U.S. urges Sudan, South Sudan to talk of face economic turmoil

Voice of America 18/07/12 - Sudan and South Sudan must build on recent
talks between their leaders to resolve disputes that brought them to
the brink of war this year or face a “rapid downward economic spiral,”
the U.S.’s top Africa diplomat said.
President Salva Kiir’s meeting with Sudanese President Umar al-Bashir
on July 14 in Addis Ababa was a “significant” step toward reaching an
accord on outstanding issues including oil- transit fees and disputed
territory, Assistant Secretary of State for African Affairs Johnnie
Carson said in an interview in Ethiopia’s capital yesterday.
“Both of these countries face extremely bleak economic futures if they
in fact do not reach political settlements on the differences that
divide them,” he said. “Time is running out as the economic clock
winds down.”
South Sudan seceded from Sudan in July 2011, taking with it about 75
percent of Sudan’s oil production. In January, South Sudan halted
350,000 barrels a day of crude shipments because of a disagreement on
how much it should pay for the fuel to be transported via a pipeline
to a Sudanese port on the Red Sea. South Sudan also accused Bashir’s
government of stealing $815 million worth of crude. Sudan said it was
confiscated to pay transportation fees.
On May 2, the United Nations Security Council threatened to impose
sanctions if the two countries fail to resolve their disputes within
three months. African Union-mediated talks are continuing in the
Ethiopian city of Bahir Dar. Negotiations will go on until the Aug. 2
deadline, Pagan Amum, the south’s chief negotiator, said on July 14.
Negotiators from both countries were “empowered” by their presidents’
meeting to “make progression on key issues,” Carson said.
Both sides are determined to reach a deal, Amum said. “Both of these
countries can in fact do better, but the route remains trough
political solutions and the will and commitment of both sides to reach
political agreements,” he said.

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