GOT ON US AG PROPOSAL: AMBITIOUS BUT

UNCLAS ANKARA 006496

SIPDIS

DEPT PASS USTR FOR LERRION/JCHOE-GROVES
USDOC FOR ITA/MAC/CRUSNAK

SENSITIVE

E.O. 12958: N/A
TAGS: ETRD KIPR WTRO
SUBJECT: GOT ON US AG PROPOSAL: AMBITIOUS BUT
PROBLEMATIC

REF: A: STATE 195286 B: STATE 190748


1. (SBU) Summary: Turkey expressed its concerns about
the USG Doha agriculture proposal and remained
noncommittal on our request for assistance in urging
the EU to table a meaningful proposal. The GOT opposes
reducing tariffs before developed countries reduce
their domestic support and hopes to maintain current
"de minimis" levels and special and differential
treatment. Because agriculture is such a sensitive
issue for Turkey, the USG should not expect its support
during the Doha agriculture negotiations. End summary.


2. (U) On October 27, GOT Foreign Trade
Undersecretariat (FTU) Acting Department Head for WTO
issues, Aylin Bebekoglu, agreed that the USG proposal
on agriculture at Doha is "ambitious," but added that
Turkey has some concerns. In response to our request
for assistance in urging the EU to table a meaningful
proposal at Doha, Bebekoglu remained noncommittal and
spoke only of Turkey's changing role as it works toward
EU accession.


3. (U) With regard to the US proposal, Turkey wants to
see a reduction of export subsidies and domestic
support by developed countries before developing
countries agree to a reduction in tariffs. She argued
that if the GOT were to reduce its tariffs now, without
the corresponding reduction in export subsidies and
domestic support, it would be "catastrophic" for the
Turkish agriculture sector. Admittedly hesitant to use
the word "protection," Bebekoglu characterized the
GOT's current agricultural strategy as one of
"sustainment." She added that Turkey is not currently
globally competitive and a further reduction in tariffs
could possibly "obliterate" its sector if developed
countries continued to subsidize their markets, even at
reduced rates.


4. (U) The GOT also opposes a reduction in the "de
minimis" levels of domestic support. Turkey only
maintains the current "de minimis" levels and believes
that a reduction would further handicap its ability to
compete. In addition, the GOT wants to maintain as
long as possible special and differential treatment and
protection for Special Products (SP) and the Special
Safeguard Mechanism (SSM) for developing countries.
Finally, Turkey opposes the US proposal to lower the
tariff cap to 75 percent and believes that a cap of at
least 150 percent is more reasonable for developing
countries.


5. (U) Bebekoglu mentioned that Turkey more or less
agrees with the USG and EU positions on Non-
Agricultural Market Access (NAMA) issues and asked for
additional information on our proposals for the
industrial sectors, specifically on textiles. Post
would appreciate information, as it becomes available,
on this issue.


6. (SBU) Comment: Bebekoglu conceded that agriculture
is one of the most sensitive and difficult issues for
the GOT to negotiate. For this reason, post believes
that the USG should not expect GOT support during the
Doha agriculture negotiations. As Turkey moves through
the EU accession process, much of its sustainment
program will have to be brought into harmonization with
EU regulations, which Bebekoglu admitted will be an
arduous process. In the meantime, in her opinion,
developed countries should take into consideration
Turkey's developing status and unique sectoral
challenges when analyzing its trade policies. End
comment.

McEldowney