CZECHS TO ENCOURAGE DG AGRI ON INTERIM BEEF

C O N F I D E N T I A L PRAGUE 000082

SIPDIS

STATE PASS ELECTRONICALLY TO USDA
USDA FOR FAS/ONA BERTSCH, MANNIX, FAS/OCRA NENON, BASINGER
USEU PASS AG MINISTER COUNSELOR, AGATT STANGE
USTR FOR DWEINER

E.O. 12958: DECL: 02/10/2019
TAGS: EAGR ETRD ECON PREL EZ EUN
SUBJECT: CZECHS TO ENCOURAGE DG AGRI ON INTERIM BEEF
AGREEMENT

Classified By: Political-Economic Counselor Charles O. Blaha.
Reasons 1.4 b. and d.


1. (U) This is an action request. Please see paragraph 5.


2. (C) Summary: A key Czech EU Presidency staffer told us
February 6 that Agriculture Minister Gandalovic will
encourage Agriculture Commissioner Fischer Boel to take
immediate steps to resolve the U.S.-EU beef hormone conflict
during meetings later this month. Gandalovic is scheduled to
meet Fischer Boel on the margins of a February 12 meeting and
face to face on February 19. The Czechs would like to see
this issue resolved and have instructed their Permanent
Representation in Brussels to support efforts to get DG Agri
back to the table. The Czechs, however, are conscious that
as the EU Presidency they are acting on behalf of the entire
EU and not just themselves, thus they are reluctant to be
seen getting too far out in front of the other EU member
states. End summary.


3. (C) Visiting regional FAS Counselor and Emboff reiterated
USTR's interim beef agreement points to Ag Ministry EU
Presidency Department Director Jan Dejl on February 6. FAS
Counselor encouraged the Czechs to urge DG Agri to resume
negotiations on an interim beef agreement that would involve
increased market access for U.S. hormone free beef in
exchange for the phase out of retaliatory tariffs. FAS
Counselor added that there are outstanding sanitary issues to
be addressed by DG Sanco and it was important that higher
levels of U.S. exports not be disrupted by DG Sanco, for
example by using a safety clause. Emboffs explained the
history of the hormone free tariff rate quota negotiations
based on points provided by USTR. Dejl noted that several
member states, including Italy, had already raised the issue
with the Czechs. Dejl repeated that the Ministry wanted to
be helpful on this issue and would push DG Agri to come back
to the table ready to discuss actual tonnage figures. Dejl
reported that the Czech Permanent Representative in Brussels
had been directed to be helpful towards encouraging a
solution. He thanked Post for providing quick answers to the
Ministry's questions, including providing figures that showed
the U.S. exported hormone-treated beef to 114 countries.


4. (C) Dejl reported that AgMinister Gandalovic would
encourage EC Agricultural Commissioner Fischer Boel to take
immediate steps to conclude an interim beef agreement when
the two meet later this month. Gandalovic and Fischer Boel
may meet on the margins of a February 12 conference and will
meet face-to-face on February 19. Dejl asked whether the
imposition of trade sanctions might be delayed. FAS
Counselor replied that a delay was the decision of USTR but
the only foreseeable reason to delay was productive
negotiations that had an end point in time for more market
access. Dejl said it might be worthwhile for the AgMinister
to call on EC Health Commissioner Vassiliou but made no
specific commitment. Dejl was open to possible DVCs with U.S.
agricultural experts on this and other issues during the
Czech EU presidency. Dejl added that Minister Gandalovic
plans to travel to New York City at a future date for a
United Nations conference on sustainable development and
would welcome a DC trip to visit USDA Secretary Vilsack and
other administration officials.


5. (C) Action request: Post requests guidance whether the
Czechs should be encouraged to reach out to the Commission on
the sanitary issues relating to beef. End action request.


6. (C) Comment. The current pro-American Czech government is
a strong supporter of eliminating barriers to transatlantic
trade and the importance of making science-based decisions on
food safety. As a result, the Czechs are a natural U.S. ally
on this issue. That said, they caution not to expect too
much as trade issues continue to be dominated by the
Commission. They also warn that as the EU Presidency
country, they are expected to represent the EU as a whole.
Thus, they are wary of getting too far out ahead of the other
member states and need the support of other EU countries for
cover. This message was co-drafted and cleared by USDA/FAS
in Warsaw.
Thompson-Jones