VZCZCXRO5665
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHWD #0193 1490924
ZNR UUUUU ZZH
P 290924Z MAY 09
FM AMEMBASSY WINDHOEK
TO RUEHC/SECSTATE WASHDC PRIORITY 0543
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

UNCLAS WINDHOEK 000193 
 
 
SIPDIS 
 
PLEASE PASS TO USTR/WILLIAM JACKSON 
 
E.O. 12958: N/A 
TAGS: ECON PGOV WA
SUBJECT: SACU Secretariat Praises US-SACU Relationship 
 
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Summary 
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¶1. (SBU)  A May 14 Namibian newspaper article alleged that the USG 
had abandoned its commitment to continuing trade discussions under 
the July 2008 Trade, Investment and Development Cooperation 
Agreement (TIDCA) signed by the United States and the Southern 
African Customs Union (SACU).  In a public meeting on May 27, SACU 
Executive Secretary Tswelopele Cornelia Moremi strongly refuted the 
allegations.  Moremi stressed that U.S.-SACU relations are good, 
that SACU is a major beneficiary of the African Growth and 
Opportunity Act (AGOA), and that trade consultations were on-going. 
USTR's prompt response to the initial article appears to have helped 
Moremi correct an inaccurate story with negative public relations 
potential.  End Summary. 
 
¶2. (SBU)  In its May 14 edition Namibian newspaper Informante 
published a wildly inaccurate article titled "Obama sends SACU to 
hell!"  Informante, a free weekly newspaper, tends to focus on 
sensationalist news.  While its stories are often not completely 
accurate, the paper is free and enjoys a wide circulation.  The 
opening sentence of the article read, "The new Barack Obama-led US 
administration revealed this week that it would not participate in 
further talks with the Southern African Customs Union (SACU) member 
states regarding a possible free trade agreement (FTA) between the 
two parties."  The article implied the USG had abandoned the Trade, 
Investment and Development Cooperation Agreement (TIDCA) signed in 
July 2008, referring to the agreement in the past tense.  The USG's 
alleged action was called a "heavy blow to SACU member countries." 
 
 
¶3. (SBU)  On May 27, at a meeting open to the public, SACU Executive 
Secretary Tswelopele Cornelia Moremi refuted the allegations made in 
the Informante article.  Moremi, who was addressing a larger forum 
on the general state of the customs union, dedicated at least five 
minutes of her 45-minute discussion to clear the record on U.S.-SACU 
relations.  Several media outlets attended the event, including the 
Namibian Broadcasting Company (the national radio and TV service). 
 
¶4. (SBU)  Moremi praised trade ties between SACU and the United 
States.  She stressed that SACU is one of the largest beneficiaries 
of the African Growth and Opportunity Act (AGOA).  Moremi explained 
that AGOA is a unilateral trade preference granted by the United 
States, and she underscored that sub-Saharan African countries do 
not reciprocate the benefits provided by the U.S.  SACU pursued a 
Free Trade Agreement (FTA) with the United States to "lockin" AGOA's 
benefits, emphasized the SACU Executive Secretary.  She noted that 
during the 2003-2007 negotiations, both sides (parties) recognized 
some issues were not easy to overcome, so a consensus emerged that 
it made sense to develop the TIDCA.  Moremi explained that 
consultations under the TIDCA continue and that relations between 
SACU and U.S. are very positive and very important.  She concluded 
by dismissing the (Informante) news article as completely 
inaccurate. 
 
¶5. (SBU)  On May 28, The Namibian newspaper, one of Namibia's two 
English-language daily newspapers, provided a mostly accurate report 
of Moremi's comments.  However, the Namibian article was not without 
error as well.  The first paragraph closed with the phrase that the 
U.S. and SACU "will not conclude a preferential trade agreement, but 
will opt for an investment and trade cooperation agreement instead," 
implying that negotiations to reach the TIDCA were on-going. 
 
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Comment 
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¶6. (SBU)  After we brought the Informante article to USTR's 
attention, USTR  engaged with the SACU Secretariat to clarify the 
record.  USTR provided assurances that the USG remains committed to 
the TIDCA and U.S.-SACU trade negotiations.  USTR also provided the 
Secretariat with talking points on the benefits SACU has accrued 
from AGOA.  USTR's prompt interventions appear to have informed SACU 
Executive Secretary Moremi's public comments on the state of 
U.S.-SACU trade relations and played a key role in correcting an 
inaccurate story with negative public relations potential.  End 
Comment. 
MATHIEU