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Viewing cable 06PARIS2136, DOHA : FRANCE MAINTAINS HARD-LINE
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06PARIS2136 | 2006-03-31 17:11 | 2011-08-24 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Paris |
This record is a partial extract of the original cable. The full text of the original cable is not available.
311711Z Mar 06
UNCLAS SECTION 01 OF 04 PARIS 002136
SIPDIS
SENSITIVE
BRUSSELS PASS USEU FOR AGMINCOUNSELOR
STATE FOR OES; EUR/ERA AND EBB ;
STATE PASS USTR FOR MURPHY;
USDA/OS/JOHANNS/PENN AND TERPSTRA;
USDA/FAS FOR OA/YOST/ROBERTS;
ITP/SHEIKH/MACKE/TOM POMEROY/MIKE WOOLSEY/GREG
YOUNG;
FAA/SEBRANEK/BLEGGI;
EU POSTS PASS TO AGRICULTURE AND ECON
GENEVA FOR USTR, ALSO AGRICULTURE
E.O. 12958: N/A
TAGS: EAGR ETRD EU FR
SUBJECT: DOHA : FRANCE MAINTAINS HARD-LINE
POSITION, SEEKS LIMITS ON EU MANDATE
SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET
¶1. (SBU) Summary : Both PM De Villepin and AgMin
Bussereau stated publicly their belief that other
countries now need to respond to EU "Concessions"
on agriculture in the Doha Development Round
negotiations. FAS Paris contacts echoed these
remarks and said that offered U.S. reforms were
not "sufficient". GOF officials will continue to
highlight their hard-line stance, for their base
particularly, given the other economic problems
the Government is facing. End Summary
¶2. (SBU) Both Prime Minister Dominique de Villepin
and Agricultural Minister Dominique Bussereau
delivered keynote speeches at the annual
conference of FNSEA, the main French farm union,
which was held in Metz on March 22-23. The WTO
negotiations were among the first topics mentioned
in both their speeches in which they essentially
asserted that the EU had made its share of
concessions and it was now up to other (e.g. the
United States, Brazil) to follow. Both also
asserted that failure to reach an agreement would
be preferable to a bad agreement. Following up on
the conferences, AgMinCouns also met with Raphael
Alomar, Diplomatic Adviser to AgMinister
Bussereau, and with Herve Lejeune, Agricultural
Adviser to French President Jacques Chirac.
¶3. (SBU) Just days before the London Ministerial,
France sent a memorandum to the European
Commission, signed by a number of European
AgMinisters, reiterating its hardline position on
the agricultural negotiations (see below). Both
politicians and contacts met by FAS Paris insisted
that the declaration of Hong Kong and the
abolition of EU export subsidies by 2013 were
agreed upon under the condition that EU trading
partners would also abolish their export supports.
Lejeune explicitly mentioned the U.S. food aid
programs and export credits as important issues
for France. When AgMinCouns cited reforms to these
programs, Lejeune replied that these were not
sufficient. In addition, Lejeune referred to the
issue of State Trading Enterprises.
¶4. (SBU) When asked about a possible EU TRQ offer
on sensitive products, Lejeune said that the
Commission continued to withhold such information
from the Member States. He also referred to a rift
between EU farm and food industry interests,
emphasizing the need to deal with them separately,
using the issue of sugar as an example.
¶5. (SBU) France continues to claim that the EU
offer of October 28 is already beyond the
negotiating mandate of the Commission and that it
can not go any further. France explicitly links
the agricultural market access issue to NAMA
negotiations. Both Alomar and Lejeune blamed
Brazil for blocking the negotiations. However,
during the discussion, it appeared that, if France
can claim significant advances on the NAMA issue,
it would be open to more flexibility on the
agricultural side, especially regarding sensitive
products. France does not want to be in a "lose-
lose" position at the end of the negotiation,
which would be politically difficult to sell to
the farm community and to the French public, at a
time close to the Presidential elections of May
¶2007. As mentioned by Alomar, any advance on the
GI issue could also soften France's position on
the other pillars.
¶6. (SBU) De Villepin also stressed that the EU
has already reformed its internal farm support
policy, making it WTO compatible, contrary to
other trade partners, particularly the United
States. Thus, France cannot picture reopening the
domestic support part of the Common Agricultural
Policy.
¶7. (SBU) France does not believe that any
agreement could be reached before the summer of
¶2006. Both Lejeune and Alomar indicated that less
developed countries are beginning to develop the
point of view that a WTO trade deal will not
benefit their economies while powers such as
Brazil, Argentina and India will be the primary
beneficiaries. To support this assertion, they
cited recent studies by the World Bank. French
agricultural leaders are closely observing the
political situation in the United States, and many
have expressed concerns that the upcoming mid-term
US Congress elections and the end of the Fast
track authority could jeopardize any trade
agreement. They also question whether the
political will exists to meaningfully reform the
U.S. farm legislation. Finally, Lejeune and Alomar
stressed that bilateral agreements may compliment
but not replace a multilateral agreement. But
should the WTO negotiations fail, then France will
push for more bilateral agreements.
BEGIN MEMORANDUM
¶8. French Memorandum to the Commission
The WTO Ministerial Conference in Hong Kong, at
the initiative of Europe, considerably extended
market access to rich and emerging country markets
for products from the least developed countries
LDCs). But it did not at that stage rebalance the
negotiations in favor of EU interests. Thanks to
the Commission's determination and the support of
Member-States, the European Union managed
nevertheless to obtain an acceptable result,
unanimously approved by the General Council.
However, in exchange for the substantial
concessions the EU has made on agriculture, we are
now entitled to expect our partners to come some
way towards us.
A precise timetable was laid down in Hong Kong for
completing negotiations in 2006. Consequently,
with a view to forthcoming events, we, the
ministers who have signed this memorandum, wish to
inform you of our expectations and concerns with
respect to a number of negotiating points.
¶A. The comparison between Non-Agricultural Market
Access (NAMA) and agricultural market access must
not disregard the concessions the EU has already
made in other parts of the agriculture
negotiations.
Paragraph 24 of the Hong Kong Ministerial
Declaration instructs negotiators to ensure that
there is a "comparably high level of ambition in
market access for Agriculture and NAMA." This
paragraph naturally cannot affect the basic
principle of the negotiation, which is that of the
"single undertaking". The EU's other offensive
issues must naturally be considered, particularly
on services.
However, it needs to be pointed out that any
comparison between agriculture and NAMA is by its
very nature biased: comparing only the two market
access negotiations means ignoring the substantial
concessions the EU has made on the other two
pillars of the agriculture negotiations, domestic
support and export competition. In addition, this
comparison only makes sense if it addresses the
actual additional market access opened up by
negotiations.
Furthermore, the liberalization of customs duties
on industrial products began 50 years ago;
agriculture cannot be required to "catch up" with
50 years of industrial liberalization in a single
round. For these reasons we are asking you to be
particularly vigilant on this topic and to point
out to our partners the concessions the EU has
already made in reforming the CAP in 2003 and
agreeing to eliminate its export subsidies. These
concessions need to be taken properly into account
when any comparison is made between the
contributions put on the table by the various
sides.
¶A. On the export subsidy issue, the modalities for
eliminating restitution payments are of crucial
importance.
At the Hong Kong Conference, the final Ministerial
Declaration was unanimously adopted by the General
Council. This was made possible by the guarantee
the Member-States were given that the modalities
for eliminating restitution payments would apply
to restitution value ceilings. This is a key point
to ensure that restitution payments are eliminated
at a rate our farmers can cope with, in line with
the CAP as reformed in 2003.
We wish to stress the crucial importance we place
on the political agreement reached at the General
Council meeting in Hong Kong on 18 December and
the negotiation of modalities for eliminating
restitution payments in line with that agreement,
which involves elimination occurring on the basis
of value. If any substantial concession is due to
be made in this area by the end of 2010, it must
definitely involve an undertaking on value,
expressed in overall terms.
¶C. Parallel elimination must be obtained from our
partners.
In terms of "parallelism", a number of principles
were approved in the July 2004 Framework Agreement
and in Hong Kong. Now these principles need to be
translated into binding practical disciplines,
since the Hong Kong Declaration includes the
possibility for the EU not to confirm the 2013
date for eliminating restitution payments until
the disciplines for parallel elimination are
finally announced.
This topic is all the more important since
available economic studies show that if the EU
were alone in dismantling its export subsidies, it
would suffer considerable prejudice, while other
WTO Members using other forms of export subsidy
would gain an advantage from the EU's withdrawal
from world markets.
¶D. On market access and on domestic support, all
room for maneuver is exhausted.
The 28 October 2005 proposal exhausted - perhaps
exceeded - all the room for maneuver we had. We
then remain deeply concerned about the
consequences this agriculture proposal may involve
in Member-States, particularly for employment,
when the Lisbon Agenda has made job creation a
fundamental objective for the EU.
On market access, we would especially draw your
attention to the number and treatment of sensitive
products contained in these proposals, which
cannot under any circumstances be reduced. It is
also necessary to strongly emphasize the need to
maintain specific systems created in the Uruguay
round like the Special Safeguard Clause and entry
prices.
On domestic support, the room for maneuver is
exhausted on amber box. Moreover, we draw your
attention to the fact that the review and
clarification procedure, concerning the green box
criteria will need to ensure that the basic
concepts, principles and effectiveness of this box
remain. Similarly, concerning the blue box
criteria, any excessive "additional discipline"
could undermine the future of the reformed CAP. We
also note that the conditions accompanying this
proposal have not been fulfilled. Although the 28
October proposal offers substantial effective
access to the European agricultural market, the EU
has not received from the major emerging countries
any proposal ensuring effective access to either
their industrial or their service markets. If this
continues with NAMA and services, the appropriate
consequences will need to be drawn for
agriculture. Conversely, if the conditionality
contained in the 28 October proposal were to be
fulfilled, this would mean a rebalancing of
negotiations, and it would be unnecessary, indeed
illogical, to respond with a further concession on
agriculture; otherwise this would merely unbalance
the negotiations again. In this connection, we
have carefully noted the assurances you have given
us that the simulation exercise currently underway
in Geneva, where certain parameters would be an
unacceptable negotiating result, is in no way
binding for the European Union.
¶F. Substantial progress must be made on issues of
interest for the EU
We recall the particular importance of the
question of geographical indications for which the
EU should get a concrete result. Furthermore, non-
trade concerns have to be part of the final result
of the negotiation. Substantial progress must be
made on these issues, since it is crucially
important that they advance at the same speed as
the rest of the agriculture negotiations.
END MEMORANDUM
Stapleton