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Viewing cable 06LISBON1280, PORTUGUESE RESPONSE TO WTO DOHA ROUND DEMARCHE

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Reference ID Created Released Classification Origin
06LISBON1280 2006-06-28 15:03 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lisbon
VZCZCXRO3410
PP RUEHAG RUEHAP RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ RUEHMR RUEHPA
RUEHPB
DE RUEHLI #1280 1791503
ZNR UUUUU ZZH
P 281503Z JUN 06
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC PRIORITY 4927
INFO RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 0532
RUEHBS/USEU BRUSSELS PRIORITY
UNCLAS LISBON 001280 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: WTRO ETRD ECON FO PO
SUBJECT: PORTUGUESE RESPONSE TO WTO DOHA ROUND DEMARCHE 
 
REF: SECSTATE 104561 
 
 1.  (U)  Summary: On June 26, Pol/Econ DepCouns delivered 
reftel demarche to MFA EU External Relations Division Head 
Cristina Vasconcellos and Ministry of Economy Acting DG for 
Enterprise Alice Rodrigues.  Each reiterated well-known EU 
positions, with Vasconcellos underscoring the need for 
simultaneous agreements in agriculture, NAMA and services and 
Rodrigues urging greater cuts in US domestic supports in 
return for EU concessions on tariffs.  Both Vasconcellos and 
Rodrigues were very aware of the July 2007 expiration of the 
Trade Promotion Authority and how difficult it would be to 
amend US law to accommodate a DDA agreement after 2006.  End 
Summary. 
 
2.  (U)  MFA EU External Relations Division Head Cristina 
Vasconcellos disagreed with the US focus on the EU to grant 
agricultural concessions first and commented that instead the 
US needed to focus its attention on pressuring the G20 to 
make concessions on NAMA and services.  She underscored that 
the US and the EU had similar positions in these two areas 
and that the EU would only be able to make agricultural 
concessions if agreements in all three areas were concluded 
at the same time. 
 
3.  (U)  Ministry of Economy Acting DG for Enterprise Alice 
Rodrigues inquired if the US was open to greater cuts in 
domestic agricultural subsidies, underscoring that greater 
subsidy cuts would be necessary for the EU to grant larger 
cuts in agricultural tariffs.  DepCouns responded that the US 
offer was not a "take it or leave it" offer and that the US 
was open to further negotiations if the EU offered a 
counterproposal to warrant further movement, which it had not 
yet done.  Neither DepCouns nor Rodrigues could provide 
specifics on US or EU latitude, with Rodrigues commenting 
that politics would now determine the way forward. 
 
4.  (U)  In a separate June 26 article in the Economic Daily, 
Ministry of Economy Director General for Enterprise Helder 
Oliveira noted that although the US-EU agricultural debate 
underway did not directly affect Portuguese agriculture, 
France,s intransigence could benefit Portugal by extracting 
greater concessions for NAMA and services, two areas of high 
importance to the Portuguese economy.  He reiterated the need 
for simultaneous agreement in all three areas - agriculture, 
NAMA and services, noting that if the EU ceded its 
agricultural dossier without the guarantee of equal measures 
in NAMA and services, the EU would lose all its leverage.  In 
contrast to Vasconcellos and Rodrigues,s acute awareness of 
the Trade Promotion Authority,s expiration in July 2007 and 
the wall the US would hit if negotiations were not concluded 
by the end of 2006, Oliveira underscored that the DDA should 
not be subject to time pressure.  "Although elections in 
October in Brazil, in November in the U.S. and in France in 
2007 make the negotiation scenario more difficult," Oliveira 
is quoted as saying, "a good deal of judgment is required not 
to let the calendar dictate our agreement." 
 
5.  (SBU)  Comment: Vasconcellos and Rodrigues were very 
attentive during our discussions and promised to consider 
reftel points in formulating Portugal,s position for the 
June 29 Council of Minister,s meeting in Geneva.  They 
clearly appreciated the weight the June 23 Senate letter to 
President Bush calling for "a good result for U.S. 
agriculture" carried.  However, they noted that the EU faced 
similar political pressures in dealing with the 25 member 
states.  In contrast to Oliveira,s hard line expressed in 
the June 26 press article, both Vasconcellos and Rodrigues 
appeared eager to find a way to move the negotiations forward 
although it is unlikely that Portugal will stick its neck out 
on any particular issue.  Rodrigues will accompany Ministry 
of Economy State Secretary for Trade, Services and Consumer 
Defense Fernando Serrasqueiro to the June 29  meeting.  MFA 
State Secretary for European Affairs Fernando Neves will also 
be attending. 
Hoffman