CYPRUS -- DEMARCHE DELIVERED: WTO DOHA ROUND

UNCLAS NICOSIA 001000 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETRD ECON EUN CY SUBJECT: CYPRUS -- DEMARCHE DELIVERED: WTO DOHA ROUND NEGOTIATIONS REF: SECSTATE 104561 (U) This message is sensitive but unclassified. Please protect accordingly. ¶1. (SBU) We delivered reftel demarche June 28 to Commerce Ministry Trade Director and 133 Committee Representative Andreas Sofocleous. Sofocleous replied that the EU was signaling that it was willing to improve its agricultural market access offer but only if the U.S. was willing to both accept less ambitious tariff cuts and offer even further reductions in its farm subsidies. It was impossible for the EU to offer significant cuts in agricultural tariffs. EU tariff cuts were also opposed by many in the developing world who received preferential access to the EU market. Cutting tariffs for everyone would just erode their advantage thus hampering their development. Cyprus strongly supported the EU position and felt that without further U.S. movement on agriculture, progress in Geneva was in doubt. Sofocleous added that geographic indications was a critical issue for Cyprus. Cyprus was likely to oppose any deal that did not include movement on GIs. (Note: Cyprus is pushing for GI protections for its Halloumi cheese. End note.) We pushed back hard but appeared to make little progress. ¶2. (SBU) On June 29, the Ambassador delivered reftel points to new Commerce Minister Antonis Michaelides. Michaelides had not yet been briefed by his staff on this issue and had no substantive reply. ¶3. (SBU) Comment: Sofocleous regularly sticks close to European Commission talking points and we can expect Cyprus to continue to parrot whatever it perceives to be the EU line. Previous Commerce (now Foreign) Minister Lillikas admitted to us several months ago that Cyprus had traded its vote on WTO agricultural issues to the French for support on unrelated political issues. We see no sign that Cyprus is reconsidering this position. SCHLICHER