Identifier
Created
Classification
Origin
06THEHAGUE1433
2006-06-27 15:57:00
UNCLASSIFIED
Embassy The Hague
Cable title:  

DUTCH OFFICIALS OUTLINE TRADE PRIORITIES

Tags:  WTRO EAGR ETRD EU NL 
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VZCZCXYZ0007
PP RUEHWEB

DE RUEHTC #1433/01 1781557
ZNR UUUUU ZZH
P 271557Z JUN 06
FM AMEMBASSY THE HAGUE
TO SECSTATE WASHDC PRIORITY 6160
UNCLAS THE HAGUE 001433 

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SIPDIS

STATE FOR EB/TPP/BTA, EUR/UBI, EUR/ERA
STATE PLEASE PASS TO USTR
USDA/FAS (ROBERTS, YOUNG)
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E.O. 12958: N/A
TAGS: WTRO EAGR ETRD EU NL
SUBJECT: DUTCH OFFICIALS OUTLINE TRADE PRIORITIES


THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. PLEASE TREAT
ACCORDINGLY.

UNCLAS THE HAGUE 001433

SIPDIS

SIPDIS

STATE FOR EB/TPP/BTA, EUR/UBI, EUR/ERA
STATE PLEASE PASS TO USTR
USDA/FAS (ROBERTS, YOUNG)
USEU FOR CWILSON
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: WTRO EAGR ETRD EU NL
SUBJECT: DUTCH OFFICIALS OUTLINE TRADE PRIORITIES


THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. PLEASE TREAT
ACCORDINGLY.


1. (SBU) SUMMARY: Senior Dutch trade officials recently
outlined current Dutch trade priorities: completion of Doha
(WTO) talks, energy security, balancing of trade and security
needs, and the export of Dutch water management expertise. A
February 2007 High Tech Connections mission to San Francisco
may include a water-related visit to Sacramento. END SUMMARY.


2. (SBU) Emboffs used a June 14 introductory meeting with
Roderick van Schreven, new Director General for Foreign Trade
at the Ministry of Economic Affairs, to discuss current Dutch
trade priorities. Van Schreven assumed his post in May,
replacing Dirk Bruinsma. A career diplomat, he will continue
to serve as Dutch ambassador to Syria until mid-July. Like
his predecessor, van Schreven will be our primary Dutch
contact in high-level trade talks. Emboffs met the same week
with Richard van Rijssen, currently the Director of Foreign
Trade Relations at the MEA but scheduled to take over as DCM
at the Dutch Embassy in Washington later this summer.

--------------
Doha Negotiations
--------------


3. (SBU) Van Schreven listed completion of the Doha Round
negotiations within the WTO talks as a top Dutch priority,
including agreements on agriculture and services, even if
less ambitious than once envisioned. He expressed concern
that continued USG demands for EU concessions could harm
overall US-EU relations. While there might be room to
negotiate on sensitive products lists, he viewed expectations
for a revised EU WTO offer as "misguided." The EU, and
specifically member state France, believed its current offer
had gone "as far as it could go" and had "already been
trimmed," especially in the area of direct farm subsidies.
Nevertheless, van Schreven noted progress within the various
working committees, and underscored Dutch interest in
reaching an overall agreement by April 2007 and ahead of the
expiration of U.S. Trade Promotion Authority.


4. (SBU) Despite strong messages to the contrary from USTR,
van Schreven said that many in the EU still believed the US

would make further concessions in its WTO offer. He also
pointed to difficulties the Bush administration encountered
in selling the Central American Free Trade Agreement to
Congress, noting that some EU member states questioned
whether similar problems would arise with the current U.S.
WTO offer.


5. (SBU) Van Schreven also noted concerns among EU member
states about the potential rise of U.S. protectionism. As the
third largest direct foreign investor in the United States,
the Dutch had also followed the Dubai Ports deal closely.
Many in the Dutch government regard the Committee on Foreign
Investments in the United States (CFIUS) as a potential
non-trade barrier rather than a security measure, a view he
said was shared by several Dutch companies who have
complained that CFIUS limits their ability to compete for
investments in the U.S. Van Schreven urged the U.S. to
carefully review the reach of CFIUS.

--------------
Energy Security
--------------


6. (SBU) Both van Schreven and van Rijssen identified energy
security as another key priority, emphasizing that Russia
figures strongly in Dutch energy strategy. Although the Dutch
have adequate natural gas reserves and are net exporters, van
Schreven said these reserves are expected to last only 20-25
years and new sources need to be developed. Van Rijssen noted
the Netherlands thus is seeking to secure investment
protection agreements (e.g., national treatment,
repatriation) in Russia, Libya, Algeria, Central Asia, and
other supplier countries. Given the current focus on energy
security, both MEA officials said the ministry planned to
name a special energy envoy by September 1 to lead overseas
negotiations in this area.


7. (SBU) Van Schreven explained that the GONL also sought to
position Rotterdam as a liquified natural gas (LNG) transport
center. While there are currently no LNG plants in the
Netherlands, the Dutch are considering two projects at the
port of Rotterdam and one near the Groningen natural gas
fields in the north of the country. Under this scheme, the
Dutch would provide the EU with strategic reserves,
operational supply, transport, and storage capabilities and,
thereby, help fulfill a EU priority of diversifying its
natural gas supplies. Van Schreven noted that a LNG hub would
also meet security objectives as "vessels can be redirected,"
making them less vulnerable than pipelines.


8. (SBU) Under a seperate project, van Schreven said the
Dutch company Gasunie, with support from GONL, had recently
announced plans to join the Russian Gazprom $6 billion North
European Gas Pipeline Project, which will supply gas under
the Baltic Sea to Germany by 2010. In return, Gazprom will
take a stake in Gasunie' pipeline project to England, which
Gasunie is currently building together under the North Sea
with the German company Eon. Both this and the LNG project,
van Schreven added, would strengthen the Dutch position in
natural gas, a sector where the Netherlands holds a
comparative advantage.

--------------
Trade and Security
--------------


9. (SBU) Van Rijssen said the Dutch remain concerned about
the economic impact of new security measures, such as travel
restrictions and inspections, on the free flow of trade and
business travelers. With 60-70% of all global trade crossing
the Atlantic, differences in regulatory systems between the
EU and U.S., such as that for food security and inspections,
imposed a "huge cost" on both sides. He cited the Container
Security Initiative as a positive example of how the U.S. and
EU can balance security and economic needs. On the related
issue of immigration, he said the Dutch are seeking a secure
way to attract highly qualified foreign workers, perhaps
through a point-based admission system, to fill a need left
by the Netherlands' aging workforce.

--------------
Water Management
--------------


10. (SBU) The Dutch have been actively involved in Katrina
reconstruction efforts, especially in the area of water
management. According to van Schreven, they are now exploring
how to sell their water management expertise to other regions
such as California, whose Sacramento valley shares many
geographic similarities with the Netherlands. He said
California officials have expressed "concern" over the state
of their water management, and UC Berkeley and Davis have
also indicated interest in bilateral exchange programs. As a
follow-on to the 2004 and 2005 High Tech Connections (HTC)
trade mission to Silicon Valley and Boston, respectively, van
Schreven said the MEA is now planning a February 2007 HTC
mission to San Francisco, which may include a water-related
visit to Sacramento.

--------------
Bio Information
--------------


11. (U) Van Schreven - a career diplomat - is an accomplished
sailor and mountain climber. He climbed Mount Ararat in 2005
(5,165 m) with a Swiss mountain team, and has sailed across
the Atlantic three times and participated in the 1977-78
Whitbread Round the World Race. He speaks English and French
fluently and Spanish well. Van Schreven was born in Ottawa in
1954 and is married with a daughter and two sons.
ARNALL