US embassy cable - 03ROME1885

UNCLAS ROME 001885 
 
SIPDIS 
 
 
USEU BRUSSELS FOR AGRICULTURE 
USDA FOR FAS/IT/EAMED AND FAS/CMP/GFD 
STATE PASS USTR FOR BERNSTEIN AND PORTER 
 
NOT FOR INTERNET DISTRIBUTION 
 
E.O. 12958: N/A 
TAGS: EAGR, IT, AU, FAO 
SUBJECT: ITALIAN POSITION ON ARTICLE 28 
NEGOTIATIONS TO MODIFY RICE IMPORT REGIME 
 
REF A: ROME O0839 
REF B: STATE LO8223 
 
1.  CONSISTENT WITH OUR INITIAL REPORTING IN 
    REFTEL A, THE GOI HAS NOT CHANGED ITS 
POSITION REGARDING ARTICLE XXVIII 
NEGOTIATIONS. THEY WOULD LIKE TO OPEN THE 
NEGOTIATIONS TO TAKE A NEW LOOK AT RICE 
IMPORTS. 
 
2.  ACCORDING TO OUR CONTACT IN THE MINISTRY 
OF AGRICULTURE, THE BLOCKING MINORITY HAS 
NOT, TO HIS KNOWLEDGE, CHANGED ITS POSITION 
AND THUS THE OPENING OF ARTICLE XXVIII IS NOT 
LIKELY. 
 
                              UNCLASSIFIED 
UNCLASSIFIED 
 
SIPDIS 
 
3.  THE COMMISSION PROPOSAL TO REVISE CAP 
SUPPORT FOR THE RICE SECTOR IS LOWER THAN THE 
CURRENT LEVEL OF SUPPORT TO PRODUCERS, AND 
HENCE, NOT DESIRED BY ITALIAN AGRICULTURAL 
INTERESTS. THE REDUCED INTERVENTION PRICE, IN 
GOI TERMS, IS NOT ACCEPTABLE. WHILE THE GOI 
AGREES, IN PRINCIPLE, TO REDUCE THE 
INTERVENTION PRICE FOR RICE, THEY BELIEVE 
THAT THE LEVEL SHOULD GO TO EUROS 150 PER TON 
FOR PADDY RICE. 
 
4.  ITALY, THE LARGEST RICE PRODUCER IN THE 
EU, HAS SLIGHTLY SHIFTED RICE PRODUCTION BY 
ABOUT 5 PERCENT FROM INDICA VARIETIES TO MORE 
TRADITIONAL JAPONICA VARIETIES DUE TO IMPORT 
PRESSURE. FOR 2003 OVERALL RICE PRODUCTION 
    AREA IS UNCHANGED.  ANNUAL AGGREGATE 
PRODUCTION,  MILLED BASIS, IN THE PAST THREE 
YEARS HAS AVERAGED 850,000 TONS. 
SEMBLER 
 
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 2003ROME01885 - Classification: UNCLASSIFIED