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DE RUEHAK #2087 3391231
ZNR UUUUU ZZH
P 041231Z DEC 08
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UNCLAS ANKARA 002087 
 
SENSITIVE 
SIPDIS 
 
EEB/TPA/MTAA FOR BRIAN NATZIGER 
DEPT PLEASE PASS USTR FOR CARA MORROW 
 
E.O. 12958: N/A 
TAGS: EFIN ETRD PREL ECON WTRO
SUBJECT: TURKEY ALSO CONCERNED ABOUT PROTECTIONIST SPIRAL, 
BUT MAY TAKE MEASURES OF ITS OWN 
 
REF: STATE 125609 
 
 ¶1. (SBU) We delivered reftel talking points to Ibrahim 
Yagli, MFA Department Head in the Office of Multilateral 
Economic Affairs.  He observed that the GOT had not been 
aware of the protectionist measures taken by India, Brazil, 
and Argentina.  Yagli agreed that such activities could 
create a dangerous spiral and emphasized that Turkey has not 
undertaken any new protectionist measures since the G20 
summit. 
 
¶2. (SBU) Yagli admitted, however, that the GOT's economic 
program has not been fully defined and that some measures 
that might appear protectionist could be included.  He 
promised to transmit our concerns to the group at Treasury 
that is defining that program.  Yagli also asked whether the 
USG had any information concerning possible protectionist 
measures in China, noting that as an engine of the world 
economy it is important that the Chinese market remain open 
and free. 
 
¶3. (SBU) Comment: While Yagli's statement that no new 
protectionist measures have been implemented is accurate, 
there is evidence that the GOT is trying to reinvigorate 
existing protectionist rules.  A recent circular from the 
Prime Minister's office urged the public sector to procure 
goods locally when possible and reminded them that Turkish 
companies can receive a 15 percent cost-adjustment in 
competitive procurement bids.  This is not a new regulation, 
but the PM's decision to issue a circular just to remind 
agencies that they can give preference to Turkish goods is 
unusual. U.S. pharmaceutical companies have expressed concern 
that this may disadvantage them in health sector tenders. End 
comment. 
 
Visit Ankara's Classified Web Site at 
http://www.intelink.sgov.gov/wiki/Portal:Turk ey 
 
JEFFREY