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OO RUEHWEB

DE RUEHFR #4483/01 3171237
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O 131237Z NOV 07
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1104
RUCPDOC/USDOC WASHDC IMMEDIATE

UNCLAS PARIS 004483 
 
SIPDIS 
 
INFO EU MEMBER STATE COLLECTIVE 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR FOR VERONEAU 
STATE PASS SMALL BUSINESS ADMINISTRATION FOR PRESTON 
USDOC FOR SECRETARY GUTIERREZ 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PGOV FR
SUBJECT:  FRENCH TRADE MINISTER NOVELLI'S VISIT TO WASHINGTON: KEY 
POINTS 
REFS: A) PARIS 03401,, B) PARIS 04315, C) PARIS 04327 
 
¶1. (SBU) SUMMARY:  State Secretary Herve Novelli, the junior 
minister responsible for international trade, visits Washington and 
Miami November 13-15.  Novelli's visit provides an opportunity to 
underline key economic issues -- the Transatlantic Economic Council, 
agricultural biotechnology, intellectual property -- in the run up 
to a French EU presidency.  Ambassador Stapleton previewed these 
issues with Novelli November 12.  In Washington, Novelli meets with 
Secretary of Commerce Gutierrez, DUSTR Veroneau, Administrator 
 
SIPDIS 
Preston of the Small Business Administration as well as with the 
U.S. Chamber of Commerce.  In Miami, Novelli will be addressing 
representatives of the French foreign trade missions in the U.S. and 
participating in a conference with small and medium sized 
businesses.  Reftels provide Embassy reporting on Sarkozy's reform 
plans for France's economy.  END SUMMARY. 
 
Novelli's Priorities 
-------------------- 
¶2. (SBU) Trade Minister Novelli is eager to learn more about how the 
U.S. government assists small and medium enterprises (SME), such as 
through the U.S. Small Business Act. (SME promotion was also raised 
by Finance Minister Lagard's Chief of Staff during Commerce Deputy 
Under Secretary O'Neill's visit to Paris Nov 7-8.)  Novelli noted 
that France has pushed the European Commission to do more to aid 
SMEs and France intends to have in place a European Protocol on an 
EU SBA by June 2008.  While pessimistic about prospects for Doha 
negotiations, Novelli will seek to probe continued U.S. support for 
a multilateral accord vis a vis bilateral agreements.  Novelli 
likely will repeat President Sarkozy's admonition about the negative 
consequences of a strong dollar and will point out that French 
exports to the U.S. declined significantly in 2007.  Novelli will 
also raise French concerns about the U.S. Safe Port legislation and 
requirements for 100 percent inspection of shipping containers. 
Minister Novelli also will underline French interest in working 
closely with the U.S. on IPR protection measures.  Novelli stated 
France wants to be supportive of the recently launched 
Anti-Counterfeit Trade Agreement (ACTA) initiative.  Novelli also 
noted that the EU readout of the initial meeting of the 
Transatlantic Economic Council (TEC) November 9 was positive and 
pledged French support for the TEC's "very positive, concrete, 
pragmatic approach" and that it would not surprise him if President 
Sarkozy became "involved" in this process. 
 
¶3.  (SBU) 2008 will be an important year as France takes over the EU 
presidency in June.  France is already playing a key role in guiding 
Slovenia's EU presidency that commences in January, particularly 
with respect to economic, energy and environmental issues. (Note: 
Minister Novelli will be traveling to Slovenia Dec 10 to finalize 
France's division of labor and support for the Slovenian EU 
Presidency.  End note.)  Novelli's meetings in Washington provide an 
opportunity to articulate our views on priority issues as France 
finalizes plans for its presidency. 
 
US Business View 
---------------- 
¶4. (SBU) The board of AMCHAM France met with Ambassador Stapleton 
November 13 for a review of the Sarkozy visit.  CEO's reported that 
the AMCHAM annual barometer poll on business attitudes will be 
released shortly and shows the highest level ever of business 
confidence in France. 
 
¶5.  (SBU) Key topics (suggested talking points follow) for U.S. 
interlocutors to highlight are support for the Transatlantic 
Economic Council (TEC); concerns over France's suspension of Ag 
biotech cultivation; cooperation on a range of IPR priorities; and 
encouragement of GOF support for the French American Business 
Council (FABC). 
 
Suggested Talking Points: 
------------------------- 
TEC: Stress importance we assign to French EU presidency (and French 
role in Troika from January) in furthering transatlantic 
cooperation; critical for successful tangible outcomes in 
Transatlantic Economic Council.  Will be important to emphasize that 
transatlantic cooperation pays real dividends, particularly if Doha 
process remains blocked.  Emphasize need for French support for TEC. 
 
 
Ag Biotech: Express concern over suspension of commercial 
cultivation of biotech crops.  MON810 was reviewed and determined 
safe by EU regulatory authorities almost ten years ago.  WTO has 
found EU member state biotech bans to be in violation of WTO 
obligations.  Deadline for compliance with WTO ruling ends November 
21 - U.S. will have to review its options.  Six major US 
agricultural exports are all blocked or restricted in EU market. 
 
 
 
IPR: Look forward to continued cooperation on IPR issues.  U.S. and 
French goals for enhanced international enforcement similar, despite 
nuanced differences in approach.  IPR could be a potential TEC focus 
for the French EU Presidency. 
 
Signal continued concern over potential impact of France's 2006 
digital copyright legislation, and the prospect of mandated 
interoperability and deposit of source codes.  Sensitize GOF to 
business concerns and impact on innovation as implementation goes 
forward. 
 
FABC: Pleased with resumption of this important business to business 
group.  Welcome President Sarkozy's offer to host next year's 
meeting in Paris.  Both governments should encourage FABC input on 
key issues into TEC and bilateral  discussions. 
 
Bio Notes 
--------- 
¶6.  (SBU) Herve Novelli is a pro-business politician, who leads the 
"Liberal Circle" political faction in the ruling Union for a Popular 
Movement (UMP) political party.  He is president of the Association 
of Reformers, a small but vocal group with in the UMP.  Despite his 
reformist credentials, Novelli has maintained a tough line during 
trade discussions aimed at liberalizing commerce.  He has worked in 
the private sector, for a medical supplies company and was Vice 
President for Europe at the investment bank Drexel-Burnham-Lambert. 
He also served as a Director of Omnium Finance Group, a part of 
Total Petroleum Corp.  Novelli won his first election to local 
public office in 1989 in rural western France.  He served in the 
European Parliament from 1999-2002.  He holds a Masters Degree in 
Business from the University of Paris.  Novelli does not/not speak 
English well. 
 
STAPLETON#