This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 007593 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/SE, EB/EPD, AND EB/TPP/ABT 
DEPT PLEASE PASS USTR FOR LERRION, JWEISS 
USDA FOR FAS FOR FAA/JDEVER,ITP/ MACKE/THOMAS, 
CMP/GFD/RIEMENSCHNEIDER 
USDOC FOR DEFALCO 
GENEVA FOR AGR/Young 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR PGOV PREL GR TU
SUBJECT: Minister of Agriculture, Mehdi Eker's comments on 
Turkey's new agriculture policy and on the WTO rice case 
 
Sensitive but Unclassified.  Not for Internet Distribution. 
 
¶1.  (SBU) Summary.  In a December 22 meeting, Minister of 
Agriculture Mehdi Eker gave the Ambassador a general 
overview of the new Turkish agriculture policy and commented 
on the Turkish rice situation, in light of the current WTO 
case.  Both sides agreed that the best manner to resolve the 
rice issue is through negotiations.   End Summary. 
 
--------------------------------------------- --------------- 
Minister's description of the new Turkish Agriculture Policy 
--------------------------------------------- --------------- 
 
¶2.  (SBU) Minister Eker informed the Ambassador that the GOT 
has developed a national "Agriculture Strategy Plan," which 
will become the new Agriculture Law in early 2006.  The 
purpose of establishing this new law is to set in place a 
long-term agriculture policy for the country that is 
independent of changes in government and populist 
preferences.  The intent of this law is to improve 
agriculture productivity, the biggest problem in Turkish 
agriculture due to the small size of Turkish farms.  One way 
the GOT will address this issue is to concentrate on land 
consolidation and the establishment of large commercial 
farms. 
 
¶3.  (SBU) As described by the Minister, the new Agriculture 
law will move away from traditional Turkish price and import 
support policies and move toward direct income payments, 
deficiency payments, and policies that protect the 
environment.  It will also focus on research and rural 
development projects, mainly in Southeast Turkey. 
 
--------------------------- 
Minister's Comments on Rice 
--------------------------- 
 
¶4.  (SBU) Minister Eker stated that Turkey needs 560,000 MT 
of rice annually to meet its domestic consumption demand. 
He said that Turkey produces half or slightly more than half 
of that and imports the rest.  He calculated that 560,000 
tons of milled rice is equivalent to 900,000 tons of paddy 
rice.  According to Turkish statistics, Turkey imported 98.9 
percent of its needs from the United States between January 
and September 2005. 
 
¶5.  (SBU) COMMENT: U.S. export statistics from 2005 will not 
reflect the Turkish data that the Ministry quoted.  In order 
to circumvent the Turkish import regime and secure the best 
prices, Turkish traders imported the rice from the United 
States in 2004 and kept it in bonded warehouses until they 
were allowed to bring it into the country officially with 
import licenses in 2005. 
 
¶6.  (SBU) The Minister mentioned that there are 25,000 rice 
producers in the country, all with very small production 
areas and because of the small size of the lands, production 
costs are high and they need assistance.  He also pointed 
out that the GOT reduced the import duty for paddy rice this 
year from 34 percent to 20 percent. 
 
¶7.   (U) Ambassador expressed appreciation for the 
Minister's comments.  He said that we believe Turkey's 
domestic purchase requirement and practice of denying import 
licenses are unfair and violate the country's WTO 
obligations.  We are prepared to see the case through to a 
conclusion, but would welcome a negotiated settlement 
consistent with Turkey's obligations.  He offered no comment 
on Eker's remarks regarding paddy rice or the reported 
suggestion that a deal on paddy rice might be sufficient to 
resolve the matter.  Ambassador added that if the case 
proceeds, he would downplay it as a conflict between the 
United States and Turkey, and note that we believe Turkey's 
market protection practices violate its WTO commitments, and 
highlight the WTO's role in adjudicating differences among 
members.  Eker agreed that it would be preferable to handle 
this issue through negotiations.  Ambassador Wilson proposed 
the upcoming TIFA meetings as an early bilateral forum for 
more discussion on this issue. 
 
WILSON