TURKMENISTAN: BAN ON IMPORTED CHICKEN

UNCLAS SECTION 01 OF 02 ASHGABAT 000048 SIPDIS SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB E.O. 12958: N/A TAGS: PGOV EAGR ECON ETRD TX SUBJECT: TURKMENISTAN: BAN ON IMPORTED CHICKEN PROTECTIONIST, NOT FEAR OF AVIAN FLU REF: 07 STATE 169243 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: Charge conveyed to Turkmenistan's Ministry of Trade and Foreign Economic Relations on January 9 the reftel demarche requesting Turkmenistan lift its ban on importating U.S. poultry products. The officials did not promise to rescind the ban but also did not close the door to future imports of U.S. poultry products, including chicken -- and, in fact, had recently ordered 6,300 tons. The Turkmen officials stated that the reason for the ban was to encourage local production of poultry and repeated several times that this remains their priority. Charge presented the same demarche to Minister of Health Ata Serdarov on January 10. He confirmed the ban is protectionish, not phytosanitary. END SUMMARY. ¶3. (SBU) On January 9, Charge conveyed refetl demarche to Turkmenistan's Ministry of Trade and Foreign Economic Relations requesting Turkmenistan lifts its ban on importating U.S. poultry products, and gave Minister Nokerguly Atagulyev talking points in the form of a non-paper. U.S. CHICKEN IMPORTS HALTED TO ENCOURAGE LOCAL PRODUCTION ¶4. (SBU) The Trade Ministry officials stated that Turkmenistan stopped importating U.S. poultry products in 2006 to "encourage local production" -- essentially by doing away with foreign competition. (COMMENT: Previously, we had been told that a ban on imported poultry was in response to the fear of avian flu. END COMMENT.) Minister Atagulyev said that Turkmenistan would ensure the availability of chicken in Turkmenistan, both locally-produced and imported from the U.S. Annamuhamed Valiyev, the Ministry's international liaison, said that Turkmenistan remained open to the Charge's offer to assist with future import needs, and would work with Turkmenistan's embassy in Washington and with the U.S. Embassy in Ashgabat. TURKMENISTAN ADMITS TO RECENT IMPORT OF AMERICAN CHICKEN PRODUCTS... ¶5. (SBU) Valiyev admitted that Turkmenistan imported American chicken-leg quarters for the New Year's holliday. (NOTE: Embassy employees heard from Ministry of Trade and Foreign Economic Relations sources that Turkmenistan bought 4,500 tons of chicken quarters for the New Year, and 1,800 tons for Flag Day (in February). The Ministry of Trade reportedly bought the chicken for $2 per kilo, and then resold the chicken legs at the market with a very hefty mark-up. END NOTE.) Valiyev stated that the Turkmeninstan Embassy in Washington contacted chicken producers. He said although the contract with an American company or companies is substantial, Turkmenistan still prioritizes encouragement of local production. ...BUT PROTECTING LOCAL PRODUCERS REMAINS A PRIORITY ¶6. (SBU) In response to the Charge's comment that the American chicken imported for the New Year's holiday sold out immediately, Valiyev claimed that people bought it quickly because they hadn't seen American chicken in a long time and, thus, "satisfied their initial taste," but have already lost interest. He averred 70% of the order remains unsold to the public, in storage. (COMMENT: We'd say this is a bunch of hooey. The government strictly regulates local markets and imposed a limit on the number of kilos any one individual could buy. Rather than lack of demand by consumers, we suspect Gosplan traditions are at work. As further evidence of state control of commerce, the Trade Ministry confirmed a ASHGABAT 00000048 002 OF 002 private Turkmen firm imports 300 tons of chicken annually, but we are told the firm's sales are limited strictly to hotels and restaurants. END COMMENT. ¶7. (SBU) Charge presented the same reftel demarche to Minister of Health Ata Serdarov on January 10. The minister readily confirmed the so-called ban on imported chicken is not in response to fears of avian flue. He explained Turkmenistan has adequate monitoring controls to prevent dangerous imported food products from reaching the market. ¶8. (SBU) COMMENT: Although Trade Minister Atagulyev did not promise to rescind the ban, the door remains open to future imports of U.S. poultry products. Embassy will provide a list of U.S. poultry exporters to the Ministry of Trade and Foreign Economic Relations and continue to monitor the local markets. END COMMENT. HOAGLAND