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Viewing cable 08MANILA395, WTO Environmental Goods and Services Demarche -

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Reference ID Created Released Classification Origin
08MANILA395 2008-02-14 07:26 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Manila
VZCZCXRO7773
OO RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHPB
DE RUEHML #0395 0450726
ZNR UUUUU ZZH
O 140726Z FEB 08
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9746
INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION IMMEDIATE
RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
UNCLAS MANILA 000395 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD WTRO ECON RP
SUBJECT:  WTO Environmental Goods and Services Demarche - 
Philippines to Consider 
 
Refs:  a) State 11974, b) State 12905, c) Manila 139 
 
SENSITIVE BUT UNCLASSIFIED 
 
1. (SBU) Summary:  EconCouns delivered ref A demarche to 
Undersecretary for Trade Thomas Aquino of the Philippine Department 
of Trade and Industry after coordination with colleagues atthe EC 
Delegation in Manila.  Aquino responded poitively, but said an 
interagency consensus is stll needed before the Philippines could 
express spport for this initiative.  At Aquino's recommendation we 
will now seek a meeting with the Department of Environment and then 
will return to DTI to again press the issue.  End Summary. 
 
2.  (U) While coordinating the joint U.S.-EC approach on ref b 
demarche on TAFT goods, we realized that coordination on ref a 
demarche on environmental goods would also be useful.  Assistant 
Director Angelo "Butch" Benedictos was reluctant to accept a joint 
U.S.-EC demarche, so the EC met with him on February 8 without our 
participation.  The EC reported to us that Benedictos' thought the 
proposal on environmental goods was "too advanced" for the 
Philippines, as yet.  He said ASEAN countries were still at a stage 
where they are defining "environmental goods."  Concerned officials 
in the Department of Environment and Natural Resources (DENR) were 
still trying to come up with an agreed list, he added.  An existing 
APEC list was under study, as well as one from UNCTAD.  He also 
referred to the dual-use nature of some of these goods as a 
potential difficulty, and claimed that these issues had not been 
clarified yet in Geneva.  Thus far, Filipinos had not focused on 
environmental services at all, he stated.  He gave our EC 
counterparts the strong impression that the Philippines would not 
move on this issue until there was progress in the NAMA and 
agriculture negotiations. 
 
3.  (SBU) In light of Benedictos' reaction, we decided to take the 
demarche to a higher level to press for a more a positive response. 
EconCouns met on February 13 with Undersecretary Tom Aquino, who was 
accompanied by Benedictos.  Delivering both this demarche and the 
demarche on the U.S./EC TAFT goods proposal (ref b, reported 
septel), EconCouns pointed out that in the recent meeting between 
Assistant to the President for Economic Affairs Daniel Price and 
Philippine President Arroyo, Arroyo had again expressed her 
commitment to moving forward on the Doha Round, to taking positions 
on the basis of Philippine interests, and not waiting for the NAMA 
and agricultural results before negotiating other issues.  EconCouns 
noted that President Arroyo had responded positively to Price's 
request that the Philippines support this proposal. 
 
4.  (U) Aquino responded that this is a complex issue.  Which goods 
should be on the list may be difficult to decide, given the dual-use 
aspect of many of the goods.  EconCouns responded that the point of 
our demarche is that we would like the Philippines and other 
countries to begin to engage on which goods should be included.  If 
the issue is complex and difficult, that is all the more reason to 
begin working on it immediately. 
 
6.  (U) Aquino took that point, but noted that the issue requires 
interdepartmental coordination in the Philippine government.  The 
Department of Environment is studying the various lists of goods. 
He suggested that EconCouns approach the Department of Environment 
directly to push for favorable consideration of the U.S.-EC 
proposal. 
 
6.  (SBU) Comment:  It is clear that those Philippine officials who 
master the details of this and other Doha Round negotiations, both 
here and in Geneva, are resistant to any call for increasing the 
pace in negotiating other issues, at least until NAMA and ag 
negotiations move forward.  Policy makers in Manila, from President 
Arroyo down to Aquino are more inclined toward the U.S. position. 
However, it is not clear how forcefully they are pushing that 
position when we are not in the room.  EconCouns will seek a meeting 
at the Department of Environment to discuss this issue, and then get 
back to Aquino again.  We will also find an opportunity to raise the 
issue with Secretary of Trade Peter Favila who was in the room when 
President Arroyo expressed general support for the proposal.