Identifier
Created
Classification
Origin
02ROME5982
2002-12-13 16:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Rome
Cable title:  

STEEL: ITALY ON UPCOMING OECD HIGH-LEVEL STEEL

Tags:  EIND ETRD IT EUN 
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UNCLAS ROME 005982 

SIPDIS

SENSITIVE

STATE PASS USTR
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: EIND ETRD IT EUN
SUBJECT: STEEL: ITALY ON UPCOMING OECD HIGH-LEVEL STEEL
MEETING
UNCLASSIFIED


PAGE 02 ROME 05982 131606Z

REF: SECSTATE 252310

UNCLAS ROME 005982

SIPDIS

SENSITIVE

STATE PASS USTR
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: EIND ETRD IT EUN
SUBJECT: STEEL: ITALY ON UPCOMING OECD HIGH-LEVEL STEEL
MEETING
UNCLASSIFIED


PAGE 02 ROME 05982 131606Z

REF: SECSTATE 252310


1. (U) ON DECEMBER 13, 2002 ECONOFF SPOKE WITH GIUSEPPE
LORENZINI, OFFICE III DIRECTOR, DIRECTORATE GENERAL FOR
COMMERCIAL AGREEMENTS, MINISTRY OF PRODUCTIVE ACTIVITIES
(WHICH INCLUDES THE FOREIGN TRADE SUB-MINISTRY). OFFICE III
HAS THE GOI LEAD ON THE ISSUE OF STEEL RESTRUCTURING.


2. (SBU) LORENZINI TOLD US THAT ITALY, LIKE THE EU, WAS
GENERALLY IN AGREEMENT WITH THE U.S. ON THE NEED TO ADDRESS
SUBSIDIES (LORENZINI WAS IN BRUSSELS EARLIER THIS WEEK TO
COORDINATE THE EU POSITION IN ADVANCE OF NEXT WEEK,S OECD
MEETINGS). HOWEVER, FOLLOWING THE EU LINE, HE TOLD US HE DID
NOT BELIEVE PROGRESS IN THE TALKS ON REDUCING OR ELIMINATING
SUBSIDIES COULD BE ACHIEVED WITHOUT ADDRESSING OTHER ISSUES,
PARTICULARLY TRADE REMEDIES. LORENZINI NOTED ITALY'S CONCERN
THAT MORE ATTENTION SHOULD BE PAID TO REGIONAL AND LOCAL
SUBSIDIES, IN ADDITION TO THOSE AT THE NATIONAL LEVEL. IN
TERMS OF REDUCING CAPACITY, ITALY AGREES WITH THE GOAL, BUT
POLITICAL REALITIES MAKE THE GOI PARTICULARLY EAGER FOR THE
DEVELOPMENT OF A MECHANISM TO PROVIDE FINANCIAL INCENTIVES
FOR CLOSING UNECONOMICAL FACILITIES (THOUGH LIKE MANY OF ITS
FELLOW EU MEMBERS, GOVERNMENT BUDGET CONSTRAINTS WOULD
INHIBIT ANY POTENTIAL GOI-FUNDED INITIATIVES).


3. (SBU) THE GOI FORESEES THE OECD REMAINING THE "HOME" OF
STEEL TALKS INTO 2003, DESPITE THE EU'S HOPE TO HAVE THE
DECEMBER HLG MEETING THE LAST OF ITS KIND WITHIN THE OECD.
LORENZINI WAS CAUTIOUSLY OPTIMISTIC THAT AGREEMENT (PERHAPS
INFORMALLY) TO SOME SORT OF PROPOSAL ON STEEL SUBSIDIES COULD
UNCLASSIFIED

PAGE 03 ROME 05982 131606Z
BE DEVELOPED IN THE FIRST TWO MONTHS OF 2003, TO SUBSEQUENTLY
BE INCORPORATED INTO WTO NEGOTIATIONS BEFORE THE CANCUN
MINISTERIAL.


4. (U) REFTEL POINTS WERE ALSO CONVEYED, ON DECEMBER 11, TO
THE MFA,S DG FOR ECONOMIC COOPERATION, OFFICE OF
MULTILATERAL ECONOMIC COOPERATION.
SEMBLER

UNCLASSIFIED

>
2002ROME05982 - Classification: UNCLASSIFIED