This record is a partial extract of the original cable. The full text of the original cable is not available.

130951Z Feb 06

UNCLAS KINSHASA 000230 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR WJACKSON 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EAID EMIN PGOV CG
SUBJECT: WILL THE DRC BUY WHAT COMESA IS SELLING? 
 
 
¶1. (U) Summary. COMESA, the Common Market of Eastern and 
Southern Africa, continues its attempts to engage the DRC. 
COMESA's Deputy Secretary-General led a delegation to the 
DRC the week of January 23, with the primary purpose of 
appealing to GDRC officials to pay membership dues and join 
the customs' union and free trade area.  Numerous political 
and administrative obstacles stall the GDRC's engagement in 
the economic activities of COMESA and other regional trade 
organizations.  COMESA has also indicated it plans to send 
an observer mission for the DRC's national elections. End 
summary. 
 
¶2. (SBU) A COMESA delegation came to Kinshasa in late 
January in yet another attempt to convince the DRC to 
participate in COMESA activities and pay its dues. COMESA's 
last visit was in November 2005. The January visit included 
high-level ministry meetings and a workshop on the COMESA 
free trade zone.  COMESA's Deputy Secretary General 
emphasized the importance of the DRC's taking advantage of 
AGOA opportunities, elimination of trade barriers, economic 
liberalization, and good governance, including regulatory 
reform and institutional strengthening. 
 
¶3. (U) Although the DRC is officially a COMESA member, it 
does not pay dues, and engaging the DRC in COMESA has been 
challenging because of political and administrative 
obstacles.  On a political level, COMESA has had difficulty 
obtaining a more substantive commitment from the DRC beyond 
a general agreement to participate. 
 
¶4. (U) Administratively, COMESA is often unable to obtain 
needed data, such as trade statistics, from the DRC. 
Technical-level civil servants have even questioned the 
COMESA Secretary General's statement that the GDRC had 
committed itself to participation; some requested the 
meeting minutes that evidenced the GDR's commitment. 
 
¶5. (SBU) There are unlikely to be short-term benefits for 
the DRC in joining COMESA's existing free trade area and its 
customs union, the latter of which is planned to begin in 
¶2008.  To date, more economically advanced COMESA countries, 
such as Egypt, have been the primary free trade 
beneficiaries.  For example, Egypt's exports to Sudan have 
increased by USD 100 million since it joined the free trade 
area.  Another reason the DRC has not committed itself to 
signing onto COMESA's free trade plan is that OFIDA, the 
Congolese national customs entity, is not able conclusively 
to calculate the impact of free trade on GDRC revenues; it 
is believed, however, that at least in the short term, the 
DRC would face revenue decreases, absent any offsetting 
income generating mechanism. 
 
¶6. (U) Despite COMESA's full-court press, only general 
promises for future economic cooperation have thus far 
emerged from the visit.  These include working towards 
increased agricultural production and marketing, and 
discussing implementation in the DRC of a COMESA-wide 
transport license to facilitate movement of goods within 
COMESA countries. 
 
¶7. (U) The GDRC is a member of three regional trade 
organizations (SADC, COMESA and the Central African Economic 
and Monetary Community (CEMAC), but it does not engage 
substantially in any of these organizations' economic 
activities.  A Ministry of Agricultural consultant told 
EconCouns, however, that CEMAC's tariff regime corresponds 
most closely to the GDRC's. During a February 7 meeting with 
EconCouns, Ministry of External Trade officials did not yet 
seem prepared to engage with any regional organization. 
 
¶8. (U) The visit also had a political dimension as COMESA 
has indicated it will send a team to observe upcoming 
national elections. COMESA has had a program on peace and 
security since 1999, with a mandate to facilitate meetings 
of Ministers of Foreign Affairs from the region at least 
once every year to promote peace, security, and stability. 
COMESA submitted to USAID/REDSO in Nairobi, in an 
unsolicited proposal to support the costs of an observer 
mission, and USAID/REDSO has provisionally agreed to support 
the mission. 
 
MEECE 
 
 
NNNN