WTO DOHA ROUND - AMBASSADOR RAISES US CONCERNS

C O N F I D E N T I A L COLOMBO 002026 SIPDIS DEPT FOR SA/INS MGOWER; MCC FOR DNASSIRY AND EBURKE; TREASURY FOR SCHUN; COMMERCE FOR YELIN E.O. 12958: DECL: 11/30/2015 TAGS: KIRC KPAO EAGR ECON ETRD OIIP CE ECONOMICS SUBJECT: WTO DOHA ROUND - AMBASSADOR RAISES US CONCERNS WITH TRADE MINISTER, NO SUBSTANTIVE RESPONSE REF: SECSTATE 211956 Classified By: Econchief Dean R. Thompson, Reasons 1.4 B, D and E ¶1. (C) Summary: Ambassador raised reftel WTO points with Trade Minister Fernandopulle on November 29 and Econchief has passed same points to representatives from the Finance Ministry and members of influential private sector groups. Minister Fernadopulle is not well-versed on the issues set to arise in Hong Kong, but is planning to attend. We hope Sri Lanka will try to play a facilitative role and be helpful to US interests, but it may be that the best we can hope for is that they remain neutral. We have heard that Fernandopulle may have some digs aimed at US and developed countries in his remarks for Hong Kong, but Commerce Ministry officials are trying to tone it down. End Summary ¶2. (C) Ambassador raised reftel US WTO points with Trade Minister Jeyaraj Fernandopulle during his initial courtesy call on November 29, following Fernandopulle's reappointment to that position after the recent Presidential election. Fernandopulle had no substantive response to US points, but confirmed that he will attend the meetings in Hong Kong. As Ambassador explained US position on agriculture, Fernandopulle asked for explanations on a number of points, particularly trade distorting subsidies. Ambassador provided examples and urged Sri Lanka to be helpful in the upcoming talks, as Sri Lanka does not have the same range of agricultural market issues as other developing countries. ¶3. (SBU) In addition to raising reftel points with Fernandopulle, Ambassador plans to raise them during his initial meetings with the Deputy Minister of Finance (the President has retained the Finance portfolio) and the Foreign Minister (Note: Sri Lanka's Presidential election took place on November 18 and the cabinet was just appointed this week, thus the delay in high-level contacts on this issue. End Note). The Ambassador has also used the points in public events to urge the business community, particularly the apparel manufacturing sector, to lobby the GSL on behalf of progress in Hong Kong. Econchief has delivered the message to trade policy representatives in the Ministry of Finance and the Ministry of Commerce, and to the head of Sri Lanka's Joint Apparel Association Forum (JAAF). ¶4. (C) Comment: While Sri Lanka exports a significant amount of tea, we do not believe they have the same agricultural market access issues with developed countries as some of their peer countries. We have heard from Commerce Ministry sources that Fernandopulle had wanted to use his WTO speech to complain about developed countries who ask the developing world to help them on certain issues, but offer nothing in return (a specific jibe at what Fernandopulle sees as the US's failure to "grant" Sri Lanka a free trade agreement), but that Ministry officials had been able to get the reference removed. Given Fernandopulle's inexperience on these matters, and generally protectionist bent, the best we can probably hope for is that Sri Lanka plays a neutral role and does not exacerbate an already tough negotiating environment. It is remotely possible that the Sri Lankans will try to play a postive, facilitative role, as they did in Cancun, but far from certain. In Hong Kong, we think the US team will find the professional representatives from the Commerce and Finance Ministries well-informed and interested in being helpful. Their boss's position, however, remains unclear. We will continue to press these points in the days ahead. End Comment LUNSTEAD