Identifier
Created
Classification
Origin
09VIENNA107
2009-01-28 15:27:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:
AUSTRIA'S ECON MINISTRY FAVORS A NON-HORMONE BEEF
how-toVZCZCXRO7113 OO RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR DE RUEHVI #0107 0281527 ZNR UUUUU ZZH O 281527Z JAN 09 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC IMMEDIATE 1923 INFO RUCPDOC/USDOC WASHDC PRIORITY RUEADWD/DA WASHDC PRIORITY RUEHBS/USEU BRUSSELS PRIORITY RUCNMEM/EU MEMBER STATES PRIORITY
UNCLAS VIENNA 000107
SIPDIS, SENSITIVE
EUR FOR JENNA PURL
STATE PASS USTR FOR WILLIAM BUSIS
E.O. 12958: N/A
TAGS: ETRD ECON EAGR EUN AU
SUBJECT: AUSTRIA'S ECON MINISTRY FAVORS A NON-HORMONE BEEF
SOLUTION, DAMAGE FOR INDUSTRY LIKELY TO BE LIMITED
REF: STATE 4100
UNCLAS VIENNA 000107
SIPDIS, SENSITIVE
EUR FOR JENNA PURL
STATE PASS USTR FOR WILLIAM BUSIS
E.O. 12958: N/A
TAGS: ETRD ECON EAGR EUN AU
SUBJECT: AUSTRIA'S ECON MINISTRY FAVORS A NON-HORMONE BEEF
SOLUTION, DAMAGE FOR INDUSTRY LIKELY TO BE LIMITED
REF: STATE 4100
1. (SBU) Econoff and Econ Specialist delivered reftel
talking points to Gabriele Meon-Tschuertz, Head of U.S.
trade in the Department of European Integration and Foreign
Trade at the Ministry of Economy. Meon-Tschuertz declined
to give an official GOA reaction, saying the issue is an EU
matter and the EU Commission will make an announcement
after discussion with member states. Meon-Tschuertz did
emphasize that her Ministry and most trade representatives
in the EU were in favor of a solution based on increased
access for non-hormone U.S. beef to EU markets. She
predicted, however, that agriculture ministries in Austria
and other EU member states would be resistant to any
concession.
2. (U) Hochhauser claimed to have learned that USTR had
originally targeted exports from the manufacturing and
industry sectors, which would have hurt Austria more
severely, but then "backpeddled at the last minute". As a
result, the items subject to sanctions include Austrian
chocolate, jams, and fruit juices. Hochhauser also charged
that with the revised list "the permitted amount of
sanctions has been clearly exceeded, according to the EU
Commission." Austria's quasi-state Business Chamber
expects the Commission to take legal action against the
newly-imposed beef hormone sanctions at the WTO.
3. (U) Meon-Tschuertz noted that the Austrian Business
Chamber (WKO) had requested (unspecified) support from the
Ministry on the retaliatory beef hormone tariffs, adding
that Austrian exporters particularly disliked the
unpredictability of tariffs possibly changing every six
months.
4. (U) In a press release, WKO General Secretary Anna
Maria Hochhauser claimed that Austria's exporters "have
gotten off lightly," with an estimated affected export
volume between USD 6.2 million (January - December 2007)
and USD 6.6 million (January to October 2008, at the
current exchange rate). NOTE: According to EMBASSY
Agriculture Specialist's calculations, the value of U.S.
imports from Austria affected by the sanctions total
between USD 3.0 million to 3.3 million (source: Global
Trade Atlas). END NOTE.
KILNER
SIPDIS, SENSITIVE
EUR FOR JENNA PURL
STATE PASS USTR FOR WILLIAM BUSIS
E.O. 12958: N/A
TAGS: ETRD ECON EAGR EUN AU
SUBJECT: AUSTRIA'S ECON MINISTRY FAVORS A NON-HORMONE BEEF
SOLUTION, DAMAGE FOR INDUSTRY LIKELY TO BE LIMITED
REF: STATE 4100
1. (SBU) Econoff and Econ Specialist delivered reftel
talking points to Gabriele Meon-Tschuertz, Head of U.S.
trade in the Department of European Integration and Foreign
Trade at the Ministry of Economy. Meon-Tschuertz declined
to give an official GOA reaction, saying the issue is an EU
matter and the EU Commission will make an announcement
after discussion with member states. Meon-Tschuertz did
emphasize that her Ministry and most trade representatives
in the EU were in favor of a solution based on increased
access for non-hormone U.S. beef to EU markets. She
predicted, however, that agriculture ministries in Austria
and other EU member states would be resistant to any
concession.
2. (U) Hochhauser claimed to have learned that USTR had
originally targeted exports from the manufacturing and
industry sectors, which would have hurt Austria more
severely, but then "backpeddled at the last minute". As a
result, the items subject to sanctions include Austrian
chocolate, jams, and fruit juices. Hochhauser also charged
that with the revised list "the permitted amount of
sanctions has been clearly exceeded, according to the EU
Commission." Austria's quasi-state Business Chamber
expects the Commission to take legal action against the
newly-imposed beef hormone sanctions at the WTO.
3. (U) Meon-Tschuertz noted that the Austrian Business
Chamber (WKO) had requested (unspecified) support from the
Ministry on the retaliatory beef hormone tariffs, adding
that Austrian exporters particularly disliked the
unpredictability of tariffs possibly changing every six
months.
4. (U) In a press release, WKO General Secretary Anna
Maria Hochhauser claimed that Austria's exporters "have
gotten off lightly," with an estimated affected export
volume between USD 6.2 million (January - December 2007)
and USD 6.6 million (January to October 2008, at the
current exchange rate). NOTE: According to EMBASSY
Agriculture Specialist's calculations, the value of U.S.
imports from Austria affected by the sanctions total
between USD 3.0 million to 3.3 million (source: Global
Trade Atlas). END NOTE.
KILNER