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