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Viewing cable 06DAKAR1846, AMBASSADOR'S JULY 28 MEETING WITH MINISTER OF

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Reference ID Created Released Classification Origin
06DAKAR1846 2006-08-01 15:03 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dakar
VZCZCXRO7208
PP RUEHMA RUEHPA
DE RUEHDK #1846/01 2131503
ZNR UUUUU ZZH
P 011503Z AUG 06
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 5908
INFO RUCPDOC/USDOC WASHDC
RUCLRFA/USDA WASHDC
RUEHBJ/AMEMBASSY BEIJING 0085
RUEHLM/AMEMBASSY COLOMBO 0026
RUEHNE/AMEMBASSY NEW DELHI 0043
RUEHZK/ECOWAS COLLECTIVE
RUEHGV/USMISSION GENEVA 0742
RUEHBS/USEU BRUSSELS
UNCLAS SECTION 01 OF 02 DAKAR 001846 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EB/TPP/MTA, AF/EPS AND AF/W 
STATE PLS PASS USTR 
AID/W FOR AFR/WA AND AFR/SD 
USDOC FOR 4510/OA/PMICHELINI/AROBINSON-MORGAN/KBOYD 
USDOC FOR 3131/CS/ANESA/OIO/DHARIS/GLITMAN/MSTAUNTON 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR EAID EINV SG
SUBJECT: AMBASSADOR'S JULY 28 MEETING WITH MINISTER OF 
COMMERCE: DOHA ROUND, COTTON, AID, AGOA AND FRANCHISING 
 
 
1.  (SBU) SUMMARY: On July 28, the Ambassador, Senior 
Regional Commercial Officer and Agricultural Attache 
called on Minister of Commerce Decroix to discuss the Doha 
Round, AGOA, U.S. assistance to Senegal's cotton farmers, 
possible Sri Lankan investment in the textile industry, 
and franchising.  Decroix urged greater U.S. flexibility 
in the Doha Round.  He was delighted to learn that Senegal 
will receive USD 2.5 million in assistance for cotton 
farmers, but he complained of limited U.S. investment, 
noting that many U.S. franchisers are not interested in 
ventures in Africa.  Decroix was surprised that President 
Wade has spoken of turning to Asia because the U.S. and 
Europeans are too slow and attach too many conditions to 
assistance (septel).  END SUMMARY. 
 
DOHA 
---- 
2.  (SBU) The Ambassador delivered USTR Susan Schwab's 
July 12 letter to Senegalese Minister of Commerce Mamadou 
Diop Decroix.  He indicated that he had met her in Geneva 
during talks at the end of June and that he would send a 
formal response but suggested several times during the 
conversation that the U.S. needs to be more flexible in 
its negotiating posture.  He said this is a bargaining 
exercise with give and take and that the Europeans 
demonstrated more flexibility in Geneva.  He referred in 
particular to the EU's offer of a 54 percent reduction -- 
up from 39 percent (equal to the G20 position of 54 
percent) -- while the U.S. position stands at a 60 percent 
reduction in subsidies.  He agreed that it might be 
difficult for the U.S. to make a counter offer to the EU 
as the specific products ("produits sensibles and produits 
speciaux") are yet to be fully defined.  While he offered 
to help both parties to come to a resolution, he said that 
this discussion is really up to the "big players." 
 
COTTON 
------ 
3.  (U) Minister Decroix expressed his appreciation when 
the Ambassador shared the news that USAID is providing GOS 
with USD 2.5 million to assess/promote cotton 
diversification.  She mentioned that USAID would like to 
meet with him to discuss this further. 
 
AGOA 
---- 
4.  (SBU) Decroix complained about the overall lack of 
U.S. investment in Africa.  He wondered to what extent the 
lack of investment could be due to the lack of 
communication or lack of promotion on the African side. 
When the Ambassador mentioned that President Wade had been 
quoted in the press as saying that it was too difficult to 
do business with the U.S. and most European countries and 
suggested that it was easier to work with China and other 
Asian nations (septel), Decroix admitted that ventures 
with the Europeans have not been very "conclusive." 
According to Decroix, President Wade believes that the 
U.S. has yet to provide any real assistance (in terms of 
economic stimulus); Senegal is still waiting to see what 
comes of MCA; AGOA has been a disappointment for Senegal; 
and now it is looking to see what Asia has to offer. 
Decroix criticized those running Senegal's biggest 
companies (ICS, SAR and Senelec) for their lack of 
business acumen and their inability to manage commercial 
operations. 
 
5.  (U) When we asked about the GOS' new Export Promotion 
Agency, the Minister said that he would need to see where 
that new agency, which falls under his Ministry, stands. 
He is planning to host a conference on August 8 to share 
his thoughts on AGOA and Franchising. 
 
SRI LANKAN INVESTMENT 
--------------------- 
6.  (SBU) The Ambassador expressed her appreciation for 
the Minister's intervention on the proposed Sri Lankan 
garment manufacturing investment.  She indicated that if 
 
DAKAR 00001846  002.2 OF 002 
 
 
the investors finally decide to open a plant in Senegal 
this will be an AGOA success for the country. 
 
FRANCHISING 
----------- 
7.  (U) Finally, Decroix said that his participation in 
the June international franchise show in Washington was a 
real eye-opener for him.  He was amazed to learn more 
about the franchising as a concept, see its impact on the 
U.S. economy and discover the wide array of businesses 
that are franchised.  (NOTE: The franchise sector employs 
over 18 million Americans and contributes more than USD 
1.5 trillion to the U.S. economy, accounting for over 50 
percent of all U.S. retail sales.  At the same time, he 
was disappointed to learn that some U.S. companies are not 
interested in venturing into Africa at the moment -- a 
refrain heard time and again by a number of potential 
franchisees.  The U.S. Commercial Service team is 
following up with those U.S. companies that have expressed 
concern about doing business in Africa, particularly dry 
cleaning and some educational franchises.  END NOTE.) 
 
8.  (U) In response to a complaint about the lack of 
public funds to encourage local investment -- raised by 
the Senegalese franchise delegates who traveled to 
Washington -- Decroix indicated the need for GOS to track 
all economic promotion funds throughout the various 
ministries to assess the extent to which they could be 
used toward the promotion of franchising.  He shared with 
us an example of waste of funds used by Senegalese MBA 
graduates in a GOS-sponsored unemployment alleviation 
program.  The graduates had no prior business experience 
and as a result the funds quickly evaporated.  He liked 
the idea of adding a franchise component/model to this 
fund to help recent business grads undertake 
entrepreneurial ventures.  To date, he said that 7 billion 
CFA francs (USD 14 million) have been wasted on this MBA 
project. 
 
JACOBS