US embassy cable - 05ATHENS429

UNCLAS ATHENS 000429 
 
SIPDIS 
 
STATE FOR EUR/SE, EB/TPP, EUR/ERA 
STATE PASS USTR 
ROME FOR AGATT 
 
E.O. 12958: N/A 
TAGS: EAGR, ETRD, GR 
SUBJECT: EU RICE; GREECE SUPPORTS COMPROMISE 
 
REF: STATE 019814 
 
1.  Embassy delivered reftel demarche February 4 to the 
Ministries of Agriculture, Economy and Finance, and Foreign 
Affairs. (The Ministry of Agriculture conveyed our arguments 
to the Greek WTO mission in Geneva.)  On February 8, the 
Agriculture Ministry's Secretary General for Policy, Christos 
Avgoulas, told Econcouns and FAS specialist that the GoG 
would support a compromise agreement between the U.S. and EU, 
and is urging an agreement be concluded before the March 1 
deadline for the U.S. withdrawal of some tariff concessions. 
 
2.  Avgoulas pointed out that Greek rice producers are 
suffering from the consequences of overproduction in 2004, a 
50 percent reduction in prices, and overstocked warehouses 
with previous years' harvests.  Furthermore, Greek rice 
varieties (indica long) are less marketable internationally 
than the japonica short and medium grain varieties grown in 
other EU countries (e.g., Italy). 
 
3. In spite of the rice producers' plight, Avgoulas explained 
that his ministry is receiving considerable pressure from 
Greek peach producers and canners, concerned about losing 
sales in the U.S. if tariff concessions are withdrawn.  He 
said this was  one of the major reasons driving the GoG to 
press for a speedy conclusion of a U.S.-EU agreement. 
RIES