US embassy cable - 03ANKARA1281

UNCLAS SECTION 01 OF 02 ANKARA 001281 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR EUR/SE, EB/EPD, AND EB/TPP/ABT 
DEPT PLEASE PASS USTR FOR NOVELLI, DBIRDSEY 
USDA FOR FAS FOR ITP/MACKE, MEYER, THORBURN; 
CMP FOR ALL COMMODITY DIVISIONS 
EMO/FREEDAN 
USDA FOR APHIS/ACERMAN, MANDELL 
VIENNA FOR APHIS/VINCINANZA 
 
 
E.O. 12958: N/A 
TAGS: ETRD, EAGR, KPAO, TU, USTR 
SUBJECT: New Approach at Ministry of Agriculture? 
 
Ref:(A) 2002 Ankara 9192 (B) 2003 Ankara 441 (C)Ankara 1035 
 
 
This message is sensitive but unclassified. Not for internet 
distribution 
 
 
1.  (SBU) Summary.  Since his appointment as the new 
Minister of Agriculture and Rural Affairs in November, Sami 
Goclu appears more willing than his predecessors to engage 
agriculture businesses and seek their input on important 
issues.  Moreover, many officials believe Goclu will 
delegate greater authority to his subordinates which should 
facilitate work with the Ministry.  At the same time, the 
Ministry will most likely pursue a policy of self- 
sufficiency and market protection against agriculture 
imports.  End summary. 
 
 
 
 
 
 
 
 
 
 
----------------------- 
An Economist from Konya 
----------------------- 
 
 
2.  (SBU) Professor Sami Guclu (pronounced Goochlu) was 
named the new Turkish Minister of Agriculture in November 
2002.  He was born in the Konya region, the breadbasket of 
Turkey. An economist by training, Minister Gulu most 
recently was with the faculty at Sakarya University in the 
Black-Sea city, Adapazar.  He worked at the university with 
the current Prime Minister, Abdullah Gul.  Although he has 
only held his position for the past four months, there are 
signs that the Ministry may break from past practices. 
 
 
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Cautiously Optimistic 
--------------------- 
 
 
3.  (SBU) Turkish industry reaction might be characterized 
as cautiously optimistic.  However, this may in part be a 
reaction to the previous Minister of Agriculture, Husnu 
Gokalp, who showed little trust in the private sector.  One 
concern that industry officials noted was Minister Guclu's 
lack of agricultural background.  Although he worked for a 
short time in the Agriculture Supply Organization at the 
Ministry of Agriculture, the majority of his experience has 
been in academics and in economics rather than agriculture. 
One industry contact noted that the Minister did not fully 
understand the relationship between imports of feed and 
production of poultry.  Although the Ministry would like to 
decrease agriculture imports, it would be difficult for 
Turkey to produce poultry meat without feed imports.  In the 
end, however, the industry was optimistic that Guclu would 
adjust to the job. 
 
 
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Delegating Authority 
-------------------- 
 
 
4.  (SBU) The Minister has been relying on close advisors to 
navigate through difficult issues.  The Ministry has 
budgetary concerns as well as a large, and generally poor, 
farming sector.  Officials in the Ministry believe that, 
unlike his predecessors, Minister Guclu will delegate more 
responsibility to his subordinates which would facilitate 
work and relationships with the private sector and other 
governments. 
 
 
5.  (SBU) There have been other positive signs, as well. 
Recently, the Minister met with a number of private sector 
officials to discuss their concerns with new Turkish 
phytosanitary regulations. (Reftels)  At a meeting with 
FAS/Ankara staff, several representatives noted that they 
were impressed by the Minister's willingness to solicit 
opinions from the private sector.  Previous administrations 
were more suspicious of industry, in general, and ignored 
suggestions and complaints.  Guclu, not only met with the 
private sector, but in the end supported their position and 
suspended the regulations. One official emphatically stated 
that it was the first time in 15 years that a Minister and a 
Ministry had responded in such a way. 
 
 
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Not all Rosy 
------------ 
 
 
6.  (SBU) Despite these positive signs, it is still very 
early in the administration.  Although the new government 
has pledged support for the IMF-backed direct support 
system, the government recently announced that it would 
return to a production support system that has, in the past, 
encouraged inefficiencies and over-production in tobacco, 
hazelnuts and sugar beets.  One cynical private sector 
observer noted that normally politicians give gifts like 
this before the elections, not after.  This change has also 
raised some concern from both the World Bank and IMF.  The 
Ministry also recognizes the need to increase direct foreign 
investment in agriculture, but continues to alienate many 
foreign companies who already have invested here. 
 
 
7.  (SBU) On the trade side, Ministry officials continue to 
espouse the goal of self-sufficiency in agricultural 
production.  Through various licensing mechanisms the 
Ministry continues to prevent imports of meat despite the 
product's inclusion in many bilateral trade agreements.  In 
addition, the Ministry maintains high tariffs on most 
agriculture imports.  As a result, the Turkish consumer is 
forced to pay 149 percent tariff on bananas despite the fact 
that Turkey only produces 15 percent of its domestic demand. 
 
 
 
 
 
 
-------------------------------- 
Better U.S.-Turkish Ag Relations 
-------------------------------- 
 
 
8.  (SBU) During the past few months in meetings with 
FAS/Ankara reps, Ministry officials have expressed their 
desire to increase contacts with USDA and U.S. agriculture 
representatives.  Turkish officials appear open to 
facilitating this relationship.  Training programs offer the 
prospect of improving relationships between officials in 
both countries.  Post has already discussed some future 
collaboration with APHIS and GIPSA representatives in 
providing some technical information to government and 
private sector officials.  Improving these relations 
especially on technical issues could facilitate discussions 
on trade and trade issues, not only bilateral but also in 
multilateral discussions. 
 
 
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A Tough Road Ahead 
------------------ 
 
 
9.  (SBU) Comment.  It is not difficult in fact to 
understand the Ministry's position.  Although it has a 
vibrant food-processing sector, 40 percent of the Turkish 
population lives in rural areas, many at subsistence income 
levels. The Ministry, therefore, is compelled to support 
local production despite inefficiencies.  In turn, this 
helps slow migration to already crowded urban areas.  In 
addition, with EU negotiations somewhere in the future, 
raising Turkish agricultural productivity and encouraging 
greater efficiencies will be most important.  However, the 
lack of funds for supporting the sector may be so 
prohibitive and the needs so great that it may be very 
difficult to reach these goals. 
 
 
Pearson