Cablegate: Wto Accession Process Helps Drive Modernerization

VZCZCXRO9694
PP RUEHROV
DE RUEHKH #2008 2361126
ZNR UUUUU ZZH
P 241126Z AUG 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC PRIORITY 4269
INFO RUCNIAD/IGAD COLLECTIVE
RUEHGV/USMISSION GENEVA 0029

UNCLAS KHARTOUM 002008

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR AF/SPG, AF/EPS AND EB

E.O. 12958: N/A
TAGS: ETRD PREL PGOV EFIN WTO SU
SUBJECT: WTO ACCESSION PROCESS HELPS DRIVE MODERNERIZATION

1. (U) Summary: The process of preparing for WTO accession is
helping to drive economic reform in Sudan. Although Sudan's WTO
membership is stalled, economic reforms and trade liberalization
continue, helping to encourage a more pragmatic approach to economic
questions. End Summary.

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WTO Accession Leads to Pragmatic Approach to Economy
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2. (SBU) On August 17, Pol/Econ Officer met with Badr Eddin
Suileman, Sudan's Chief National Negotiator for WTO accession.
Suileman provided an overview of the changes in the Sudanese economy
as efforts are made to bring Sudan into the WTO. He believes that
there has been a gradual weakening of ideological positions and a
growth of a more pragmatic approach to the economy and attributes
this in part to the internal process surrounding WTO accession.

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Banking and Telecommunications Sectors Opening
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3. (SBU) Sulieman underlined that certain sectors, notably banking
and telecommunications had seen substantial change, with private
market openings and increased global ties. In banking, Sulieman
said, the reform process has culminated in the licensing of four new
foreign banks with share capital exceeding all previously existing
banks. The new banks bring an international outlook that changes the
business environment in Sudan. In the telecommunications area,
Sulieman said that Sudan has seen unprecedented reform. The sector
has moved from an absolute government monopoly a decade ago to being
almost fully privatized. Three of the four companies in the sector
are private, and the fourth, Sudatel, is a joint venture with a
government majority shareholding. Total investment in the sector
exceeds USD 2.6 billion. Telecommunications companies play a leading
role in the Sudan Stock Market.

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WTO Bilaterals Pinnpoint Areas for Econ Policy Reform
--------------------------------------------- --------

4. (SBU) While Sudan continues to grapple with the problems of
implementing the Comprehensive Peace Agreement (CPA) and the Darfur
Peace Agreement (DFA), internal work has quietly continued on WTO
accession. Bilateral consultations were last held in 2005, and the
accession process effectively is on hold. However, Sulieman noted
that there have been significant changes in Sudan's economy in
recent years. He noted that in the bilaterals, 580 questions had
been submitted to Sudan, most of them from the United States.
Sulieman said these questions had been very helpful, and had
assisted in the formulation of economic reforms.

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CPA, DPA Cited as Reform Agents; SPLM Supports
--------------------------------------------- -

5. (SBU) Sulieman related how he had made a presentation to the
Council of Ministers on August 6, detailing Sudan's track record on
WTO accession in 2005 and early 2006. He received permission to
conduct the presentation in English (the Council of Ministers
normally conducts business in Arabic). Sulieman said that the SPLM
members of the council applauded when he stated that the recent
peace accords, (CPA and DPA), "would inspire a redefinition of Sudan
and a reinvention of a new Republic; united in diversity and
decentralized governance" and "...the prospects for Sudan
integrating into the world economy have never looked better."

HUME

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