US embassy cable - 03AMMAN4256

UNCLAS SECTION 01 OF 02 AMMAN 004256 
 
SIPDIS 
 
SENSITIVE 
 
USTR FOR NOVELLI/SAUMS 
USDOC 4520/ITA/MAC/ONE/PTHANOS 
TREASURY FOR OASIA - ABBIE DEMOPULOS 
 
E.O. 12958: N/A 
TAGS: ETRD, BEXP, JO, IZ 
SUBJECT: BILATERAL TRADE AGENDA WITH JORDAN 
 
REF:  AMMAN 3830 
 
SENSITIVE BUT UNCLASSIFID 
 
1.  (SBU)  Ambassador Gnehm called on Trade Minister 
Salah al-Bashir July 1 to keep up the momentum on 
bilateral trade issues discussed with AUSTR Cathy Novelli 
during the recent World Economic Forum meetings in Jordan 
(ref).  Bashir also mentioned follow-up on Jordan-Israel- 
Palestine and Jordan-Iraq issues he had discussed with 
Commerce U/S Aldonas and CPA economic adviser Reuben 
Jeffery.  Also attending the meeting were Ministry 
Director General Amer al-Hadidi, assistant Rami Qussous, 
and the Jordanian commercial counselor in Washington, 
Maher Matalka, as well as Econ/C Tom Goldberger. 
 
2.  (SBU)  Accelerated FTA tariff Reductions. 
 
Bashir said he would provide a prioritized list of 
requests by July 8.  He said the request would focus on 
textile products and that Jordan would have no problem 
providing symmetrical reductions in its textile tariffs. 
Bashir added that he was considering asking for 
accelerated reductions other product categories and that 
he would clear the entire request with Finance Minister 
Marto.  PLEASE ADVISE -- Bashir asked how the 
accelerations would be implemented on the U.S. side -- is 
legislation required? 
 
3.  (SBU)  Bilateral Government Procurement Agreement. 
 
Bashir said he would seek the Cabinet's approval to make 
the same offer to the United States that Jordan had 
submitted in the WTO GPA process.  He was worried, 
however, that Jordan could be led to make concessions in 
bilateral negotiations with the U.S. that he would 
subsequently be obliged to offer to others in the WTO 
process.  PLEASE ADVISE -- Bashir asked if procurement in 
Jordan using U.S. Foreign Military Assistance (FMF) funds 
would be possible after conclusion of a GPA. 
 
4.  (SBU)  FTA Joint Commission Meeting. 
 
As discussed in Washington last December, Bashir would 
like to hold the second JTC meeting in Jordan this fall. 
Commercial Counselor Matalka will approach USTR to try to 
find a mutually convenient time (Ramadan and the 
subsequent Eid will run from approximately from October 
25 through the end of November).  Bashir would like 
Ambassador Zoellick to participate.  If it were useful, 
he is ready to invite senior technical level officials 
from other Arab countries to Amman for follow-up MEFTA 
discussions with USTR.  He also plans to build an 
investment event in Jordan around the FTA meeting. 
 
5.  (SBU)  Jordan-Israel-Palestine Issues. 
 
Bashir added that he had discussed a possible trilateral 
Jordanian-Israeli-Palestinian trade event in the United 
States with Commerce Under Secretary Aldonas.  He said 
that Israeli trade minister Olmert had supported the idea 
in Bashir's bilateral meeting with Olmert.  Also as 
discussed with U/S Aldonas, Bashir will work to get 
Israeli approval to expedite trade through the northern 
border crossing (Shaikh Hussain) using advanced x-ray 
equipment on the Jordanian side.  Bashir hoped Secretary 
Evans would be able to attend the AmCham-sponsored AJEX 
(American Jordanian Exposition) conference that will be 
held in Amman October 22-23. 
 
6.  (SBU)  Jordan-Iraq Issues. 
 
Bashir said that he had also promised Aldonas a paper on 
the advantages Jordan offers for trade with Iraq. 
Following up on a separate meeting with CPA economic 
advisor Reuben Jeffery during the WEF, Bashir said he 
would be providing shortly a GOJ-approved "non-paper" 
describing outstanding bilateral issues with Iraq, 
including the status of the Iraq-Jordan goods for oil 
barter protocols, as well as Jordan's potential 
contribution to rebuilding the Iraqi government and 
economy.  He thought this paper could serve as an agenda 
for a bilateral meeting with CPA. 
 
7.  (SBU)  Comment. 
 
Moving forward on the above items -- along with the 
planned Joint Environmental Forum that should take place 
later this year -- basically constitutes our bilateral 
trade agenda with Jordan through the end of the year. 
Washington should be aware that between now and the end 
of the year there could well be a change in government 
following the recent Parliamentary elections.  While this 
could mean some senior personnel changes, we believe that 
any government will see pursuing these initiatives as in 
its interest.  Nonetheless, it will be important that we 
work closely with the Jordanians to maintain the energy 
and momentum injected by the WEF meetings.  The Embassy 
appreciates the engagement of USTR, Commerce, State and 
other Washington agencies in building this model 
relationship in the region. 
 
GNEHM