US embassy cable - 05ANKARA6496

UNCLAS ANKARA 006496 
 
SIPDIS 
 
DEPT PASS USTR FOR LERRION/JCHOE-GROVES 
USDOC FOR ITA/MAC/CRUSNAK 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, KIPR, WTRO 
SUBJECT:  GOT ON US AG PROPOSAL: AMBITIOUS BUT 
PROBLEMATIC 
 
REF: A: STATE 195286 B: STATE 190748 
 
1. (SBU) Summary:  Turkey expressed its concerns about 
the USG Doha agriculture proposal and remained 
noncommittal on our request for assistance in urging 
the EU to table a meaningful proposal.  The GOT opposes 
reducing tariffs before developed countries reduce 
their domestic support and hopes to maintain current 
"de minimis" levels and special and differential 
treatment.  Because agriculture is such a sensitive 
issue for Turkey, the USG should not expect its support 
during the Doha agriculture negotiations.  End summary. 
 
2. (U) On October 27, GOT Foreign Trade 
Undersecretariat (FTU) Acting Department Head for WTO 
issues, Aylin Bebekoglu, agreed that the USG proposal 
on agriculture at Doha is "ambitious," but added that 
Turkey has some concerns.  In response to our request 
for assistance in urging the EU to table a meaningful 
proposal at Doha, Bebekoglu remained noncommittal and 
spoke only of Turkey's changing role as it works toward 
EU accession. 
 
3. (U) With regard to the US proposal, Turkey wants to 
see a reduction of export subsidies and domestic 
support by developed countries before developing 
countries agree to a reduction in tariffs.  She argued 
that if the GOT were to reduce its tariffs now, without 
the corresponding reduction in export subsidies and 
domestic support, it would be "catastrophic" for the 
Turkish agriculture sector.  Admittedly hesitant to use 
the word "protection," Bebekoglu characterized the 
GOT's current agricultural strategy as one of 
"sustainment."  She added that Turkey is not currently 
globally competitive and a further reduction in tariffs 
could possibly "obliterate" its sector if developed 
countries continued to subsidize their markets, even at 
reduced rates. 
 
4. (U) The GOT also opposes a reduction in the "de 
minimis" levels of domestic support.  Turkey only 
maintains the current "de minimis" levels and believes 
that a reduction would further handicap its ability to 
compete.  In addition, the GOT wants to maintain as 
long as possible special and differential treatment and 
protection for Special Products (SP) and the Special 
Safeguard Mechanism (SSM) for developing countries. 
Finally, Turkey opposes the US proposal to lower the 
tariff cap to 75 percent and believes that a cap of at 
least 150 percent is more reasonable for developing 
countries. 
 
5. (U) Bebekoglu mentioned that Turkey more or less 
agrees with the USG and EU positions on Non- 
Agricultural Market Access (NAMA) issues and asked for 
additional information on our proposals for the 
industrial sectors, specifically on textiles.  Post 
would appreciate information, as it becomes available, 
on this issue. 
 
6. (SBU) Comment:  Bebekoglu conceded that agriculture 
is one of the most sensitive and difficult issues for 
the GOT to negotiate.  For this reason, post believes 
that the USG should not expect GOT support during the 
Doha agriculture negotiations.  As Turkey moves through 
the EU accession process, much of its sustainment 
program will have to be brought into harmonization with 
EU regulations, which Bebekoglu admitted will be an 
arduous process.  In the meantime, in her opinion, 
developed countries should take into consideration 
Turkey's developing status and unique sectoral 
challenges when analyzing its trade policies.  End 
comment. 
 
McEldowney