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Viewing cable 07DARESSALAAM933, USTR DISCUSSES TIFA, TRADE ISSUES WITH EAC

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Reference ID Created Released Classification Origin
07DARESSALAAM933 2007-07-02 03:50 2011-08-24 00:00 UNCLASSIFIED Embassy Dar Es Salaam
VZCZCXYZ0008
PP RUEHWEB

DE RUEHDR #0933 1830350
ZNR UUUUU ZZH
P 020350Z JUL 07
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC PRIORITY 6396
INFO RUEHJB/AMEMBASSY BUJUMBURA PRIORITY 2558
RUEHKM/AMEMBASSY KAMPALA PRIORITY 3037
RUEHLGB/AMEMBASSY KIGALI PRIORITY 0986
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0700
UNCLAS DAR ES SALAAM 000933 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/E BYODER; 
USTR FOR BJACKSON 
 
E.O. 12958: N/A 
TAGS: ETRD RW KE UG BU TZ
SUBJECT: USTR DISCUSSES TIFA, TRADE ISSUES WITH EAC 
 
 
Proposed U.S. - EAC TIFA 
------------------------- 
 
1. (U) On June 21, Bill Jackson, USTR Director of African 
Affairs, discussed the proposed U.S. - East African Community 
(EAC) Trade and Investment Framework Agreement (TIFA) and 
other trade issues with EAC officials in Arusha.  Peter 
Kiguta, EAC Director General of Customs and Trade, and Flora 
Musonda, EAC Director of Trade, stated that within the EAC 
there remained questions at the expert level as to what the 
TIFA entailed and how it would benefit the EAC.  Jackson 
explained the non-binding nature of the TIFA, and described 
it as a "means of increasing our engagement" on trade and 
investment issues.  He further noted that the value and 
benefits of the TIFA depend largely on what the TIFA partners 
bring to the table in terms of issues and potential areas for 
cooperation. He cited Rwanda, COMESA, and Mauritius as 
examples of trade partners that the U.S. has engaged through 
TIFA discussions with positive results.  He encouraged Kiguta 
and Musonda to consult with their counterparts in these 
countries and in COMESA as they consider the TIFA, and they 
indicated that they would do so.  Jackson noted that while 
the U.S. remains interested in a TIFA with the EAC, it was 
not interested in undertaking an agreement for the sake of an 
agreement and would wait to hear of the EAC's interest. 
 
2. (U) Kiguta confirmed that the EAC members are currently 
discussing a TIFA between the U.S. and the EAC itself, rather 
than with the five individual EAC member states, as 
originally proposed.  Jackson explained that the U.S. had 
prepared the text for signature with the EAC member countries 
based on guidance provided by the trade ministers of Kenya 
and Tanzania when the U.S. raised the prospect of a TIFA with 
them in June 2006.  In light of the new direction from the 
EAC, he would look into the possibility of providing a 
revised draft text reflecting the EAC as the signatory. 
Musonda stated that the EAC members would continue to discuss 
the TIFA, noting that with the recent expansion of the EAC to 
five members, discussions had been moving slowly.  She stated 
that, if the U.S. could provide a revised draft text, the EAC 
would seek to respond to it quickly, perhaps by as early as 
August. 
 
3. (U) COMMENT: Given the lack of movement on the proposed 
TIFA by the EAC since fall 2006, the fact that the proposal 
is still being debated at the expert level, and the EAC's 
tendency to move slowly, it is unlikely that the EAC will 
make any definitive decision on the TIFA soon, other than 
perhaps a decision to continue discussing the TIFA proposal 
with the U.S.  However, the U.S. Embassy in Dar es Salaam has 
begun an effort to raise interest in a TIFA at the State 
House (presidential) level, so as to make Tanzania a champion 
for an agreement with the EAC.  END COMMENT. 
 
Other Issues 
------------ 
 4. (U) In response to Jackson's request for an update on EAC 
duties regarding used clothing, Musonda stated that action 
was taken in the spring of 2005 to reduce the duty originally 
proposed by the EAC, and that there were no plans to further 
reduce the duty.  Regarding EAC duties on almonds, Kiguta 
explained that when the EAC Customs Union was established, 
the EAC chose to include all nuts in a general category.  He 
claimed that it was not feasible -- and might even contravene 
WTO commitments -- to subcategorize individual nut types in 
separate tariff lines.  Jackson said the doubted that any WTO 
commitments would be violated by simply creating 
product-specific tariff lines and urged Kiguta to re-examine 
the categorization of almonds. 
 
5. (U) Bill Jackson of USTR has cleared this cable. 
RETZER