VZCZCXRO9034
OO RUEHAG RUEHAP RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ RUEHMR RUEHPA
RUEHPB
DE RUEHAK #1744 0901528
ZNR UUUUU ZZH
O 311528Z MAR 06
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4462
INFO RUEHRC/DEPT OF AGRICULTURE WASHDC IMMEDIATE
RUEHGV/USMISSION GENEVA IMMEDIATE 1459
RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUEHIT/AMCONSUL ISTANBUL 0210

UNCLAS ANKARA 001744 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PLEASE PASS USTR FOR JWEISS, LERRION 
USDA FOR FAS JFLEMINGS, BLEIER, JDEVER 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR WTO TU
SUBJECT: TURKEY: WTO PANEL CONTINUES AND MEDIA ANNOUNCES 
RENEWAL OF CONTROL CERTIFICATE ISSUANCE 
 
REF: ANKARA 1496 
 
¶1. (SBU) Summary:  A March 31 article in "Referans" (Turkey's 
business paper of record) reports that the Ministry of 
Agriculture will begin issuing control certificates for rice 
imports on April 1.  Upon hearing about the decision, Turkish 
domestic producers sharply criticized the GOT for this 
decision.  In response to U.S. questions about how this 
decision would be disseminated to the public, it appears that 
the Ag Ministry chose to do so in the press.  End summary. 
 
¶2. (SBU) In line with a March 27 letter presented by Minister 
of Foreign Trade, Kursad Tuzmen, to USTR Ambassador Rob 
Portman (reftel), Turkey's business paper of record, 
"Referans," reported March 31 that the Ministry of 
Agriculture will begin issuing control certificates for 
imported rice on April 1.  According to the report, Turkey's 
domestic rice production (approximately 380,000 tons) cannot 
satisfy its yearly domestic rice consumption of approximately 
580,000 tons and because of this, the GOT had initially hoped 
to increase domestic rice production by 10% and stop imports. 
 However, due to the recent floods in Edirne (the country's 
main rice producing region), the GOT's plans to stop rice 
imports by increasing domestic production failed. 
 
¶3. (SBU) Referans notes that this policy prompted the U.S. to 
initiate a case before the WTO's Dispute Settlement Body 
(DSB).  It contends that Turkish officials decided to lift 
barriers to rice imports earlier than expected because 
domestic production was not sufficient and could result in 
price speculation. 
 
¶4. (SBU) According to Referans, the GOT has not officially 
informed domestic producers about this decision.  It states 
that upon hearing about the decision, domestic producers 
sharply criticized the GOT, and estimated that the GOT will 
suffer a loss this year when the Turkish Grain Board is 
required to purchase the domestically produced rice. 
Domestic producers also estimate that, because of the recent 
floods in Edirne, domestic production will decline by 60,000 
tons, which represents a loss of approximately YTL 40,000,000 
(USD 11,428,571).  Turkish Agricultural Chambers Union 
President, Semsi Bayraktar, is quoted as saying that the GOT 
will face heavy criticism from its local rice producers over 
its recent letter to USTR agreeing to lift the tariff quotas 
on rice. 
 
¶5. (SBU) Comment:  Because the GOT's decision to end the 
issuance of control certificates was not official, it was 
never published in the official gazette.  Therefore, the 
decision to begin issuing the control certificates again 
cannot be published in the official gazette.  In response to 
this we questioned how this decision would be disseminated to 
the public.  In response to these concerns, it seems that the 
Ministry of Agriculture chose to do so through the press. 
End comment. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
MCELDOWNEY