US embassy cable - 05ROME3845

C O N F I D E N T I A L ROME 003845 
 
SIPDIS 
 
SECSTATE PLEASE PASS ALSO TO USDA FAS 
 
E.O. 12958: DECL: 11/11/2010 
TAGS: ETRD, EAGR, ECON, EU, IT, Italy and the UN 
SUBJECT: WITH COMPROMISE, GOI SEES HOPE FOR SUCCESSFUL HONG 
KONG MINISTERIAL 
 
REF: STATE 199861 
 
Classified By: Acting EcMin Kathleen Reddy for Reasons 1.4 (b) and (d) 
 
 1.  (U)  Summary:  On November 8, Amadeo Teti, Vice Ministry 
of Trade Director General for Commercial Agreements, laid out 
for Acting EcMin the recipe for a successful Hong Kong 
Ministerial:  (i) U.S. and EU compromise on key issues, (ii) 
collaborative work to build momentum in the negotiations, 
(iii) increased pressure on other countries to compromise on 
NAMA and services market access and geographical indicators. 
Teti said the GOI could help the USG with the French at the 
Hong Kong Ministerial.  End summary. 
 
2.  (C)  Teti, who accompanied Trade Vice-Minister Adolfo 
Urso to Brussels for meetings with EU Trade Commissioner 
Peter Mandelson earlier in the week, said the GOI wants to 
give Mandelson flexibility in the negotiations leading to the 
Hong Kong Ministerial.  Urso and Teti personally pressed 
Mandelson to seek progress on NAMA and service market access 
and geographical indicators (GIs) from other WTO members. 
With progress on these three issues, Italy believes other EU 
states will be more flexible on agriculture.  Urso and Teti 
also told Mandelson that the EU position on services is "too 
ambitious," and that the EU should try to find common ground 
with the "more realistic" U.S. position. 
 
3.  (C)  Mandelson sought Urso's view on moving the 
negotiations forward.  Urso said "shorten the distance 
between the EU and the United States" and work with the USG 
to press developing countries for better NAMA and services 
market access.  Teti said he advised Mandelson to give the 
USG a "good sign" and be "less aggressive" on food aid. 
 
4.  (C)  Mandelson then asked Urso and Teti for their take on 
the French negotiating strategy.  Urso and Teti only noted 
that "we used to understand France better."  Teti added that 
the USG should feel free to approach the GOI for help with 
the French at the Hong Kong Ministerial. 
 
5.  (C)  Comment:  Recently, Teti has optimistically 
predicted success if compromises can be made on a NAMA, 
services market access, and GIs.  In contrast to his own 
optimism, Teti reported that Mandelson is "deeply concerned" 
about the state of the Doha Round, especially the 
agricultural negotiations.  While we agree with Teti that the 
EU must take measures to reduce the distance between its 
proposals and those of the USG, it is hard to imagine Italy 
playing a prominent role in that effort prior to 
parliamentary elections in April 2007, when the agricultural 
vote will be so important to the center-right.  Similarly, it 
is hard to imagine the GOI reaching out to encourage the 
French to compromise on agriculture without major concessions 
from us on issues such as GIs.   End comment. 
SPOGLI