VZCZCXYZ0000
PP RUEHWEB

DE RUEHBUL #3176 2810707
ZNR UUUUU ZZH
P 080707Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 2006
INFO RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 7979
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 7411
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS KABUL 003176 
 
SIPDIS 
SENSITIVE BUT UNCLASSIFIED 
 
SRAP FOR MARY BETH GOODMAN AND BOB DEUTSCH 
DEPT PASS USTR DEANGELIS 
 
E.O. 12958: N/A 
TAGS: ETRD PREL AF PK
SUBJECT: Foreign Minister Spanta Rules out Including 
Re-export Study in AF-PAK Transit Trade Agreement 
 
REF: (A) KABUL 3102 (B) KABUL 3036 (C) KABUL 3000 
 
¶1. (SBU) Summary: Foreign Minister Spanta told 
Ambassadors Ricciardone and Wayne October 7 that he ruled 
out including the re-export study in the Afghanistan- 
Pakistan Transit Trade Agreement (APTTA) which is 
currently being negotiated.  While committed to going 
ahead with the APTTA, Spanta stated the re-export issue 
should be addressed separately, perhaps led by the 
Interior Ministry responsible for border controls, and 
not the Commerce Ministry.  Spanta was aware the Pakistan 
side was pressing the re-export issue and that they might 
request treating the Wagah border crossing similarly in 
parallel with newly constituted re-export talks.  In that 
eventuality, U.S. officials will need to seek flexibility 
from both sides to advance the process in the coming 
weeks.  End summary. 
 
¶2. (SBU) During an October 7 meeting with Ambassadors 
Ricciardone and Wayne, Foreign Minister Spanta said the 
re-export study must be separate from the APTTA talks. 
It will be difficult for Afghanistan to address the issue 
of re-exports, Spanta stated, many of which are off- 
loaded in Pakistan before reaching Afghanistan.  Since 
re-exports constitute a major part of the informal 
economy of Pakistan and Afghanistan and involve border 
and customs issues, he suggested that the Interior 
Ministry, and not the Commerce Ministry, should take a 
lead in conducting those talks.  Acting MFA Americas 
Director Andisha added that the re-export issue might be 
pursued as part of the ongoing Dubai Process with 
Pakistan in concert with the Canadian government.  He 
noted the next meeting is slated for Kabul later in 
October and there is a draft customs MOU to be 
considered. 
 
¶3.  (SBU) Foreign Minister Spanta reiterated that he 
wants to see the APTTA wrapped up by the end of 2009 and 
that he is open to a separate agreement on re-exports, 
which he agrees is a legitimate issue to address with 
Pakistan.  He said he hopes that approach would allow 
Pakistan to proceed with the APTTA talks.  Spanta 
indicated that the Pakistan side might request treating 
the Wagah border crossing issue similarly, in parallel 
with the re-export talks. 
 
¶4.  (SBU) Comment:  U.S. officials will need to seek 
flexibility from both sides in the coming weeks if the 
APTTA is to remain on track for signing by the end of 
¶2009.  The draft APTTA text had included language on the 
Wagah border crossing issue, albeit bracketed by the 
Pakistan side, because the Pakistani negotiators wanted 
the re-export study to move forward, as called for in a 
textual footnote in the APTTA.  Given the Foreign 
Minister?s approach, it seems this approach must now be 
revised, since the re-export study will be dealt with 
separately, possibly with different ministries in charge 
of such talks.   Embassy will follow up with MFA official 
Andisha and others on what they see as the way ahead.  We 
will need to consider how we can most effectively push 
both sides to move ahead.  End comment. 
 
EIKENBERRY