US embassy cable - 05ANKARA2901

UNCLAS ANKARA 002901 
 
SIPDIS 
 
STATE FOR EB/TPP/MTA/MST - AWHITTEN 
TREASURY FOR OASIA 
DEPT PLEASE PASS USTR FOR LERRION 
USDOC FOR ITA/MAC/DDEFALCO 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, TU, WTO 
SUBJECT:  GOT PREPARING REVISED WTO SERVICES OFFER 
 
Ref:  State 81619 
 
1. (SBU) On May 11, Econoff delivered reftel demarche 
urging the GOT to submit a revised WTO services offer 
by the May deadline to Sevgi Boz, Deputy Director 
General at the Turkish Treasury Undersecretariat.  Boz 
responded that Treasury was coordinating an interagency 
review with the aim of submitting a revised offer as 
soon as possible.  However, she opined that Turkey 
would miss the deadline and submit an offer in early 
June.  She added that both the insufficient number and 
quality of initial offers in the services talks were an 
obstacle to a successful conclusion. 
 
2. (SBU) Boz suggested that submitting a revised offer 
was desirable in view of far-reaching changes in 
Turkish services-related legislation over the last few 
years.  While cautioning that the Turkish interagency 
process on these issues was far from complete, she 
offered the following views on specific sectors and 
issues: 
 
-- Banking has already been substantially liberalized, 
and there is considerable foreign investment in place 
or on the way in this sector; 
 
-- Any offer relating to insurance will be affected by 
draft legislation on the sector now before Parliament 
(Boz was not familiar with details of the legislation); 
 
-- She acknowledged that telecom was the most important 
subject in a revised offer, and acknowledged USG 
interest in liberalization.  She emphasized that the 
GOT had not worked out a position on a telecom offer, 
and hinted at opposition to further liberalization; 
 
-- The offer on Mode 3 horizontal commitments will be 
revised to reflect liberalized FDI legislation, 
particularly abolition of the permit requirement; 
 
-- On Mode 4 (movement of natural persons), Turkey 
plans to revise its offer in line with recent 
liberalization of work permit legislation.  She stated 
that Turkey might offer permits extendable to as long 
as six years. 
 
3. (SBU) Boz told us that Turkey would take EC 
positions into account in formulating its offer.  She 
emphasized that the GOT was not aiming for complete 
harmonization of positions with Brussels, but said it 
was not in Turkey's interests to make commitments to 
liberalization which would have to be scaled back upon 
accession to the EU. 
 
Edelman