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Viewing cable 07MUNICH106, BAVARIAN TAKE ON DOHA AND CLOSER TRANSATLATIC INTEGRATION

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Reference ID Created Released Classification Origin
07MUNICH106 2007-02-21 17:13 2011-08-24 01:00 UNCLASSIFIED Consulate Munich
VZCZCXRO3484
PP RUEHAG RUEHDF RUEHLZ
DE RUEHMZ #0106 0521713
ZNR UUUUU ZZH
P 211713Z FEB 07
FM AMCONSUL MUNICH
TO RUEHC/SECSTATE WASHDC PRIORITY 3779
INFO RUCNFRG/FRG COLLECTIVE
UNCLAS MUNICH 000106 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD PREL ECON GM
SUBJECT: BAVARIAN TAKE ON DOHA AND CLOSER TRANSATLATIC INTEGRATION 
 
 
1.  In a discussion with senior officials from the Bavarian Ministry 
for Economic Affairs and the State Chancery, Embassy Berlin EMIN 
stressed the urgency of German and EU action to revitalize the Doha 
Development Agenda (DDA) now.  He pointed to statements by 
Chancellor Merkel and other senior Germans about the need to act to 
make the DDA a success and that the window of opportunity seems 
likely to close with the March EU Council meeting. 
 
2.  The Bavarian officials were concerned large agricultural 
producers, in particular Brazil, view Doha primarily as a means of 
entry into EU markets.  Bavarian farmers - who account for only 
about 3 percent of the GDP of a German state primarily known for 
electronics and other strong international high-tech industries - 
are not ready to "sacrifice their livelihood on the altar of 
globalization."  While conceding that Bavaria, with its strong 
manufacturing base would be benefiting from a successful DDA, the 
state's officials admitted their position on the Round was "closer 
to France." 
 
3.  The Munich economic officials stated one way ahead was 
uncoupling assistance to farming from production, e.g., by treating 
farmers as environmental stewards.  They conceded, however, that 
local farmers have resisted that scheme.  EMIN also noted objections 
various partners have pointed out with such an approach. 
 
4.  Turning to press reports on the Chancellor's transatlantic 
economic initiative, the Bavarian government economic experts said 
there would be little enthusiasm for the initiative if it is 
supposed to develop some sort of economic fortress against China and 
India.  The officials, however, saw the need for and benefit of 
further integration of the U.S. and EU economies, noting on the one 
hand, Bavarian firms such as Siemens or BMW, as well as small and 
medium-sized companies that have invested in the U.S., and U.S. 
firms on the other hand, including GE, that have operations in 
Bavaria. 
 
5.  Although Bavaria has no direct responsibility for trade policy, 
its state government can influence trade policy decisions at the 
federal level as a member of the coalition committee, through CSU 
deputies in parliament and CSU ministers in the federal government, 
as well as through its representation in the upper house, the 
Bundesrat. 
 
6.  Previous reporting from Munich is available on our SIPRNET 
website at www.state.sgov.gov/p/eur/munich/.