VZCZCXRO1036
RR RUEHGH
DE RUEHIN #0132 0180814
ZNR UUUUU ZZH
R 180814Z JAN 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3773
INFO RUEHBJ/AMEMBASSY BEIJING 6226
RUEHUL/AMEMBASSY SEOUL 8392
RUEHKO/AMEMBASSY TOKYO 8391
RUEHGP/AMEMBASSY SINGAPORE 6772
RUEHKL/AMEMBASSY KUALA LUMPUR 3652
RUEHML/AMEMBASSY MANILA 9915
RUEHHI/AMEMBASSY HANOI 3208
RUEHHK/AMCONSUL HONG KONG 7455
RUEHGZ/AMCONSUL GUANGZHOU 9903
RUEHGH/AMCONSUL SHANGHAI 0724
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHRC/USDA FAS WASHDC 2602

UNCLAS TAIPEI 000132 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS TO AIT/W 
STATE FOR EAP/RSP/TC, EAP/EP and EB/TPP/MTA/IPC 
STATE PASS to USTR for WINELAND and ALTBACH, STRATFORD 
USDOC for 4431/ITA/MAC/AP/OPB/TAIWAN/JDUTTON 
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT 
USDA FAS FOR OCRA/Smith, Mireles 
 
 
E.O. 12958: N/A 
TAGS: ECON EAGR ETRD EIND TW
SUBJECT: Taiwan TIFA:  Talking Agriculture with AUSTR Stratford 
 
 
¶1. On December 19 Vice Minister of Agriculture Lee Jen-chyuan met 
with Assistant USTR Timothy Stratford and Deputy Assistant USTR Eric 
Altbach.  This meeting was part of a series of meetings on TIFA 
action items.  Other meetings reported septel. 
 
CCA Language Approval Near 
-------------------------- 
¶2.  Vice Minister Lee acknowledged that he had been in touch with 
Vice Premier Tsai regarding the CCA.  The Council of Agriculture was 
now willing to accept the most recent language suggested by the 
United States for the Memorandum of Understanding and Terms of 
Reference to establish the CCA, but was waiting for approval from 
the Department of Health.  He expected that this approval would come 
shortly.  Lee noted that the Executive Yuan would need to grant 
final approval of the MOU and the TOR, but he expected that this 
would come quickly and anticipated being able to sign the final 
documents in early 2007. 
 
Rice CSQ 
-------- 
¶3.  The Vice Minister reported that nearly all of the problems had 
been worked out for public sector purchases of rice using a 
country-specific quota.  Taiwan's only concern was that the price 
ceiling by law must be kept confidential during the tendering 
process.  Taiwan would prefer, therefore, to discuss price ceiling 
issues with the U.S. before announcing the tenders.  This would be 
preferable to waiting until problems arose after the second or third 
rounds of bidding.  COA staff confirmed that they were in direct 
contact with Tim Wineland at USTR on this issue and hoped to resolve 
it shortly. 
 
Taiwan Committed to Reforming Old Farmers 
----------------------------------------- 
¶4.  Responding to a question from AUSTR Stratford on potential 
agricultural reforms that might help lead to a beneficial conclusion 
of the DOHA round, Vice Minister Lee stated that Taiwan was focusing 
on three particular issues:  the lack of technology and innovation 
in domestic agriculture, an aging farm population, and the 
increasing digital divide between rural and urban areas.  The 
average age of Taiwan farmers is currently 58 and many in the 
agricultural field are reluctant to change and try new technologies. 
 Taiwan agriculture must become more competitive to meet both 
domestic needs and export markets, Lee acknowledged.  Lee suggested 
that a free trade agreement with the United States would be one way 
to push for this goal as well as indicate that Taiwan is an 
"independent" entity ready and able to trade its agricultural 
products in world markets. 
 
 
Comment 
------- 
¶5.  Taiwan's Council of Agriculture has indeed worked hard over the 
past few weeks to move the rice CSQ and CCA issues to resolution. 
These TIFA issues are far easier to resolve than the long-term 
problems for Taiwan's agricultural sector.  While lacking the 
political benefits of an FTA, the CCA provides a potentially useful 
forum for Taiwan to cooperate with the United States to address the 
constraints identified by Vice Minister Lee.