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DE RUEHMV #0255/01 0941640
ZNR UUUUU ZZH
R 031640Z APR 08
FM AMEMBASSY MONROVIA
TO RUEHC/SECSTATE WASHDC 9905
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEAUSA/DEPT OF LABOR WASHDC
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 04 MONROVIA 000255 
 
SIPDIS 
 
STATE PASS TO USTR FOR LISER AND HAMILTON 
STATE PASS TO OPIC FOR BALLINGER AND SIMON 
USDA FOR PAULINE SIMMONS 
DOL FOR PATRICK WHITE AND TIMOTHY WEDDING 
DEPT FOR AF/EPS FOR ANN BREITER 
DEPT FOR AF/W FOR PETE DAVIS 
ACCRA FOR WEST AFRICA TRADE HUB 
DAKAR FOR APHIS AND WEST AFRICA TRADE HUB 
LAGOS FOR USDA 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD EAID EINV ELAB EAGR EFIN ECON LI
SUBJECT:  LIBERIA: AGOA Workshop Roaring Success, but a lot to do 
 
REF A) Monrovia 193 (President's report on AGOA) 
 B) Monrovia 154 (SPS and AGOA) 
 C) Monrovia 52 (AGOA/TIFA update) 
     D) 07 Monrovia 1348 (MCC) 
   E) 07 Monrovia 1260 (LEDFC) 
 F) 07 Monrovia 1201 (AGOA eligibility) 
 
¶1.  Summary:  The first-ever Africa Growth and Opportunity (AGOA) 
workshop held in Monrovia March 20-21 attracted strong participation 
by members of the business community, GOL officials, members of 
civil society organizations, and the press.  The presentations by 
the inter-agency USG delegation, led by Assistant U.S. Trade 
Representative for Africa Florizelle Liser, were a reality check for 
Liberian officials and potential exporters, but the practical advice 
and compelling evidence of the range of ongoing USG assistance 
provided encouragement.  As AUSTR Liser emphasized, there are 
challenges, but Africa is on the brink of a breakthrough, there is a 
market for African products, and we want to help.  State's Ann 
Breiter reiterated that small changes in the business climate equal 
big improvements.  A list of the USG delegation is at paragraph 3. 
 
 
¶2.  The workshop fulfilled Action Item 5 on the U.S.-Liberia TIFA 
Council Meeting checklist.  Post looks forward to following up on 
items raised during the workshop, especially opening the AGOA 
Resource Center (ARC), concluding the AGOA apparel visa application, 
and initiating work by the Commercial Law Development Program 
(CLDP).  An update of the status of the TIFA Action Items is at 
paragraph 23.  End summary. 
 
¶3.  U.S. Delegation list 
------------------------ 
 
Florizelle Liser, USTR, Head of Delegation 
Constance Hamilton, USTR 
Ann Breiter, State 
Peter Ballinger, OPIC 
Tim Wedding, Labor 
Pauline Simmons, USDA 
Jeffrey Cochrane, WATH Accra 
Tom Herlehy, WATH Accra 
Abou Fall, WATH Accra (Home decor) 
Gustav Adu, WATH Accra (Rubber wood) 
Christine Nicolino, WATH Dakar (Seafood) 
 
Enthusiastic Welcome by Potential Exporters 
------------------------------------------ 
 
¶4.  Liberians are eager to benefit from AGOA and the March 20-21 
workshop received an enthusiastic welcome.  Despite confronting Good 
Friday, a cabinet retreat that claimed the attention and presence of 
the Minister of Commerce, hospitalization of the Deputy Minister of 
Commerce, and a March 18 Presidential proclamation making March 21 a 
national holiday for the Census, the workshop opened to a solid 
crowd of over 40 participants.  The numbers increased gradually, 
topping 60 people plus press by the Friday afternoon close. 
Minister of Commerce Frances Johnson Morris attended the Friday 
session, and was unexpectedly joined by the Minister of Foreign 
Affairs (and former Minister of Commerce) Olubanke King-Akerele and 
by Richard Tolbert, Chairman of the National Investment Commission 
(NIC), both of whom made lengthy remarks and participated throughout 
the day's program. 
 
¶5.  The GOL invited potential exporters to display their goods in an 
adjoining room, which helped delegation members focus their 
comments.  The workshop attracted a cross-section of the business 
community (about equally divided between men and women) as well as 
GOL officials, NGO representatives, and print and radio journalists. 
 (Legislators were on Easter break.) 
 
¶6.  Although the focus of the event was presentations by the USG 
visitors, the program also included updates from the National 
Investment Commission and the Ministry of Commerce on initiatives to 
improve the business climate, and presentations by two members of 
the Liberian business community (a miller who imports U.S. grain and 
a farmer who would like to export) on obstacles to trade.  A 
representative from the International Trade Center in Geneva spoke 
on developing an export promotion and development framework for 
Liberia. AUSTR Liser asked the NIC representative about the status 
of the revised Investment Code and was told stakeholder 
consultations have been very positive, and the GOL expects to 
 
MONROVIA 00000255  002 OF 004 
 
 
resubmit the Bill to the legislature shortly, and it should be 
passed by July.  (Comment:  We have heard the GOL has been 
successful in winning over some opponents to the legislation, but 
stiff resistance remains.  End comment.) 
 
¶7.  During her opening presentation on AGOA and key opportunities 
for Liberia, AUSTR Liser summarized current U.S.-Liberia trade and 
next steps, focusing on the need for a GOL strategic planning 
committee; consideration of how to add value; and the importance of 
establishing commercial links. She said there are challenges, but 
Africa is on the brink of a breakthrough, there is a market for 
African products, and the United States wants to help. 
 
¶8.  Dr. Tom Herlehy from the West Africa Trade Hub (WATH) in Accra 
described WATH activities and announced plans to open an AGOA 
Resource Center in Monrovia by June, to great applause.  Later in 
the event controversy erupted as participants received the 
impression WATH had already selected the Liberian Chamber of 
Commerce as the ARC host, without consulting with other business 
organizations.  (Note:  Post is working with the Ministry of 
Commerce and the Chamber of Commerce to move forward with signing of 
the MOU as soon as the GOL confirms that the Chamber remains the 
most appropriate host.  End note.) 
 
IPR Protection has resonance 
---------------------------- 
 
¶9.  State's Ann Breiter spoke on promoting a business-friendly 
environment, leading the group through the elements of a healthy 
business climate such as infrastructure, intellectual property 
rights, the tax regime, and transparency and corruption. She 
described how trade helps improve all those factors, and concluded 
by assuring that "small changes equal big improvements." 
 
¶10.  The Assistant Minister of Commerce for Industry, Moses Roberts, 
then addressed the group, highlighting GOL failure to implement IPR 
laws, which has resulted in loss of tax revenue, loss of income to 
creators, and piracy.  AUSTR Liser described the Commercial Law 
Development Program's expertise in IPR issues.  (Note: CLDP had 
already communicated with Embassy Monrovia about a program here, and 
we look forward to working with them.  End note.) 
 
Child Labor/Protection a timely topic 
------------------------------------- 
 
¶11.  Tim Wedding of the Department of Labor provided an overview on 
AGOA and labor issues.  A Chamber of Commerce representative asked 
for clarification on whether labor standards, such as minimu wage, 
are absolute.  Wedding explained that some, such as prohibition on 
slave labor, are absolute but others, such as minimum wage, are 
established by each country. AUSTR Liser described techniques other 
countries had used to balance fair wages with job creation. 
 
¶12.  The DOL presentation sparked lively debate about child labor 
and child protection more broadly, a timely issue in Liberia.  The 
audience, while predominately business people, included child 
protection NGOs and a representative of the Ministry of Labor.  The 
MOL praised the strong USG support for Liberia's anti-trafficking 
measures.  As the event concluded on the second day, AUSTR Liser 
reminded the audience that although we understand and support 
initiatives to provide vocational training and employment for young 
people affected by the war, especially ex-combatants, business 
owners should bear in mind the prohibitions on child labor, 
especially in fields that involve dangerous machinery, such as wood 
working. 
 
(Note:  DOL's Patrick White had a separate schedule during the 
visit, meeting with GOL Labor Ministry Officials and with IRC, DOL's 
partner in Liberia.  End note.) 
 
Ag Exports:  Important, but Challenging 
--------------------------------------- 
 
¶14.  USDA's Pauline Simmons showed a training video and spoke on 
initiatives and regulations for exporting agricultural products to 
the United States under AGOA.  The USDA video presentation on 
exporting agricultural products to the United States left the 
audience in stunned silence.  After a pause, the Assistant Minister 
of Commerce rose to say he understood why "we are all depressed" but 
the purpose of the workshop, and video, was to accurately inform 
them of the difficulty of becoming export-ready.  Subsequent 
 
MONROVIA 00000255  003 OF 004 
 
 
speakers from the audience stood to say they are not daunted, but 
welcome the concrete information on U.S. requirements.  One noted 
his observations from a recent trip to the United States that there 
is already a market for Liberian food products in the United States, 
and they just need to work with the WATH to meet standards. 
(Comment:  Ref B describes USDA work with the GOL on establishing 
SPS regimes; the workshop provided an opportunity to reach a broader 
audience.  End comment.) 
 
Financing:  The Heart of the Problem 
------------------------------------ 
 
¶15. OPIC's Peter Ballinger provided an overview of USG financing 
options, including programs by the Overseas Private Investment 
Corporation, African Development Foundation, and the U.S. Trade and 
Development Agency.  He noted that Liberians, by including an 
American friend or relative in their business, could qualify for 
OPIC assistance directly.  Augustus Erskine, General Manager of the 
OPIC-funded Liberia Enterprises Development Finance Company (LEDFC), 
which provides medium-term loans in the US$20,000-1,000,000 range 
(Ref E), joined Ballinger and described LEDFC's support for Liberian 
businesses.  The audience expressed concerns about the steep 
collateral requirements imposed by the Central Bank (CBL).  Erskine 
noted LEDFC, Liberia's only non-bank financial institution, is 
trying to get CBL approval for less rigorous collateral rules than 
those governing deposit-taking institutions. 
 
¶16. One questioner asked how Liberia be removed from the war-risk 
category, a status that sharply increased shipping costs.  Ballinger 
explained that war risk is a designation imposed by commercial 
insurance firms, and that OPIC does not categorize countries by 
risk. 
 
¶17. On the margins of the workshop, the Minister of Foreign Affairs 
asked Ballinger for suggestions on industries that would contribute 
to knitting together the Mano River Union countries and exploiting 
their comparative advantage. 
 
The Nuts and Bolts:  What should Liberia Export? 
--------------------------------------------- -- 
 
¶18.  The second day of the Workshop focused on sectors where 
Liberian exports might have a competitive advantage, led by WATH 
experts on products.  Abou Fall of the Accra Trade Hub spoke on 
handicrafts/home dcor; Christine Nicolino of the Dakar Hub 
described the seafood market and Gustav Adu, also of Accra, updated 
the audience on the pitfalls and potential of rubber wood 
processing.  On the previous day, Fall had provided an overview of 
WATH services and trade information sources, and stressed that 
becoming "export ready" requires individual effort by the exporter. 
 
The Liberian Perspective 
------------------------ 
 
¶19. Liberian businesses identified infrastructure and financing as 
the major obstacles to exports and economic growth.  One questioner 
asked about U.S. support for technology transfer.  AUSTR Liser 
explained technology transfer is often via partnership with foreign 
firms, so a welcoming investment climate will help.  She also 
recommended participation in trade shows if a firm is export-ready. 
A representative from Women in Progress for Community Services 
confirmed the importance of knowing the market, stating that many 
young Liberians had recently been trained to produce furniture and 
other goods, but are now facing "the trauma and stress of no 
buyers." 
 
¶20. Confirming the obstacles caused by inadequate roads and other 
infrastructure, Ms. Josephine Francis, a successful farmer and 
businesswoman, called for increased agriculture near Monrovia, 
reflecting the shift of population away from Liberia's traditional 
agricultural areas.  She said her Farmers' Union Network is focused 
on how to process food, and she requested support for the Ministry 
of Agriculture.  She also noted the need for reforms to clarify land 
ownership.  In response to questioners, WATH's Fall clarified that 
it is up to each government to establish its own AGOA strategy. 
 
¶21. Over the course of the workshop, members of the audience posed 
questions on specific sectors, such as cut flowers or jewelry. 
AUSTR Liser advised working with the African Development Foundation, 
resident in Monrovia, to establish buyer linkages. 
 
 
MONROVIA 00000255  004 OF 004 
 
 
Update on TIFA Action Items 
--------------------------- 
 
¶22.  This section refers to items on the U.S.-Liberia TIFA Council 
Meeting Action Items for Follow-up from November, 2007 and follows 
up on the summary in Ref C.  The March 20-21 AGOA Workshop completed 
Action Item 5, and contributed to furthering Action Items 2, 3, 4, 
10, 11, and 15. 
 
-- 1. Revising the TIFA work plan:  Completed. 
 
-- 2.  USDA/WATH on SPS requirements and market competitiveness of 
Liberian agricultural products:  Ref B reported on USDA/APHIS work 
with the GOL on SPS requirements. 
 
-- 3.  USDA to identify buyers of spices, rubber wood and wood 
products for March 8 trade mission to Africa:  Completed. 
 
-- 4.  USTR to provide GOL with model documents for apparel visa and 
assist with completing application:  In progress.  USTR and WATH 
reiterated USG commitment to assisting GOL on apparel visa process. 
 
-- 5.  USTR/GOL to conduct interagency AGOA workshop:  Completed. 
 
-- 6.  WATH to assess Liberia's seafood sector:  Completed. 
 
-- 7.  USTR to provide GOLD with information on duty free treatment 
for biofuels:  Status not known. 
 
-- 8.  USDA/Cargill on cocoa:  Status not known. 
 
-- 9.  USAID/Ministry of Finance on harmonizing customs data with 
ECOWAS: In progress. 
 
-- 10.  WATH/GOL coordinate on establishing an AGOA Resource Center 
in Monrovia:  WATH announced the ARC will open by the end of June. 
 
-- 11.  Commercial Law Development Program to provide GOL assistance 
on IPR and judicial training:  CLDP has been in contact with Embassy 
Monrovia; the AGOA workshop confirmed the need for such assistance 
and AUSTR Liser described how CLDP could assist Liberia. 
 
-- 12.  DOT/Air travel:  Status not known. 
 
-- 13.  Port feasibility study:  OBE; World Bank is funding the 
study. 
 
-- 14.  Work to include GOL legislators in meeting agendas: 
Ongoing.  The legislature was on break during this workshop. 
 
-- 15.  OPIC/GOL work to ensure Liberians understand mechanics of 
developing successful proposals:  Ongoing.  The OPIC presentation 
during the workshop was very well-received. 
 
-- 16.  Duplicate of no. 9. 
 
-- 17.  DOE will arrange with GOL Ministry of Land, Mines and Energy 
to review a copy of the 2007 National Energy Strategy Report: 
Status not known. 
 
COMMENT 
 
¶23.  The AGOA workshop succeeded in the face of a wide range of 
obstacles and demonstrated the thirst for reliable, actionable 
information on business in general and exporting in particular.  In 
addition to the business community and Ministry of Commerce 
officials, there were representatives from NGOs and civil society 
and a range of GOL officials, including from the Ministries of Labor 
and Finance.  The breadth of participation made this an especially 
effective forum for discussion of topics such as labor issues, 
intellectual property protection and sanitary/phytosanitary 
requirements.  The workshop established that Liberian firms have a 
long, hard road to becoming export-ready, but provided an excellent 
foundation for progress.  End Comment 
 
BOOTH