GOI PUSHES FOR RESUMPTION OF POULTRY EXPORTS TO

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001393

SIPDIS

DEPARTMENT PLEASE PASS TO USTR: ESAUMS

E.O. 12958: DECL: 04/04/2016
TAGS: ECON ETRD EAGR IS ECONOMY AND FINANCE
SUBJECT: GOI PUSHES FOR RESUMPTION OF POULTRY EXPORTS TO
THE US; CLAIMS READY TO RESUME IMPORTS OF U.S. BEEF

Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d)


1. (U) This message contains an action request: Please see
paragraph eight.


2. (C) Summary: In a meeting with the Ambassador on April 4,
the Directors General of the Ministry of Industry, Trade, and
Labor and the Ministry of Agriculture requested the
expeditious resumption of poultry exports to the U.S. The
GOI voluntarily suspended exports on January 18, 2006, after
seven of ten plants were found deficient during a USDA FSIS
(Food Safety and Inspection Service) audit of Israeli poultry
plants. The Ministry of Agriculture representatives said
that they have undertaken, with the assistance of a U.S.
consulting firm, all the recommended technical fixes required
to update regulations, and corrected deficiencies at the
individual processing plants and slaughterhouses. At no
point during the meeting did the GOI disagree with the
findings of the initial USDA FSIS audit. Senior Deputy
Director General at the Ministry of Agriculture, Zvi Alon
requested that the USG conduct a new audit immediately upon
GOI notification of compliance, and forgo the thirty-day
period usually required after implementation before an audit
is carried out. In response to the Ambassador's question,
MinAg's chief veterinarian said imports of U.S. beef could
resume sometime this spring/summer. Post urges a rapid U.S.
response once Israel has made the necessary changes - doing
so will position us to press for resumption of imports of
U.S. beef here. End summary.


3. (SBU) The meeting was attended by the Ministry of
Agriculture's Director General Mr. Joseph Ishay, Senior
Deputy Director General for Foreign Trade Mr. Zvi Alon,
Director of Veterinary Services and Animal Health Dr. Moshe
Chaimovitz, and Dr. Mordechai Cohen who has recently returned
from his term as Agriculture Minister Counselor in the United
States. The Ministry of Industry, Trade, and Labor staff who
attended the meeting were Director General Mr. Raa'nan Dinur,
Director of the Foreign Trade Administration Mr. Boaz Hirsch,
and Director of International Agreements Mr. Yair Shiran.

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AUDIT AND CORRECTIONS
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4. (C) Ishay opened the meeting by saying that the GOI was
pleased that Secretary of Agriculture Johanns had met with
Israeli Ambassador Ayalon in Washington, and that the talks
were productive. Ishay said that after the USDA FSIS audit,
he commissioned a panel to investigate what happened, and how
the GOI could correct the problem. He added that national
regulations for poultry production facilities had been
updated and the recently departed team of American
consultants conducted training at the plants and
slaughterhouses to ensure that all conform with the most
recent U.S. regulations.


5. (C) Zvi Alon requested that the U.S. send a new audit team
to Israel immediately upon receiving official word that the
GOI has complied with the first team's recommendations.
Mordechai Cohen, who recently returned from his position in
the U.S. as AgMinCouns, expressed a more nuanced view that he
understood the U.S. will send an audit team, "as soon as
possible after we (the GOI) notifies the USG that we are in
compliance." Dr. Chaimovitz told the Ambassador that the
final GOI compliance report should be ready within ten days.

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IMPACT ON TRADE
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6. (C) The Ambassador asked if the GOI's announcement of a
voluntary suspension on poultry exports to the U.S. has
impacted Israel's trade with Europe or other trade partners.
MOITAL's Yair Shiran said that this had been the GOI's fear,
but that the suspension has not noticeably impacted Israel's
poultry exports to Europe. The Ambassador emphasized that
the U.S. audit report was not shared outside the USG. The
GOI team emphasized that they are concerned about the ban on
poultry exports to the U.S. because the products are produced
in (economically) "vulnerable" areas in the north of Israel.


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BSE
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7. (C) The Ambassador asked for an update on the status of
removing the BSE ban on U.S. beef that has been in place in
Israel since December 2003. Chaimovitz expressed
satisfaction at the U.S. programs in place to deal with the
threat of BSE to the beef supply and said that he believes
after the OIE (World Organization for Animal Health) meeting
in May in Paris the GOI will be able to resume imports of
U.S. beef. The Ambassador expressed his hope that both
Israeli exports of chicken and U.S. exports of beef would
fully resume by this June or July.

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Action Request
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8. (C) Post urges USDA to respond to the Israeli desire for a
rapid resumption of poultry exports by sending USDA FSIS
auditors to visit Israel as soon as possible under U.S.
law/regulations after receiving word Israel has made the
necessary changes to internal phytosanitary controls, and
corrected problems at their processing facilities and
slaughterhouses. Israel expects to make this notification
during the week of April 16, 2006.

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