US embassy cable - 03THEHAGUE2607

UNCLAS THE HAGUE 002607 
 
SIPDIS 
 
USDA FOR FAS/ITP/EAMED AND FAS/CMP/GFD 
STATE PASS USTR FOR PORTER 
USEU BRUSSELS FOR AGRICULTURE AND ECON 
 
E.O. 12958: N/A 
TAGS: EAGR, ETRD, EUN 
SUBJECT: EU INTENTION TO WITHDRAW URUGUAY ROUND CONCESSIONS FOR 
RICE IMPORTS - NETHERLANDS RESPONSE 
 
REF:  SECSTATE 262998 
 
PER REFTEL, POST DELIVERED TALKING POINTS TO GON MINISTRIES OF 
AGRICULTURE AND ECONOMIC AFFAIRS. 
 
1.  OFFICIALS AT THE MINISTRY OF AGRICULTURE, HAVE TOLD US THAT 
ALTHOUGH THEY AGREED TO CHANGE THE MARGIN OF PREFERENCE SYSTEM 
FOR RICE AS PART OF THE EU MID-TERM REVIEW, THEY ARE NOT IN FAVOR 
OF CHANGING THE RICE IMPORT REGIME.  IN A DISCUSSION WITH ATE 
OOSTRA, DIRECTOR GENERAL FOR TRADE, HE AGREED THAT OPENING OF 
ARTICLE XXVIII NEGOTIATIONS ON RICE WAS NOT IN THE INTEREST OF 
THE DUTCH RICE MILLING INDUSTRY.  WHILE OOSTRA GAVE NO INDICATION 
THAT THE GON WOULD TAKE ANY INITIATIVE TO REVERSE THE ARTICLE 
XXVIII PROCESS, HE WAS INTERESTED IN RECEIVING MORE SPECIFIC 
INFORMATION ABOUT THE POTENTIAL IMPACT OF CHANGES TO THE IMPORT 
REGIME.  POST WILL FOLLOW UP WITH ADDITIONAL INFORMATION. 
 
2.  ECONOMIC AFFAIRS OFFICIALS INDICATED THAT DUTCH ASSESSMENT OF 
INTRA-EU NEGOTIATING DYNAMICS MIGHT PLAY A ROLE IN DETERMINING 
WHETHER THE DUTCH WILL OPPOSE THE ARTICLE XXVIII NEGOTIATION OR 
TRY TO WEAKEN IT.  SOBEL