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Lucia A Keegan  07/31/2006 10:33:26 AM  From  DB/Inbox:  Lucia A Keegan

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UNCLAS    SENSITIVE     PARIS 05139

SIPDIS
cxparis:
    ACTION: AGR
    INFO:   UNESCO SCI POL ECNO DCM AMB ECON TRDO

DISSEMINATION: AGRX
CHARGE: PROG

APPROVED: AGR: EBERRY
DRAFTED: AGR: XAUDRAN
CLEARED: AGR: EBERRY  EMIN : TWHITE

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RR RUEHC RUEHRC RUCNMEM RUEHMRE RUEHSR RUEHGV
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DE RUEHFR #5139 2091339
ZNR UUUUU ZZH
R 281339Z JUL 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 9905
RUEHRC/USDA FAS WASHDC
INFO RUCNMEM/EU MEMBER STATES
RUEHMRE/AMCONSUL MARSEILLE 1218
RUEHSR/AMCONSUL STRASBOURG 0145
RUEHGV/USMISSION GENEVA 2450
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UNCLAS PARIS 005139 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
BRUSSELS PASS USEU FOR AGMINCOUNSELOR 
STATE FOR OES; EUR/ERA AND EB ; 
STATE PASS USTR FOR MURPHY; 
USDA/OS/JOHANNS/PENN AND TERPSTRA; 
USDA/FAS FOR OA/YOST/ROBERTS; 
ITP/SHEIKH/MACKE/TOM POMEROY/MIKE WOOLSEY/GREG YOUNG; 
FAA/SEBRANEK; 
EU POSTS PASS TO AGRICULTURE AND ECON 
GENEVA FOR USTR, ALSO AGRICULTURE 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD EU FR
 
SUBJECT: WTO DOHA ROUND : GOF BLAMES U.S. FOR COLLAPSE; FARMERS WANT 
SUBSIDIES MAINTAINED 
 
¶1. (SBU)  French Minister for Trade Christine Lagarde expressed 
regrets over the collapse of the Doha trade round in Geneva, stating 
that she does not expect further results. She explicitly blamed the 
United States' "hard line" stance on domestic agricultural support 
for the failure of the recent meeting. Lagarde said that the EU must 
now look at regional trade agreements as an alternative to a 
multilateral agreement. 
 
¶2. (SBU) In an op-ed in the French Daily Le Figaro, French 
agricultural Minister Dominique Bussereau called the collapse a 
-quote- beneficial failure of a delinquent negotiation - end quote. 
He blamed the negotiation for solely focusing on agriculture, and 
within agriculture, solely on market access, which he asserted only 
benefited a small group of large agricultural exporting countries. 
He also accused the United States - quote - of making totally 
unrealistic requests without showing in exchange any will to reform 
its domestic agricultural policy - end quote. He blamed the 
Commission for making too many concessions without obtaining 
reciprocal concessions from its trading partners. In a radio 
interview, Bussereau also blamed Pascal Lamy for being too 
interventionist in the talks, saying that Lamy had made the - quote 
- sin of pride - end quote - by trying to have the - quote - WTO 
walk on water -end quote. Bussereau concluded by expressing hope 
that the talks could resume in a more balanced way, more favorable 
to developing countries. 
 
¶3. (U)  The French business leaders' organization, MEDEF, expressed 
its disappointment. Even if MEDEF's chairwomen, Laurence Parizot, 
had recently said that -quote- no agreement was better than a bad 
agreement - end quote, the business leaders were still hoping that a 
positive last-minute conclusion could be achieved. 
 
¶4. (SBU)  On the other hand, French farm groups applauded the 
failure of the talks. The main French farm organization, FNSEA 
concluded that -quote- the failure was good news for those who 
believe in more solidarity in the world -end quote. The Young 
Farmers Union also officially applauded the break. Such relief was 
also shared by other farm groups, such as anti-globalization groups 
Confederation Paysanne and Coordination Rurale. Beef, poultry, and 
fruit/vegetable producers, who were most "at risk" in case of an 
agreement, also expressed their satisfaction. French farmers had 
claimed that EU concessions during the talk would have cost French 
farm sector more than  20 billion (USD 25 billion) and 700,000 
jobs. Accordingly, they had asked the EU to renounce commitments 
made in Hong Kong in December 2005 and to not abolish export 
subsidies by 2013. 
 
¶5. (SBU) Despite their rejoicing, French farm groups still claim 
that they support an agreement which will favor developing 
countries. They also want any agreement to tackle sanitary, 
phytosanitary as well as environmental issues. 
 
¶6. (U) Respected French economist Patrick Messerlin was less 
pessimistic. In an interview in the financial daily Les Echos, he 
pointed out that the Uruguay Round talks had stalled from 1990 to 
1993 before coming to a positive outcome. He also suggested that if 
the mid-term election were favorable to the current U.S. 
administration, it could obtain from Congress an extension of the 
Fast Track Authority. He also mentioned that after the French 
presidential election in mid 2007, the new French administration 
might be more open to globalization of agricultural markets. 
 
¶7. (SBU)  COMMENT.  Public reaction in France to the Doha Round 
stalemate is predictable:  the GOF tries to place blame on the U.S., 
farmers express relief at the outcome, and business leaders express 
regret, timidly.  Those who stood to lose from Doha Round success -- 
French farm interests -- are by far the most vocal.  Potential 
winners in France -- non-agricultural exporters, service industries 
and consumers -- are woefully under-represented in the public 
debate.  END COMMENT. 
Stapleton