VZCZCXYZ0009
PP RUEHWEB

DE RUEHEG #5445 2431212
ZNR UUUUU ZZH
P 311212Z AUG 06
FM AMEMBASSY CAIRO
TO RUEHRC/USDA FAS WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 1003

UNCLAS CAIRO 005445 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
FOR USDA/FAS/ITP/PSHEIKH/JFLEMMINGS, DLP/HWETZEL, 
FAA/RHAGER 
USTR FOR JUSTIN BUNTIN 
 
E.O. 12958:N/A 
TAGS: EAGR ETRD BEXP USTR EG
SUBJECT: DISCUSSIONS IN EGYPT ON POULTRY IMPORTS 
 
Ref:  CAIRO 4481 
 
Sensitive but unclassified.  Not for internet 
distribution. 
 
¶1. (SBU)  The Ambassador and FAS Minister Counselor met 
with Minister of Agriculture Amin Abaza August 8 to 
discuss Egypt?s previously announced plans to temporarily 
lift poultry tariffs and restrictions in advance of 
Ramadan  (reftel), and to relay USG dissatisfaction 
regarding the conditions under which imports would 
resume.   The Ambassador emphasized the U.S. is pleased 
about eased tariffs for whole chickens, but expressed 
disappointment that poultry parts imports are still 
banned.  Abaza responded that allowing the entry of 
poultry parts would destroy Egypt's domestic industry, 
and stressed the industry and the press would be highly 
critical.  The Ambassador said he understood local 
political concerns, and that was not in the U.S. interest 
to harm Egypt?s poultry industry, but that the U.S. wants 
market access.  Abaza countered that lifting tariffs is a 
temporary measure, through the end of December, and 
questioned whether the U.S. will be interested in trade 
when the 32 percent import tariff is re-implemented. 
 
¶2.  (SBU) The Ambassador responded that the USG and 
industry are interested in trade, but noted that 
provisions set forth for resuming trade are restrictive 
and burdensome, particularly the requirement that each 
shipment be inspected by Egyptian authorities.  Since 
Egypt has accepted that the U.S. meat safety system is 
equivalent to its own, additional inspection requirements 
are redundant.  Abaza pointed out that the Ministry of 
Trade has authority to set the parameters for poultry 
imports.  In the end, Abaza said he would reconsider the 
matter.  He then asked about assistance from the American 
Soybean Association to restructure Egypt?s poultry 
industry.  (Note:  FAS had discussed this with Abaza 
previously.)  The Ambassador said the U.S. industry would 
be open to discuss ways to assist Egypt?s poultry 
industry, but with a view toward the eventual easing of 
restrictions on poultry imports. 
 
¶3. (SBU) In a separate meeting, FAS Minister Counselor 
met with Egypt?s Under-Secretary for Animal Production 
Fekry el Karaby, Senior Advisor to the Minister Saad 
Nassar, and Chief Veterinary Officer (CVO) Ahmad Tawfik 
to obtain more information on Egypt?s rationale for the 
current onerous requirements on whole bird imports.  The 
officials said the Ministry of Trade had set conditions 
for resuming imports, and the CVO claimed not to be 
familiar with the technical requirements.  (NOTE: 
Veterinary Services is generally considered the competent 
authority for establishing technical requirements on meat 
and poultry imports; not the Ministry of Trade).  FAS 
left a set of written questions about the new 
requirements.  The officials said they would review the 
questions and respond in a timely manner.  In the 
meantime, however, a US exporter will be shipping 5000 mt 
of frozen whole chickens to Egypt in the near future. 
The Agriculture Ministry has issued a decree authorizing 
two Egypt inspectors to go to the US and oversee the 
Halal procedures for these chickens. 
 
¶4. (SBU) COMMENT:  FAS does not expect the US exporter 
will have any problem complying with Halal procedures, 
and will facilitate travel to the US by the Egyptian 
inspectors.  We hope to convince the GOE that Halal for 
chicken parts is a non-issue as well, although we expect 
continued opposition from domestic industry which fears 
the competition, even in this period of short domestic 
supply.  In our view, absent continued severe domestic 
poultry shortages and a steep increase in prices, Egypt 
is unlikely to remove the ban on parts imports. 
 
Ricciardone