AUSTRIA PESSMISITIC ON DOHA

UNCLAS VIENNA 000133

SIPDIS

SIPDIS, SENSITIVE

E.O. 12958: N/A
TAGS: ETRD EAGR PREL WTRO AU
SUBJECT: AUSTRIA PESSMISITIC ON DOHA

REF: 05 VIENNA 3840


1. (SBU) Econ Unit Chief met January 13 with Gabriella
Habermayer, Head of the Ministry of Economy's
Multilateral Trade Division to discuss next steps after
Hong Kong and the GoA's outlook for progress. Habermayer
noted that WTO Director General Lamy was promoting a
series of bilateral consultations in hopes of identifying
a common level of ambition before tackling more technical
questions, such as modalities.


2. (SBU) Habermayer questioned whether bilateral
consultations would lead to a balanced result between
NAMA, services, and agriculture. The EU, in
Haberymayer's view, would not put forward any
particularly ambitious proposals, especially on
agricultural market access. On the other hand,
Habermayer lamented that developing countries' ambition
in NAMA and services was lacking. Habermayer opined that
European political leaders would only lend support for
compromises after significant movement in NAMA and
services.


3. (SBU) Habermayer pointed out that the WTO would
eventually have to "multilateralize" the web of bilateral
consultations. This would be particularly difficult with
LDCs, who are not the focus of the bilaterals. Moreover,
Habermayer speculated that it would be difficult to
elicit LDC engagement, especially since they already
received a good development package at Hong Kong.


4. (SBU) Habermayer said she expected the January 29
informal Trade Ministers' meeting would recap the Hong
Kong results, rather than break new ground. She doubted
whether the EU would formally submit any new proposals
until the bilateral consultations concluded at the end of
February, as Brussels "would not want to show its hand."
She noted this did not leave much time to meet the April
30 deadline for agreeing on modalities.


5. (SBU) Regarding the Commissioner's negotiating
mandate, Habermayer said that a majority of member states
are comfortable with Mandelson's limited flexibility on
agriculture. However, most member states are willing to
give Mandelson more leeway negotiating offensive
interests-NAMA and services. As an aside, Habermayer
lamented that "no one in the EU" was advocating these
offensive interests vigorously enough.

MCCAW