Reference ID:08CAIRO2097

Created: 2008-09-25 10:55  

Released:  2011-08-30 01:44

Classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY  

Origin: Embassy Cairo

            


VZCZCXYZ0014

RR RUEHWEB


DE RUEHEG #2097 2691055

ZNR UUUUU ZZH

R 251055Z SEP 08

FM AMEMBASSY CAIRO

TO RUEHC/SECSTATE WASHDC 0554

INFO RUCPDOC/DEPT OF COMMERCE WASHDC

RUEHGV/USMISSION GENEVA 0400


UNCLAS CAIRO 002097

 

SENSITIVE

 

SIPDIS

 

COMMERCE FOR SAMS AND MASON

STATE FOR EEB

 

E.O. 12958:  N/A

TAGS: ETRD ECON WTRO EG

SUBJECT: EGYPT REVIEWS TEXTILE LABEL REQUIREMENT

 

REF: MASON-BUZBEE E-MAIL 9/3/2008

 

Sensitive but Unclassified, please handle accordingly.

 

¶1. (SBU) Econoff met with Walid el-Nozahy, head of the

WTO unit at the Ministry of Trade and Industry, on

September 25 to raise the concerns of Nike and other

U.S. garment exporters regarding GOE decrees 515 of

2003 and 770 of 2005 (ref e-mail).  Econoff noted that

U.S. exporters believe that the decrees, which require

exporters to sew the name of the Egyptian importer

into the garments, increase costs, delay their

shipments, and may constitute a violation of section

2.2 of the Technical Barriers to Trade Agreement by

creating an unnecessary obstacle to trade.

 

¶2.  (SBU) El-Nozahy said the requirement is targeted

at China, not the US, and is intended to protect

against fraud. "We are suffering from China," he said.

Econoff responded that Nike had proposed a "sticker

solution," in which the exporter would attach all the

required information in a sticker, rather than sewing

it into the garment. El-Nozahy said he would consult

with local industry stakeholders and respond in

writing after local holidays in early October;

meanwhile he noted the USG has the right to challenge

the decrees in the WTO if we believe them to be a

violation of Egypt's WTO commitments.

SCOBEY