Identifier
Created
Classification
Origin
07ANKARA238
2007-02-05 13:11:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ankara
Cable title:  

Top rice importer calls on Ambassador to ask United States

Tags:  EAGR ETRD TU WTO 
pdf how-to read a cable
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Dianne Wampler 02/05/2007 04:23:37 PM From DB/Inbox: Dianne Wampler

Cable 
Text: 
 
 
UNCLAS SENSITIVE ANKARA 00238

SIPDIS
CX:
 ACTION: FAS
 INFO: AMB PMA POL DCM ECON

DISSEMINATION: FAS
CHARGE: PROG

APPROVED: EXEC: RWILSON
DRAFTED: AGR: RGIFFORD, A/DCM
CLEARED: AGR: CGUVEN

VZCZCAYI838
OO RUEHC RUEHRC RUCPDOC RUEHIT RUEHGV
DE RUEHAK #0238 0361311
ZNR UUUUU ZZH
O 051311Z FEB 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0838
INFO RUEHRC/USDA FAS WASHDC IMMEDIATE
RUCPDOC/USDOC WASHDC
RUEHIT/AMCONSUL ISTANBUL 2057
RUEHGV/USMISSION GENEVA 1534
UNCLAS ANKARA 000238 

SIPDIS

SENSITIVE

STATE FOR EUR/SE, EB/EPD, and EB/TPP/ABT
USDA FAS FOR OFSO/DEVER, OCRA/FLEMINGS, MANNIX, BURDETT
USTR FOR WEISS, ERRION
ISTANBUL FOR FAS
GENEVA FOR FAS

E.O. 12958: N/A
TAGS: EAGR ETRD TU WTO
SUBJECT: Top rice importer calls on Ambassador to ask United States
to drop WTO rice case


UNCLAS ANKARA 000238

SIPDIS

SENSITIVE

STATE FOR EUR/SE, EB/EPD, and EB/TPP/ABT
USDA FAS FOR OFSO/DEVER, OCRA/FLEMINGS, MANNIX, BURDETT
USTR FOR WEISS, ERRION
ISTANBUL FOR FAS
GENEVA FOR FAS

E.O. 12958: N/A
TAGS: EAGR ETRD TU WTO
SUBJECT: Top rice importer calls on Ambassador to ask United States
to drop WTO rice case



1. (SBU) Summary: On February 1, 2007, the Ambassador met with a top
rice importer who wants to persuade the USG to drop the WTO case on
Turkish rice imports in exchange for the GOT promising to lower the
tariff on paddy (unmilled) rice. The Ambassador responded that
although he also hoped for a negotiated settlement that would
enhance trade, any solution must be legally binding and WTO
consistent. End Summary.


2. (SBU) In a meeting with the Ambassador on February 1, Mr. Yahya
Akel, a wealthy and politically well-connected importer of rice and
other agricultural products, expressed hope that the United States
would agree to drop its WTO case against Turkey's rice import regime
if the GOT agrees to reduce apparently temporarily the duty on
imports of paddy rice, and not milled rice, to zero. Such an
agreement, he explained, would result in increased imports of U.S.
paddy rice and fewer imports of Egyptian milled rice. This would
allow Turkish millers to stay in business. Currently, because of
the high cost of U.S. rice ($420/ton) and a 34 percent tariff, lower
priced Egyptian milled rice, even with a 45 percent duty, is more
attractive.


3. (SBU) After expressing appreciation for Mr. Akel's comments and
an understanding of his predicament, the Ambassador said that he
would like to see the case resolved amicably through negotiation,
but emphasized that any resolution of the case must be legal,
permanent and adhere to WTO rules. He made it clear that at this
stage the process was legal, not political.


4. (SBU) Mr. Akel admitted that the GOT knows that its rice import
policies are WTO inconsistent, but at the same time is committed to
"protecting its farmers" and will not change its system. According
to Mr. Akel, it may be impossible to negotiate a solution because
the Turkish side is only willing to discuss the paddy rice
tariff-reduction proposal at this time. He said that Turkish
officials are not ready to discuss the other points that the U.S.
has raised in bilateral discussions. He expressed concern that
failure to resolve this case quickly could lead to deliberate
discrimination against U.S. products, such as a further hike in
soybean tariffs.


5. (SBU) The conversation concluded with the Ambassador reiterating
his hope that a negotiated solution could be reached, but that a
solution must be WTO consistent.

--------------
Rising Tide of Threats
--------------


6. (SBU) For several weeks now, Embassy's Agricultural Affairs
Office has been inundated by a rising tide of messages similar to
Mr. Akel's, not only from millers and importers, but from FTU
officials and farmer groups. During the Ambassador's meeting with
Mr. Akel, Agoffice received two faxes addressed to the Ambassador
from Turkish rice producer associations, threatening that their
300,000 members would boycott all U.S. products if the case is not
dropped.


7. (SBU) Earlier this month the FTU official responsible for
imports said that last year's hike in tariffs for soybeans and
soybean meal was a deliberate response to the rice case, and that
the tariff could be increased again.


8. (SBU) Comment: So far, the Turkish side has not offered any
substantive response to U.S. proposals. Apparently, Turkish
officials are not prepared to talk about the three points outlined
in Ambassador Schwab's Jan. 12 letter to FTU Minister Tuzmen. The
Ministry of Agriculture, which obviously has an interest in the
case, has neither lobbied to drop the case nor threatened
retaliation. End Comment.

WILSON