US embassy cable - 03ANKARA5587

UNCLAS SECTION 01 OF 02 ANKARA 005587 
 
SIPDIS 
 
 
DEPT FOR EB 
DEPT PLEASE PASS USTR FOR LERRION 
USDA for FAS/ITP Henke, Meyer, Hansen 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: ETRD, AORC, TU 
SUBJECT:  GOT Views on the WTO Ministerial in Cancun 
 
 
Ref: State 246426 
 
 
1. (SBU) Meeting with Econoff and Econ Specialist on 
September 3, Husnu Dilemre, Deputy Director General for 
Agreements at the Foreign Trade Undersecretariat, 
provided an overview of Turkish views and objectives for 
the upcoming Cancun WTO Ministerial.  In particular, he 
highlighted Turkey's desire for an agreement that would 
bring down high tariffs on industrial goods in other 
developing country markets, as well as Turkey's 
objective of eliminating all export subsidies in 
agricultural trade.  Econoff also delivered a copy of 
reftel World Bank/IMF letter in support of the Doha 
negotiations and transitional assistance. 
 
 
Non-Agricultural Goods 
---------------------- 
 
 
2. (SBU) Dilemre told us that the GOT is not keen on 
further multilateral tariff reductions on industrial 
goods, but that it does have market access concerns in 
other developing country markets.  Turkey's custom union 
with the EU provides preferential access for Turkish 
products relative to those originating in other 
developing countries.  At the same time, the customs 
union has required Turkey to lower tariffs to the level 
of the EU's common external tariff.  Turkish industry, 
particularly the textile/garment sector, is concerned 
that new multilateral tariff reductions would erode its 
margin of preference in the EU market. 
 
 
3. (SBU) On the other hand, Turkey seeks tariff 
reductions in developing countries, particularly India 
and Pakistan, which continue to maintain high tariffs on 
Turkish industrial exports.  Dilemre pointed to Turkey's 
August 8 proposal to the Negotiating Group on Market 
Access, which called on all WTO members to bind all of 
their tariffs and which proposed a formula with the 
largest reductions in the highest tariffs (those 
exceeding 15 percent).  Under the Turkish proposal, 
developed countries would complete tariff reductions 
within the first year of the agreement, while developing 
countries would have five years to complete their 
reductions. 
 
 
Agriculture 
----------- 
 
 
4. (SBU) Dilemre flatly stated that Turkey opposed 
measures that would decrease protection for its 
agriculture sector.  He claimed that, as Turkey cannot 
subsidize agriculture to the same degree as developed 
countries, tariffs are Turkey's only legitimate 
instrument to defend Turkish farmers against subsidized 
imports.  He added that Turkey would insist on special 
and differential treatment for developing countries that 
would enable them to designate "strategic" or "special" 
products exempt from tariff reductions. 
 
 
5. (SBU) Dilemre expressed disappointment with the U.S. 
- EU joint paper on agriculture, which he argued backed 
away from the complete elimination of export subsidies 
for all products.  He said that the GOT would press for 
total elimination of these subsidies at Cancun.  On the 
U.S. proposal to eliminate only trade-distorting 
elements of export credits, Dilemre stated that Turkey 
did not have strong views on this issue and that these 
credits were extensively used to import raw materials 
such as cotton used in Turkish export industries. 
 
 
Other Issues 
------------ 
 
 
6. (U) Dilemre stated that Turkey is ready to negotiate 
a WTO Investment Agreement, but he acknowledged that 
negotiations in this area are not likely to be launched 
at the Cancun Ministerial.  Dilemre noted that Turkey 
had committed to not use the newly-agreed compromise on 
compulsory licensing of pharmaceuticals except in 
response to an emergency.  He also reported that Turkey 
had submitted its offer on services, but did not provide 
details. 
 
 
7. (U) Dilemre also said that the WTO was preparing a 
report on Turkey's trade regime under the Trade Policy 
Review Mechanism, and that he expected a WTO delegation 
to visit Ankara to discuss the report in late September. 
 
 
Delegation 
---------- 
 
 
8. (U) The Turkish delegation will be led by State 
Minister Kursad Tuzmen, and will include Foreign Trade 
Undersecretary Tuncer Kayalar and Agriculture Ministry 
Undersecretary Huseyin Coskun.  The delegation may 
include representatives of the Customs and Treasury 
Undersecretariats, the Turkish Patent Institute, the 
Boards on Competition and Public Procurement, the 
Finance, Industry, and Environment Ministries, and the 
State Planning Organization.  Private industry 
representatives, including the heads of the Exporters' 
Union, the Garment Manufacturers' Association, and 
members of Board of the Chamber of Unions for Commodity 
Exchanges may accompany the official delegation. 
Biographical Note 
----------------- 
 
 
9. (U) Dilemre informed us that he will be assigned to 
Washington as the Turkish Embassy's Commercial 
Counselor, probably in October.  Dilemre has been a very 
knowledgeable and open interlocutor at Foreign Trade and 
we commend him to Washington agencies as a useful 
contact. 
Pearson