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Viewing cable 09ADDISABABA2339, ETHIOPIAN TRADE MINISTER DISCUSSES WTO ACCESSION

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Reference ID Created Released Classification Origin
09ADDISABABA2339 2009-09-30 08:28 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Addis Ababa
VZCZCXRO7792
RR RUEHROV
DE RUEHDS #2339 2730828
ZNR UUUUU ZZH
R 300828Z SEP 09 ZDK
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC 6331
INFO RUCNIAD/IGAD COLLECTIVE
RUEPADJ/CJTF HOA
RUEAIIA/CIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC
RUEWMFD/HQ USAFRICOM STUTTGART GE
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP
RHEHAAA/NSC WASHDC
UNCLAS ADDIS ABABA 002339 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EEB/IFD/OMA - JWINKLER AND EEB/CBA - 
DWINSTEAD 
DEPT PASS TO USTR FOR PATRICK COLEMAN, CECILIA KLEIN, AND 
BARBARA 
GRYNIEWWICZ 
DEPT OF COMMERCE WASHDC FOR ITA MARIA RIVERO 
DEPT OF TREASURY WASHDC FOR REBECCA KLEIN 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON PGOV ET
SUBJECT: ETHIOPIAN TRADE MINISTER DISCUSSES WTO ACCESSION 
AND AGOA 
 
REF: ADDIS ABABA 01977 
 
1. (SBU) Ethiopia's Minister of Trade and Industry (MoTI) 
Girma Birru discussed World Trade Organization (WTO) and 
African Growth and Opportunity Act (AGOA) issues with CDA, 
Pol/Econ Chief, and EconOff during a September 22 courtesy 
call meeting.  Birru stated that MoTI is working closely with 
USAID on the WTO accession process and is waiting for the WTO 
to schedule the second working party meeting dates.  Birru 
added that there is a new WTO chairperson overseeing 
Ethiopia's accession and emphasized that all requested 
documents have been submitted to the WTO.  He confirmed that 
any liberalization of the telecommunications or financial 
sectors would only be done if it would help the domestic 
economy.  Birru said Ethiopia needs to work within its 
capacity and will ask WTO negotiating partners for a timeline 
that is in line with the country's capacity.  Specific to the 
financial sector, Birru expressed concerns about the ability 
of the National Bank of Ethiopia (central bank) to regulate a 
liberalized market.  On the telecommunications side, he 
opined there was more of a management problem and hoped all 
customer needs would be fulfilled by the Chinese-led 
partnership with the Ethiopian Telecommunications 
Corporation.  CDA expressed full support for WTO accession 
efforts, but encouraged more rapid liberalization, 
particularly in the financial and telecommunications sectors. 
 
 
2. (U) In terms of exports to the United States, Birru 
highlighted Ethiopia's focus on increasing footwear exports. 
He said that both USAID and the World Bank have supported 
these efforts and sample orders from three to four Ethiopian 
companies are currently in the works.  In regards to AGOA, 
Birru remarked Africa has yet to take full advantage of this 
"generous program" offered by the USG, but noted Ethiopia's 
AGOA exports are rising despite the global financial crisis. 
He went on to say duty-free access to the U.S. market may not 
be the most important factor hindering Ethiopia's export 
growth.  Birru cited issues of poor infrastructure and low 
labor productivity as areas where Ethiopia needs assistance 
in order to be more competitive globally. 
 
3. (SBU) Comment:  As an economist and experienced Minister, 
Birru is well versed in trade issues and the specifics of 
AGOA.  He proudly commented that he had attended every AGOA 
forum since its inception.  Embassy officials have heard 
unofficial rumors that Ethiopia would like to host the next 
AGOA forum on African soil; however, post is not aware of an 
official request of this nature.  Clearly, Birru is engaged 
on taking advantage of AGOA benefits, but does not see it as 
a long-term solution to increasing exports and even made the 
remark that AGOA would have to be "WTO compatible at some 
point."  As far as liberalizing the telecommunications or 
financial sectors, Birru sought to preempt the discussion, 
raising the topic but in essence echoing the same "lack of 
readiness" arguments as Prime Minister Meles Zenawi did 
during his August 2009 meeting with U.S. Trade Representative 
Ron Kirk (reftel).  The Government of Ethiopia continues to 
be cautious in its approach to liberalization of these 
sectors and will most likely ask for a generous timeline from 
the WTO as it attempts to integrate with the global economy. 
End Comment. 
MEECE