US embassy cable - 03ANKARA854

C O N F I D E N T I A L ANKARA 000854 
 
SIPDIS 
 
 
STATE FOR P, E, EB AND EUR 
STATE PASS USTR FOR NOVELLI 
NSC FOR EDSON, QUANRUD AND BRYZA 
USDOC FOR U/S ALDONIS 
 
 
E.O. 12958: DECL: 02/03/2013 
TAGS: ETRD, PREL, ECON, TU 
SUBJECT: THIS IS THE WEEK TO PRESENT A SIGNIFICANT TRADE 
PACKAGE TO TURKEY 
 
 
REF: ANKARA 0081 
 
 
Classified by DCM Robert Deutsch.  Reason: 1.5 (b,d) 
 
 
1.  (C) We understand that Washington agencies have been 
working hard over the past few weeks to develop a trade 
package that we could offer to Turkey as part of our effort 
to get the Turks to "yes" on Iraq.  From our limited point of 
view, this is decision week.  If we are to influence Turkey's 
decision positively, we need to present as substantive a 
package as possible in the next few days, prior to a possible 
Turkish Parliament debate on Friday. 
 
 
2.  (C)  As we understand it, the package under discussion 
includes: 
 
 
-- A commitment to submit to Congress revised QIZ 
legislation, which would completely drop the existing 
footwear, leather, and flatware exclusions, and allow textile 
QIZs subject to minimum levels of U.S. product input; 
 
 
-- Allowing Turkey to participate in the 807/809 program, 
under which Turkish garments could be exported quota-free to 
the United States provided they included minimum amounts of 
U.S. fabric or yarn; 
 
 
-- Approving Turkey's petition to authorize GSP benefits for 
gold jewelry, and its petitions for redesignation of capers, 
pignolia/pistachio nuts, and dried tomatoes.  Possibly also 
seeking Congressional authorization for additional 2002 
products, including figs and dried apriocots; 
 
 
3.  (C) We strongly support offering "clean" QIZ legislation 
and expanded GSP benefits, but we are less sure about the 
807/809 program.  Turkey did ask for it in 1997, but our 
discreet soundings reveal little interest in it now.  To 
ensure our package brings the greatest possible political 
benefits, Embassy strongly recommends that Washington offer 
textile quota shifts, with an estimated value of $60 million, 
in addition to the 807/809 program.  The combination of quota 
shifts and GSP benefits on gold jewelry -- with a combined 
estimated value of some $150 million in additional exports -- 
would make the package tangible, and therefore of much 
greater benefit to our broader efforts here. 
 
 
4.  (C) We also recommend that the package include points 
reiterating our willingness to discuss an FTA if the GOT can 
confirm its ability/willingness to pursue a comprehensive 
agreement within the parameters of its Customs Union with the 
EU, as well as forward-leaning points on our intention to 
promote U.S.-Turkish business partnerships in a possible Iraq 
reconstruction effort (along the lines of existing 
cooperation on Afghan reconstruction). 
 
 
 
 
 
 
 
 
 
 
-- 
PEARSON