US embassy cable - 05MADRID187

UNCLAS MADRID 000187 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD, SP, USTRUWR, Trade Issues 
SUBJECT: FSC/ETI DISPUTE 
 
REF: SECSTATE 11149 
 
1. EconOff discussed reftel demarche with Subdirector General 
for EU Trade Policy (Ministry of Industry, Trade and Tourism) 
Nicolas Lopez on 1/19/05.  Lopez said the GOS was still 
studying its "posture" on the automaticity issue, although he 
conceded that in the past, Spain had not opposed the 
Commission's automaticity provision.  He said that Germany 
and the United King opposed the Commission on this matter. 
Spain would like to find a "compromise" between 
Germany/United Kingdom and the Commission, but it will not be 
particularly active on this issue.  Lopez said the FSC, among 
other matters, would be discussed during the Friday, 1/21/05 
EU 133 meeting, which he will be attending.  Lopez said that 
he was aware that the U.S. calculates that the grandfathering 
provisions may amount to about USD 75 million a year, but he 
said the Commission calculates that the grandfathering 
provisions are worth in the billions of dollars.  However, 
Lopez could not provide a more precise number or describe how 
the Commission had arrived at this much higher estimate. 
 
2. Comment: Although Lopez has always said that Spain would 
not like to see sanctions imposed on the FSC matter, the GOS 
is clearly more sympathetic to the Commission's position than 
to the views of Member States such as Germany and the United 
Kingdom. 
MANZANARES