Identifier
Created
Classification
Origin
07TAIPEI132
2007-01-18 08:14:00
UNCLASSIFIED
American Institute Taiwan, Taipei
Cable title:
Taiwan TIFA: Talking Agriculture with AUSTR Stratford
how-toVZCZCXRO1036 RR RUEHGH DE RUEHIN #0132 0180814 ZNR UUUUU ZZH R 180814Z JAN 07 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC 3773 INFO RUEHBJ/AMEMBASSY BEIJING 6226 RUEHUL/AMEMBASSY SEOUL 8392 RUEHKO/AMEMBASSY TOKYO 8391 RUEHGP/AMEMBASSY SINGAPORE 6772 RUEHKL/AMEMBASSY KUALA LUMPUR 3652 RUEHML/AMEMBASSY MANILA 9915 RUEHHI/AMEMBASSY HANOI 3208 RUEHHK/AMCONSUL HONG KONG 7455 RUEHGZ/AMCONSUL GUANGZHOU 9903 RUEHGH/AMCONSUL SHANGHAI 0724 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHRC/USDA FAS WASHDC 2602
UNCLAS TAIPEI 000132
SIPDIS
SIPDIS
STATE PASS TO AIT/W
STATE FOR EAP/RSP/TC, EAP/EP and EB/TPP/MTA/IPC
STATE PASS to USTR for WINELAND and ALTBACH, STRATFORD
USDOC for 4431/ITA/MAC/AP/OPB/TAIWAN/JDUTTON
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
USDA FAS FOR OCRA/Smith, Mireles
E.O. 12958: N/A
TAGS: ECON EAGR ETRD EIND TW
SUBJECT: Taiwan TIFA: Talking Agriculture with AUSTR Stratford
UNCLAS TAIPEI 000132
SIPDIS
SIPDIS
STATE PASS TO AIT/W
STATE FOR EAP/RSP/TC, EAP/EP and EB/TPP/MTA/IPC
STATE PASS to USTR for WINELAND and ALTBACH, STRATFORD
USDOC for 4431/ITA/MAC/AP/OPB/TAIWAN/JDUTTON
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
USDA FAS FOR OCRA/Smith, Mireles
E.O. 12958: N/A
TAGS: ECON EAGR ETRD EIND TW
SUBJECT: Taiwan TIFA: Talking Agriculture with AUSTR Stratford
1. On December 19 Vice Minister of Agriculture Lee Jen-chyuan met
with Assistant USTR Timothy Stratford and Deputy Assistant USTR Eric
Altbach. This meeting was part of a series of meetings on TIFA
action items. Other meetings reported septel.
CCA Language Approval Near
--------------
2. Vice Minister Lee acknowledged that he had been in touch with
Vice Premier Tsai regarding the CCA. The Council of Agriculture was
now willing to accept the most recent language suggested by the
United States for the Memorandum of Understanding and Terms of
Reference to establish the CCA, but was waiting for approval from
the Department of Health. He expected that this approval would come
shortly. Lee noted that the Executive Yuan would need to grant
final approval of the MOU and the TOR, but he expected that this
would come quickly and anticipated being able to sign the final
documents in early 2007.
Rice CSQ
--------------
3. The Vice Minister reported that nearly all of the problems had
been worked out for public sector purchases of rice using a
country-specific quota. Taiwan's only concern was that the price
ceiling by law must be kept confidential during the tendering
process. Taiwan would prefer, therefore, to discuss price ceiling
issues with the U.S. before announcing the tenders. This would be
preferable to waiting until problems arose after the second or third
rounds of bidding. COA staff confirmed that they were in direct
contact with Tim Wineland at USTR on this issue and hoped to resolve
it shortly.
Taiwan Committed to Reforming Old Farmers
--------------
4. Responding to a question from AUSTR Stratford on potential
agricultural reforms that might help lead to a beneficial conclusion
of the DOHA round, Vice Minister Lee stated that Taiwan was focusing
on three particular issues: the lack of technology and innovation
in domestic agriculture, an aging farm population, and the
increasing digital divide between rural and urban areas. The
average age of Taiwan farmers is currently 58 and many in the
agricultural field are reluctant to change and try new technologies.
Taiwan agriculture must become more competitive to meet both
domestic needs and export markets, Lee acknowledged. Lee suggested
that a free trade agreement with the United States would be one way
to push for this goal as well as indicate that Taiwan is an
"independent" entity ready and able to trade its agricultural
products in world markets.
Comment
--------------
5. Taiwan's Council of Agriculture has indeed worked hard over the
past few weeks to move the rice CSQ and CCA issues to resolution.
These TIFA issues are far easier to resolve than the long-term
problems for Taiwan's agricultural sector. While lacking the
political benefits of an FTA, the CCA provides a potentially useful
forum for Taiwan to cooperate with the United States to address the
constraints identified by Vice Minister Lee.
SIPDIS
SIPDIS
STATE PASS TO AIT/W
STATE FOR EAP/RSP/TC, EAP/EP and EB/TPP/MTA/IPC
STATE PASS to USTR for WINELAND and ALTBACH, STRATFORD
USDOC for 4431/ITA/MAC/AP/OPB/TAIWAN/JDUTTON
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
USDA FAS FOR OCRA/Smith, Mireles
E.O. 12958: N/A
TAGS: ECON EAGR ETRD EIND TW
SUBJECT: Taiwan TIFA: Talking Agriculture with AUSTR Stratford
1. On December 19 Vice Minister of Agriculture Lee Jen-chyuan met
with Assistant USTR Timothy Stratford and Deputy Assistant USTR Eric
Altbach. This meeting was part of a series of meetings on TIFA
action items. Other meetings reported septel.
CCA Language Approval Near
--------------
2. Vice Minister Lee acknowledged that he had been in touch with
Vice Premier Tsai regarding the CCA. The Council of Agriculture was
now willing to accept the most recent language suggested by the
United States for the Memorandum of Understanding and Terms of
Reference to establish the CCA, but was waiting for approval from
the Department of Health. He expected that this approval would come
shortly. Lee noted that the Executive Yuan would need to grant
final approval of the MOU and the TOR, but he expected that this
would come quickly and anticipated being able to sign the final
documents in early 2007.
Rice CSQ
--------------
3. The Vice Minister reported that nearly all of the problems had
been worked out for public sector purchases of rice using a
country-specific quota. Taiwan's only concern was that the price
ceiling by law must be kept confidential during the tendering
process. Taiwan would prefer, therefore, to discuss price ceiling
issues with the U.S. before announcing the tenders. This would be
preferable to waiting until problems arose after the second or third
rounds of bidding. COA staff confirmed that they were in direct
contact with Tim Wineland at USTR on this issue and hoped to resolve
it shortly.
Taiwan Committed to Reforming Old Farmers
--------------
4. Responding to a question from AUSTR Stratford on potential
agricultural reforms that might help lead to a beneficial conclusion
of the DOHA round, Vice Minister Lee stated that Taiwan was focusing
on three particular issues: the lack of technology and innovation
in domestic agriculture, an aging farm population, and the
increasing digital divide between rural and urban areas. The
average age of Taiwan farmers is currently 58 and many in the
agricultural field are reluctant to change and try new technologies.
Taiwan agriculture must become more competitive to meet both
domestic needs and export markets, Lee acknowledged. Lee suggested
that a free trade agreement with the United States would be one way
to push for this goal as well as indicate that Taiwan is an
"independent" entity ready and able to trade its agricultural
products in world markets.
Comment
--------------
5. Taiwan's Council of Agriculture has indeed worked hard over the
past few weeks to move the rice CSQ and CCA issues to resolution.
These TIFA issues are far easier to resolve than the long-term
problems for Taiwan's agricultural sector. While lacking the
political benefits of an FTA, the CCA provides a potentially useful
forum for Taiwan to cooperate with the United States to address the
constraints identified by Vice Minister Lee.