VZCZCXYZ0014
RR RUEHWEB

DE RUEHEG #2097 2691055
ZNR UUUUU ZZH
R 251055Z SEP 08
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 0554
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHGV/USMISSION GENEVA 0400

UNCLAS CAIRO 002097 
 
SENSITIVE 
 
SIPDIS 
 
COMMERCE FOR SAMS AND MASON 
STATE FOR EEB 
 
E.O. 12958:  N/A 
TAGS: ETRD ECON WTRO EG
SUBJECT: EGYPT REVIEWS TEXTILE LABEL REQUIREMENT 
 
REF: MASON-BUZBEE E-MAIL 9/3/2008 
 
Sensitive but Unclassified, please handle accordingly. 
 
¶1. (SBU) Econoff met with Walid el-Nozahy, head of the 
WTO unit at the Ministry of Trade and Industry, on 
September 25 to raise the concerns of Nike and other 
U.S. garment exporters regarding GOE decrees 515 of 
2003 and 770 of 2005 (ref e-mail).  Econoff noted that 
U.S. exporters believe that the decrees, which require 
exporters to sew the name of the Egyptian importer 
into the garments, increase costs, delay their 
shipments, and may constitute a violation of section 
2.2 of the Technical Barriers to Trade Agreement by 
creating an unnecessary obstacle to trade. 
 
¶2.  (SBU) El-Nozahy said the requirement is targeted 
at China, not the US, and is intended to protect 
against fraud. "We are suffering from China," he said. 
Econoff responded that Nike had proposed a "sticker 
solution," in which the exporter would attach all the 
required information in a sticker, rather than sewing 
it into the garment. El-Nozahy said he would consult 
with local industry stakeholders and respond in 
writing after local holidays in early October; 
meanwhile he noted the USG has the right to challenge 
the decrees in the WTO if we believe them to be a 
violation of Egypt's WTO commitments. 
SCOBEY