EU RICE; GREECE SUPPORTS COMPROMISE

UNCLAS ATHENS 000429

SIPDIS

STATE FOR EUR/SE, EB/TPP, EUR/ERA
STATE PASS USTR
ROME FOR AGATT

E.O. 12958: N/A
TAGS: EAGR ETRD GR
SUBJECT: EU RICE; GREECE SUPPORTS COMPROMISE

REF: STATE 019814


1. EMBASSY delivered reftel demarche February 4 to the
Ministries of Agriculture, Economy and Finance, and Foreign
Affairs. (The Ministry of Agriculture conveyed our arguments
to the Greek WTO mission in Geneva.) On February 8, the
Agriculture Ministry's Secretary General for Policy, Christos
Avgoulas, told Econcouns and FAS specialist that the GoG
would support a compromise agreement between the U.S. and EU,
and is urging an agreement be concluded before the March 1
deadline for the U.S. withdrawal of some tariff concessions.


2. Avgoulas pointed out that Greek rice producers are
suffering from the consequences of overproduction in 2004, a
50 percent reduction in prices, and overstocked warehouses
with previous years' harvests. Furthermore, Greek rice
varieties (indica long) are less marketable internationally
than the japonica short and medium grain varieties grown in
other EU countries (e.g., Italy).


3. In spite of the rice producers' plight, Avgoulas explained
that his ministry is receiving considerable pressure from
Greek peach producers and canners, concerned about losing
sales in the U.S. if tariff concessions are withdrawn. He
said this was one of the major reasons driving the GoG to
press for a speedy conclusion of a U.S.-EU agreement.
RIES