Identifier
Created
Classification
Origin
03ROME28
2003-01-07 10:02:00
CONFIDENTIAL
Embassy Rome
Cable title:  

ITALY SEEKS STRONGER TRADE ROLE IN 2003

Tags:  ETRD IT EUN WTO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 03 ROME 000028 

SIPDIS

STATE PASS USTR FOR SANFORD, BURCKY
GENEVA FOR USTR

E.O. 12958: DECL: 01/07/2008
CONFIDENTIAL

PAGE 02 ROME 00028 01 OF 03 071023Z
TAGS: ETRD IT IT IT EUN WTOETRD EUN WTOETRD EUN WTO
SUBJECT: ITALY SEEKS STRONGER TRADE ROLE IN 2003

REF: A. (A) 02 STATE 257729


B. (B) 02 ROME 6137

CLASSIFIED BY: ECONOMIC MINISTER-COUNSELOR SCOTT KILNER FOR REASONS 1.5
(B)(D)
C O N F I D E N T I A L SECTION 01 OF 03 ROME 000028

SIPDIS

STATE PASS USTR FOR SANFORD, BURCKY
GENEVA FOR USTR

E.O. 12958: DECL: 01/07/2008
CONFIDENTIAL

PAGE 02 ROME 00028 01 OF 03 071023Z
TAGS: ETRD IT IT IT EUN WTOETRD EUN WTOETRD EUN WTO
SUBJECT: ITALY SEEKS STRONGER TRADE ROLE IN 2003

REF: A. (A) 02 STATE 257729


B. (B) 02 ROME 6137

CLASSIFIED BY: ECONOMIC MINISTER-COUNSELOR SCOTT KILNER FOR REASONS 1.5
(B)(D)

1.(C) SUMMARY. SENIOR ITALIAN TRADE OFFICIALS FORESEE A
STRONGER ITALIAN VOICE ON EU TRADE ISSUES IN 2003, DUE IN
LARGE PART TO ITALY'S UPCOMING ITALIAN EU PRESIDENCY, DURING
WHICH THE WTO CANCUN MINISTERIAL WILL FALL. GEOGRAPHIC
INDICATORS REMAIN AN ISSUE OF KEY CONCERN, WHICH THE GOI MAY
ATTEMPT TO LINK WITH PROGRESS ON AGRICULTURAL BIOTECHNOLOGY.
THE GOI IS GENERALLY PLEASED WITH THE EU,S WTO AGRICULTURAL
PROPOSAL; U.S. PROPOSALS ON BOTH AGRICULTURAL AND
NON-AGRICULTURAL TRADE ARE SEEN AS INTELLECTUALLY DEFENSIBLE
BUT POLITICALLY QUESTIONABLE. FOREIGN TRADE VICE MINISTER
ADOLFO URSO WILL LIKELY RAISE THESE ISSUES WITH USTR ROBERT
ZOELLICK IN FEBRUARY, AND MAY ALSO PROFFER AN INVITATION TO A
TRADE MINI-MINISTERIAL IN ITALY IN LATE SPRING. END SUMMARY.


2. (SBU) ITALIAN FOREIGN TRADE OFFICIALS MET WITH ECMIN AND
ECONOFFS OVER LUNCH DECEMBER 20 TO DISCUSS CURRENT WTO AND
U.S.-EU TRADE ISSUES AND TO PREVIEW ITALIAN TRADE PRIORITIES
IN 2003. OUR GUESTS FROM THE MINISTRY OF PRODUCTIVE
ACTIVITIES, VICE MINISTRY FOR FOREIGN TRADE INCLUDED
NEWLY-APPOINTED DIRECTOR GENERAL FOR TRADE AGREEMENTS AMEDEO
TETI; MARIO COSPITO, DIPLOMATIC ADVISOR TO TRADE VICE
MINISTER ADOLFO URSO; AND SANDRO FANELLA, DIRECTOR FOR THE
CONFIDENTIAL

PAGE 03 ROME 00028 01 OF 03 071023Z
MINISTRY,S OFFICE OF WTO AFFAIRS.

ITALY,S EU PRESIDENCY AND THE CANCUN MINISTERIAL
-------------- ---


3. (SBU) TETI, WHO JUST RETURNED FROM A TWO-YEAR POSTING TO
ITALY,S MISSION IN GENEVA, AND COSPITO INITIATED THE
DISCUSSION BY NOTING THAT THE GOI INTENDS TO EXERT MORE
INFLUENCE ON EU TRADE POLICIES DURING ITALY,S EU PRESIDENCY
IN THE SECOND HALF OF 2003. THE GOI BELIEVES SUCH INFLUENCE
WILL BE AMPLIFIED BY THE COINCIDENCE OF SEPTEMBER,S WTO
MINISTERIAL IN CANCUN. A FORMAL AGENDA OF ITALIAN PRIORITIES

FOR ITS EU PRESIDENCY IS EXPECTED TO INCLUDE SUCCESSFUL
CONCLUSION OF THE CANCUN GATHERING. AS A PRECURSOR TO
CANCUN, THE GOI IS MAKING TENTATIVE PLANS TO HOST A TRADE
MINI-MINISTERIAL IN LATE SPRING 2003 (SEE PARAGRAPH 10).
ITALY WILL ALSO STRIVE TO ADVANCE THE BARCELONA PROCESS, AND
HOPING TO WORK WITH GREECE DURING ITS EU PRESIDENCY TO
ACHIEVE CRITICAL MOMENTUM ON MEDITERRANEAN COOPERATION IN
2003, BEFORE THE SUBSEQUENT EU PRESIDENCIES OF SEVERAL
NORTHERN EU COUNTRIES.

U.S.-EU TRADE DISPUTES: ITALY HOPES FOR PROGRESS
-------------- --------------


4. (SBU) FANELLA EMPHASIZED THAT THE GOI HOPES FOR PROGRESS,
IF NOT RESOLUTION, ON KEY U.S.-EU TRADE DISPUTES IN THE FIRST
HALF OF 2003. DESPITE ITS INTEREST IN PLAYING A GREATER ROLE
IN EU TRADE POLICY DURING ITS PRESIDENCY, ITALY WOULD NOT
RELISH GETTING CAUGHT IN THE MIDDLE OF A HEATED U.S.-EU TRADE
BATTLE. IN PARTICULAR, THE GOI WOULD LIKE TO SEE PROGRESS IN
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PAGE 04 ROME 00028 01 OF 03 071023Z
THE U.S. CONGRESS ON ADDRESSING THE FOREIGN SALES
CORPORATIONS CASE, ALONG WITH FURTHER STEEL EXCLUSIONS FOR
ITALIAN AND EU COMPANIES.

AGRICULTURAL BIOTECH
--------------


5. (C) ECMIN UNDERSCORED THE HIGH LEVEL OF U.S. FRUSTRATION
OVER THE CONTINUING EU MORATORIUM ON BIOTECH APPROVALS (REF.
A),AND SOUGHT OUR INTERLOCUTORS, VIEWS ON HOW TO GET THE
PROCESS MOVING AGAIN. FANELLA DECLARED THAT THE TRADE
MINISTRY WOULD ALSO LIKE TO SEE THE MORATORIUM LIFTED. HE
WAS CAUTIOUSLY OPTIMISTIC THAT PROGRESS WOULD BE MADE IN THE
SPRING OF 2003, SHOULD THE EU PARLIAMENT ADOPT PROPOSALS
COMING OUT OF THE AGRICULTURE AND ENVIRONMENTAL COUNCILS WITH
FEW CHANGES. COMMENT: CLEARLY, BIOTECH IS ANOTHER ISSUE THE
GOI WOULD RATHER AVOID (OR AT LEAST DOWNPLAY) DURING ITS
PRESIDENCY, SINCE DIVISION WITHIN THE GOVERNMENT HAS SO FAR
KEPT IT FROM DEVELOPING A COHERENT AND COORDINATED BIOTECH
POLICY (REF. B). END COMMENT.

GEOGRAPHIC INDICATORS
--------------

CONFIDENTIAL

CONFIDENTIAL PTQ3651

PAGE 01 ROME 00028 02 OF 03 071023Z
ACTION STR-00

INFO LOG-00 AID-00 AIT-03 CEA-01 CIAE-00 CTME-00 DODE-00
WHA-00 SRPP-00 EB-00 EUR-00 EXIM-01 E-00 VC-00
FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01 JUSE-00
L-00 VCE-00 MED-07 AC-01 NEA-00 NSAE-00 NSCE-00
OES-00 OIC-02 OMB-01 DHS-00 OPIC-01 ACE-00 SP-00
SSO-00 SS-00 TRSE-00 USIE-00 SA-00 DRL-02 G-00
SAS-00 /021W
-------------- 211A5E 071024Z /38
O 071002Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7552
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY BRASILIA
AMEMBASSY NEW DELHI
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES
USEU BRUSSELS 3043
USDOC WASHDC
USMISSION GENEVA

C O N F I D E N T I A L SECTION 02 OF 03 ROME 000028

SIPDIS

STATE PASS USTR FOR SANFORD, BURCKY
GENEVA FOR USTR

E.O. 12958: DECL: 01/07/2008
CONFIDENTIAL

PAGE 02 ROME 00028 02 OF 03 071023Z
TAGS: ETRD IT IT IT EUN WTOETRD EUN WTOETRD EUN WTO
SUBJECT: ITALY SEEKS STRONGER TRADE ROLE IN 2003


6. (C) ONE OF THE FEW TRADE ISSUES TO CONSISTENTLY ENERGIZE
THE GOI HAS BEEN THE STRENGTHENING AND EXPANSION OF
GEOGRAPHIC INDICATORS (GI),FOR WINE AND CERTAIN
"TRADITIONAL" PRODUCTS, SUCH AS CHEESES AND MEATS. OUR TRADE
CONTACTS AGAIN RAISED THE POSSIBILITY OF LINKING PROGRESS ON
GIS AND BIOTECH, SUGGESTING THAT MUTUALLY BENEFICIAL PROGRESS
COULD BE MADE IN BOTH AREAS. THE UNDERLYING IMPLICATION WAS
THAT PRO-BIOTECH ELEMENTS WITHIN THE GOI COULD BE
STRENGTHENED BY U.S. SUPPORT FOR GI ISSUES OF CONCERN TO
ITALY. ECMIN CAUTIONED THAT WASHINGTON WAS LIKELY TO HAVE
LITTLE INTEREST IN SUCH A LINKAGE. HE ALSO UNDERSCORED U.S.
CONCERNS ABOUT CREATING A CUMBERSOME NEW BUREAUCRATIC PROCESS
THAT IMPOSED SIGNIFICANT COSTS AND JEOPARDIZED LONG-STANDING
COMMERCIAL INTERESTS OF MANY COMPANIES. TETI SUBSEQUENTLY
RESTATED HIS PROPOSAL, SAYING THAT THE GOI WAS NOT
NECESSARILY PROPOSING A "DIRECT LINK" BETWEEN GIS AND
BIOTECH, BUT WAS RATHER INTERESTED IN MAKING PROGRESS IN BOTH
AREAS WITHIN THE CONTEXT OF BROADER DISCUSSIONS OF THE
U.S.-EU TRADE AGENDA.

U.S. AND EU WTO AGRICULTURE PROPOSALS
--------------


7. (SBU) WHILE NOTING THAT THE EU MEMBER STATES STILL NEEDED
TO WEIGH IN, FANELLA SAID THAT THE EU,S RECENT PROPOSAL ON
AGRICULTURE FOR THE DOHA ROUND IS BEING VIEWED POSITIVELY
WITHIN THE GOI, NOTABLY BY BOTH URSO AND AGRICULTURE MINISTER
ALEMANNO. MARKET ACCESS IS A KEY CONCERN FOR ITALY, AND IT
CONFIDENTIAL

PAGE 03 ROME 00028 02 OF 03 071023Z
ESPECIALLY SUPPORTS THE PROPOSED REQUIREMENT FOR A MINIMUM 15
PERCENT REDUCTION PER TARIFF LINE FOR ALL WTO MEMBERS AS A
MEANS OF MAINTAINING KEY PROTECTION IN CERTAIN SECTORS.
NEITHER FANELLA NOR TETI CRITICIZED THE U.S. AGRICULTURE
PROPOSAL, ALTHOUGH THEY CHARACTERIZED IT AS MORE "AGGRESSIVE"
THAN THE EU APPROACH. TETI SAW THE EU PROPOSAL AS OCCUPYING
A MIDDLE GROUND BETWEEN THE GOALS OF THE U.S. AND THOSE OF
THE DEVELOPING WORLD.

U.S. NON-AGRICULTURAL PROPOSAL FOR WTO
--------------


8. (SBU) WHILE CHARACTERIZING THE U.S. PROPOSAL FOR
NON-AGRICULTURAL PRODUCTS AS INTELLECTUALLY HONEST AND
DEFENSIBLE, OUR INTERLOCUTORS EXPRESSED CONCERN OVER THE
POLITICAL DIFFICULTY IN REACHING THE LONG-TERM GOAL OF ZERO
TARIFFS, BELIEVING THAT MOST DEVELOPING COUNTRIES WOULD
STRONGLY OPPOSE SUCH AN OUTCOME. TETI SUGGESTED THE
POSSIBILITY OF TWO-TIERED APPROACH, MOVING FIRST TOWARD
TARIFF-FREE TRADE AMONG DEVELOPING COUNTRIES ALONE. FULL
TARIFF ELIMINATION BETWEEN DEVELOPED AND DEVELOPING COUNTRIES
WOULD FOLLOW AT A MUCH LATER STAGE. COMMENT: FANELLA WAS
OPENLY SKEPTICAL OF HIS BOSS'S IDEA, ARGUING THAT WTO RULES
WOULD NOT PERMIT SUCH DIFFERENTIAL TREATMENT. END COMMENT.

URSO-ZOELLICK MEETING, AND POSSIBLE MINI-MINISTERIAL
-------------- --------------


9. (SBU) DIPLOMATIC ADVISOR COSPITO UNDERSCORED THAT VICE
MINISTER URSO IS LOOKING FORWARD TO MEETING USTR ZOELLICK IN
WASHINGTON FEBRUARY 11. URSO IS LIKELY TO RAISE THE GOI,S
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PAGE 04 ROME 00028 02 OF 03 071023Z
DESIRE FOR PROGRESS ON GIS AND BIOTECH, WITHIN THE CONTEXT OF
WTO NEGOTIATIONS (PARA 6). HE MAY ALSO DISCUSS ITALY,S
SELF-STYLED ROLE AS AN "INTERMEDIARY" WITH THE THIRD WORLD ON
TRADE ISSUES. IN ADDITION TO EXPRESSING UNDERSTANDING FOR
THE DEVELOPING WORLD,S CONCERNS ON TARIFF ELIMINATION, URSO
AND TETI HAVE BOTH WARNED THAT THE ISSUE OF ACCESS TO
MEDICINE UNDER TRIPS IS UNLIKELY TO BE RESOLVED THROUGH
DIFFERENTIAL TREATMENT AMONG DEVELOPING COUNTRIES.


10. (SBU) FINALLY, COSPITO NOTED THAT URSO IS PLANNING TO
INVITE USTR ZOELLICK TO ITALY IN LATE SPRING 2003, ALONG WITH
EU TRADE COMMISSIONER LAMY AND TRADE OFFICIALS FROM KEY
DEVELOPING COUNTRIES SUCH AS INDIA AND BRAZIL. THOUGH PLANS
ARE NOT YET FULLY DEVELOPED, THE IDEA IS TO HOLD A
MINI-MINISTERIAL (SIMILAR TO THAT HELD IN SYDNEY IN NOVEMBER)
IN ORDER TO PREPARE THE GROUND FOR A SUCCESSFUL CANCUN
MINISTERIAL.

COMMENT
--------------


11. (C) FOR SEVERAL REASONS, ITALY HISTORICALLY HAS PUNCHED
BELOW ITS WEIGHT ON EU TRADE ISSUES. WE ARE THEREFORE
ENCOURAGED BY THE LEVEL OF OPENNESS AND DESIRE FOR ENGAGEMENT

CONFIDENTIAL

CONFIDENTIAL PTQ3650

PAGE 01 ROME 00028 03 OF 03 071024Z
ACTION STR-00

INFO LOG-00 NP-00 AID-00 AIT-03 CEA-01 CIAE-00 CTME-00
DODE-00 WHA-00 SRPP-00 EB-00 EUR-00 EXIM-01 E-00
VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01
L-00 VCE-00 AC-01 NEA-00 NSAE-00 NSCE-00 OES-00
OIC-02 OMB-01 DHS-00 OPIC-01 ACE-00 SP-00 SSO-00
SS-00 TRSE-00 USIE-00 SA-00 EPAE-00 DRL-02 G-00
SAS-00 /014W
-------------- 211A62 071024Z /38
O 071002Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7553
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY BRASILIA
AMEMBASSY NEW DELHI
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES
USEU BRUSSELS 3044
USDOC WASHDC
USMISSION GENEVA

C O N F I D E N T I A L SECTION 03 OF 03 ROME 000028

SIPDIS

STATE PASS USTR FOR SANFORD, BURCKY
GENEVA FOR USTR

E.O. 12958: DECL: 01/07/2008
CONFIDENTIAL

PAGE 02 ROME 00028 03 OF 03 071024Z
TAGS: ETRD IT IT IT EUN WTOETRD EUN WTOETRD EUN WTO
SUBJECT: ITALY SEEKS STRONGER TRADE ROLE IN 2003

DISPLAYED BY OUR INTERLOCUTORS -- ESPECIALLY TETI, WHO AS THE
NEW ASSISTANT-SECRETARY-EQUIVALENT OVERSEEING FOREIGN TRADE,
APPEARS TO BRING SIGNIFICANTLY MORE ENERGY TO HIS
RESPONSIBILITIES THAN DID HIS PREDECESSOR. WE WILL TRY TO
CAPITALIZE ON THE NEW TEAM'S AMBITIONS, BUT RECOGNIZE THAT
INCREASED ITALIAN EFFECTIVENESS ON TRADE WILL ULTIMATELY
REQUIRE GREATER UNITY OF PURPOSE THAN THIS GOVERNMENT HAS SO
FAR BEEN ABLE TO MUSTER (BIOTECH POLICY BEING EXHIBIT A).
NEVERTHELESS, WE INTERPRET VICE MINISTER URSO,S INTENTION TO
ORGANIZE A MINI-MINISTERIAL IN ADVANCE OF CANCUN AS A
POSITIVE SIGN OF HIS SERIOUSNESS; URSO'S FEBRUARY MEETING
WITH USTR ZOELLICK WILL ALSO PROVIDE AN TIMELY OPPORTUNITY TO
REVIEW THE U.S.-EU TRADE AGENDA AS ITALY SHARPENS ITS
OBJECTIVES FOR ITS EU PRESIDENCY. END COMMENT.
SKODON

CONFIDENTIAL

>
2003ROME00028 - Classification: CONFIDENTIAL