VZCZCXRO8660
PP RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHSL RUEHYG
DE RUEHBUL #3049/01 2740302
ZNR UUUUU ZZH
P 010302Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 1769
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEKJCS/SECDEF WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RUEHRC/USDA FAS WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 KABUL 003049 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SRAP, SCA/FO, SCA/RA, AND SCA/A 
DEPT FOR AID/ASIA SCAA DRAY 
DEPT PASS USTR FOR DELANEY AND DEANGELIS 
DASD FOR DSEDNEY 
USDA FOR FAS MICHNER 
 
E.O. 12958: N/A 
TAGS: EAID EAGR ECON SNAR PGOV PINS AF
SUBJECT: AGRICULTURE ROUNDTABLE WITH DEPUTY SECRETARY LEW AND MAIL 
MINISTER MOHAMMED ASIF RAHIMI 
 
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SUMMARY 
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¶1. (SBU) A visiting U.S. Delegation, led by Deputy Secretary Jacob 
Lew, met with Minister Mohammed Asif Rahimi of the Ministry of 
Agriculture, Irrigation, and Livestock (MAIL) on September 8 to 
discuss the importance of agriculture to the U.S. strategy for 
Afghanistan.  Embassy Kabul was represented by the Coordinating 
Director for Development and Economic Affairs, USAID and USDA. 
Minister Rahimi requested urgent and high-level USG support on two 
issues of critical importance: 1) crossborder trade barriers; and 2) 
MAIL capacity. In response, Embassy Kabul is: a) seeking an early 
release of FY10 funding to expedite support for MAIL Capacity 
Building--with an interim solution being that USAID will provide $8 
million to support this effort--and accelerate the deployment of 5 
USDA Ministry Experts and 54 field-based staff; b) helping to 
finalize a new Afghanistan-Pakistan Transit Trade Agreement (APTTA); 
c) considering assigning a senior USDA expert to address MAIL 
sanitary and phyto-sanitary standards (SPS) issues; e) following up 
with MAIL regarding implementation of new activities to support the 
GIRoA in the agriculture sector; and f) finalizing revision of the 
U.S. agriculture strategy paper.  END SUMMARY 
 
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CROSS-BORDER TRADE 
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¶2. (SBU) The Minister outlined the trade flow of Afghan goods 
through the region and stated that India remains a large market for 
Afghanistan but transit issues at the border with Pakistan have 
stemmed the flow of trade.  He said continued border and customs 
delays are significantly hurting the Afghan farmer by increasing the 
cost of doing business and reducing the opportunities to generate 
needed income.  According to the Minister, while the 1965 
Afghanistan-Pakistan Transit Trade Agreement allows for the free 
flow of Afghan trucks to Pakistan, a recent surge of incidents in 
which Afghan trucks are being stopped at the border or allowed into 
Pakistan but charged significant additional tariffs, are undermining 
trade.  He appealed for more senior level USG intervention, noting 
that discussions with Pakistan on this issue have made little 
headway. 
 
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MAIL CAPACITY 
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¶3. (SBU) Minister Rahimi discussed the general lack of capacity of 
MAIL and its staff of over 9,000.  He cited the MinistryQs 
traditional mindset of a preference for big government, rather than 
taking a more market-based approach.  The Minister also said the 
Ministry lacks adequate equipment, systems, procurement, and 
financial management.  Likewise, he described how corruption 
continues to inhibit progress.  In order to combat this, over the 
past eight months, the Minister has fired an average of two 
employees per week, and has hired an average of ten 
merit-based/qualified employees per week.  He noted, however, that 
progress is limited.  The Minister then described MAILQs QChange 
ManagementQ program to strengthen the institutional capacity of the 
Ministry and requested immediate USG financial support for the 
multi-donor program (for which he has hired the Asia Foundation to 
manage).  The Minister noted that the Dutch were the only donor to 
commit funds to date and requested that this program be more highly 
prioritized within the USG assistance package. 
 
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DISCUSSION 
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¶4. (SBU) Deputy Secretary Lew discussed the importance of USG 
assistance being an Afghan-led process.  On transit, he told 
Minister Rahimi the USG engaged the Governments of Pakistan and 
India in bilateral conversations.  He stated that the USG could 
assist with tri-lateral talks if desired but stressed that this not 
become a four-way conversation: the Pakistanis and the Afghans need 
to engage directly.  He supported the MinisterQs assertions 
concerning the need to focus on increased capacity building at both 
the national and sub-national levels. 
 
 
KABUL 00003049  002 OF 002 
 
 
¶5. (SBU) Acting USAID Administrator Alonzo Fulgham inquired about 
the status of meeting sanitary and phyto-sanitary standards (SPS), 
in addition to packaging and marketing to facilitate increased 
exports.  The Minister responded that progress had been limited due 
to poor capacity, and immediate assistance from the USG or other 
donors is needed due to the serious lack of quality control on 
inputs such as fertilizer. 
 
¶6. (SBU) On food security, the Minister said Afghanistan is near 
self-sufficiency in wheat this year, and the GIRoA is building 
strategic reserves of 100,000 metric tonnes (MTs).  Deputy Secretary 
Lew inquired whether MAIL had adequate capacity for storage, and the 
Minister responded that while the Government could potentially store 
approximately 160,000 MTs, many silos need repair.  Several donors 
are providing support in this effort, he said. 
 
¶7. (SBU) The Minister said he looked forward to working together on 
implementation of the new USG agriculture strategy.  Ambassador 
Wayne agreed that further discussion on implementation is needed, in 
part to reflect the MinisterQs stated priorities. 
 
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NEXT STEPS 
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¶8. (SBU) In response to the issues raised, Embassy Kabul is: a) 
seeking an early release of FY10 funding to expedite support for 
MAIL Capacity Building--with an interim solution being that USAID 
will provide $8 million to support this effort--and accelerate the 
deployment of 5 USDA Ministry Experts and 54 field-based staff; b) 
helping to finalize a new Afghanistan-Pakistan Transit Trade 
Agreement (APTTA); c) considering assigning a senior USDA expert to 
address MAIL SPS issues; e) following up with MAIL regarding 
implementation of new activities to support the GIRoA in the 
agriculture sector; and f) finalizing revision of the Agricultural 
Strategy paper. 
 
 
EIKENBERRY