Identifier
Created
Classification
Origin
07HELSINKI88
2007-02-09 13:24:00
CONFIDENTIAL
Embassy Helsinki
Cable title:
FINLAND'S RESPONSE TO WTO DEMARCHE: COMMISSION
how-toVZCZCXYZ0001 RR RUEHWEB DE RUEHHE #0088 0401324 ZNY CCCCC ZZH R 091324Z FEB 07 FM AMEMBASSY HELSINKI TO RUEHC/SECSTATE WASHDC 2957 INFO RUCNMEU/EU INTEREST COLLECTIVE
C O N F I D E N T I A L HELSINKI 000088
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/09/2017
TAGS: ECON ETRD EUN WTRO
SUBJECT: FINLAND'S RESPONSE TO WTO DEMARCHE: COMMISSION
SHOULD NOT EXCEED ITS MANDATE
REF: SECSTATE 15811
Classified By: ECON SECTION CHIEF JANE MESSENGER FOR REASONS 1.4 B AND
D.
(C) Despite its high-tech, export-oriented economy, Finland
is a cautious voice in the EU on agricultural concessions in
the Doha Development Agenda (DDA) for reasons of history,
economics and politics and is unlikely to support the
Commission going beyond the limits of its current mandate,
although it may be prepared to support going to the outer
limits of that mandate. Econoff delivered reftel points
February 9 to Matti Lassila, Director of the Unit for the
EC's Common Commercial Policy at the Finnish Ministry of
Foreign Affairs, who commented that he expected upcoming
discussions on the DDA at the EU Trade Ministers dinner and
the GAERC to be general in nature with no formal decisions
taken. Finland welcomes the renewed momentum on Doha, but is
clearly in the G-14 camp and will be looking carefully at how
its "sensitive" products would be handled. With pressure
coming from Finland's agricultural sector which has seen its
subsidies cut in half since Finland joined the EU in 1995,
and an industrial sector that is looking for industrial
tariff cuts from Brazil and India, the Government is
hard-pressed to come out forcefully for further agricultural
concessions. With Finnish elections in March, the issue will
be decided by the next government, but Lassila expected the
government's position to essentially remain the same, even if
the traditionally agrarian Center Party lost, which no one is
predicting. Lassila believed progress with the EU could be
made, but he feared it would likely be over the course of
years, not months.
(C) Although it has only one, short growing season, Finland
nonetheless views its agricultural sector as vital to its
national interest. Even if the world identifies Finland with
its most famous company, cell phone maker Nokia, Finns
themselves have a national identity firmly rooted in
agriculture. They believe that retaining an agricultural
base through export subsidies and domestic support provides
them with food security and the economic benefits that come
with keeping their vast geographical area populated. "We
don't want everyone working in factories in Helsinki,"
Lassila quipped. The infrastructure provided by farming also
supports forestry, a key industry in Finland. In the late
1940s, following a war with Russia and an influx of refugees
from Karelia, agricultural subsidies provided a form of
assistance to the Karelian refugees, who would have otherwise
been unable to support themselves. Over fifty years later,
the assistance continues in this economically depressed
region. For these reasons, Finland's Agriculture Ministry is
holding fast to the aid given to the agriculture sector. The
Foreign Trade Ministry is looking for some concrete economic
benefit it can take to Finland's Parliament to demonstrate
that ultimately some gain comes with the pain. Lassila noted
that with world trade growing 8% last year despite no Doha
round progress, Finnish industry hasn't exactly been vigorous
in pushing for resolution. Lassila counseled that the best
approach for the U.S. may be to exploit the ambiguity in the
Commission's mandate to push it toward some breakthrough.
HYATT
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/09/2017
TAGS: ECON ETRD EUN WTRO
SUBJECT: FINLAND'S RESPONSE TO WTO DEMARCHE: COMMISSION
SHOULD NOT EXCEED ITS MANDATE
REF: SECSTATE 15811
Classified By: ECON SECTION CHIEF JANE MESSENGER FOR REASONS 1.4 B AND
D.
(C) Despite its high-tech, export-oriented economy, Finland
is a cautious voice in the EU on agricultural concessions in
the Doha Development Agenda (DDA) for reasons of history,
economics and politics and is unlikely to support the
Commission going beyond the limits of its current mandate,
although it may be prepared to support going to the outer
limits of that mandate. Econoff delivered reftel points
February 9 to Matti Lassila, Director of the Unit for the
EC's Common Commercial Policy at the Finnish Ministry of
Foreign Affairs, who commented that he expected upcoming
discussions on the DDA at the EU Trade Ministers dinner and
the GAERC to be general in nature with no formal decisions
taken. Finland welcomes the renewed momentum on Doha, but is
clearly in the G-14 camp and will be looking carefully at how
its "sensitive" products would be handled. With pressure
coming from Finland's agricultural sector which has seen its
subsidies cut in half since Finland joined the EU in 1995,
and an industrial sector that is looking for industrial
tariff cuts from Brazil and India, the Government is
hard-pressed to come out forcefully for further agricultural
concessions. With Finnish elections in March, the issue will
be decided by the next government, but Lassila expected the
government's position to essentially remain the same, even if
the traditionally agrarian Center Party lost, which no one is
predicting. Lassila believed progress with the EU could be
made, but he feared it would likely be over the course of
years, not months.
(C) Although it has only one, short growing season, Finland
nonetheless views its agricultural sector as vital to its
national interest. Even if the world identifies Finland with
its most famous company, cell phone maker Nokia, Finns
themselves have a national identity firmly rooted in
agriculture. They believe that retaining an agricultural
base through export subsidies and domestic support provides
them with food security and the economic benefits that come
with keeping their vast geographical area populated. "We
don't want everyone working in factories in Helsinki,"
Lassila quipped. The infrastructure provided by farming also
supports forestry, a key industry in Finland. In the late
1940s, following a war with Russia and an influx of refugees
from Karelia, agricultural subsidies provided a form of
assistance to the Karelian refugees, who would have otherwise
been unable to support themselves. Over fifty years later,
the assistance continues in this economically depressed
region. For these reasons, Finland's Agriculture Ministry is
holding fast to the aid given to the agriculture sector. The
Foreign Trade Ministry is looking for some concrete economic
benefit it can take to Finland's Parliament to demonstrate
that ultimately some gain comes with the pain. Lassila noted
that with world trade growing 8% last year despite no Doha
round progress, Finnish industry hasn't exactly been vigorous
in pushing for resolution. Lassila counseled that the best
approach for the U.S. may be to exploit the ambiguity in the
Commission's mandate to push it toward some breakthrough.
HYATT