VZCZCXYZ0000
PP RUEHWEB

DE RUEHMO #3356/01 3250348
ZNR UUUUU ZZH
P 200348Z NOV 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 0813
INFO RUEHBS/AMEMBASSY BRUSSELS PRIORITY 1990
RUEHVI/AMEMBASSY VIENNA PRIORITY 4686
RUEHGV/USMISSION GENEVA PRIORITY 5236
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHDC PRIORITY

UNCLAS MOSCOW 003356 
 
SENSITIVE 
SIPDIS 
 
USDA FAS FOR OCRA/KUYPERS; ONA/SALLYARDS, MURPHY; 
OSTA/HAMILTON, BEAN 
USDA FAS PLS PASS FSIS/JONES, DUTROW 
STATE FOR EUR/RUS 
COMMERCE FOR MAC (MATT EDWARDS, JAY THOMPSON, JACK BROUGHER) 
STATE PLS PASS USTR (KLEIN, HAFNER) 
BRUSSELSS PASS APHIS/FERNANDEZ 
VIENNA PASS APHIS/TANAKA 
GENEVA FOR USTR 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD ECON WTO RS
SUBJECT: LEAD WTO NEGOTIATOR DISCUSSES VETERINARY LETTERS 
 
REF: A. MOSCOW 3181 
     ¶B. MOSCOW 3175 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR 
DISTRIBUTION OUTSIDE USG CHANNELS OR FOR POSTING ON THE 
INTERNET. 
 
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SUMMARY 
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¶1. (SBU) In a November 18 meeting with Agricultural Affairs 
M-C and EconOffs, Russian Chief WTO Negotiator Maksim 
Medvedkov stated that the November 2006 U.S.-Russia side 
letter on meat and poultry inspections and certifications was 
still in force.  However, he said Russian and U.S. veterinary 
and food safety experts should meet before the end of the 
year to discuss divergent views about inspection commitments 
made under the side letter.  Medvedkov insisted that there 
was no protectionist motivation behind the recent Russian 
Veterinary and Phytosanitary Surveillance Service (VPSS) 
letters and actions, noting that there were easier ways for 
Russia to limit U.S. poultry imports if that were the 
purpose.  End Summary 
 
--------------------------------------------- - 
Meat Agreement and Side Letters Still in Force 
--------------------------------------------- - 
 
¶2. (SBU) On November 18, Agricultural Affairs M-C and 
EconOffs met with Chief WTO Negotiator Medvedkov to discuss 
the recent VPSS letters (reftels) questioning the reliability 
of FSIS to certify that U.S. meat/poultry exports meet 
Russian sanitary standards, in accordance with the terms of 
the November 2006 U.S.-Russia side letter on meat/poultry 
facility inspections.  We shared with Medvedkov the November 
10 detailed FSIS response to the recent VPSS letters, along 
with an informal Russian translation of the letter, 
emphasizing that certification of meat/poultry facilities for 
export to Russia must continue as provided for in the 
November 2006 side letter on inspections. 
 
¶3. (SBU) Medvedkov responded that he was familiar with the 
recent VPSS letters and the FSIS response.  He said the 
October 24 VPSS letter was not a unilateral Russian 
withdrawal from the side letter; the VPSS lacked that 
authority and was only acting within its limited mandate to 
regulate food and animal safety.  The GOR had taken no action 
to withdraw from the November 2006 U.S.-Russia market access 
agreement and side letters and there were no interagency GOR 
discussions to that effect.  The United States and Russia 
were engaged in consultations about potential amendments to 
the 2005 Meat Agreement, but those consultations were 
provided for in the agreement. 
 
----------------------------------- 
VPSS and FSIS Not Seeing Eye to Eye 
----------------------------------- 
 
¶4. (SBU) Medvedkov said he viewed the VPSS letters as an 
outline of areas where VPSS believed that FSIS was not 
adhering to the terms of the inspection side letter.  He said 
VPSS and FSIS seemed to have fundamentally divergent views 
about the nature of the certification process for U.S. meat 
and poultry products.  Medvedkov said that during Russian 
audits of U.S. plants in the summer of 2008, VPSS had 
identified instances in which they believed FSIS incorrectly 
certified that previously delisted plants had fixed 
deficiencies and now complied with Russian requirements.  He 
cited the example of a delisted plant that did not have a 
wall between the slaughter and processing areas, as required 
by Russian rules, but which FSIS had nonetheless certified. 
 
¶5. (SBU) Medvedkov said VPSS and FSIS seemed to disagree 
about whether FSIS needed to certify that U.S. exporters met 
the identical standards in effect in Russia, as VPSS 
asserted, or only substantially equivalent standards, as FSIS 
argued.  He said Russia had similar disagreements from time 
to time with the EU and other major trading partners.  A 
continued exchange of letters would probably not lead to any 
further progress.  Instead, it made more sense for both 
countries' veterinary and food safety experts to meet as soon 
as possible to resolve these differences and come to a mutual 
understanding of commitments under the side letter.  He 
proposed a meeting in Moscow prior to December 15, after 
which the holiday season would result in delays. 
 
-------------------------- 
But It,s Not Protectionism 
-------------------------- 
 
¶6. (SBU) Medvedkov repeatedly emphasized that the recent VPSS 
letters, while having an impact on U.S. meat and poultry 
exports to Russia, were not driven by protectionist motives. 
He noted that if that were Russia's desire, there were easier 
ways to block the U.S. meat/poultry trade, such as through a 
unilateral withdrawal from tariff rate quotas in the Meat 
Agreement, or through the imposition of sanitary and 
phytosanitary norms (SanPins), such as the proposed ban on 
chlorine-treated chicken.  Instead, Russia had chosen the 
path of consultations with the United States.  He added that 
the GOR is well aware that domestic producers cannot meet all 
of Russian consumers' demand for chicken. 
 
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COMMENT 
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¶7. (SBU) Medvedkov's assertions that the GOR and VPSS were 
not engaging in protectionism rang a bit hollow, especially 
in light of the frequency and tone of recent VPSS letters, 
and the rejection of product for even trivial mistakes in 
documentation.  That said, we recommend a VPSS/FSIS meeting, 
as it seems clear that VPSS will not re-list any plants until 
after such consultations have taken place. 
BEYRLE