COMMERCE MINISTER ASSERTS NO BEEF BAN OR

UNCLAS SECTION 01 OF 02 MUSCAT 000502 SIPDIS SENSITIVE SIPDIS STATE PASS USTR FOR DEP USTR SCHWAB, J.BUNTIN STATE FOR NEA/ARPI, EB/TPP/ATT DUBAI FOR ATO MHENNEY USDA FOR FAS/W JBERNSTEIN AND APHIS JGREIFER E.O. 12958: N/A TAGS: EAGR ETRD ECON PREL MU SUBJECT: COMMERCE MINISTER ASSERTS NO BEEF BAN OR CONDITIONS, SEEKS DIALOGUE REF: MUSCAT 484 AND PREVIOUS ¶1. (U) This is an action cable for USTR. See para 6. -------------- Summary -------------- ¶2. (SBU) In a March 29 meeting with EmbOffs, Minister of Commerce Maqbool Sultan responded to USG concerns over contemplated Omani conditions on U.S. beef imports by assuring that no ban or conditions were currently in place. Given Omani concerns following three instances of BSE in U.S. cattle, however, the Minister plans to discuss in a March 29 telcon with Deputy USTR Schwab what measures Oman might be able to take to reassure consumers without putting in jeopardy upcoming House hearings on the Free Trade Agreement. End summary. -------------- No Ban or Conditions Yet in Force -------------- ¶3. (SBU) The contemplated Omani conditions on U.S. beef imports as appeared in a March 27 letter from Oman's Minister of Agriculture to the Minister of Commerce (reftel) are NOT/NOT in force, according to Minister of Commerce and Industry Maqbool bin Ali Sultan. In a March 29 meeting with Pol/Econ Chief and EconOff, he took umbrage with the Embassy's determined effort to rescind the contemplated conditions and objected to our sharing information on the notional conditions with Washington. He appeared to understand, however, that the envisioned conditions -- if applied -- could imperil Free Trade Agreement ratification hearings in the U.S. House tentatively scheduled for the week of April 3. For that reason, he had spoken that morning with Agriculture Minister Shaykh Salim al-Khalili. (Note: In addition to hearing from Emboffs, the Minister had received urgent messages along similar lines from Oman's legal consultants in Washington, and from Oman's Ambassador to the U.S. End note.) ¶4. (SBU) The Minister reiterated that Oman does not ban imports of U.S. beef, and has taken no formal decision to impose new conditions on such imports. He said he will reiterate those points in a planned phone call to Deputy U.S. Trade Representative Susan Schwab later on March 29. He did ask, however, whether any conditions similar to those in the March 27 letter might be acceptable to the USG, consistent with OIE standards. He argued that many of the conditions stipulated in the March 27 internal letter were already met by U.S. meat exporters, implying that they were purposely drafted that way. Emboffs reiterated that imposition of any conditions on the importation of U.S. beef without a scientifically confirmed basis would not be acceptable to the U.S. The Minister asked for information on conditions the USG might apply were a case of BSE diagnosed in Omani cattle, intimating that a reciprocal process might be acceptable. He also expressed interest in hearing what conditions have been applied on U.S. beef by other nations. -------------- Action Request -------------- ¶5. (SBU) The Minister is determined to allay USG fears on the beef issue, but is likewise irritated that an issue viewed by the Omani government as a genuine health concern may jeopardize the FTA ratification process. At the same time, U.S. beef exporters have genuine concerns about Omani import limitations. At least two U.S. beef shipments have already been denied entry on BSE grounds, according to both the shippers and informally by MinAg personnel. The U.S. Agricultural Trade Office in Dubai reports that a major Omani grocery chain, Al Fair, is delaying the purchase of two U.S. beef shipments per month over uncertainty of Omani policy. (Note: It was Al Fair's beef shipment in February that was denied entry and destroyed by Omani authorities. End note.) ¶6. (U) Given the above, the Embassy proposes the following tack in Deputy USTR Schwab's March 29 telcon with Minister Maqbool: -- Do not specifically raise the March 27 conditions unless first raised by the Minister. (Note: Post learned of the conditions after obtaining a copy of a private Omani inter-ministerial correspondence.) -- Ascertain, however, standing Omani policy on U.S. beef in light of the statements to EmbOff by MinAg personnel that a ban over BSE concerns was in effect; reports that two U.S. beef imports were already denied entry; and the report that retailers fear ordering future shipments pending clarification of Omani policy. -- Offer to provide briefings to relevant Omani agricultural personnel on USG meat inspection standards, including measures in place pertaining to BSE. -- Be prepared to respond to queries on actions the USG would take in the event of a BSE case in Oman, as well as what conditions other states may have applied to U.S. beef exports in the wake of recent U.S. BSE cases. -- Reiterate USG determination to win Congressional ratification of the FTA, and express deep appreciation for the Minister's personal efforts and perseverance in this difficult process. GRAPPO