Identifier
Created
Classification
Origin
05PARIS8627
2005-12-23 06:23:00
UNCLASSIFIED
Embassy Paris
Cable title:  

FRANCE'S LEADING FARMERS UNION DISSATISFIED WITH

Tags:  EAGR ETRD PGOV FR WTRO EUN 
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UNCLAS SECTION 01 OF 02 PARIS 008627 

SIPDIS

BRUSSELS PASS USEU FOR AGMINCOUNSELOR
STATE FOR OES; 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
SUBJECT: FRANCE'S LEADING FARMERS UNION DISSATISFIED WITH
HONG KONG RESULTS

REF:


UNCLAS SECTION 01 OF 02 PARIS 008627

SIPDIS

BRUSSELS PASS USEU FOR AGMINCOUNSELOR
STATE FOR OES; 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
SUBJECT: FRANCE'S LEADING FARMERS UNION DISSATISFIED WITH
HONG KONG RESULTS

REF:



1. Summary: Even though French 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 December 22 meeting with AgMin Counselor,
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 have only added to the pessimistic mood of
the French agricultural community, which has
endured a difficult year and faces continued CAP
reforms beginning January 1st. FNSEA officials
stated that the terms agreed to in Hong Kong were
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, 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 be allowed to maintain trade barriers in
the interest of domestic food security and
national sovereignty. Within the context of the
negotiations, the officials wondered whether the
United States was conspiring with Brazil and other
South American countries in order to isolate
Europe from other trade alliances.



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 with
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, defend the deal the European Commission
negotiators signed on to, and characterize it as
one that leaves the CAP pretty much intact. In the
EU context, they win politically by having
effectively enforced the EU's 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 in order to minimize future EU
concessions, particularly on the highly sensitive
market access front.

STAPLETON