FRENCH GOVERNMENT WARY OF POSSIBLE WTO PRE-AGREEMENT BETWEEN THE EU AND THE U.S., READY TO OPPOSE IT.

UNCLAS PARIS 006447

SIPDIS

BRUSSELS PASS USEU FOR AGMINCOUNSELOR
STATE FOR OES; EUR/ERA;
STATE PASS USTR FOR MURPHY, NOVELLI;
USDA/OS/JOHANNS AND PENN;
USDA/FAS FOR OA/TERPSTRA/ROBERTS;
ITP/SHEIKH/HENKE/MACKE/TOM POMEROY/MIKE WOOLSEY;
FAA/SEBRANEK/BLEGGI;
EU POSTS PASS TO AGRICULTURE AND ECON
GENEVA FOR USTR, ALSO AGRICULTURE

E.O. 12958: N/A
TAGS: EAGR ETRD PGOV FR WTRO EUN SENSITIVE BUT UNCLASSIFIED
SUBJECT: FRENCH GOVERNMENT WARY OF POSSIBLE WTO PRE-
AGREEMENT BETWEEN THE EU AND THE U.S., READY TO OPPOSE IT.


1. (SBU) AGRICULTURAL MINISTER COUNSELOR MET WITH HERVE
LEJEUNE, ADVISER FOR AGRICULTURE TO FRENCH PRESIDENT JACQUES
CHIRAC ON TUESDAY SEPTEMBER 20. DURING THAT MEETING,
LEJEUNE EXPRESSED FRENCH CONCERNS ABOUT A POSSIBLE PRE-
AGREEMENT ON WTO PARAMETERS FOR AGRICULTURE BETWEEN THE U.S.
AND THE EU. LEJEUNE SAID THAT FRANCE WAS AWARE OF
DISCUSSIONS BETWEEN EU COMMISSIONERS MANDELSON AND FISCHER-
BOEL, USTR PORTMAN AND USDA SECRETARY JOHANNS.


2. (SBU) LEJEUNE SAID THAT FRANCE WOULD REMIND COMMISSIONER
MANDELSON THAT HE MUST REMAIN WITHIN HIS NEGOTIATING
MANDATE. AGREEING TO A TEXT THAT GOES BEYOND THAT MANDATE,
WOULD MEAN CROSSING THE "RED LINE" FOR FRANCE. HE
EXPLICITLY STATED THAT TO BE APPROVED BY FRANCE, ANY PRE-
AGREEMENT SHOULD INCLUDE ACCEPTABLE TERMS REGARDING EXPORT
SUBSIDIES, EXPORT CREDITS, FOOD AID, AND STATE TRADING
ENTERPRISES. HE SAID THAT FRANCE FEARS THAT THE UNITED
STATES WILL RENEGE ON ITS PROMISES OF THE SUMMER 2004, AND
THAT THE EU WILL BE ALONE IN BEARING THE MAJOR CUTS IN
AGRICULTURAL SUPPORT.


3. (SBU) LEJEUNE SAID THAT FRANCE STILL WANTS TO LINK THE
AGRICULTURAL NEGOTIATIONS TO THE OTHER NEGOTIATIONS
INCLUDING SERVICES AND THAT FRANCE WILL NEVER ACCEPT AN
AGREEMENT THAT ONLY ADDRESSES AGRICULTURAL ISSUES WITHOUT
ADDRESSING OTHER MATTERS. AS AN EXAMPLE, LEJEUNE SAID THAT
FRANCE WOULD NOT ACCEPT AN AGREEMENT WHICH LOWERED TRADE
BARRIERS TO BRAZILIAN AGRICULTURAL PRODUCTS IF BRAZIL DOES
NOT OPEN ITS MARKET TO FRENCH SERVICE AND FINANCE COMPANIES.


4. (SBU) SHOULD THE EU COMMISSIONERS COME TO A PRE-AGREEMENT
WITH THE U.S. THAT DISPLEASES FRANCE, FRANCE IS READY TO
REFUSE TO SIGN IT. THIS WOULD INVALIDATE IT SINCE SUCH
AGREEMENT MUST BE APPROVED BY ALL 25 MEMBER STATES. LEJEUNE
STATED THAT FRANCE IS NOT AFRAID OF A CRISIS WITH ITS EU
COUNTERPARTS IN ORDER TO DEFEND EU AGRICULTURE.


5. (SBU) LEJEUNE'S HARDLINE STANCE IS CONSISTENT WITH
PRESIDENT CHIRAC'S AND PRIME MINISTER DE VILLEPIN'S
POSITIONS. BOTH DE VILLEPIN AND AG MINISTER BUSSEREAU HAVE
RECENTLY SAID THAT THE EU HAS DONE MORE THAN ITS SHARE OF
LOWERING ITS AGRICULTURAL SUPPORTS, AND OTHER COUNTRIES,
PARTICULARLY THE UNITED STATES, SHOULD COME FORWARD WITH ITS
OWN REFORM PROPOSALS.

STAPLETON