GREECE DEFERS TO BRUSSELS ON DOHA, ASKS FOR "LOW

C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 001669

SIPDIS

SIPDIS

STATE PLEASE PASS USTR FOR DWOSKIN/ROHDE
GENEVA FOR USTR (ALLGEIER/SHARK)
DEPARTMENT ALSO FOR EB (CMOORE/WCRAFT)

E.O. 12958: DECL: 06/29/2016
TAGS: ETRD GR
SUBJECT: GREECE DEFERS TO BRUSSELS ON DOHA, ASKS FOR "LOW
AMBITION"

REF: SECSTATE 104561

Classified By: Ambassador Charles Ries for Reasons 1.4(b,d)


1. (C) Summary: In preparation for the Geneva Trade
Ministerial (reftel),Econ Counselor briefed the U.S.
position to officials at the Ministries of National Economy
and Agriculture. The officials stressed that the GoG
position on Doha will follow the EU consensus, except perhaps
on the expansion and internationalization of geographical
indicators. These views reflect, firstly, the positions of
Greece's vocal agriculture lobby that continues to play a
prominent role in Greece's domestic political scene and,
secondly, Greece's deference to the EU on issues which it
does not consider of high national priority.

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Ministry of Agriculture
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2. (C) At Agriculture, Econ Counselor briefed Pavlos Pezaros,
Director of Agricultural Policy and Documentation, as well as
George Mermigas, Ministerial Advisor. Pezaros explained that
Greece recognizes the shortness of time before a Doha
agreement has to be finalized, yet he noted the country would
not get out ahead of the general EU position on Doha. He
mentioned that Greece might push a national position on the
expansion of geographical indicators, which Greece also wants
to see "internationalized." Econ Counselor noted U.S.
concern that geographical indicators could become a new
vehicle for protectionism by another name, something we would
not support.


3. (C) Mermigas was negative about the U.S. position, saying
that it would essentially mean the destruction of Greek
agriculture, leading to further mass migration into the
cities. He believed that the U.S. position on market access
was really aimed at emerging markets such as India where it
would take massive cuts in tariff rates to bring Indian
tariffs below current, applied rates. He furthermore claimed
that the U.S. was not truly concerned with EU tariffs.
Mermigas stressed that Brussels could never accept the U.S.
proposal, and that "only a low level of ambition on the part
of the U.S." will allow the parties to come to an agreement.


4. (C) Econ Counselor disputed the Pezaros/Mermigas analysis.
The US had put an ambitious proposal on the table in October
in the hopes this would jump start Doha, which we viewed as
the best guarantor for a significant improvement in world
trade. This proposal would require significant financial
sacrifices on the part of U.S. farmers. It was essential
that the EU now reciprocate with its own, ambitious proposal,
which would go a long way in helping get the developing world
on board. Greece's history suggested that the expansion of
world trade over the past 50 years had tremendously benefited
the country, not hurt it. This remained the case.

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Ministry of Economy and Finance
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5. (C) Econ Counselor also discussed the Geneva Ministerial
with George Mergos, General Secretary at the Ministry of
National Economy. Mergos was pessimistic about the Geneva
meeting and said the EU position has not changed since the
U.S. made its October proposal, and it will not change in
Geneva. Mergos further explained that it was very difficult
to get all the countries in the EU to agree on anything
ambitious. Referring to Geneva he said, "It's too late now,"
and further pointed out that current CAP reform must be
maintained until 2013. Econ Counselor made the point that
even within the current CAP reform structure, the EU still
has significant room to maneuver. Echoing his counterparts
at the Ministry of Agriculture, Mergos also stressed the
importance of geographical indicators to Greece.


6. (C) Mergos closed the conversation by stating that the GoG
was "on the same wavelength with the U.S." on the need for
ambition, and expected transatlantic bonds to prevail in the
end. Econ Counselor stressed that it would be a mistake to
wait until the end game, as happened to a large degree during
the Uruguay round; it was important the EU make progress now
in meeting our groundbreaking proposal with something equally
ambitious.

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Comment

ATHENS 00001669 002 OF 002


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7. (C) Due to the significant political power of the
agricultural sector in Greece, and the prevalence of
anti-globalization rhetoric among the public at large, the
GoG can be expected to keep its head down in Geneva, except
perhaps on the issue of geographic indicators. Greece is
also in no hurry to rock the boat in Brussels given its
sensitive position on such issues as its low rate of
absorption of EU funds and inability to resolve its ongoing
dispute with Brussels over the future of Olympic Airlines.
End Comment.
RIES