TURKEY: WTO PANEL CONTINUES AND MEDIA ANNOUNCES

UNCLAS ANKARA 001744 SIPDIS SENSITIVE SIPDIS DEPARTMENT PLEASE PASS USTR FOR JWEISS, LERRION USDA FOR FAS JFLEMINGS, BLEIER, JDEVER E.O. 12958: N/A TAGS: ETRD EAGR WTO TU SUBJECT: TURKEY: WTO PANEL CONTINUES AND MEDIA ANNOUNCES RENEWAL OF CONTROL CERTIFICATE ISSUANCE REF: ANKARA 1496 ¶1. (SBU) Summary: A March 31 article in "Referans" (Turkey's business paper of record) reports that the Ministry of Agriculture will begin issuing control certificates for rice imports on April 1. Upon hearing about the decision, Turkish domestic producers sharply criticized the GOT for this decision. In response to U.S. questions about how this decision would be disseminated to the public, it appears that the Ag Ministry chose to do so in the press. End summary. ¶2. (SBU) In line with a March 27 letter presented by Minister of Foreign Trade, Kursad Tuzmen, to USTR Ambassador Rob Portman (reftel),Turkey's business paper of record, "Referans," reported March 31 that the Ministry of Agriculture will begin issuing control certificates for imported rice on April 1. According to the report, Turkey's domestic rice production (approximately 380,000 tons) cannot satisfy its yearly domestic rice consumption of approximately 580,000 tons and because of this, the GOT had initially hoped to increase domestic rice production by 10% and stop imports. However, due to the recent floods in Edirne (the country's main rice producing region),the GOT's plans to stop rice imports by increasing domestic production failed. ¶3. (SBU) Referans notes that this policy prompted the U.S. to initiate a case before the WTO's Dispute Settlement Body (DSB). It contends that Turkish officials decided to lift barriers to rice imports earlier than expected because domestic production was not sufficient and could result in price speculation. ¶4. (SBU) According to Referans, the GOT has not officially informed domestic producers about this decision. It states that upon hearing about the decision, domestic producers sharply criticized the GOT, and estimated that the GOT will suffer a loss this year when the Turkish Grain Board is required to purchase the domestically produced rice. Domestic producers also estimate that, because of the recent floods in Edirne, domestic production will decline by 60,000 tons, which represents a loss of approximately YTL 40,000,000 (USD 11,428,571). Turkish Agricultural Chambers Union President, Semsi Bayraktar, is quoted as saying that the GOT will face heavy criticism from its local rice producers over its recent letter to USTR agreeing to lift the tariff quotas on rice. ¶5. (SBU) Comment: Because the GOT's decision to end the issuance of control certificates was not official, it was never published in the official gazette. Therefore, the decision to begin issuing the control certificates again cannot be published in the official gazette. In response to this we questioned how this decision would be disseminated to the public. In response to these concerns, it seems that the Ministry of Agriculture chose to do so through the press. End comment. Visit Ankara's Classified Web Site at http://www.state.sgov.gov/p/eur/ankara/ MCELDOWNEY