VZCZCXYZ0000
RR RUEHWEB

DE RUEHGB #2374/01 2461019
ZNR UUUUU ZZH
R 031019Z SEP 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 4562
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEHGV/USMISSION GENEVA 0335

UNCLAS BAGHDAD 002374 
 
SIPDIS 
SENSITIVE 
 
USTR FOR DAWN SHACKLEFORD 
 
E.O. 12958: N/A 
TAGS: ETRD PGOV EAID WTO ECON EINV IZ
SUBJECT: WTO ACCESSION STEPS UNLIKELY BEFORE JANUARY 
ELECTIONS 
 
REF: A. BAGHDAD 1233 
     ¶B. BAGHDAD 636 
 
¶1. (SBU) Summary: The GOI seems unlikely to make the sound 
economic but tough political decisions that would move Iraq 
closer to World Trade Organization (WTO) accession before 
Iraqi national elections in January 2010.  Although Iraq has 
completed the requisites for the next round of accession 
talks, the GOI's inter-ministerial WTO committee will likely 
delay submitting its WTO package to Geneva.  As of September 
1, the GOI has: 1) completed a goods offer and tariff 
schedule, 2) updated its legislative action plan, and, 3) 
finalized draft laws on intellectual property rights (IPR) 
and technical barriers to trade (TBT).  In our discussions 
with Ministry of Trade officials, we have noted that WTO 
accession will be discussed -- either positively or 
negatively -- at October 19 Dialogue on Economic Cooperation 
(DEC) and could draw unwanted attention at the October 20-21 
U.S.-Iraq Business and Investment Conference.  In response, 
the MOT's senior advisor said he is seeking a solution that 
balances political concerns with a genuine interest in 
demonstrating tangible progress ahead of the Washington 
meetings.  End Summary. 
 
------------------------------------------ 
Progress Likely to Slow Ahead of Elections 
------------------------------------------ 
 
¶2. (SBU) In a meeting with Ministry of Trade Senior Advisor 
and SFA JCC Trade and Investment Working Group co-chair Dr. 
Abdulhadi al-Hamiri on August 26 at the MOT, al-Hamiri said 
that the GOI would take few, if any, concrete steps on key 
economic issues -- specifically WTO accession -- before Iraqi 
national elections scheduled for January 2010.  Acting Trade 
Minister Safaa al-Safee is facing "significant pressures" to 
balance reforms such as those required for WTO accession with 
political concerns for his government's re-election, 
al-Hamiri said.  He stated that, in general, public views 
about WTO accession were negative and, in the absence of a 
public information campaign, would not change in the short 
term.  The result is an aversion to opening debate on 
contentious policy issues and a reluctance to make tough 
decisions in advance of elections. "Timing is bad," according 
to al-Hamiri.  (Comment:  In our discussions with the MOT, we 
have recommended that the MOT lead a GOI public information 
campaign and we will continue to deliver that point.  We are 
currently exploring options to help the GOI start a campaign. 
 End comment.) 
 
-------------------------------------------- 
Status of World Trade Organization Accession 
-------------------------------------------- 
 
¶3. (SBU) Al-Hamiri chaired an August 20 GOI inter-ministerial 
working group (the "National WTO Accession Committee") 
meeting to address three significant milestones to WTO 
accession:  1) submission of the GOI's initial goods offer; 
2) submission of the GOI's initial services offer; and, 3) 
submission of draft legislation that conforms Iraq's 
intellectual property rights regime to the provisions of the 
WTO Agreement on Trade Related Aspects of Intellectual 
Property Rights (TRIPS).  As of September 3, MOT WTO Division 
Director Tharwat Salman, was assembling the GOI's planned WTO 
package, which, according to Salman, will include: 
 
- Iraq's initial goods offer (including bound tariff 
schedule, a proposed agricultural subsidy offer, and a 
schedule of commitments on provisions of the GATT and WTO 
agreements on trade in goods); 
 
- final ACC4 (data on the status of Iraq's agricultural 
subsidy regime); 
 
- updated legislative action plan; 
Q- updated legislative action plan; 
 
- final draft intellectual property law; and, 
 
- final draft technical barriers to trade law. 
 
Salman would not commit to a submission timeline beyond 
noting that the package had not been forwarded yet to Acting 
Trade Minister Safaa al-Safee for approval.  Press reports 
following the August 20 committee meeting were less specific, 
but noted that the GOI intended to submit a package for the 
next round of WTO negotiations. 
 
------------------------------------------ 
Despite Political Concerns, Work Continues 
 
------------------------------------------ 
 
¶4. (SBU) Al-Hamiri stated that the WTO Accession Committee 
had determined that submitting initial goods and services 
offers required notification to, but not prior approval by, 
the Council of Ministers (COM) and Council of Representatives 
(COR).  This is a departure from previous practice and could 
speed the accession process significantly (ref B), but likely 
only if the same government remains in power after the 
January elections.  (Comment:  We have repeatedly reminded 
our GOI interlocutors that submitting offers to Geneva marks 
the beginning -- not the end -- of accession negotiations, 
and that COM or COR approval for each step of the negotiation 
process would result in unnecessary delays.  End comment.) 
The committee has also considered a version of the GOI's 
initial services offer that includes positions on five 
services sectors (100 of 155 sub sectors):  tourism, finance, 
telecommunications, computers and research and development, 
and transportation.  According to al-Hamiri, there was some 
"difference of opinion among the Ministries" on the services 
offer that al-Hamiri has tasked committee members to "work 
out."  Al-Hamiri said the GOI is considering whether to 
submit the initial services offer with five sectors completed 
or wait until the entire package is completed.  We urged the 
former. 
 
------- 
COMMENT 
------- 
 
¶5. (SBU) The upcoming U.S.-Iraq Dialogue on Economic 
Cooperation and the Business and Investment Conference have 
created some leverage for us, which we will continue to use 
to urge quiet steps forward on WTO accession.  We stressed to 
Dr. al-Hamiri that, in the context of the Washington 
conference, potential investors would only look to concrete, 
demonstrable progress (measured, in part, by steps forward on 
WTO accession) that Iraq is opening for business.  Al-Hamiri 
sees increased trade and investment as political talking 
points for the elections, and understands that improvements 
to Iraq's business and investment climate are critical to 
attract foreign deals.  Both views give us traction -- which 
we will continue to use in our discussions with the GOI in 
the run-up to the October Conference and beyond. 
HILL