VZCZCXYZ0018
PP RUEHWEB

DE RUEHIN #2612/01 2150743
ZNR UUUUU ZZH
P 030743Z AUG 06
FM AIT TAIPEI
TO RUEHRC/USDA FAS WASHDC PRIORITY 2551
RUEHC/SECSTATE WASHDC PRIORITY 1404

UNCLAS AIT TAIPEI 002612 
 
SIPDIS 
 
SENSITIVE 
 
FAS FOR ITP/AAD/SHEIKH, MIRELES AND SMITH 
STATE FOR EAP/RSP/TC AND EB/TPP/ABT 
STATE PASS AIT/W 
STATE PASS USTR FOR ERIC ALTBACH 
 
 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD TW
SUBJECT: DIRECTOR'S MEETING WITH TAIWAN'S AGRICULTURE CHAIRMAN 
 
REF: (A) TAIPEI 01444 (B) TAIPEI 02542 (C) TAIPEI 2590 
 
SENSITIVE BUT UNCLASSIFIED 
 
¶1. (SBU) Summary.  In his August 1 meeting with Taiwan's Council of 
Agriculture (COA) Chairman, Mr. Su Chia-chyuan, Director Young 
gained a commitment to finalize the documents establishing the 
Consultative Committee on Agriculture (CCA) by the end of October, 
reiterated the primacy of science-based import measures, and 
discussed the recent Sustainable Economic Development Conference. 
The CCA commitment suggests that the first meeting could be held at 
the end of 2006 or early 2007.  End summary. 
 
¶2.  (SBU) On August 1, Director Young met with COA Chairman Su for 
the second time in four months.  Building on themes established in 
his introductory call in April, (see Reftel A), Director Young noted 
the importance of our bilateral agricultural trade relationship and 
the need for further efforts to improve access for agricultural 
products.  A primary purpose of the meeting was to push COA to begin 
serious discussion on establishing the Consultative Committee on 
Agriculture (CCA), as both sides agreed to do during the TIFA talks 
in late May.  Over the past two months, COA has been conducting an 
internal review and assessment of documents presented during the 
TIFA that would formalize and establish a CCA. 
 
¶3.  (SBU) In response to the Director's query on the CCA, Chairman 
Su said that he supports the idea of a CCA, but he must first secure 
the concurrence of other agencies that will likely be involved, like 
Health and Economic Affairs.  He also said that the benefits of a 
CCA must be mutual.  If the focus is solely on U.S. interests, 
particularly with regard to market access, then it will be difficult 
for COA to agree.  The Director assured Chairman Su that the intent 
of a CCA is to look at the broad range of bilateral agricultural 
issues in a way that benefits both sides.  (Note:  We do not 
anticipate any objections from Taiwan's Health or Economic 
ministries on the CCA.  Indeed, we were told earlier that they had 
already provided their comments and endorsement to COA.  End note.) 
 
 
¶4.  (SBU) With these assurances, Chairman Su directed his staff to 
complete their review and begin discussions with AIT on the 
Memorandum of Understanding and Terms of Reference (the documents 
presented during the TIFA talks).  The process should be completed 
no later than the end of October.  This schedule would allow the 
first CCA to be held at the end of 2006 or early in 2007.  Director 
Young noted that USDA Under Secretary Penn will likely come to 
Taiwan to convene the first CCA. 
 
¶5.  (SBU) Director Young then noted that the next round of technical 
bilateral discussions on animal and plant health issues is planned 
for November.  He reiterated the importance of basing animal and 
plant health and food safety related trade measures on scientific 
evidence and principles.  He specifically noted our concern that 
BSE-related bans on certain animal-based feed products remain in 
place.  COA's Director General of the Bureau of Animal and Plant 
Health and Quarantine responded by noting the seven years Taiwan has 
waited for a response to its request to export longans to the United 
States. 
 
¶6.  (SBU) Turning to the Sustainable Economic Development Conference 
(SEDC - See refs. B and C), Director Young asked to what extent 
Taiwan's agricultural economy figured into the proceedings. 
Chairman Su said that, except in the context of cross-straits trade, 
agriculture was not part of the discussion or outcome.  With regard 
to cross-straits concerns, Chairman Su believes the PRC market for 
Taiwan's agricultural goods is illusory.  Mainland consumers do not 
have the spending power of Japanese or U.S. consumers, Taiwan brand 
names and products are the victims of Chinese piracy, and the PRC is 
able to produce the same commodities, albeit with lower quality. 
Taiwan is also concerned about the competitive challenge it faces 
from China's agricultural products in third-country markets. 
 
¶7.  (SBU) Speaking more generally of the SEDC, Chairman Su noted the 
highly politicized nature of the conference.  He specifically noted 
the objections of environmental groups and the Taiwan Solidarity 
Union (TSU) to the proceedings and the outcomes.  The latter, he 
noted, oppose any opening to the PRC.  Despite the party's small 
size, it is able to influence the decisions of the ruling party and 
events like the SEDC. 
 
¶8.  (SBU) Comment: It is noteworthy that agriculture was completely 
left off the SEDC agenda.  While perhaps not a centerpiece issue, a 
sector of the economy that draws heavily on scarce resources (land, 
labor water), but contributes only 1.8 percent to overall GDP is 
calling out for attention.  Achieving sustainable economic 
development in Taiwan will require a solution to this agricultural 
"problem".  Despite agriculture's absence from the SEDC, our 
discussions with economic think tanks and policy analysts show that 
some thought is being given to encouraging an agricultural 
transition that will capitalize on Taiwan's technological, capital, 
and geographic advantages and allow Taiwan's agricultural sector to 
be more competitive in a global environment.  End comment. 
 
YOUNG