VZCZCXYZ0015
RR RUEHWEB

DE RUEHKB #0473/01 1431332
ZNR UUUUU ZZH
R 221332Z MAY 08
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC 5330
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2824
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHBS/USEU BRUSSELS
RUEHGV/USMISSION GENEVA SZ 0324

UNCLAS BAKU 000473 
 
SIPDIS 
SENSITIVE 
 
PLEASE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL EAGR WTRO AJ
SUBJECT: AZERBAIJANI MFA READOUT ON MAY WTO WORKING PARTY 
MEETING 
 
REF: STATE 51516 
 
SENSITIVE BUT UNCLASSIFIED; NOT FOR INTERNET DISTRIBUTION. 
 
¶1.  (SBU) Summary:  Deputy Foreign Minister Mammadguliyev 
provided a positive assessment of Azerbaijan's May WTO 
Working Party meeting and bilateral negotiations with the 
U.S.  Azerbaijan plans to complete concordance within the 
next two months and hopes to complete its WTO Action Plan and 
submit responses to questions by the end of the year. 
Mammadguliyev hopes to hold another Working Party Meeting in 
the first quarter of 2009.  Although Mammadguliyev reiterated 
long-standing GOAJ policy regarding the protection of certain 
agriculture sectors, he agreed to provide a list of specific 
sensitive goods in the question/answer process. 
Mammadguliyev insisted that certain strategic sectors - 
energy, financial services and communications - must be 
protected to prevent neighboring countries from gaining 
inappropriate influence and access.  Per reftel, we 
underscored the need for significantly improved market access 
offers.  End summary. 
 
WORKING PARTY MEETING 
--------------------- 
 
¶2.  (U) In a May 21 meeting, Deputy Foreign Minister Mahmud 
Mammadguliyev provided a positive assessment of the Working 
Party meeting.  He noted that the GOAJ had brought a team of 
experts from key line Ministries that provided more detailed 
information on Azerbaijan's positions; he hopes that the more 
detailed presentations will result in fewer questions than in 
previous rounds.  Mammadguliyev said the GOAJ understood the 
need to complete concordance as soon as possible and planned 
to do so "in the next two months."  He also said that the 
GOAJ had submitted an updated schedule for its WTO action 
plan. The GOAJ plans to complete the ten outstanding pieces 
of legislation by the end of this year, and also hopes to 
respond to questions by the end of this year.  Mammadguliyev 
acknowledged that another Working Party meeting this year 
would be unrealistic but hopes to hold another meeting in the 
first quarter of 2009.  He hinted that he hoped the 2009 
Working Party meeting would be the last one required, 
commenting "this should be the final point." 
 
BILATERAL NEGOTIATIONS 
---------------------- 
 
¶3.  (U) Mammadguliyev also was positive about the bilateral 
market access discussions with the United States. 
Mammadguliyev characterized the meeting's atmospherics as 
"very positive" and said he felt the U.S. negotiators had a 
better understanding of GOAJ perspectives on key goods and 
services issues.  He reiterated the GOAJ's long-standing 
policy that it must protect certain sensitive sectors - 
particularly in agriculture - in order to promote the 
diversification of Azerbaijan's heavily energy-dependent 
economy and support rural development goals, and also stated 
that Azerbaijan hopes to accede with developing country 
status for certain agricultural sectors.  When Pol/Econ Chief 
noted that the U.S. urged Azerbaijan to narrow the list of 
sensitive sectors to key product-specific sensitivities, 
Mammadguliyev said he had agreed during the bilateral 
negotiations to provide a concrete list of specific, 
sensitive goods and hoped to continue this discussion during 
the question/answer process. 
 
¶4.  (SBU) In response to U.S. concerns about services market 
access, Mammadguliyev said that the GOAJ "took on some of 
your requests."  However, he expressed concern that open 
market access in strategic sectors such as energy, financial 
services, and communications could allow neighboring 
countries (Russia and Iran) inappropriate access and 
influence in Azerbaijan.  "You know who I mean," he added 
with a knowing look.  "These sectors are very strategic and 
we can't open them."  When Pol/Econ Chief responded that 
these are priority sectors for the U.S. and will be important 
for a bilateral market access agreement, Mammadguliyev said 
the GOAJ is revising its list of sensitive goods.  He added 
that he hoped the U.S. and Azerbaijan could address this 
issue in bilateral negotiations in Washington, as the GOAJ 
has found negotiations in capitals to be more effective.  Per 
reftel, Pol/Econ Chief underscored that Azerbaijan needed to 
submit significantly improved market access offers in order 
for negotiations to advance. 
 
COMMENT 
------- 
 
¶5.  (SBU) Mammadguliyev's positive assessment of the Working 
Party meeting and our bilateral negotiations does not reflect 
the serious market access issues that must be addressed for 
both the Working Party and our bilateral negotiations to 
proceed.  However, he is extremely open to further questions, 
requests, and information from the U.S., and stressed that he 
hopes many of the outstanding issues can be addressed through 
the question/answer process.  Mammadguliyev will be part of 
the Azerbaijani delegation to the bilateral Economic 
Partnership Commission meeting; his visit to Washington could 
be a good opportunity for further discussions on market 
access issues. 
DERSE