TURKEY MAINLY INTERESTED IN TEXTILE PROPOSAL,

UNCLAS ANKARA 003774 SIPDIS SENSITIVE SIPDIS DEPARTMENT PASS USTR FOR DWOSKIN/RHODE GENEVA PASS USTR FOR ALLGEIER/SHARK STATE/EB FOR CMOORE/WCRAFT E.O. 12958: N/A TAGS: WTRO ETRD ECON TU SUBJECT: TURKEY MAINLY INTERESTED IN TEXTILE PROPOSAL, SEEKS MEETING WITH USTR SCHWAB REF: A. STATE 103940 ¶B. STATE 104561 ¶1. (SBU) To ensure wide distribution among concerned Turkish agencies, we provided a copy of ref A letter containing an updated U.S. request in WTO services negotiations to the Ministry of Foreign Affairs and hand-delivered to Foreign Trade Undersecretariat (FTU) Deputy Director General for Multilateral Affairs Hasan Yalcin on June 27. Yalcin agreed to pass this information to State Minister for Foreign Trade, Kursad Tuzmen, who will attend the ministerial meetings in Geneva beginning June 28, as well as to other Turkish agencies. During our discussion of the current state of the Doha Round (ref B),Yalcin focused on Turkey's proposal for special treatment for the textiles sector and asked for clarification on the U.S.'s position. Per conversations with State and USTR, we explained that a U.S. position was under review. Yalcin asked for our assistance in scheduling a meeting between Minister Tuzmen and USTR Schwab in Geneva, the request for which was coordinated through the Turkish embassy in Washington. ¶2. (SBU) Yalcin reiterated that Turkey's views on the NAMA negotiations are close to those of the U.S. On agriculture however, Turkey does not support dramatic reuctions in tariffs because they are the GOT's only means of protecting Turkey's sensitive agriculture sector, which accounts for 30% of employment, from foreign competition. "The import pressure is far more important than our export potential when it comes to agriculture," he added. ¶3. (SBU) Comment: We do not see that Turkey will take a helpful position in pushing for a Doha Round conclusion that provides for significantly greater market access in agriculture. While Turkey views itself as a developed country for the purposes of NAMA discussions, it falls more into line with the EU on agricultural issues. However, Tuzmen and his trade team will continue to focus the bulk of their energy on trying to protect Turkey's large but ailing textile sector, and they will most likely spend the majority of their time in Geneva focusing on this issue. End comment. Visit Ankara's Classified Web Site at http://www.state.sgov.gov/p/eur/ankara/ WILSON