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Viewing cable 09BERLIN1605, GLASS HALF FULL: GERMANY BACKS CURRENT DOHA

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Reference ID Created Released Classification Origin
09BERLIN1605 2009-12-18 15:29 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Berlin
VZCZCXRO0565
OO RUEHIK
DE RUEHRL #1605/01 3521529
ZNR UUUUU ZZH
O 181529Z DEC 09
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6103
INFO RUCNMEM/EU MEMBER STATES  PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 1582
UNCLAS SECTION 01 OF 02 BERLIN 001605 
 
SIPDIS 
SENSITIVE 
 
USEU FOR PCHASE, DMULLANEY. 
STATE PASS TO USTR FOR DWEINER, LYANG; TO COMMERCE FOR 
MAC/ITA/AGORSHENIN/4212 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL EAGR WTRO EU GM
SUBJECT: GLASS HALF FULL: GERMANY BACKS CURRENT DOHA 
PACKAGE 
 
REF: BERLIN 00666, STATE 123787 
 
BERLIN 00001605  001.2 OF 002 
 
 
1.  (SBU) SUMMARY. German government and industry fully 
concur in calling for a swift conclusion of the Doha 
Round. They believe that the current Doha package is the 
best result that can be obtained. Senior government and 
industry officials have signaled that they consider U.S. 
demands for more market access in emerging countries to 
be unrealistic. The German delegation to the WTO 
Ministerial from Nov 30 to Dec 2 described the 
atmospherics at the meetings as good, but expressed 
disappointment that no progress was made on substance. 
END SUMMARY. 
 
2.  (SBU) German government and industry stress that, 
especially in these economically difficult times, it is 
important to set a strong, long-term signal for world 
trade and against protectionism by concluding the Doha 
round. The German government believes that developing 
countries will not agree to further tariff cuts and has 
therefore called on the U.S. to accept the current Doha 
deal.  The Ministry of Economics and German business 
associations, including the Federation of German Industries 
(BDI) and the Association of German Chambers of Industry and 
Commerce (DIHK), are fully aligned in their position on 
the Doha round. 
 
3.  (SBU) Dr. Axel Nitschke, Deputy CEO of the DIHK and 
head of the division for international economic affairs, 
told Econ Counselor that, even though some German 
industry sectors (e.g., the chemical industry) are 
asking for sectoral agreements, the DIHK sees the 
overall package currently on the table as an acceptable 
outcome that benefits the German economy as a whole. 
Oliver Wieck, Chief of Foreign Trade, Economic and 
Development Policy at BDI, said his organization was not 
against sectoral agreements per se, but did not see them 
as a sine qua non for an agreement.  He noted that Doha, 
like it or not, had originally been conceived as a 
development round, and this has shaped the expectations 
of the developing countries.  Wieck remarked that, while 
the U.S. appears to see the Doha as a half-empty glass, 
Germany sees it as half full. 
 
4.  (SBU) Knut Bruenjes, the Ministry of Economics' Deputy 
Director General on WTO Affairs, expressed frustration that 
Germany, Europe's largest economy and the world's leading 
exporter, has little influence on WTO negotiations, since as 
an EU member it is not an authorized negotiator.  The Germans 
were also disappointed that USTR Kirk did not have time to 
meet with the head of the German delegation, Ministry of 
Economics State Secretary Dr. Bernd Pfaffenbach, but held 
bilaterals with other countries with significantly smaller 
economies. 
 
5.  (SBU) Bruenjes stated that talk of a new "G-2" (the U.S. 
and China) has caused some unease with the Germans.  He 
encouraged the EU and the U.S. to consult closely with one 
another about their approaches to China.  The DIHK's Dr. 
Nitschke was less alarmed about a "G-2," but noted that, 
because of China's and the United States' enormous market 
size, both countries have a great responsibility to move Doha 
forward and address global imbalances.  Nitschke also 
advocated closer EU-U.S. cooperation on China, notably on 
currency exchange rates.  The BDI's Wieck said that, after the 
recent U.S.-China summit revealed some fundamental areas of 
disagreement, any worries he ever had about a "G-2" were 
completely dispelled. 
 
6.  (SBU) COMMENT. The U.S. and Germany continue to disagree 
on Doha.  There seems to be no movement in the German 
position, and the U.S.'s view seems to have no impact on them. 
Both German government and industry continue to support the 
current package despite its limited benefits for the German 
economy.  During a time of falling global commerce, as a 
country highly dependent on foreign trade, Germany deems it 
important to send a strong signal in favor of the world 
trading system by concluding the Doha Round.  Given the German 
propensity, both in its own civil society and within the EU, 
to seek consensus, it is unlikely that Germany will press 
emerging economies for greater market access.  This is 
particularly true given the designation of Doha as a 
"development round."  The Germans consider it unrealistic that 
the advanced developing countries will make further market 
entry concessions at this point. END COMMENT. 
 
 
BERLIN 00001605  002.2 OF 002 
 
 
MURPHY 
#