VZCZCXRO7533
PP RUEHMA RUEHPA
DE RUEHUJA #2593/01 3550951
ZNR UUUUU ZZH
P 210951Z DEC 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 1679
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 8434
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 002593 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT PASS TO USTR-AGAMA, EXIM-JRICHTER, TDA-EEBONG 
TREASURY FOR PETERS AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS, 3130/USFC/OIO/ANESA/ DHARRIS, AND 
USPTO - JKOEPPEN AND PSALMON 
DOJ FOR MKOUAME 
DOE FOR CGAY AND GPERSON 
DOT FOR MARAD 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EFIN EINV NI
SUBJECT: NIGERIA: COMMERCE MINISTER SPEAKS ON U.S. RELATIONSHIP 
 
REF: A. ABUJA 2403 
 
 ¶B. ABUJA 2178 
 
SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY 
 
¶1. (SBU) Summary.  In a meeting prior to the December 11 Trade and 
Investment Framework Agreement (TIFA) Council meeting, the Minister 
of Commerce and Industry Charles Ugwuh expressed appreciation for 
AGOA and contrasted USG understanding of what countries like Nigeria 
need to expand trade relative to the position taken by the EU in EPA 
talks.  He noted that the GON would not be signing an EPA by the end 
of 2007.  In response to concerns expressed by AUSTR Liser about GON 
import bans and high tariffs, the Minister noted that it was 
"premature" to discuss their removal given limited agricultural and 
manufacturing capacity.  He highlighted new medium term industrial 
policy to develop clusters of small enterprises.  He also pushed for 
more U.S. investments in Nigeria especially in petrochemicals and 
infrastructure. Ugwuh did not commit to when the GON would fully 
implement the Economic Community of West African States (ECOWAS) 
Common External Tariff (CET) scheme.  End Summary. 
 
¶2. (SBU)  On December 10, Florizelle Liser, Assistant United States 
Trade Representative for Africa met with Charles Ugwuh, Minister for 
Commerce and Industry, as a prelude to the 5th U.S. - Nigeria TIFA 
Council meetings held in Abuja on December 11.  Liser brought up 
U.S. concerns regarding Nigeria's trade policy regime.  She 
specifically mentioned conflicting signals from Nigeria about 
removing import bans by January 2008; high tariffs; and aligning 
Nigeria's tariffs with the ECOWAS CET by the end of 2007. 
. 
MINISTER RESPONDS 
----------------- 
. 
¶3. (SBU) Ugwuh said the GON is working on solving the problems 
facing Nigeria's industrial sector.  He said that though he does not 
support the bans, it might be too early to remove them if the GON's 
plan to improve the industrial sector is yet to yield the expected 
dividends. 
 
¶4. (SBU) On tariffs, Ugwuh said he expects no immediate movement. 
He informed us that he is willing to assist on specific issues of 
concern to the U.S. whenever such issues are brought to his notice 
but import bans and tariffs are right now "political landmines" that 
he is not willing to touch. 
 
¶5. (SBU) Ugwuh reiterated the GON desire to diversify its economy 
and requested AUSTR Liser's help in convincing U.S. oil companies 
such as ExxonMobil and Chevron to invest in Nigeria's downstream oil 
and gas sector.  He said he wants investment in petrochemicals, and 
sees no reason why U.S. oil majors have been reluctant. 
. 
MANUFACTURERS AGAINST TRADE LIBERALIZATION 
------------------------------------------ 
. 
¶6. (SBU) In a side meeting following the meeting with the Minister, 
Ochi Achinivu, Director of Trade at the Ministry, reported that the 
minister had made a presentation to the cabinet on the negative 
signals Nigeria's import bans and high tariffs send to Nigeria's 
trading partners.  He commented that lobbying from the Manufacturers 
Association of Nigeria (MAN) has made it difficult for the GON to 
remove trade bans and high tariffs.  (NOTE: Ugwuh was the immediate 
past president of MAN.  END NOTE) 
 
COMMITTEE INVESTING TRADE IMPACT 
-------------------------------- 
 
¶7. (SBU) Embassy contacts tell us that the GON is unable to make any 
commitment on tariffs and import bans because a team is 
investigating the use of waivers, concessions, tariff exemptions, 
trade incentives, execution of the Export Processing Zones, 
exemptions under customs and excise tariffs, existing incentives 
such as the Export Expansion Grant (EEG), ECOWAS Trade 
Liberalization Scheme (ETLS), the Manufacturers Export In-Bond 
Scheme (MEIBS), and the impact of the CET on the fiscal policy 
objectives of the GON.  The team was assembled in September and is 
expected to come up with their findings by the end of 2007.  It is 
 
ABUJA 00002593  002 OF 002 
 
 
unlikely that the GON will take steps to remove import bans and 
lower tariffs until the report is concluded. 
 
COMMENT 
------- 
. 
¶8. (SBU) Ugwuh was the immediate past president of MAN and appears 
to lack the political gravitas to win the battle against his primary 
constituency.  His knowledge of TIFA details appeared sparse 
considering the TIFA Council meeting was scheduled the following 
day.  He noted concerns that he might not be available to host the 
Council meeting because of possible travel to the U.S. with 
President Yar'adua. (NOTE: The Minister did not travel with the 
President and was in Abuja on the day of the Council meeting. END 
NOTE). 
 
SANDERS