C O N F I D E N T I A L MANILA 004717

SIPDIS

SIPDIS

DEPT PLEASE PASS TO USTR

E.O. 12958: DECL: 11/15/2016
TAGS: ECIN ETRD ENRG PREL ASEAN RP
SUBJECT: AGENDA FOR DECEMBER EAST ASIA SUMMIT: ENERGY AND
TRADE


Classified By: ECONOMIC COUNSELOR LARRY MEMMOTT. REASONS 1.4
B AND D.


1. (U) See para 6 for action request.


2. (C) Summary: President Arroyo told us that, as host of
the East Asia Summit on December 13, the Philippines intends
to focus on energy and trade, especially the WTO. WTO
Director-General Pascal Lamy has agreed to attend the Summit,
and Arroyo would like to see Summit participants call for a
conclusion of the Doha Development Round including, possibly,
calls on the U.S. and EU for specific compromises in order to
make a conclusion possible. Post recommends that a member of
the USDel to the APEC Summit meet with Philippine Secretary
of Trade Peter Favila, who is in charge of the EAS Summit
agenda, to discuss these issues. End Summary.


3. (C) While hosting a dinner for the U.S.-ASEAN Business
Council on November 14, President Gloria Macapagal Arroyo
described the Philippines' plans for the ASEAN, ASEAN 3, and
East Asia Summits (EAS), which the Philippines will host
December 11-13. She said she intended to hold two sessions
of the EAS, one on energy and the other on trade. The
session on energy would focus on alternative energy sources
and fuels, while the trade session would focus on the WTO.
She had invited WTO DG Lamy and he had agreed to attend. Her
idea was to get the EAS to take the initiative to move the
Doha Round forward. That might be done by calling on the
U.S., the EU and others to make specific concessions.


4. (C) Arroyo stated that many in the developing world
viewed the Doha Round with mixed feelings. The two major
players -- the U.S. and the EU -- need to agree. The
developing world would see some benefits, but difficult
political and economic actions would also be required.
Referring to the attitude of many developing countries,
Arroyo said, "In the end, while we can't stay out, we might
be just as well off if the round were not successful." With
time running short, she felt it important to give the round
another shot and thought action by the EAS, with its mix of
developed and developing members, might be one way of doing
that.


5. (C) DCM responded that the U.S. certainly wants to make
the Doha Development Round a success. He recommended
consultations between the GRP and the USG on ways forward as
the next step. Arroyo noted that Secretary of Trade Peter
Favila will be in Vietnam for the APEC Summit and could
perhaps meet with someone from the USDel to discuss these
issues. DCM highlighted the ongoing work on the trade and
energy issues in APEC, pointing out that efforts in the
organizations should be complementary and not duplicative.
He suggested that the EAS should look to well-developed APEC
mechanisms to make further progress on energy issues.


6. (C) Comment and Action Request: Arroyo clearly wants to
be helpful with her initiative on the WTO. That said, it is
not clear to us that her team has a solid idea of what they
want to come of this. Given the unstructured nature of the
EAS, there is certainly some risk that the initiative will
not be helpful. We recommend a meeting between Favila and a
senior USG economic official on the margins of APEC.
KENNEY