KAZAKHSTAN - DEMARCHES DELIVERED ON FOOD SECURITY

UNCLAS ASTANA 000975

SENSITIVE
SIPDIS

STATE FOR EEB/TPP/MTA, EEB/TPP/ABT, EEB/IFD/ODF
USDA FOR FAS CJACKSON AND MHOUSE

E.O. 12958: N/A
TAGS: EAGR ETRD TBIO ECON KZ
SUBJECT: KAZAKHSTAN - DEMARCHES DELIVERED ON FOOD SECURITY
INITIATIVE, EXPORT RESTRICTIONS, AND BIOTECHNOLOGY

REF: (A) STATE 52628 (B) STATE 53346 (C) STATE 53353


1. (SBU) On May 22, Pol-Econ Chief delivered ref A, B, and C
demarches to Kazakhstani Vice Minister of Agriculture Dulat
Aitzhanov, explaining the USG approach to the global food
crisis, the President's global food security initiative, and
USG positions on Doha, food staple export restrictions, and
biotechnology.


2. (SBU) In response, Aitzhanov explained to Pol-Econ Chief
that the reason the Kazakhstani government had imposed a
temporary ban on wheat exports in April was to ensure
domestic food security and thus avert any possibility of
social or political instability that could result from
shortages. The government needed to hedge against the
prospects of a bad 2008 wheat harvest. Aitzhanov said that
during the July-August period, the government should know how
the overall harvest will turn out, and thus the export ban
could actually be lifted as early as August 1. (Note: The
government's public position is that the temporary ban will
be reviewed on September 1. End Note.) In exigent
circumstances, Kazakhstan could permit humanitarian wheat
exports to specific countries, such as Tajikistan, even
before then. All indications thus far, Aitzhanov stressed,
point to a successful 2008 harvest. He told Pol-Econ Chief
that Kazakhstan's annual domestic wheat consumption is
approximately 9 million tons. Last year's harvest yielded 21
million tons, and even in a worst case scenario, an annual
harvest should result in at least 13 million tons.


3. (SBU) Regarding U.S. objectives for Doha, Aitzhanov
reminded Pol-Econ Chief that agricultural subsidies are an
issue in Kazakhstan's ongoing WTO accession negotiations with
the U.S. He contended that a compromise on this issue is
necessary given that so many countries -- notably the U.S. --
provide significant subsidies to their agriculture and food
processing sectors.


4. (SBU) Turning to biotechnology, Aitzhanov said that
Kazakhstan would soon ratify the Cartagena Protocol, perhaps
in the coming days. Kazakhstan, he explained, is ready to
import GMO seeds, so long as they have undergone the proper
analysis to ensure their safety. Importation of GMO food
products, however, is a more complicated issue, because of
opposition in parliament.


5. (SBU) Prior to the meeting with Aitzhanov, Post shared the
substance of the demarches with the World Bank office in
Kazakhstan, and confirmed that their views are consistent
with ours. They informed us that on April 30, World Bank
representatives met senior Kazakhstani officials, including
Prime Minister Masimov, to discuss agriculture sector reform.
The World Bank representatives conveyed to their Kazakhstani
interlocutors that agricultural export restrictions are
harmful and market-distorting. While the Kazakhstanis
promised that they would take the Bank's views under
consideration, they explained that the government's decision
to ban wheat exports resulted from concerns about domestic
supplies and the need to ensure the food security of
vulnerable population groups -- which is fully consistent
with what Aitzhanov told Pol-Econ Chief.
ORDWAY