VZCZCXRO5664
PP RUEHDE RUEHDH RUEHDIR
DE RUEHKU #0700/01 1941037
ZNR UUUUU ZZH
P 131037Z JUL 09
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 3663
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 KUWAIT 000700 
 
SENSITIVE 
SIPDIS 
 
NEA/ARP; USTR JASON BUNTIN 
 
E.O. 12958: N/A 
TAGS: PGOV PTER PINR GTIP KTFN KHUM KU
SUBJECT: AMBASSADOR DISCUSSES FTA; IPR; KUWAIT'S INVESTMENT 
CLIMATE WITH NEW MINISTER OF COMMERCE & INDUSTRY 
 
REF: KUWAIT 689 
 
¶1.  (U)  Summary: Ambassador met on July 9 with newly 
appointed Minister of Commerce & Industry Ahmad Rashed 
Al-Haroun.  Ambassador applauded the GOK's efforts to 
implement IPR enforcement but stressed the need to implement 
legislation. The Minister was optimistic that with a more 
"approachable" and "knowledgeable" Parliament, essential IPR 
legislation would be passed.  The Minister told Ambassador he 
shared her interest in growing the commercial relationship to 
match the political/military relationship already present. 
Ambassador applauded reported talks between Iraq and Kuwait, 
and expressed confidence the GoK would be creative in 
addressing outstanding debt issues.  Al-Haroun was 
accompanied by Under Secretary Rasheed Al-Tabtabaei, and 
Assistant Under Secretary for Foreign Trade Affairs Abdulaziz 
Al-Khaldi.  End Summary. 
 
 
--- 
IPR 
--- 
¶2.  (SBU)  In a July 9 introductory meeting with Kuwaiti 
newly and first-time appointed Minister of Commerce and 
Industry, the Ambassador commended the GoK on its IPR 
enforcement efforts, but highlighted the need to have laws 
that complement those efforts.  U/S Al-Tabtabaei asked 
Ambassador if Kuwait remained on the Special 301 Watchlist, 
pointing out increased enforcement efforts by the GoK. 
Ambassador told Al-Tabtabaei that while she commended the GoK 
for its obvious commitment to improving its enforcement 
efforts, Kuwait would remain on the Special 301 Watchlist 
absent the passage of relevant legislation. 
 
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Capital Market Authority and Investment 
--------------------------------------- 
 
¶3. (SBU)  Ambassador offered that the government's decision 
to establish a Capital Markets Authority (CMA) for Kuwait's 
Stock Exchange was a step in the right direction.  The 
Minister said he was pleased with the plans for the CMA and 
hoped the Ambassador would have the opportunity to be present 
when he signed the agreement. Turning to investment, 
Ambassador noted that the cancellation of the USD 11.2 
Billion K-Dow deal, together with the canceling of the Fourth 
Refinery tender, had given U.S. companies pause when 
considering investment in Kuwait, and emphasized the GoK's 
need to create a better climate for investment; the 
commercial relationship should mirror our substantial 
political/military relationship.  Al-Haroun said he shared 
the Ambassador's interest in growing the commercial 
relationship and building a stronger bilateral trade 
partnership. 
 
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TIFA and FTA 
------------ 
 
¶4. (SBU) U/S Al-Tabtabaei raised Kuwait's interest in TIFA 
and FTA with Ambassador, underscoring that TIFA was an 
important issue for Kuwait.  He told Ambassador that the 
government was surprised and disappointed during the third 
round of TIFA talks when the GoK was told the US 
Administration's  Trade Promotion Authority (TPA) had expired 
(Note:  The third round of TIFA talks took place in February 
2008 and was headed by then USTR Shaun Donnelly. TPA expired 
July 1, 2007. End Note.)  Ambassador said she knew how 
important this issue was to the government, but given the 
present economic situation in the U.S. and other priorities, 
it was highly unlikely that Congress would re-instate "fast 
track" FTA negotiating authority any time soon.  She 
underscored the need for the government to lay the groundwork 
and re-engage with the USG, to include Congress.  The 
Minister told Ambassador that Kuwait needed  more lobbying 
efforts and acknowledged the need to establish a trade office 
in Washington.  He responded enthusiastically to Ambassador's 
suggestion that he take a trade delegation to the United 
States and expand on the trade relationship. (Note:  There 
has been minimal engagement on TIFA issues since the last 
formal meeting in Kuwait in February 2008 and limited 
progress has been made on the copyright law, but there has 
been no substantive response to comments provided by USTR in 
February 2009. End Note.) 
 
 
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Iraq/Kuwait Discussions 
 
KUWAIT 00000700  002 OF 002 
 
 
----------------------- 
¶5.  (SBU) Ambassador also took this opportunity to applaud 
recent positive exchanges between senior GoK officials and 
visiting Iraqi Parliamentary Speaker Iyad al-Samarrai 
(Reftel).  She urged the GoK to be creative in addressing 
Iraq's debt issue and reiterated that to do so would only 
strengthen and enhance security between the two countries. 
 
 
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Biographical Note 
----------------- 
 
¶6.  (SBU) This is Al-Haroun's first ministerial appointment. 
He previously served as secretary for the financial committee 
of the National Assembly, as Deputy Chief of the Public 
Authority for Social Security (PAFSS) and since 1994 as Chair 
of the Kuwaiti Chamber of Commerce. Al-Haroun is politically 
independent and hails from a well-known family of 
politicians.  His brother Musaid Al-Haroun is the current 
Ambassador to Canada and Former Minister of Education and 
Higher Education and Abd Al-Wahab Al-Haroun was a former MP. 
He was born in 1943 and earned a B.A. from Arab Beirut 
University in 1973.  He is married with four children and his 
eldest son Hamad, studied at Pacific Lutheran University in 
Washington State. 
 
 
 
 
 
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For more reporting from Embassy Kuwait, visit: 
visit Kuwait's Classified Website at: 
 
http://www.intelink.sgov.gov/wiki/Portal:Kuwa it 
********************************************* ********* 
JONES