PUSHING THE DUTCH TO HELP ON WTO/AGRICULTURE

UNCLAS THE HAGUE 002897 SIPDIS SENSITIVE STATE FOR EB/TPP/BTA (JSTRUBLE),EUR/UBI, EUR/ERA STATE PLEASE PASS TO USTR USEU FOR CWILSON GENEVA FOR USTR E.O. 12958: N/A TAGS: EAGR ETRD NL WTRO PKPAO EUN SUBJECT: PUSHING THE DUTCH TO HELP ON WTO/AGRICULTURE REF: 10/21 D/USTR-EMBASSIES TO EU MEMBER STATES CONFERENCE CALL ¶1. (SBU) On October 24, Charge called Helen van Dongen, Deputy Director of WTO Affairs, Ministry of Economic Affairs (MEA),to urge continued Dutch activism within the EU for an improved market access offer ahead of the October 27 Five Interested Parties (FIPs) meeting in Geneva. Van Dongen said the Dutch expected the European Commission to table a new proposal on agriculture at the EU meeting scheduled for October 25, including a "substantially" improved market access offer. She cautioned that Commissioner Mandelson had warned that this would be the final offer, as room for further maneuverability was limited. Rather, the Dutch and its EU colleagues believed that the negotiations should be broadened to include other areas such as NAMA and services. ¶2. (SBU) Van Dongen praised the new U.S. proposal on agriculture for giving "real impulse to the negotiations." However, she noted that there was a feeling within the WTO and EU that "all must suffer" in order to achieve "balanced results." The EU had taken steps two years ago in the area of CAP reform. There was a belief among some EU member states that others, including the U.S., must pay as well and deliver more on such issues as food aid, export credits and sensitive products (i.e., cotton). ¶3. (SBU) In separate discussions at the Dutch Ministry of Agriculture (MinAg),a working-level contact told the Agriculture Counselor that any further reform of CAP would be politically difficult at this time. He said the new U.S. proposal had not done enough on food aid and export credits and questioned whether the offer on domestic support would result in any real changes to U.S. farm subsidy programs. He agreed that the Netherlands and the U.S. had shared interests on the market access front, but added that the Netherlands remained dependent on CAP given its large livestock, poultry and dairy sectors and some arable crop producers like sugar beets and grains. ¶4. (SBU) COMMENT: It is not surprising that the Dutch MEA is more positive about the new U.S. WTO proposal on agriculture than its MinAg colleagues, whose interests continue to benefit under CAP. Dutch Trade officials tend to favor reductions in CAP as a means of redirecting budget funds to programs aimed at helping developing countries. Van Dongen's comments also point to a skepticism about the actual changes envisioned under the U.S. proposal. U.S. negotiators may wish to spell out in greater detail what the proposed cuts actually mean and where the U.S. will "suffer." END COMMENT. BLAKEMAN