EU INTENTION TO WITHDRAW URUGUAY ROUND CONCESSIONS FOR

UNCLAS THE HAGUE 002607 SIPDIS USDA FOR FAS/ITP/EAMED AND FAS/CMP/GFD STATE PASS USTR FOR PORTER USEU BRUSSELS FOR AGRICULTURE AND ECON E.O. 12958: N/A TAGS: EAGR ETRD EUN SUBJECT: EU INTENTION TO WITHDRAW URUGUAY ROUND CONCESSIONS FOR RICE IMPORTS - NETHERLANDS RESPONSE REF: SECSTATE 262998 PER REFTEL, POST DELIVERED TALKING POINTS TO GON MINISTRIES OF AGRICULTURE AND ECONOMIC AFFAIRS. ¶1. OFFICIALS AT THE MINISTRY OF AGRICULTURE, HAVE TOLD US THAT ALTHOUGH THEY AGREED TO CHANGE THE MARGIN OF PREFERENCE SYSTEM FOR RICE AS PART OF THE EU MID-TERM REVIEW, THEY ARE NOT IN FAVOR OF CHANGING THE RICE IMPORT REGIME. IN A DISCUSSION WITH ATE OOSTRA, DIRECTOR GENERAL FOR TRADE, HE AGREED THAT OPENING OF ARTICLE XXVIII NEGOTIATIONS ON RICE WAS NOT IN THE INTEREST OF THE DUTCH RICE MILLING INDUSTRY. WHILE OOSTRA GAVE NO INDICATION THAT THE GON WOULD TAKE ANY INITIATIVE TO REVERSE THE ARTICLE XXVIII PROCESS, HE WAS INTERESTED IN RECEIVING MORE SPECIFIC INFORMATION ABOUT THE POTENTIAL IMPACT OF CHANGES TO THE IMPORT REGIME. POST WILL FOLLOW UP WITH ADDITIONAL INFORMATION. ¶2. ECONOMIC AFFAIRS OFFICIALS INDICATED THAT DUTCH ASSESSMENT OF INTRA-EU NEGOTIATING DYNAMICS MIGHT PLAY A ROLE IN DETERMINING WHETHER THE DUTCH WILL OPPOSE THE ARTICLE XXVIII NEGOTIATION OR TRY TO WEAKEN IT. SOBEL