CZECH RESPONSE TO U.S. PROPOSAL FOR WTO

UNCLAS PRAGUE 001496

SIPDIS

E.O. 12958: N/A
TAGS: EAGR ETRD EZ WTRO
SUBJECT: CZECH RESPONSE TO U.S. PROPOSAL FOR WTO
AGRICULTURE NEGOTIATIONS

REF: SECSTATE 190730


1. (U) SUMMARY: The Ministry of Industry and Trade received
our demarche with genuine welcome and said that although they
would have to consult with the Ministry of Agriculture, it
would be in the interest of the Czech Republic to urge the EU
to seize this timely opportunity to get beyond the
agriculture debate in the WTO. Ministry of Trade clearly
believes the Czech Republic should be in favor of giving the
European Commission greater flexibility in its negotiating
mandate. While the Ministry of Agriculture was not as
forthcoming about what position the GOCR would take in
Luxembourg, they asked numerous questions about the U.S.
proposal, indicating at least some level of interest. Deputy
Minister of Industry and Trade Martin Tlapa is representing
the Czech Republic at the October 18 GAERC meeting in
Luxembourg. END SUMMARY


2. (SBU) Econoffs met separately with Ministry of Industry
and Trade (Department of the EU Multilateral Trade Policy and
Common Trade Policy Director Ladislava Votavova) and the
Ministry of Agriculture (Department of EU Trade Agreements
Department Marta Tepla). The Ministry of Industry and Trade
received the reftel demarche with genuine interest and
welcome. Votavova explained that the Czech Republic did not
have much at stake in the agriculture debate given its small
agriculture sector, but that the GOCR was interested in a
more "balanced approach" to the WTO debate, listing the
GOCR's priorities as Non-Agriculture Market Access (NAMA),
Services, Geographical Indicators, and Agriculture from most
to least important.


3. (SBU) Per usual practice, the Ministry of Agriculture's
Tepla deferred to the EU and said the Czech Republic would
have "no input" into the process of formulating the EU
position on this issue. She added, however, that the Czech
Republic did not sign the French petition urging EU trade
commissioner Mandelson to hold off on making any concessions
until he consults with national governments. Tepla
underscored that agricultural barriers in the Czech Republic
were lower before joining the EU and they would not be
threatened by a more open agricultural policy.


4. (SBU) COMMENT: While the Agriculture Ministry continues
to resist taking any firm position within the EU, the
Ministry of Industry and Trade clearly sees this as a timely
opportunity to get beyond the agriculture debate in the WTO.
With little at stake in terms of agriculture, we do not
expect the Czech Republic to be overly active in this area,
but also will not hinder granting the Commission greater
negotiating flexibility.
CABANISS