DIRECTOR'S MEETING WITH TAIWAN'S AGRICULTURE CHAIRMAN

UNCLAS AIT TAIPEI 002612

SIPDIS

SENSITIVE

FAS FOR ITP/AAD/SHEIKH, MIRELES AND SMITH
STATE FOR EAP/RSP/TC AND EB/TPP/ABT
STATE PASS AIT/W
STATE PASS USTR FOR ERIC ALTBACH



SIPDIS

E.O. 12958: N/A
TAGS: EAGR ETRD TW
SUBJECT: DIRECTOR'S MEETING WITH TAIWAN'S AGRICULTURE CHAIRMAN

REF: (A) TAIPEI 01444 (B) TAIPEI 02542 (C) TAIPEI 2590

SENSITIVE BUT UNCLASSIFIED


1. (SBU) Summary. In his August 1 meeting with Taiwan's Council of
Agriculture (COA) Chairman, Mr. Su Chia-chyuan, Director Young
gained a commitment to finalize the documents establishing the
Consultative Committee on Agriculture (CCA) by the end of October,
reiterated the primacy of science-based import measures, and
discussed the recent Sustainable Economic Development Conference.
The CCA commitment suggests that the first meeting could be held at
the end of 2006 or early 2007. End summary.


2. (SBU) On August 1, Director Young met with COA Chairman Su for
the second time in four months. Building on themes established in
his introductory call in April, (see Reftel A),Director Young noted
the importance of our bilateral agricultural trade relationship and
the need for further efforts to improve access for agricultural
products. A primary purpose of the meeting was to push COA to begin
serious discussion on establishing the Consultative Committee on
Agriculture (CCA),as both sides agreed to do during the TIFA talks
in late May. Over the past two months, COA has been conducting an
internal review and assessment of documents presented during the
TIFA that would formalize and establish a CCA.


3. (SBU) In response to the Director's query on the CCA, Chairman
Su said that he supports the idea of a CCA, but he must first secure
the concurrence of other agencies that will likely be involved, like
Health and Economic Affairs. He also said that the benefits of a
CCA must be mutual. If the focus is solely on U.S. interests,
particularly with regard to market access, then it will be difficult
for COA to agree. The Director assured Chairman Su that the intent
of a CCA is to look at the broad range of bilateral agricultural
issues in a way that benefits both sides. (Note: We do not
anticipate any objections from Taiwan's Health or Economic
ministries on the CCA. Indeed, we were told earlier that they had
already provided their comments and endorsement to COA. End note.)



4. (SBU) With these assurances, Chairman Su directed his staff to
complete their review and begin discussions with AIT on the
Memorandum of Understanding and Terms of Reference (the documents
presented during the TIFA talks). The process should be completed
no later than the end of October. This schedule would allow the
first CCA to be held at the end of 2006 or early in 2007. Director
Young noted that USDA Under Secretary Penn will likely come to
Taiwan to convene the first CCA.


5. (SBU) Director Young then noted that the next round of technical
bilateral discussions on animal and plant health issues is planned
for November. He reiterated the importance of basing animal and
plant health and food safety related trade measures on scientific
evidence and principles. He specifically noted our concern that
BSE-related bans on certain animal-based feed products remain in
place. COA's Director General of the Bureau of Animal and Plant
Health and Quarantine responded by noting the seven years Taiwan has
waited for a response to its request to export longans to the United
States.


6. (SBU) Turning to the Sustainable Economic Development Conference
(SEDC - See refs. B and C),Director Young asked to what extent
Taiwan's agricultural economy figured into the proceedings.
Chairman Su said that, except in the context of cross-straits trade,
agriculture was not part of the discussion or outcome. With regard
to cross-straits concerns, Chairman Su believes the PRC market for
Taiwan's agricultural goods is illusory. Mainland consumers do not
have the spending power of Japanese or U.S. consumers, Taiwan brand
names and products are the victims of Chinese piracy, and the PRC is
able to produce the same commodities, albeit with lower quality.
Taiwan is also concerned about the competitive challenge it faces
from China's agricultural products in third-country markets.


7. (SBU) Speaking more generally of the SEDC, Chairman Su noted the
highly politicized nature of the conference. He specifically noted
the objections of environmental groups and the Taiwan Solidarity
Union (TSU) to the proceedings and the outcomes. The latter, he
noted, oppose any opening to the PRC. Despite the party's small
size, it is able to influence the decisions of the ruling party and
events like the SEDC.


8. (SBU) Comment: It is noteworthy that agriculture was completely
left off the SEDC agenda. While perhaps not a centerpiece issue, a
sector of the economy that draws heavily on scarce resources (land,
labor water),but contributes only 1.8 percent to overall GDP is
calling out for attention. Achieving sustainable economic
development in Taiwan will require a solution to this agricultural
"problem". Despite agriculture's absence from the SEDC, our
discussions with economic think tanks and policy analysts show that
some thought is being given to encouraging an agricultural
transition that will capitalize on Taiwan's technological, capital,
and geographic advantages and allow Taiwan's agricultural sector to
be more competitive in a global environment. End comment.

YOUNG