VZCZCXRO5007
RR RUEHAG RUEHAP RUEHBZ RUEHDE RUEHDF RUEHDU RUEHGI RUEHHM RUEHJO
RUEHLZ RUEHMA RUEHPA RUEHPB RUEHRN
DE RUEHMR #0081/01 0741127
ZNR UUUUU ZZH
R 141127Z MAR 08
FM AMEMBASSY MASERU
TO RUEHC/SECSTATE WASHDC 3610
INFO RUCNSAD/SADC COLLECTIVE
RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUEHMR/AMEMBASSY MASERU 4025

UNCLAS SECTION 01 OF 02 MASERU 000081 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT ALSO FOR AF/EPS, AF/S; 
PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: ETRD ECIN ECON BEXP BTIO LT
SUBJECT: MASERU LDC MINISTERIAL: COTTON-4 PUSH FOR SPECIFIC U.S. 
PROPOSAL 
 
 
MASERU 00000081  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY:  Delegates representing the "Cotton Four" 
(C-4) block of African cotton-producing nations (Mali, Benin, 
Chad, and Burkina Faso) expressed frustration with the slow pace 
of the WTO Doha negotiations during a February 28 meeting in 
Lesotho with Deputy USTR Ambassador Allgeier and AUSTR Liser. 
The meeting was held on the margins of the February 27-29 Least 
Developed Countries (LDC) Trade Ministerial Meeting in Maseru. 
The two sides agreed that, in accordance with the December 2005 
Hong Kong Agreement, cuts in cotton-related domestic support 
should take place more quickly and deeply than cuts for other 
farm products.  The C-4, however, voiced in particular by Chad, 
expressed hope that the U.S. would expedite the negotiations on 
cotton by tabling a specific proposal on how to deal with 
cotton.  The C-4 listened but did not comment on the stated U.S. 
position that domestic support reductions for cotton could only 
be determined after the general formula for overall farm support 
cuts was determined.  After emphasizing their preference for a 
2-1 ratio on blue box reductions (instead of the 1-1 ratio), the 
C-4 delegates stressed the importance of moving quickly on 
cotton and finding a mechanism to provide compensation for their 
local producers.  End Summary. 
 
¶2.  (U) Deputy USTR Ambassador Peter Allgeier met with 
representatives of African cotton producing countries on 
February 28 on the margins of a February 27-29 Least Developed 
Countries Trade Ministerial Meeting in Maseru, Lesotho. 
Attendees at the USTR meeting with the Cotton Four included: 
 
U.S. 
--D/USTR Ambassador Peter Allgeier 
--AUSTR Florie Liser 
--U.S. Embassy Maseru Charge d'affaires W. Patrick Murphy 
--Embassy Maseru Econoff Kit Redmer (notetaker) 
 
Burkina Faso 
--Seriba Ouattara, Ambassador, Permanent Mission to the WTO 
--Ambroise Balima, Economic Counselor, Permanent Mission to the 
WTO 
 
Benin 
--Ernestine Attanasso, Director General, Commerce Ministry 
--Midiohouan Oswald, Auditor, Commerce Ministry 
 
Chad 
--Mahamat Adoudou Allazam, Director of Cooperative Action, 
Commerce Ministry 
 
Mali 
--Demba Kida, Economic Counselor, Commerce Ministry 
 
End summary. 
 
----------------------- 
U.S. Position Clarified 
----------------------- 
 
¶3.  (SBU) While underscoring the importance of cotton tariff 
reduction/elimination (and that it would be treated 
specifically, ambitiously, and expeditiously as per a 2004 WTO 
agreement), D/USTR Allgeier conveyed that all domestic support 
cuts should be included in a comprehensive general schedule, 
stating that the U.S. would abide by 2004 and Hong Kong 
commitments to faster and deeper implementation of cuts in 
cotton domestic supports than the overall formula for 
agriculture once agreed.  D/USTR Allgeier acknowledged that C-4 
proposed cuts are the only ones reflected to date in Chairman's 
paper, but noted the United States would not be in a position to 
make a cotton-specific proposal absent agreement on an overall 
formula for domestic support cuts.  D/USTR Allgeier summarized 
the U.S. position by emphasizing that the U.S. is committed to 
cut domestic supports for cotton faster and deeper than under 
the to-be-agreed general formula.  D/USTR Allgeier also 
highlighted that sometimes deeper cuts can be implemented over 
longer periods of time. 
 
------------------ 
"A Critical Stage" 
------------------ 
 
¶4.  (SBU) Reaffirming the Cotton Four's support for the Hong 
Kong Agreement, Ambassador Ouattara (Burkina Faso) declared that 
the issue is at a "critical stage."  Ouattara contended that the 
Cotton Four proposal - to which each of the four nations were 
fully committed - was not just a strong proposal but also one 
that properly dealt with thorny issues such as the page 43 
ratio, arguing for a 2-1 instead of a 1-1 ratio.  Counselor 
Balima (Burkina Faso) followed Ouattara by highlighting the 
 
MASERU 00000081  002.4 OF 002 
 
 
importance of getting proper compensation for their cotton 
producers. 
 
¶5.  (SBU) Responding specifically to Ouattara's proposal to 
modify the 1-1 ratio to a 2-1 ratio, Ambassador Allgeier 
questioned the logic of a more aggressive (2-1) formula on the 
less trade-distorting blue box subsidies than on amber box. 
This did not elicit a response from the Cotton Four 
representatives. 
 
--------------------------------------------- ----- 
Lack of Specific U.S. Proposal Elicits Frustration 
--------------------------------------------- ----- 
 
¶6.  (SBU) Chadian Trade Ministry representative Mahamat Allazam 
- speaking on behalf of the Cotton Four - conveyed a strong hope 
that their position would be supplemented by a concrete U.S. 
proposal.  Allazam also expressed concern for local growers, 
arguing that "our farmers need this cut."  Seeming to exude 
frustration with the slow pace of negotiations, Allazam 
expressed a desire to "have something (from the U.S.) to take 
back to our ministers." He also noted that they are waiting for 
an EU proposal. 
 
¶7.  (SBU) Ambassador Allgeier responded to Allazam's concerns by 
restating the U.S. commitment to cut domestic support for cotton 
by building on the general formula, rather than an isolated 
proposal. He noted that this would allow a more politically 
feasible approach that would balance gains in some sectors 
against those proposed for cotton. The point that this approach 
would be more politically feasible seemed to resonate among the 
Cotton Four representatives, who concluded by assuring that the 
meeting points would be conveyed to their respective ministers. 
 
¶8.  (U) This cable has been cleared by AUSTR FLiser.NOLAN