 
to those it took during the formation of the "July Package" 
(ref a).  The Minister went on to say that meetings of the 
G-90 and ACP in Europe had been unable to reach consensus 
because of disagreements over several issues, mainly related 
to "tariff preference erosion," with AU countries taking the 
position that extending AGOA-like benefits to non-African 
G-90 and G-20 countries would disadvantage AU countries. 
 
3. (U) Kyerematen declined to support either the US or EU 
agriculture proposals.  He said success in Hong Kong would be 
contingent upon "greater convergence" of the US and EU 
agriculture proposals, consensus among G-20 and G-90 
countries, and "better management" of the Ministerial to 
ensure "transparency, inclusiveness, and balance."  He 
concluded by saying he anticipated that expectations for Hong 
Kong will be lowered to keep the meeting from being portrayed 
as a failure, and to lay the groundwork for more meaningful 
negotiations before the end of the Doha Round in 2006. 
Ambassador Bridgewater closed by saying the US would continue 
to work in good faith with its European allies to make  Hong 
Kong a meaningful meeting, adding that the US proposal should 
be seen as a once-in-a-generation opportunity for developing 
nations. 
 
4. (SBU) Comment: While Kyerematen would not back either 
proposal, he reserved his only specific criticisms for the US 
proposal -- stating US food aid programs could be considered 
a subsidy that had been left out of the equation. 
Previously, Ministry of Trade officials -- including the 
Minister -- have agreed on more that one occasion that food 
aid should not be regulated under the WTO.  The EU's "US food 
aid is a subsidy" argument has clearly gained traction in 
Africa, despite its relative insignificance when compared to 
the large gains that could be had under the US proposal, and 
the obvious weaknesses of the EU plan.  The EU is still by 
far Ghana's largest trading partner and Ghana does not want 
to jeopardize its trading relationship with EU markets.  End 
Comment. 
BRIDGEWATER