GOI HARDENS LINE ON PA WTO OBSERVER STATUS

UNCLAS TEL AVIV 002166 SIPDIS SENSITIVE STATE PASS USTR E.O. 12958: N/A TAGS: KWBG ETRD ECON PREL IS SUBJECT: GOI HARDENS LINE ON PA WTO OBSERVER STATUS REF: A) GENEVA 0814 B) SECSTATE 99831 ¶1. (SBU) MFA's Middle East Economic Bureau Director Yael Ravia called EconCouns late Wednesday evening to inform Embassy of the hardened GOI position on a potential Palestinian Authority request for permanent WTO observer status. Ravia said the current GOI position, which she confirmed had been communicated to the Israeli mission in Geneva (ref A),is to oppose both permanent and ad hoc observership for either General Council or Ministerial meetings. She would not be drawn out on the decision to take a tougher stance, other than to note that the Palestinian resolution in Geneva endorsing the Goldstone report, the Palestinian ICC complaint, and statements by senior PA officials at the recent Fatah Congress had not set a very positive tone for the GOI-PA relationship. ¶2. (SBU) Ravia pressed for info on the U.S. position and urged USG support for the Israeli stance, indicating that she had heard we were leaning in that direction. EconCouns told Ravia that there were two issues at play. The USG is now reviewing the technical question of whether the PA legally qualifies for permanent observer status. While preliminary review raised questions suggesting that a PA request for permanent observer status might be premature, the USG has not yet determined that to be the case. ¶3. (SBU) On the political question, EconCouns reminded Ravia that the USG had a long-standing policy of supporting capacity-building work that would prepare the Palestinians for statehood. He noted that in 2005, this had led the U.S. to support ad hoc PA observership at the Hong Kong Ministerial, and told her that we would support inviting the PA to be an observer at the November 30 - December 2 Ministerial for the same reasons. ¶4. (SBU) Ravia characterized the PA's request for permanent WTO observer status as "purely political," and reiterated that there was no wiggle-room in the GOI position. She asked that the Embassy inform the MFA of any final USG legal determination of PA qualifications for permanent observership. ¶5. (SBU) Comment: Earlier discussions with MFA and the Ministry of Industry, Trade and Labor (MOITaL) had left the door open to discussion of ad hoc observership, at least for Ministerial meetings. Ravia's comments made it quite clear that the GOI wants USG to join it in taking a hard line, is not willing to hear that our position is more nuanced than the current Israeli stance. Even if we can convince our Israeli interlocutors that there is daylight between us on this issue, a GOI shift on ad hoc observer status seems unlikely. CUNNINGHAM