BULGARIA: U.S. WTO AG PROPOSAL

UNCLAS SOFIA 001799

SIPDIS

E.O. 12958: N/A
TAGS: EAGR ETRD BU WTRO
SUBJECT: BULGARIA: U.S. WTO AG PROPOSAL

REF: SECSTATE 190748


1. We delivered reftel demarche and fact sheet to Bulgarian
trade official Diana Naydenova on October 17. The GOB is
currently reviewing the U.S. proposal with its future EU
colleagues. Naydenova feels agriculture is the most advanced
topic in the discussions. She said the EU proposal put forth
by Commissioner Mandelson is "ambitious enough." Naydenova
sees only slight differences in the U.S. and EU proposals on
tariffs - so could see agreement there. However, Naydenova
said there are major differences between the two sides in the
areas of domestic support and export competition (subsidies),
and the EU has concerns about U.S. export crediting
provisions.


2. Naydenova admitted that Bulgaria's position will be
influenced by the EU's because it is acceding to the Union at
the same time that the WTO rounds are being finalized. From
Bulgaria's individual point of view, they are not concerned
about export subsidies or domestic support because the GOB
does not provide much in either area. Market access is the
most sensitive issue for them. Bulgaria will greatly benefit
from access to the EU markets. The GOB feels a sharp
lowering of tariffs will hurt Bulgarian products'
competitiveness against Brazilian, New Zealand and Latin
American producers in the areas of dairy, meat, and wines.
In fact, Bulgaria feels the EU is already too open in its
wine agreement with the U.S. and other trading partners.


3. Although the GOB is sensitive to tariff reductions,
Naydenova said they were not likely to oppose a deal on this
issue. She envisions levels similar to those of the Uruguay
round to be appropriate - and thought that the overall
reduction in the 55-90 and 75 cap plan might be comparable.
She also said there is "serious concern" in the EU about the
attitudes of India and Brazil on Services and Market Access.
LEVINE