VZCZCXRO5495
PP RUEHMA RUEHPA
DE RUEHDK #0583 0731746
ZNR UUUUU ZZH
P 141746Z MAR 07
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 7821
INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY

UNCLAS DAKAR 000583 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR AF/EPS, EB/TPP/BTA AND AF/W 
 
E.O. 12958: N/A 
TAGS: ETRD SG
SUBJECT: SENEGAL AGOA - INPUT FOR 2007 PRESIDENT'S REPORT 
 
REF: STATE 022438 
 
¶1.  Following is embassy's input on Senegal for the 2007 President's 
report on AGOA keyed to the template outlined in reftel and last 
year's report as published by USTR.  This text has also been 
provided to AF/W and AF/EPS via e-mail. 
 
¶2.  Begin embassy input: 
 
MARKET ECONOMY/ECONOMIC REFORM/ELIMINATION OF TRADE BARRIERS: 
Senegal's economy is largely market-based but has suffered from 
stagnation due serious declines in fishing, phosphate exploitation, 
and petroleum refinement activity -- traditionally three of the 
country's largest contributors to GDP.  The current situation, based 
largely on agriculture, public investments directed by the top 
levels of government, consumption, and foreign assistance, does not 
bode well for productivity or GDP growth in the near term.  In late 
2006, Senegal approved an Accelerated Growth Strategy aimed at 
achieving at least a 7.5 percent growth rate by 2010, targeting the 
agro-industry, fisheries, tourism, textile, and information 
technology sectors.  Foreign investors face an unstable regulatory 
environment and weak commercial law enforcement due to a lack of 
resources and specialized judicial expertise.  Firms providing goods 
and services to government entities frequently complain of delays in 
payment.  Senegal is a member of the International Center for the 
Settlement of Investment Disputes under the Washington Convention. 
The Government accepts binding foreign arbitration of investment 
disputes and foreign creditors receive equal treatment in making 
claims against liquidated assets under Senegalese bankruptcy law. 
The Senegalese Civil Code provides national treatment and 
non-discrimination against foreign-owned businesses' property 
rights.  Senegal's Agency for Export Promotion (ASEPEX), has yet to 
make a significant impact expanding the country's trade linkages. 
In November 2006, the U.S. Mission to Senegal participated in the 
biannual Dakar International Trade Fair (FIDAK) by highlighting 
trade opportunities available to Senegalese producers under AGOA. 
The Dakar office of the USAID-funded West Africa Trade Hub has been 
especially active in targeting increased regional and international 
exports for Senegal's seafood and specialty foods.  The Hub also 
provides services to potential buyers via a database of West African 
exporters. 
 
POLITICAL PLURALISM/RULE OF LAW/ANTI-CORRUPTION:  Senegal is a 
vibrant democracy with no history of coups d'etat or military 
government.  In February 2007, President Wade was re-elected to a 
new, five-year term through an electoral process widely considered a 
fair reflection of the voters' wishes.  In the southern Casamance 
region, low-level, occasionally violent, separatist activity 
continues despite the signing of a truce in December 2004.  Senegal 
is a signatory to the UN Anti-Corruption Convention.  However, 
corruption remains a counter-productive reality in Senegal, despite 
some recent measures passed by the Government to strengthen rule of 
law, transparency and anti-corruption programs.  Through its 
Financial Intelligence Unit, Senegal's Government is creating a 
potentially useful anti-money laundering framework. 
 
POVERTY REDUCTION:  In April, 2006, Senegal's completed its latest 
IMF program, and, as of early 2007, discussions on a possible 
follow-on program had not yet begun.  The Government of Senegal has 
outlined anti-poverty allocations from USD 138 million in bilateral 
and multilateral debt relief.  However, a historic lack of public 
expenditure reviews makes tracking actual anti-poverty spending 
difficult.  Senegal is continuing feasibility studies for a proposed 
MCC compact to build a commercial/industrial platform 25 miles east 
of Dakar.  This ambitious, potentially transformative project is 
designed to promote economic growth and alleviate congestion in the 
capital, where 80 percent of Senegal's industry is based. 
 
LABOR/CHILD LABOR:  Senegal has ratified all eight of the ILO core 
labor rights conventions including Convention 138 on minimum age and 
182 on the worst forms of child labor.  Although freedom of 
association and the right to strike are recognized, many 
restrictions remain, including the right to strike.  By law all 
workers, except for security forces, can form and join unions. 
Collective bargaining agreements were negotiated and are generally 
upheld.  In the rural areas there was no enforcement of child labor 
laws and children are involved in the worst forms of child labor in 
the mining and rock quarry sectors.  The Government generally 
respected its citizens' rights but there were problems in some 
areas.  The Government made some improvements during the year.  In 
April 2005, the National Assembly passed a law prohibiting human 
trafficking, and two Senegalese citizens were prosecuted for 
trafficking in 2006.  The ILO is working with the Senegalese 
Government and civil society in support of Senegal's Timebound 
Program on the Elimination of the Worst Forms of Child Labor. 
 
JACOBS