DEMARCHE TO AUSTRIA: REQUEST FOR EU MEMBER STATES

UNCLAS VIENNA 003398 SIPDIS SENSITIVE STATE FOR EUR/ERA AND EUR/AGS - VIKMANIS-KELLER COMMERCE FOR ITA/USFCS - THOMAS MOORE AND ITA/MAC - KELLY PARSONS E.O. 12958: N/A TAGS: EAGR ETRD AU WTRO SUBJECT: DEMARCHE TO AUSTRIA: REQUEST FOR EU MEMBER STATES TO SUPPORT U.S. WTO AG PROPOSAL REF: A. (A) STATE 190730 ¶B. (B) PHILLIPS-CHASE E-MAIL 10/17/05 This message is Sensitive but Unclassified. Please treat accordingly. ¶1. (U) Post delivered ref (a) points on October 17 to key trade officials in the Ministries of Economics and Agriculture. In a preliminary discussion on October 17, the Economics Ministry's Multilateral Trade Division head, Gabriela Habermayer, told us she would ensure that the Austrian delegation in Luxembourg received our demarche. Habermayer added that she did not expect the October 18 EU Council meeting to result in any clear mandate to the Commission to go beyond its current negotiating mandate to discuss the U.S. proposal. ¶2. (SBU) On October 18, EconPolCouns and Senior Commercial Officer met with Habermayer to discuss the U.S. proposal further. Habermayer explained that the Commission believed it was well within its existing mandate to negotiate on the basis of the U.S. proposal, so it had not requested an expansion of its mandate. ¶3. (SBU) The Austrian position was that there had to be a balance between all the items up for negotiation in the WTO, Habermayer said. In addition, all players, especially Brazil and India, had to engage in the discussions, and the talks had to include such issues as non-agricultural market access (NAMA) and services. Habermayer noted that there was a difference of views between the Austrian Economics Ministry and the Agriculture Ministry. The Economics Ministry took an "offensive" approach, seeking flexibility in the various sectors. The Economics Minister had expressed surprise when his colleague at the Agriculture Ministry signed on to a French memorandum which was "defensive" in supporting current benefits and prerogatives for Austrian farmers. That said, Habermayer expressed a desire for all parties in the WTO discussions to make a commitment to discuss the range of issues. As the U.S. had argued, this should include not only agricultural market access, but also export subsidies and internal support. van Voorst