US embassy cable - 05THEHAGUE2897

UNCLAS THE HAGUE 002897 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EB/TPP/BTA (JSTRUBLE), EUR/UBI, EUR/ERA 
STATE PLEASE PASS TO USTR 
USEU FOR CWILSON 
GENEVA FOR USTR 
 
E.O. 12958: N/A 
TAGS: EAGR, ETRD, NL, WTRO, PKPAO, EUN 
SUBJECT: PUSHING THE DUTCH TO HELP ON WTO/AGRICULTURE 
 
REF: 10/21 D/USTR-EMBASSIES TO EU MEMBER STATES 
     CONFERENCE CALL 
 
1.  (SBU)  On October 24, Charge called Helen van Dongen, 
Deputy Director of WTO Affairs, Ministry of Economic Affairs 
(MEA), to urge continued Dutch activism within the EU for an 
improved market access offer ahead of the October 27 Five 
Interested Parties (FIPs) meeting in Geneva.  Van Dongen said 
the Dutch expected the European Commission to table a new 
proposal on agriculture at the EU meeting scheduled for 
October 25, including a "substantially" improved market 
access offer.  She cautioned that Commissioner Mandelson had 
warned that this would be the final offer, as room for 
further maneuverability was limited.  Rather, the Dutch and 
its EU colleagues believed that the negotiations should be 
broadened to include other areas such as NAMA and services. 
 
2.  (SBU)  Van Dongen praised the new U.S. proposal on 
agriculture for giving "real impulse to the negotiations." 
However, she noted that there was a feeling within the WTO 
and EU that "all must suffer" in order to achieve "balanced 
results."  The EU had taken steps two years ago in the area 
of CAP reform.  There was a belief among some EU member 
states that others, including the U.S., must pay as well and 
deliver more on such issues as food aid, export credits and 
sensitive products (i.e., cotton). 
 
3.  (SBU)  In separate discussions at the Dutch Ministry of 
Agriculture (MinAg), a working-level contact told the 
Agriculture Counselor that any further reform of CAP would be 
politically difficult at this time.  He said the new U.S. 
proposal had not done enough on food aid and export credits 
and questioned whether the offer on domestic support would 
result in any real changes to U.S. farm subsidy programs.  He 
agreed that the Netherlands and the U.S. had shared interests 
on the market access front, but added that the Netherlands 
remained dependent on CAP given its large livestock, poultry 
and dairy sectors and some arable crop producers like sugar 
beets and grains. 
 
4.  (SBU)  COMMENT:  It is not surprising that the Dutch MEA 
is more positive about the new U.S. WTO proposal on 
agriculture than its MinAg colleagues, whose interests 
continue to benefit under CAP.  Dutch Trade officials tend to 
favor reductions in CAP as a means of redirecting budget 
funds to programs aimed at helping developing countries.  Van 
Dongen's comments also point to a skepticism about the actual 
changes envisioned under the U.S. proposal.  U.S. negotiators 
may wish to spell out in greater detail what the proposed 
cuts actually mean and where the U.S. will "suffer."  END 
COMMENT. 
BLAKEMAN