Identifier
Created
Classification
Origin
05COLOMBO2026
2005-12-01 10:50:00
CONFIDENTIAL
Embassy Colombo
Cable title:  

WTO DOHA ROUND - AMBASSADOR RAISES US CONCERNS

Tags:  KIRC KPAO EAGR ECON ETRD OIIP CE ECONOMICS 
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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

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