BSE: COMMERCE WILL PUSH FOR REMOVAL OF WASHINGTON

UNCLAS KUWAIT 000571 SIPDIS USDA FOR FAS ITP/OA/SHEIKH, BERNSTEIN; COMP/DL/WETSEL USDA FOR APHIS OA/FERNANDEZ DUBAI FOR MICHAEL HENNEY E.O. 12958: N/A TAGS: ETRD EAGR TBIO KU SUBJECT: BSE: COMMERCE WILL PUSH FOR REMOVAL OF WASHINGTON STATE BEEF BAN REF: A. KUWAIT 65 ¶B. SECSTATE 9666 ¶C. KUWAIT 301 ¶1. On February 8, emboffs met with Ministry of Commerce Undersecretary Rasheed Al-Tabtabaei and Assistant Undersecretary for Commercial Controls Abdulaziz Al-Khalidi to discuss Kuwait's remaining ban on U.S. beef imports from Washington state. Econ/C explained that the regional ban does nothing to protect Kuwaiti consumers, and jeopardizes all U.S. exports of beef to Kuwait. He noted that the Washington state exclusion is unjustified under WTO rules, and advised that the U.S. might have to raise it during an upcoming WTO SPS committee meeting. Finally, he spoke of the potential harm this could cause to the U.S.-Kuwait trading relationship, and to Kuwait's efforts to move ahead with its Trade and Investment Framework Agreement (TIFA). ¶2. The U/S explained that although the Ministry of Commerce issued the order, the decision to partially lift the ban fell to an interagency Food Safety Committee headed by the Kuwait Municipality and including representatives from the Ministries of Commerce and Health, the Public Authority for Agriculture Affairs and Fish Resources, the Kuwait Institute for Scientific Research, and the Public Authority for Industry. As we anticipated, the U/S said that the committee excluded Washington state (where a BSE-infected cow was discovered) in an attempt to protect consumer health. Following our presentation, the U/S agreed that he had been under the mistaken impression that Saudi Arabia had also prohibited imports from Washington state. We replied that Saudi Arabia limited its ban to one farm, but that Kuwait -- as a WTO member -- has more stringent obligations than does Saudi Arabia. ¶3. The U/S agreed that neither the Washington state ban nor the Saudi farm exclusion makes sense. He asked Embassy to prepare a letter outlining the details of the American arguments against the exclusion, which the Ministry of Commerce would then present to the Food Safety Committee. (Note. Post transmitted Ref B talking points by diplomatic note on January 18, but the MFA apparently did not pass it to the Ministry of Commerce. In addition, the regional director of the U.S. Agriculture Trade Office made the same points in a letter to the municipality on January 17. We will combine the two documents and retransmit them. End Note.) According to the U/S, the Ministry of Commerce will then attempt to persuade the committee to reconsider the ban, emphasizing its negative commercial and legal ramifications. He promised that he would act as soon as he received our letter. LEBARON