US embassy cable - 05COLOMBO2026

C O N F I D E N T I A L COLOMBO 002026 
 
SIPDIS 
 
DEPT FOR SA/INS MGOWER; MCC FOR DNASSIRY AND EBURKE; 
TREASURY FOR SCHUN; COMMERCE FOR YELIN 
 
E.O. 12958: DECL: 11/30/2015 
TAGS: KIRC, KPAO, EAGR, ECON, ETRD, OIIP, CE, ECONOMICS 
SUBJECT: WTO DOHA ROUND - AMBASSADOR RAISES US CONCERNS 
WITH TRADE MINISTER, NO SUBSTANTIVE RESPONSE 
 
REF: SECSTATE 211956 
 
Classified By: Econchief Dean R. Thompson, Reasons 1.4 B, D and E 
 
1. (C) Summary:  Ambassador raised reftel WTO points with 
Trade Minister Fernandopulle on November 29 and Econchief has 
passed same points to representatives from the Finance 
Ministry and members of influential private sector groups. 
Minister Fernadopulle is not well-versed on the issues set to 
arise in Hong Kong, but is planning to attend.  We hope Sri 
Lanka will try to play a facilitative role and be helpful to 
US interests, but it may be that the best we can hope for is 
that they remain neutral.  We have heard that Fernandopulle 
may have some digs aimed at US and developed countries in his 
remarks for Hong Kong, but Commerce Ministry officials are 
trying to tone it down. End Summary 
 
2. (C) Ambassador raised reftel US WTO points with Trade 
Minister Jeyaraj Fernandopulle during his initial courtesy 
call on November 29, following Fernandopulle's reappointment 
to that position after the recent Presidential election. 
Fernandopulle had no substantive response to US points, but 
confirmed that he will attend the meetings in Hong Kong.  As 
Ambassador explained US position on agriculture, 
Fernandopulle asked for explanations on a number of points, 
particularly trade distorting subsidies.  Ambassador provided 
examples and urged Sri Lanka to be helpful in the upcoming 
talks, as Sri Lanka does not have the same range of 
agricultural market issues as other developing countries. 
 
3. (SBU) In addition to raising reftel points with 
Fernandopulle, Ambassador plans to raise them during his 
initial meetings with the Deputy Minister of Finance (the 
President has retained the Finance portfolio) and the Foreign 
Minister  (Note: Sri Lanka's Presidential election took place 
on November 18 and the cabinet was just appointed this week, 
thus the delay in high-level contacts on this issue. End 
Note).  The Ambassador has also used the points in public 
events to urge the business community, particularly the 
apparel manufacturing sector, to lobby the GSL on behalf of 
progress in Hong Kong.  Econchief has delivered the message 
to trade policy representatives in the Ministry of Finance 
and the Ministry of Commerce, and to the head of Sri Lanka's 
Joint Apparel Association Forum (JAAF). 
 
4. (C) Comment: While Sri Lanka exports a significant amount 
of tea, we do not believe they have the same agricultural 
market access issues with developed countries as some of 
their peer countries.  We have heard from Commerce Ministry 
sources that Fernandopulle had wanted to use his WTO speech 
to complain about developed countries who ask the developing 
world to help them on certain issues, but offer nothing in 
return (a specific jibe at what Fernandopulle sees as the 
US's failure to "grant" Sri Lanka a free trade agreement), 
but that Ministry officials had been able to get the 
reference removed.  Given Fernandopulle's inexperience on 
these matters, and generally protectionist bent, the best we 
can probably hope for is that Sri Lanka plays a neutral role 
and does not exacerbate an already tough negotiating 
environment.  It is remotely possible that the Sri Lankans 
will try to play a postive, facilitative role, as they did in 
Cancun, but far from certain.  In Hong Kong, we think the US 
team will find the professional representatives from the 
Commerce and Finance Ministries well-informed and interested 
in being helpful.  Their boss's position, however, remains 
unclear.  We will continue to press these points in the days 
ahead.  End Comment 
LUNSTEAD