Identifier
Created
Classification
Origin
09PODGORICA24
2009-01-28 21:24:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Podgorica
Cable title:  

MONTENEGRO BLINDSIDED BY UKRAINIAN WTO MOVE

Tags:  PGOV PREL EINV ECON ECIN WTRO MW 
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DE RUEHPOD #0024 0282124
ZNR UUUUU ZZH
P 282124Z JAN 09
FM AMEMBASSY PODGORICA
INFO RUEHC/SECSTATE WASHDC PRIORITY 1128
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/USDOC WASHDC PRIORITY 0001
RUEHPOD/AMEMBASSY PODGORICA 1216
UNCLAS PODGORICA 000024 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL EINV ECON ECIN WTRO MW
SUBJECT: MONTENEGRO BLINDSIDED BY UKRAINIAN WTO MOVE

UNCLAS PODGORICA 000024

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL EINV ECON ECIN WTRO MW
SUBJECT: MONTENEGRO BLINDSIDED BY UKRAINIAN WTO MOVE


1. (SBU) SUMMARY: Ukraine's 11th hour request for bilateral
negotiations as part of Montenegro's WTO accession process has
thrown Montenegro's WTO negotiations team, led by Deputy Prime
Minister Gordana Djurovic, for a loop. Having closed bilateral
negotiations with the EU and the U.S., the GoM was confident
that its long WTO accession process was nearing conclusion, and
that Montenegro would be officially invited to join the WTO in
early February. The GoM has reacted bitterly to the Ukrainian
initiative because of its late arrival, and also because it
could seriously complicate the GoM's hope of a public relations
success in advance of pre-term parliamentary elections this
spring. END SUMMARY.




2. (SBU) Montenegro has worked hard over the past four years to
conclude bilateral and multilateral negotiations for accession
to the WTO. The GoM's negotiating team, led by DPM Djurovic,
concluded agreements with the EU in April 2008 and with the U.S.
in early January. The road ahead seemed clear for Montenegro to
receive an invitation to join the WTO at the next WTO General
Council meeting on February 3.




3. (SBU) However, Ukraine asked to open bilateral negotiations
- completely within their rights according to WTO regulations -
in late December and sent the GoM scrambling to find any
possible quick fix that would allow Montenegro to officially
submit its membership candidacy (the last real step in the
process, though procedurally their application package would
still need to be approved by all current members) to the
organization as the GoM had publicly announced.




4. (SBU) The surprise move by the Ukrainians has elicited a
visceral, emotional reaction in GoM officials. The usually
composed and professional Djurovic, unable to conceal her
frustration, has made emotional statements to the press and has
appealed repeatedly to European Union colleagues and to us to
help find a solution that would avoid delaying accession.




5. (SBU) The DPM also has pointed out to us and to the press
that a request to open bilateral negotiations at such a late
hour is unprecedented. Djurovic also complained to us that
despite repeated attempts to reach her Ukrainian counterpart, he
has not returned calls and, in her opinion, does not want to
speak with her.




6. (SBU) Nevertheless, the DPM and her team are now fully
engaged in responding to the Ukraine's request. DPM Djurovic
told us that she is concerned that negotiations with Ukraine
could be long, but is buoyed by the moral support the
Montenegrin team has received from the U.S., Europeans, and WTO
Secretariat. The Montenegrins have rolled up their sleeves and
are currently working day and night to get a complete response
as quickly as possible to Ukraine. As the timeframe for
Montenegro to conclude these new negotiations is currently
uncertain and the WTO General Council only meets a few times a
year, the next potential date for Montenegrin accession is May.



Comment

--------------


7. (SBU) Ukraine's initiative has effectively scuttled the GoM's
plans for a quick conclusion to the accession process. The GoM
understands that Ukraine is merely exercising its rights as a
WTO member, but that has not diminished the Montenegrin side's
resentment over the late date of the GoU request. The GOM has
been flummoxed by Kyiv's move, given the generally good
relations between the two countries and the relative paucity of
trade between them. Compounding the GoM's frustration is the
fact that DPM Djurovic and other GoM officials already had begun
publicly predicting a February 2009 accession date last fall.
The WTO "success story" was all but a sure thing and one that
the government likely was hoping to point to during the upcoming
election campaign (pre-term elections have been called s for
March 29).

MOORE