US embassy cable - 02ANKARA8304

UNCLAS SECTION 01 OF 02 ANKARA 008304 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR EUR/SE, EB/EPD, AND EB/TPP/ABT 
DEPT PLEASE PASS USTR FOR NOVELLI, DBIRDSEY, JHOFEMEISTER, 
AND SLOAN 
USDA FOR FAS FOR ITP/BERTSCH, MACKE, MEYER, THORBURN 
USDOC FOR DEFALCO 
 
 
E.O. 12958: N/A 
TAGS: ETRD, EAGR, KPAO, TU 
SUBJECT:  Turkish Officials Comment on WTO Agriculture 
Issues 
 
 
Ref:  State 224192 
 
 
Sensitive but Unclassified.  Not for Internet Distribution. 
 
 
1.  (SBU) SUMMARY.  TURKISH OFFICIALS REITERATED THEIR 
SUPPORT FOR LIBERALIZATION OF AGRICULTURAL TRADE BUT 
ARGUED THAT HIGH TARIFFS AND SOME DOMESTIC SUPPORT 
PROGRAMS MUST BE MAINTAINED IN ORDER TO PROTECT TURKISH 
PRODUCERS AGAINST IMPORTS.  THESE SAME OFFICIALS STATED 
THAT SELF-SUFFICIENCY IN AGRICULTURE WAS A PRIMARY GOAL 
FOR THE GOVERNMENT.  REPRESENTATIVES FROM THE MINISTRY 
OF FOREIGN TRADE AFFAIRS WILL CARRY THIS MESSAGE TO THE 
UPCOMING MEETINGS IN GENEVA. END SUMMARY. 
 
 
2.  (SBU) DURING THE WEEK OF NOVEMBER 10, AGCOUNSELOR 
MET WITH OFFICIALS FROM TURKEY'S MINISTRY OF 
AGRICULTURE (MARA) AND MINISTRY OF FOREIGN TRADE (MFT) 
TO DISCUSS THE UPCOMING MEETINGS IN GENEVA AT WHICH 
AGRICULTURAL TRADE LIBERALIZATION WOULD BE DISCUSSED. 
MANY OF THE POINTS NOTED IN REFTEL WERE RAISED. 
ALTHOUGH NEW OFFICIALS HAVE NOT BEEN PLACED AFTER THE 
RECENT ELECTIONS, TURKISH OFFICIALS HAVE BEEN ACTIVELY 
INVOLVED IN THE PLANNING FOR THE UPCOMING TALKS. 
 
 
--------------------------------------------- --- 
ELIMINATION OF EXPORT SUBSIDIES: A POSITIVE MOVE 
--------------------------------------------- --- 
 
 
3. (SBU) BOTH MINISTRIES SUPPORTED THE ELIMINATION OF 
EXPORT SUBSIDIES.  TURKEY UTILIZED EXPORT SUBSIDIES IN 
THE PAST. HOWEVER LACK OF FUNDING DUE TO THE ECONOMIC 
CRISIS HAS FORCED TURKEY TO ABANDON THIS PRACTICE. 
COMMENT.  IN VARIOUS MEETINGS WITH TURKISH OFFICIALS, 
ONE HAS THE SENSE THAT, IF MONEY WERE AVAILABLE, TURKEY 
WOULD LIKE TO AGAIN SUBSIDIZE AGRICULTURAL EXPORTS, 
PARTICULARLY SUGAR. END COMMENT.  TURKISH OFFICIALS 
COMMENTED THAT SUBSIDIZED EXPORTS FROM THE EUROPEAN 
UNION WERE A REAL THREAT TO TURKEY. 
 
 
---------------------------- 
DOMESTIC SUPPORT: MIXED BAG 
---------------------------- 
 
 
4.  (SBU) MARA Under Secretary Ayanoglu stated that within 
the next two years, the Turkish government would end all 
domestic support programs for agriculture.  As a result, at 
least MARA officials supported the elimination of domestic 
support programs.  However, MFT officials provided 
additional details on this issue.  Although the Government 
of Turkey (GOT) believes that domestic support programs in 
developed countries, particularly in the European Union and 
the United States, put Turkish agriculture at a 
disadvantage, they will continue to support providing direct 
payments linked to certain production-limiting policies 
under the "blue" box exemption.  In addition, the GOT will 
not support any reductions or restrictions for "green box" 
(permitted) policies which are generally, taxpayer-funded 
policies that do not involve transfers from consumers and do 
not have the effect of providing price support to producers. 
GOT officials seemed to indicate a willingness to consider 
reduction in amber box programs which include a country's 
support measures linked to production or prices. However, it 
is probable that the GOT will follow the EU's lead on this 
issue. 
 
 
 
 
 
 
 
 
-------------------------- 
TARIFFS MUST BE MAINTAINED 
-------------------------- 
 
 
5.  (SBU) TURKISH OFFICIALS MAINTAIN THAT THEY MUST 
CONTINUE TO HAVE THE ABILITY TO APPLY EXCEEDINGLY HIGH 
TARIFFS ON AGRICULTURE PRODUCTS IN ORDER TO PROTECT ITS 
AGRICULTURE SECTOR.  GIVEN THE HIGH RATE OF 
UNEMPLOYMENT IN RURAL AREAS COUPLED WITH LOW INCOME 
LEVELS, THE GOT WILL PROTECT TURKISH AGRICULTURE 
AGAINST ALL THREATS, I.E. COMPETITION.  ONE OFFICIAL 
NOTED THAT THE GOT NEEDED TO SUPPORT EMPLOYMENT IN 
AGRICULTURE IN ORDER TO STEM THE FLOW OF UNEMPLOYED 
WORKERS TO URBAN AREAS.  MFT OFFICIALS NOTED THAT, 
DURING PREVIOUS MEETINGS IN GENEVA, THE GOT WOULD ONLY 
CONSIDER A REDUCTION IN TARIFFS IF DEVELOPED COUNTRIES 
ELIMINATED EXPORT SUBSIDIES AND ALL DOMESTIC SUPPORT 
PROGRAMS. TARIFFS, AS ONE OFFICIAL STATED, WERE THE 
ONLY MEANS TO PROTECT TURKISH AGRICULTURE. AS A RESULT, 
THE GOT WILL NOT SUPPORT THE SWISS 25 PROPOSAL. 
 
 
--------------------------------------------- --------- 
COMMENT:  PROTECTION AND SELF SUFFICIENCY AT ALL COSTS 
--------------------------------------------- --------- 
 
 
6. (SBU)  DESPITE THE RELATIVELY HIGH COST TO 
CONSUMERS, THE GOT'S ULTIMATE GOAL TO ATTAIN SELF- 
SUFFICIENCY IN AGRICULTURAL PRODUCTION.  GOT OFFICIALS 
BELIEVE THAT TURKEY SHOULD NOT BE IMPORTING ANY FOOD 
PRODUCT THAT IT CAN GROW ITSELF.  GIVEN THE PERCENTAGE 
OF THE POPULATION STILL LIVING IN RURAL AREAS AND THE 
HIGH UNEMPLOYMENT, THE GOT BELIEVES THAT IT MUST DO 
EVERYTHING IN ITS POWER TO SUPPORT ITS AGRICULTURE 
SECTOR.  WHILE ON ONE LEVEL, THEY BELIEVE THAT 
LIBERALIZATION OF AGRICULTURAL TRADE WILL BE A POSITIVE 
STEP, IT IS UNABLE TO SUPPORT ANY INTERNATIONAL 
POLICIES THAT WOULD JEOPARDIZE THE ECONOMIC CONDITIONS 
FOR ITS RURAL POPULATION. 
PEARSON