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. -------------- Ministry of Agriculture -------------- ¶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. -------------- Ministry of Economy and Finance -------------- ¶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. -------------- Comment ATHENS 00001669 002 OF 002 -------------- ¶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