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

UNCLAS SECTION 01 OF 02 ANKARA 000067 
 
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: Ministry of Agriculture Deputy Undersecretary 
discusses WTO rice case 
 
Sensitive but Unclassified.  Not for Internet Distribution. 
 
¶1.  (SBU) Summary.  In a January 4 meeting, Ministry of 
Agriculture Deputy Undersecretary Nebi Celik and other 
Turkish government officials to discussed the WTO rice case. 
Celik stressed that Turkey hopes to resolve this issue 
before it goes to panel.  He also made clear that policy 
changes cannot happen in a short period of time.  The 
Turkish delegation is waiting for a response from the USTR 
Geneva. End Summary. 
 
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Celik's description of the Turkish Rice Policy 
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¶2.  (SBU) Turkish Grain Board representatives stated on 
January 4 that the GOT is now issuing import licenses for 
out of quota imports, and that the current domestic rice 
purchasing requirement place ends on July 31, 2006.  Turkish 
Grain Board General Director, Ismail Kemaloglu, added that 
if there are no changes in the law after July 31, then it 
would go back to "normal policy," which he clarified by 
saying that the requirement for purchasing domestically 
produced rice would be eliminated. 
 
¶3. (SBU) Celik elaborated that the reason Turkey applied 
this policy of requiring importers to first purchase 
domestically produced rice is that rice is only produced in 
specific areas and on small farms in Turkey.  He explained 
that this policy was put in place to protect small, weak 
domestic farmers.  He also said that changes in government 
policies on rice cannot be accomplished over night.  The 
GOT, he continued, considered changing its policy last year 
but the time period was too short and they needed more time. 
This year, according to Celik, the GOT has decided to review 
this policy and he believes that whatever is necessary will 
be accomplished this year. 
 
¶4. (SBU) Turkish Grain Board officials stated that the 
current rice situation is beneficial to the United States 
and that is the reason the GOT rejected Australia and 
Thailand's participation in the meetings in Geneva.  Turkish 
companies prefer U.S. rice, but he said that without this 
system, rice from other countries will benefit (Note: such 
as Egyptian milled rice. End note.).  He also made a point 
to say that he has spoken with the Turkish Industry based in 
the U.S. and they do not believe that the Turkish rice 
policy has adversely affected U.S. rice exports to Turkey. 
 
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Celik's Comments Regarding the WTO Rice Case 
--------------------------------------------- ------------- 
 
¶5. (SBU) Celik said that the GOT answered the questions 
posed by the United States in Geneva and is awaiting a 
response from USTR.  He added that the GOT is very 
interested in working with the United States to find a 
solution to this situation before the case moves to the 
panel stage.  They left with a positive impression from the 
meetings in Geneva and are very eager to come to a mutually 
agreed upon solution.  He asked, "What is expected from 
Turkey now?" 
 
¶6. (SBU) COMMENT: The Turkish Grain Board representatives 
were confused on when the 60 day consultation period ends 
and the panel begins.  It was their impression that at the 
end of the meeting in Geneva there was a mutual agreement 
between the heads of the Turkish and U.S. delegations that 
the period would be extended due to the Christmas and New 
Year holidays, the January 9 - 15 Sacrifice Holiday, and the 
Hong Kong negotiations.  Since they did not receive a 
response from the United States to their answers, they were 
unable to make any further comments.  We explained our view 
that the consultation period started on the day USTR filed 
the complaint at the WTO but added that we would convey 
their request for a response to Washington. 
 
¶7. (SBU) U.S. Embassy representatives emphasized that a 
mutually agreed solution will have to address both the 
domestic purchase requirement and the denial of import 
licenses at the applied over-quota rate.  The Turkish 
officials reiterated their hope that such an agreement could 
be reached prior to the issue going to panel.  We encouraged 
them to remain in contact with the Turkish representative to 
the WTO as all decisions and exchange of information must be 
made in Geneva.  They expressed a desire to meet with us 
again after the local Sacrifice Holiday. 
 
MCELDOWNEY