Identifier
Created
Classification
Origin
05PARIS8619
2005-12-22 15:42:00
UNCLASSIFIED
Embassy Paris
Cable title:  

FRANCE'S LEADING FARMERS UNION

Tags:  EAGR ETRD PGOV FR WTRO EUN INR 
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221542Z Dec 05
UNCLAS SECTION 01 OF 02 PARIS 008619 

SIPDIS

BRUSSELS PASS USEU FOR AGMINCOUNSELOR
STATE FOR E, EB AND EUR/ERA;
STATE PASS USTR FOR MURPHY;
USDA FOR OS/JOHANNS AND PENN;
USDA FOR FAS/OA/TERPSTRA/ROBERTS;
ITP/SHEIKH/HENKE/MACKE/TOM POMEROY/MIKE
WOOLSEY/GREG YOUNG;
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 INR
SUBJECT: FRANCE'S LEADING FARMERS UNION
DISSATISFIED WITH HONG KONG RESULTS


UNCLAS SECTION 01 OF 02 PARIS 008619

SIPDIS

BRUSSELS PASS USEU FOR AGMINCOUNSELOR
STATE FOR E, EB AND EUR/ERA;
STATE PASS USTR FOR MURPHY;
USDA FOR OS/JOHANNS AND PENN;
USDA FOR FAS/OA/TERPSTRA/ROBERTS;
ITP/SHEIKH/HENKE/MACKE/TOM POMEROY/MIKE
WOOLSEY/GREG YOUNG;
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 INR
SUBJECT: FRANCE'S LEADING FARMERS UNION
DISSATISFIED WITH HONG KONG RESULTS



1. Summary: Even though France's President
Jacques Chirac publicly expressed his satisfaction
with the commitments made during the Doha
negotiations in Hong Kong, the leading French farm
organization, Federation Nationale Des Syndicats
D'Exploitants Agricoles (FNSEA),issued a press
release on December 18, 2005, criticizing the
course of the negotiations. However, most
observers feel that France not only did well in
Hong Kong by giving up little, but won politically
as well, by having successfully enforced the
Commission's negotiating mandate at Hong Kong.
End Summary.


2. In a meeting Dec 22 with Ag MinCounselor,
FNSEA officials, including Mr. Jean-Michel
Lemetayer, President, and Mr. Xavier Beulin, First
Vice-President, expressed their concerns about the
implications of the Doha negotiations to date.
Further Hong Kong commitments to reduce financial
support in Hong Kong have only added to the
pessimistic mood of the French agricultural
community, which has endured a difficult year
and faces the implementation of themore 2003 CAP
reforms beginning January 1stst. FNSEA officials
stated that the terms agreed to in Hong Kong
wereare unbalanced for two reasons: first,
agriculture, services and industrial goods sectors
were not considered with equal weight and second,
while the EU must eliminate export subsidies by
2013, but other countries' export-oriented
programs, such as food aid, are not subject to
such specific commitments. Thus, they feel the EU
did not receive just compensation in other sectors
in exchange for its sacrifice on agricultural
export subsidies.


3. They reiterated a strong position that
countries (or regional group of countries) be
allowed to maintain some trade barriers in the
interest of domestic food security and
nationallocal sovereignty. Within the context of
out loud whether the United States was conspiring

working closely with Brazil and other South
American countries in order to isolate Europe from
other trade alliances. They mentioned that Brazil
and similar countries from the G20 group should
not be considered as developing countries, at
least for agriculture, as their agriculture is
highly intensive and capitalistic.


4. FNSEA, together with the French Young Farmers
Union, the French Federation of Farm Cooperatives
and Credit, and the French Chambers of Agriculture
constitute the French Agriculture Council (CAF).
CAF released the following press communiqu after
the negotiators had agreed on a compromise at the
Hong Kong WTO Ministerial:

QUOTE: Hong Kong Agreement: unsatisfactory step,
and a future full of pitfalls.

The Ministerial conference in Hong Kong ends
withon an unbalanced declaration. Concerning
export subsidies, only Europe is making
commitments on a date to eliminate export
restitutions while provisions on State Trading
Enterprises, trade-oriented food aid, and export
credits are less restrictive.

Given that the European Union largely contributed
to development and made a substantial concession
in export subsidies, we demand that the modalities
for market access maintain European preferences.

To date, on domestic support, the European Union
has not highlighted the reform of the Common
Agricultural Policy, while our negotiating
partners have no obligation to review their
domestic farm policy.

In addition, agriculture was the only sector
covered deeply and in details, which does not
correspond to claims of the Doha conference.

The Ministerial declaration adopted today in Hong
Kong does not satisfy the French Agriculture
Council, particularly because of its lack of
balance, putting a significant part of the
concessions on the European Union, with a direct
impact on the CAP.

The French Agricultural Council demands that the
European Union stay extremely firm on the
conditionality of its offer and be vigilant on the
strict balance of the concessions. END QUOTE.


5. COMMENT: The FNSEA's position needs to be
viewed in the context of how other official
observers see the Hong Kong outcome. The
government, including Agriculture Minister
Bussereau, defends the deal the European
Commission negotiators signed on to, and
characterizes it as one that leaves the CAP pretty
much intact. In the EU context, they win
politically by having effectively enforced the
EU's strict negotiating mandate. Other observers
outside the government note that France couldn't
have asked for a better outcome on agriculture,
short of making no concessions at all. In any
case, the FNSEA may prefer to remain on the
offensive so as to keep the GOF on its toes on
this key issue for France.

STAPLETON