Identifier
Created
Classification
Origin
08STATE49795
2008-05-09 22:45:00
CONFIDENTIAL
Secretary of State
Cable title:  

DEMARCHE REQUEST - POULTRY TECHNICAL REGULATIONS

Tags:  ETRD EAGR ECON WTO RS 
pdf how-to read a cable
VZCZCXYZ0001
OO RUEHWEB

DE RUEHC #9795 1302251
ZNY CCCCC ZZH
O P 092245Z MAY 08
FM SECSTATE WASHDC
TO RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 0000
INFO RUEHGV/USMISSION GENEVA PRIORITY 0000
C O N F I D E N T I A L STATE 049795 

SIPDIS

E.O. 12958: DECL: 05/09/2018
TAGS: ETRD EAGR ECON WTO RS
SUBJECT: DEMARCHE REQUEST - POULTRY TECHNICAL REGULATIONS

REF: MOSCOW 1281

Classified By: EUR DAS David Merkel for reasons 1.5 (b) and (d).

C O N F I D E N T I A L STATE 049795

SIPDIS

E.O. 12958: DECL: 05/09/2018
TAGS: ETRD EAGR ECON WTO RS
SUBJECT: DEMARCHE REQUEST - POULTRY TECHNICAL REGULATIONS

REF: MOSCOW 1281

Classified By: EUR DAS David Merkel for reasons 1.5 (b) and (d).


1. (U) This is an urgent action request - please see para 2.


2. (C) Summary and Action request: The GOR issued a draft
technical regulation (TR) May 4 that would effectively block
imports of poultry meat from (among others) the United States
(reftel). The hasty adoption of this TR, coinciding with
both the government transition and the May holidays in
Moscow, may be designed to prevent both international and
industry input, as well as the views of those within the GOR
who would likely oppose such action as they have a better
grasp of the consequences. Besides post's efforts noted in
reftel, USTR has engaged both Russian Trade Representative
Dolgorukov and Ministry of Economic Development and Trade
(MEDT) chief WTO negotiator Maks Medvedkov, highlighting to
them the negative effects adopting this TR would have on both
the U.S.-Russia bilateral trade relationship and on Russia's
WTO accession aspirations. Communication from MEDT chief
negotiator Medvedkov to A/USTR Rohde May 8 indicates that the
GOR believes it has followed proper procedures in developing
the TR and that the best way to resolve poultry exporters'
concerns is to accelerate Russia's WTO accession. USTR is
continuing to follow up with Medvedkov but, given information
that this TR could be signed into effect as early as May 12,
COM is requested to deliver the points below at the highest
appropriate level in both MEDT and the MFA.


3. (U) Begin Text:

-- We understand that the Government of the Russian
Federation will consider as early as May 12 a draft Decree on
a proposed technical regulation on poultry and poultry
products. Although this proposed technical regulation (TR)
raises serious concerns, it appears that the Government
intends to act without allowing adequate time to hear these
concerns. We urge the Government to delay action on the
draft TR until there has been time to consider these
concerns.

-- Among those concerns are the adverse effect that the
proposed technical regulation would have on Russia's poultry
processing industry, on imports of poultry from the United
States and Russia's other trading partners, and on consumers
in the Russian Federation. The draft technical regulation
also appears to ignore provisions of the Agreement on the
Application of Sanitary and Phytosanitary Measures (SPS
Agreement) of the World Trade Organization (WTO).

-- The current version of the proposed technical regulation
was published May 4 and differs significantly from the
version published earlier for comment. This current version
would prohibit most U.S. exports of poultry to the Russian
Federation and could result in closure of several processing
facilities in Russia. We also understand that the price of
poultry in Russia could increase as much as 30 percent in
response to the decrease in supply.

-- Parts of the technical regulation appear to lack
scientific justification and do not appear consistent with
international standards. Also, key provisions of the
proposed technical regulation seem more trade-restrictive
than required to achieve Russia's desired level of sanitary
or phytosanitary protection.

-- If this proposed technical regulation is approved in its
current form, we expect that the U.S. poultry industry, and
possibly other U.S. meat industries, will immediately
question whether Russia will comply with its commitments as a
WTO Member. It could also undermine industry support for our
work on other issues associated with Russia's accession to
the WTO.

-- The adoption of a trade policy measure inconsistent with
WTO rules and in a manner inconsistent with those rules
during accession negotiations is a serious breach of
negotiating etiquette. It could blemish Russia's reputation
as a reliable negotiating partner and could have severe
consequences for the pace of Russia's accession.

-- Similar action by Russia in 2002 seriously deflated
efforts to see Russia graduate from Jackson-Vanik in the U.S.
Congress. In the past, we have stated that actions not
directly related to the provisions of the Jackson-Vanik
amendment could negatively impact Congress' consideration of
Russia's graduation from Jackson-Vanik; this was the case in

2002.

-- For all these reasons, we urge your government to delay
action on this technical regulation to provide time for
discussion and consideration of these issues.
End Text.
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