MOEA DM CHEN RESPONDS TO DOHA DEMARCHE, BEEF, TYCO

C O N F I D E N T I A L TAIPEI 004686

SIPDIS

STATE FOR EAP/RSP/TC AND EB/TPP, STATE PASS AIT/W AND USTR,
USTR FOR WINELAND AND WINTERS, USDOC FOR
4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN

E.O. 12958: DECL: 11/23/2015
TAGS: ETRD EAGR TW
SUBJECT: MOEA DM CHEN RESPONDS TO DOHA DEMARCHE, BEEF, TYCO
AND COKE

REF: STATE 211956

Classified By: AIT Director Douglas Paal, reason 1.4 b/d


1. (C) Econ Chief delivered reftel points to Ministry of
Economic Affairs Deputy Minister Steve Chen (Ruey-long). He
took the occassion to raise Taiwan's continued ban on U.S.
beef, the status of Tyco thermistor cases, Taiwan's opening
to some types of chocolate imports from China and proposed
labeling requirements for caffeinated beverages. Chen
responded that Taiwan was very aggressive on opening to
services and although had reservations about some
Non-agricultural market access (NAMA) proposals, would do its
best to go along. He noted that subjecting all NAMA products
to the Swiss formula made it difficult for Taiwan in some
sensitive areas. As a newly acceded member, Chen pressed for
a special timeline for implementing any new commitments. He
passed the buck to the Council of Agriculture (COA) on
Taiwan's agricultural market access policy, offering that COA
could see the momentum for agricultural liberalization but
needed more time to prepare. Chen volunteered that Taiwan
was still engaged in serious internal discussions and would
probably not have a detailed position before December 12.


2. (C) AIT Econ Chief noted that Japan was likely to open
its market to U.S. beef soon and that Taiwan's continued
reluctance to do so was a sore point in our trade
relationship. Chen responded that Japan was an important
indicator for Taiwan and speculated that the Department of
Health was being extra cautious after it had been heavily
criticized for re-opening to U.S. beef in April, only to have
to close again when another BSE case was reported. He opined
that Taiwan would be quick to follow Japan's lead and re-open
the market soon.


3. (C) In response to questions about how to best approach
Taiwan Customs about cases regarding Tyco thermistor
classification that had been referred to the judiciary for
decision, Chen offered that some in Taiwan Customs were very
unhappy about the reclassification of thermistors and implied
that the Customs decision to refer these cases to the courts
was a means of expressing their displeasure. He offered to
continue to discuss the cases with Taiwan Customs Director
General Yu Shao-wu to see if there was still a way to reach a
negotiated settlement.


4. (U) AIT Econ Chief thanked Chen for his message that
Taiwan would open its market to some types of unfilled
chocolate imports from China and noted that there was a
proposal to require health warnings on labels of some
caffeinated beverages that could have a negative impact on
Coca-cola or other soft drinks. Chen was not familiar with
the proposed regulations but volunteered to check with the
Department of Health.
Paal