UPDATE ON PA BID FOR WTO OBSERVER STATUS

UNCLAS GENEVA 000839

SENSITIVE BUT UNCLASSIFIED

SIPDIS

DEPT PASS USTR
TEL AVIV FOR AMB, DCM, AND ECON
USTR FOR CKLEIN, AVENKATARAMAN,SFRANCESKI, MMOWREY

E.O. 12958: N/A
TAGS: ETRD WTRO ECON PREL KWBG IS
SUBJECT: UPDATE ON PA BID FOR WTO OBSERVER STATUS

Reftels: (a) Jerusalem 1607 (B) Secstate 99831 (c) Geneva00783
(d) Tel Aviv 02166


1. (SBU) PA Ambassador Khraishi called on General Council (GC) Chair
Matus yesterday to present their formal request for observer status
in the GC. Charge was told by someone who was at the meeting that
Matus responded that it is too late at this time for the matter to
be placed on the agenda for the October GC meeting but that he would
circulate the request and consult with Members. Khraishi was low
key in his response, making clear that he does not intend to try and
make this a big political issue at this point. He then asked what
would be necessary to secure observership at the upcoming
Ministerial Conference. Matus explained that the PA would need to
submit a request.


2. (SBU) We have been told that Matus plans to call a meeting on
Thursday of the 16 WTO Members, including Israel, that he has
consulted with so far. His intention is to try and calm the waters
before the October GC. At Thursday's meeting the plan is to advise
the parties concerned that he has just received the formal request,
he does not plan to place it on the agenda for the October GC, but
he intends to consult on the request with Members. We understand
that Matus is still concerned about Egypt wanting to make a
political issue at the GC. Interestingly, we understand that he has
also spoken to the Tunisian Ambassador, who is current coordinator
of the Arab Group of WTO Members, and has found him to be more
moderate on this issue.


3. (SBU) The PA's interest in requesting observership at the MC is
a new development. When they originally called on Matus some weeks
ago they said they were not going to make such a request since they
would automatically obtain observership at the MC by being granted
observership in the GC. They described asking for observership at
the MC alone as second class status. At this point the only things
standing in the way of the PA's observership at the MC is the need
for them to make the request, which we believe is in the works, and
Israel's objection. Action on the request would require a GC
decision. Such a decision would not be placed on the agenda for the
October GC unless the PA gets its request in quickly and Israel
lifts its objection before Thursday night when the agenda closes.
However, there will be another GC meeting in mid-November where this
issue could be taken up if it were ripe at that point.