FRENCH TRADE MINISTER NOVELLI'S VISIT TO WASHINGTON: KEY

UNCLAS PARIS 004483 SIPDIS INFO EU MEMBER STATE COLLECTIVE SENSITIVE SIPDIS STATE PASS USTR FOR VERONEAU STATE PASS SMALL BUSINESS ADMINISTRATION FOR PRESTON USDOC FOR SECRETARY GUTIERREZ E.O. 12958: N/A TAGS: ETRD ECON PGOV FR SUBJECT: FRENCH TRADE MINISTER NOVELLI'S VISIT TO WASHINGTON: KEY POINTS REFS: A) PARIS 03401,, B) PARIS 04315, C) PARIS 04327 ¶1. (SBU) SUMMARY: State Secretary Herve Novelli, the junior minister responsible for international trade, visits Washington and Miami November 13-15. Novelli's visit provides an opportunity to underline key economic issues -- the Transatlantic Economic Council, agricultural biotechnology, intellectual property -- in the run up to a French EU presidency. Ambassador Stapleton previewed these issues with Novelli November 12. In Washington, Novelli meets with Secretary of Commerce Gutierrez, DUSTR Veroneau, Administrator SIPDIS Preston of the Small Business Administration as well as with the U.S. Chamber of Commerce. In Miami, Novelli will be addressing representatives of the French foreign trade missions in the U.S. and participating in a conference with small and medium sized businesses. Reftels provide Embassy reporting on Sarkozy's reform plans for France's economy. END SUMMARY. Novelli's Priorities -------------- ¶2. (SBU) Trade Minister Novelli is eager to learn more about how the U.S. government assists small and medium enterprises (SME),such as through the U.S. Small Business Act. (SME promotion was also raised by Finance Minister Lagard's Chief of Staff during Commerce Deputy Under Secretary O'Neill's visit to Paris Nov 7-8.) Novelli noted that France has pushed the European Commission to do more to aid SMEs and France intends to have in place a European Protocol on an EU SBA by June 2008. While pessimistic about prospects for Doha negotiations, Novelli will seek to probe continued U.S. support for a multilateral accord vis a vis bilateral agreements. Novelli likely will repeat President Sarkozy's admonition about the negative consequences of a strong dollar and will point out that French exports to the U.S. declined significantly in 2007. Novelli will also raise French concerns about the U.S. Safe Port legislation and requirements for 100 percent inspection of shipping containers. Minister Novelli also will underline French interest in working closely with the U.S. on IPR protection measures. Novelli stated France wants to be supportive of the recently launched Anti-Counterfeit Trade Agreement (ACTA) initiative. Novelli also noted that the EU readout of the initial meeting of the Transatlantic Economic Council (TEC) November 9 was positive and pledged French support for the TEC's "very positive, concrete, pragmatic approach" and that it would not surprise him if President Sarkozy became "involved" in this process. ¶3. (SBU) 2008 will be an important year as France takes over the EU presidency in June. France is already playing a key role in guiding Slovenia's EU presidency that commences in January, particularly with respect to economic, energy and environmental issues. (Note: Minister Novelli will be traveling to Slovenia Dec 10 to finalize France's division of labor and support for the Slovenian EU Presidency. End note.) Novelli's meetings in Washington provide an opportunity to articulate our views on priority issues as France finalizes plans for its presidency. US Business View -------------- ¶4. (SBU) The board of AMCHAM France met with Ambassador Stapleton November 13 for a review of the Sarkozy visit. CEO's reported that the AMCHAM annual barometer poll on business attitudes will be released shortly and shows the highest level ever of business confidence in France. ¶5. (SBU) Key topics (suggested talking points follow) for U.S. interlocutors to highlight are support for the Transatlantic Economic Council (TEC); concerns over France's suspension of Ag biotech cultivation; cooperation on a range of IPR priorities; and encouragement of GOF support for the French American Business Council (FABC). Suggested Talking Points: -------------- TEC: Stress importance we assign to French EU presidency (and French role in Troika from January) in furthering transatlantic cooperation; critical for successful tangible outcomes in Transatlantic Economic Council. Will be important to emphasize that transatlantic cooperation pays real dividends, particularly if Doha process remains blocked. Emphasize need for French support for TEC. Ag Biotech: Express concern over suspension of commercial cultivation of biotech crops. MON810 was reviewed and determined safe by EU regulatory authorities almost ten years ago. WTO has found EU member state biotech bans to be in violation of WTO obligations. Deadline for compliance with WTO ruling ends November 21 - U.S. will have to review its options. Six major US agricultural exports are all blocked or restricted in EU market. IPR: Look forward to continued cooperation on IPR issues. U.S. and French goals for enhanced international enforcement similar, despite nuanced differences in approach. IPR could be a potential TEC focus for the French EU Presidency. Signal continued concern over potential impact of France's 2006 digital copyright legislation, and the prospect of mandated interoperability and deposit of source codes. Sensitize GOF to business concerns and impact on innovation as implementation goes forward. FABC: Pleased with resumption of this important business to business group. Welcome President Sarkozy's offer to host next year's meeting in Paris. Both governments should encourage FABC input on key issues into TEC and bilateral discussions. Bio Notes -------------- ¶6. (SBU) Herve Novelli is a pro-business politician, who leads the "Liberal Circle" political faction in the ruling Union for a Popular Movement (UMP) political party. He is president of the Association of Reformers, a small but vocal group with in the UMP. Despite his reformist credentials, Novelli has maintained a tough line during trade discussions aimed at liberalizing commerce. He has worked in the private sector, for a medical supplies company and was Vice President for Europe at the investment bank Drexel-Burnham-Lambert. He also served as a Director of Omnium Finance Group, a part of Total Petroleum Corp. Novelli won his first election to local public office in 1989 in rural western France. He served in the European Parliament from 1999-2002. He holds a Masters Degree in Business from the University of Paris. Novelli does not/not speak English well. STAPLETON#