VZCZCXYZ0013
PP RUEHWEB

DE RUEHBUL #3571 3091734
ZNR UUUUU ZZH
P 051734Z NOV 09
FM AMEMBASSY KABUL
TO RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 8069
RUEHC/SECSTATE WASHDC PRIORITY 2906
RUEHGV/USMISSION GENEVA PRIORITY 6770

UNCLAS KABUL 003571 
 
SIPDIS 
 
STATE FOR S/SRAP, SCA/A AND EEB/BTA 
STATE PASS USTR FOR DELANEY AND DEANGELIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EAID PREL PK AF
SUBJECT: COMMERCE MINISTER ADDRESSES AF-PAK TRANSIT TRADE AGREEMENT 
AND WTO ACCESSION BID 
 
REF: KABUL 3441 AND PREVIOUS 
 
¶1. (SBU) Summary: Commerce Minister Shahrani commented briefly 
November 4 on the status of the Afghanistan-Pakistan Transit Trade 
Agreement (APTTA) and his Ministry's plans to seek World Trade 
Organization (WTO) membership.  Shahrani said he personally proposed 
to the Pakistan side two sets of dates for the next round of 
technical talks (November 10-11 and November 16-17) and that the 
Pakistani negotiators were receptive to the later dates.  However, 
President Karzai's approaching inauguration, now anticipated on 
November 18-19, would complicate logistics.  Shahrani added he was 
highly flexible on the venue of talks, willing to hold them in 
Islamabad if Foreign Minister Spanta approves.  Shahrani reported 
that he plans to seek Cabinet approval November 23 to present his 
Ministry's action plan for WTO accession to the upcoming WTO 
inter-ministerial in Geneva on November 30.  End summary. 
 
AF-PAK TRANSIT TRADE AGREEMENT (APTTA) 
- - - - - - - - - - - - - - - - - - - 
 
¶2. (SBU) Minister of Commerce and Industries (MOCI)Wahidullah 
Shahrani briefly discussed APTTA and WTO accession issues at a 
November 4 international donors conference devoted to reviewing 
progress on private sector development programs.  On APTTA, Shahrani 
summarized the state of play: he had obtained Foreign Ministry 
approval October 26 to invite the Pakistan side formally to Kabul for 
the fourth round of technical talks and to convey the Terms of 
Reference (TOR) for the study of unauthorized trade (reftel).  The 
Pakistani chief negotiator's prior commitments and the anticipated 
announcement of President Karzai's inauguration within the November 
17-19 time frame have complicated both sets of proposed dates (Nov. 
10 - 11 and Nov. 16 - 17).  Shahrani noted he is flexible on the 
venue of the talks "since progress on APTTA is more important than 
its process."   Accordingly, he said he was willing to hold the next 
round in Islamabad, if that was helpful for the Pakistan side and if 
Foreign Minister Spanta approved the new venue and the delegation's 
travel during the President's inauguration. 
 
¶3.  (SBU) In response to a question, Minister Shahrani said he 
remains confident the APTTA can be wrapped up by the end of 2009.  He 
noted the APTTA is "more than 90 percent completed," with three main 
issues -- the transport protocol, dispute settlement, and the TOR -- 
still to be worked out.  However, he foresees another four rounds 
still necessary to complete the agreement. 
 
WORLD TRADE ORGANIZATION (WTO) ACCESSION 
- - - - - - - - - - - - - - - - - - - - 
 
¶4.  (SBU) Shahrani reported he plans to seek Cabinet approval 
November 23 to present his Ministry's action plan for WTO accession 
to the upcoming WTO inter-ministerial in Geneva in late November. 
The Ministry has completed a draft action plan and is circulating it 
for comments.  He said the Afghan government had committed in 
December 2004 to seek WTO membership, but little progress had been 
made, chiefly because the Cabinet had repeatedly postponed debate on 
the issue.  Shahrani said the Cabinet prefers to defer its decision 
until working-level discussions had amplified the pro's and con's of 
the bid and set out what Afghanistan would need to agree to in order 
to join.  While acknowledging other Ministries will be involved in 
any future WTO accession process, Shahrani said he is leading the 
effort to secure Cabinet approval for his WTO action plan and feels 
he has President Karzai's support.  Shahrani also met with WTO 
Director-General Pascal Lamy in Tanzania during the LDC conference in 
mid-October to discuss Afghanistan's accession. 
 
¶5. (SBU) The MOCI has constituted a WTO unit as the nucleus of an 
interagency negotiation team.  Shahrani previously told EmbOffs 
Mozammil Shinwari, Head of MOCI's International Trade Department, 
would oversee the WTO unit.  Shinwari recently completed a WTO 
training course in Geneva as preparation for the accession process. 
In addition, Shahrani is seeking Cabinet approval to appoint a Trade 
Envoy to Geneva, mainly to support Afghanistan's WTO bid. 
 
COMMENT 
- - - - 
 
¶6.  (SBU)  Minister Shahrani spoke confidently about his APTTA and 
WTO initiatives, proudly citing Presidant Karzai as their principal 
supporter.  Shahrani is projecting an image of someone who expects to 
keep his portfolio, pushing a clear set of priorities designed to 
promote Afghanistan's economic growth and private sector development. 
 At the same time, the make-up of the next Karzai Cabinet is by no 
means certain.  End comment. 
 
EIKENBERRY