VZCZCXYZ7332
RR RUEHWEB

DE RUEHFR #0386/01 0641756
ZNR UUUUU ZZH
R 041756Z MAR 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 2152
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS PARIS 000386 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS USTR 
 
E.O. 12958: N/A 
TAGS: ECON ETRD ENRG PREL EAGR EUR FR
SUBJECT: FRENCH RECEPTIVE TO A/S SULLIVAN'S PITCH ON TEC 
 
REF: 2/11 PARIS POINT ON FRENCH GMO LAW 
 
¶1. (U) Embassy Action Request Para 14. 
 
¶2. (SBU) Summary:  In February 13-14 meetings French Trade 
Minister Novelli, MFA Economic Director Masset and PM 
Diplomatic Advisor Lapouge told A/S Dan Sullivan they would 
be supportive of the Trans-Atlantic Economic Council (TEC) 
as an important part of France's EU presidency.  On other 
issues Novelli said France would pay attention to 
"reciprocity" in EU foreign economic relations during its 
presidency.  France's position on agricultural bio- 
technology was evolving, with the amended draft law on GMOs 
recently approved by the French Senate a more "balanced" 
approach than that of the initial draft.  Lapouge said 
energy supply issues would figure among France's EU 
presidency priorities and briefed on PM Fillon's early 
February trip to Kazakhstan.  End summary. 
 
Novelli on TEC, 100% Screening, IPR 
- - - - - - - - - - - - - - - - - 
 
¶3. (SBU) In a February 13 meeting A/S Sullivan, accompanied 
by Ambassador Stapleton and SE Boyden Gray, told French 
Trade Junior Minister Herve Novelli the U.S. hoped France 
would put the TEC high on its agenda for the French EU 
presidency.  He underscored that the TEC not only could 
help deepen transatlantic economic relationship by reducing 
and harmonizing regulatory barriers, but also it has a much 
broader strategic rationale:  enabling the U.S. and EU to 
more closely coordinate economic policies vis-`-vis rising 
economic powers.  France's endorsement would be key to a 
successful TEC, and one that helped ensure the 
institution's longevity.  Novelli said the GOF saw the TEC 
as "very important" and the French presidency could "play a 
key role" in advancing it.  But the May TEC and June U.S.- 
EU Summit would precede the French presidency and it would 
be important to focus on these first. 
 
¶4. (SBU) Novelli described cargo security and IPR as GOF 
priorities (both in and out of the TEC).  U.S. requirements 
for 100% screening of containers were a top French concern 
given the "costs it would impose" on trans-Atlantic trade. 
Novelli saw convergence in U.S. - French interests on IPR. 
France recently ratified the London protocol and would 
support adoption of a Community patent during its 
presidency, he said. "Common reflection" on patent 
harmonization issues was a potential area for TEC 
discussion.  France also was supportive of the 
International Anti-counterfeiting and Piracy Agreement (?) 
(ACTA).  Novelli had accompanied President Sarkozy to China 
in late 2007 and the message on IPR had been "very firm." 
Pushing together for a stronger Chinese approach on IPR was 
important. 
 
Environmental Issues 
- - - - - - - - - - 
 
¶5. (SBU) In the wake of its late 2007 "Grenelle" 
environmental pact France would be "exemplary" on cutting 
carbon emissions.  The GOF was considering a variety of 
eco-taxes (and had already implemented some) as part of 
this effort.  It would use its EU presidency to encourage 
an "awakening" on the use of such measures among its EU 
partners.  Cuts in CO2 emissions were inevitable, Novelli 
said, the key would be to do so without impacting French 
productivity. (Note: Novelli said nothing about France's 
proposal for a carbon tax on imports from countries that do 
not impose binding limits on CO2 emissions. End note) 
A/S Sullivan underscored U.S. - EU convergence on climate 
change, especially through the Major Economies process. 
 
¶6. (SBU) Sullivan raised the issue of GMOs, and Novelli 
said the GOF's position was evolving.  The French Senate 
had passed a "more balanced" amended version of the GMO law 
than the one presented to parliament (ref).  The position 
of Minister of Ecology and Sustainable Development Borloo 
was shifting, Novelli claimed, "in spite the views of 
environmental groups."  France's current ban on MON810 
"could be lifted," he said, though he did not specify the 
timing or circumstances of a possible rescission. 
 
Reciprocity 
- - - - - - 
 
¶7. (SBU) Novelli previewed other priority issues within his 
remit for the French presidency.  The GOF would pursue a 
European Small Business Act, to include regulatory 
simplification and access to public procurement.  The GOF 
had presented its ideas in Brussels to "enrich the debate" 
and the Commission was preparing an initial draft.  The GOF 
would encourage movement towards freer trade and investment 
regimes, but on the basis of reciprocity.  The GOF wanted 
Europe to be "as open as our partners," but it would demand 
a level playing field.  Discussion on EU trade defense 
measures was a possible "element" in France's strategy for 
pursuing reciprocity. 
 
¶8. (SBU) France continued to hope for a Doha deal, Novelli 
said, but it "must be balanced."  The GOF felt the 
Commission had done the "maximum," in fact surpassing 
negotiating mandates on agriculture and industrial access. 
France would not "sacrifice its interests" for the sake of 
a deal.  Sullivan underscored very strong U.S. commitment 
to getting a "good, ambitious" agreement.  He also noted 
the importance of maintaining a public commitment to open 
trade and investment, saying that foreign direct investment 
was a net benefit regardless of reciprocal limitations that 
partners might impose. 
 
TEC Strategic Dialogue Timely 
- - - - - - - - - - - - - 
 
¶9. (SBU) In a separate meeting MFA Economic Director 
Christian Masset echoed Novelli's support for the TEC.  He 
warmed to A/S Sullivan's description of the strategic 
nature of the TEC as demonstrated by the dialogue that had 
occurred over lunch at the November meeting.  Such dialogue 
could be particularly useful given that France would host 
EU summits with a number of key developing economies during 
its presidency, including China and India. 
 
¶10. (SBU) Masset expanded on the French EU presidency 
priorities of climate change and energy.  The GOF would 
look to move forward with Phase II of the Emissions Trading 
System, the framework directive on renewables, and a 
directive for carbon capture and storage.  To reach 2020 
reduction goals, half of the gains would come through the 
functioning of the ETS, the other half from sectors not 
covered by the trading system.  It would take strong action 
in both areas to achieve EU goals. 
 
¶11. (SBU) On energy security, France would "put more 
emphasis" on dialogue with the Central Asia/Caspian region 
on diversification.  Masset was keen on A/S Sullivan's 
views on the region, and Sullivan highlighted elements of 
his latest trip to Turkey, Azerbaijan, and Turkmenistan. 
Masset and Sullivan also touched on eventual membership of 
India and China in the IEA (septel). 
 
PM Fillon in Kazakhstan 
- -  - - - - - - - - - - 
 
¶12. (SBU) PM Fillon's diplomatic advisor Jacques Lapouge 
briefed Sullivan on the Prime Minister's early February 
visit to Kazakhstan (the first such visit in 15 years). 
Calling the trip "pretty encouraging," Lapouge said Fillon 
brought a message of support for development of westward 
hydrocarbon supply routes.  Supply diversification would, 
in fact, be a theme of the French EU presidency.  Lapouge 
said Nazarbayev talked to Fillon about shipping product 
across the Caspian, as well as a possible pipeline skirting 
the southern shore of the Caspian.  He expressed continued 
interest in a pipeline to Iran. 
 
¶13. (SBU) On other issues, Lapouge responded positively to 
A/S Sullivan's briefing on TEC (though an advisor had heard 
disappointment at EU technical levels over a perceived lack 
of progress on EU issues at the first TEC).  On G8, the 
former Sous-Sherpa questioned whether there was sufficient 
follow-through in meeting commitments, notably on ODA.  The 
body's "credibility is at stake," Lapouge thought.  On IPR, 
the Heilegendamm Process must aim high and not be pulled 
down to the lowest common denominator.  Lapouge indicated 
the French were interested in keeping alive their proposal 
for a FATF-like body for IPR in G8 discussions. 
 
Embassy Action Request 
- - - - - - - - - - - 
 
¶14. (SBU) French views on energy supply diversification 
opportunities in the Caspian Basin are evolving.  With the 
GOF ready to engage more actively on energy diplomacy in 
the region during its EU presidency, this is an auspicious 
time to contribute to French thinking.  Post encourages the 
visit of an appropriate Department, or inter-agency, 
delegation to Paris in the coming months for in-depth 
discussions with French counterparts on these issues. 
 
¶15. (U) A/S Sullivan has cleared this cable. 
 
ROSENBLATT