ITALIAN TRADE ROUND-UP: DOHA, POSSIBLE EU-CANADA

C O N F I D E N T I A L ROME 000779 NOFORN SIPDIS E.O. 12958: DECL: 06/23/2018 TAGS: ETRD EAGR EAID ECON TBIO IT SUBJECT: ITALIAN TRADE ROUND-UP: DOHA, POSSIBLE EU-CANADA FTA, AND GMOS REF: A. STATE 53353 ¶B. STATE 53346 ¶C. STATE 52628 Classified By: Econ Counselor William R. Meara for reasons 1.4 (b) and (d) ¶1. (U) Summary. During a June 9 meeting, Director General for Trade Amadeo Teti said he thought a Doha Round agreement on agricultural trade is close to being finalized, but noted negotiations on non-agricultural market access (NAMA) and services are far from over. Teti told Econ Counselor that France is pushing the EU to begin negotiations on an EU-Canada Free Trade Agreement (FTA). Teti received reftel non-papers on the potential role of agricultural biotechnology in addressing the global food price crisis without comment. He noted that the political climate in Italy is more conducive to the introduction of biotech crops than it has been in the past, but refused to speculate on the policy implications of positive statements regarding GMOs by Italian Prime Minister Silvio Berlusconi. End summary. Doha Round State of Play -------------- ¶2. (C/NF) Teti seemed cautiously optimistic about the outcome of the Doha Round of trade negotiations. Teti said an agreement on agricultural trade is close to being finalized, but noted negotiations on non-agricultural market access (NAMA) and services access are deadlocked. Teti reiterated the GOI's long-standing interest in including protection of geographical indicators (GIs) in any Doha Round agreement, but also made clear that he is aware of the USG's opposition to the establishment of a "GI registry." He speculated that pressure is building for an agreement to be signed, and noted that President Bush, EU Trade Commissioner Peter Mandelson, and WTO Director General Pascal Lamy will all leave office in the next year and likely want a Doha Round agreement to cap their record on trade issues. Mandelson, according to Teti, "would sell his mother to get a Doha Round agreement." Econoff noted that while the USG wants to conclude negotiations and finalize a Doha Round agreement, we do not want to sacrifice the ambition of the Round for the sake of signing a mediocre agreement. Possible EU-Canada FTA -------------- ¶3. (U) Teti noted that the upcoming French Presidency of the EU may seek to negotiate an FTA with Canada. This would compliment an already existing FTA with Mexico, which was signed in 2000. Teti seemed to think that for the EU, an FTA with Canada would be the next best thing to the successful conclusion of the Doha Round, and said an EU-Canada FTA might provide European exports with improved access to the U.S. market. (Comment: Insofar as access to the U.S. market is concerned, it is unclear to us what benefits the EU would accrue through an EU-Canada FTA that it doesn't already have through the existing EU-Mexico FTA. End comment.) Role of Biotechnology in Addressing Global Food Price Crisis -------------- -------------- ¶4. (U) Teti took reftel non-papers on the President's Global Food Security Initiative (Ref C),agricultural biotechnology as a tool to fight hunger (Ref B),and ending food staple export restrictions (Ref A) without commenting on the substance of the papers. Teti acknowledged that there "is an important role" for GMOs in international agriculture markets, and said that "Italy has no prejudice against GMOs." He noted that Italian Prime Minister Berlusconi has recently made positive statements about GMOs, but refused to speculate as to their policy implications. Teti noted that although Gianni Alemmano, the staunch opponent of GMOs who served as Minister of Agriculture during the last Berlusconi government, is not in Berlusconi's cabinet, he remains politically important (he is now Mayor of Rome),and may be able to influence GOI policy on GMOs from behind the scenes. He also said that the absence of the Green party from parliament may facilitate a compromise on the issue of how GMOs are introduced to Italy. SPOGLI