VZCZCXRO7372
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHPOD #0024 0282124
ZNR UUUUU ZZH
P 282124Z JAN 09
FM AMEMBASSY PODGORICA
INFO RUEHC/SECSTATE WASHDC PRIORITY 1128
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/USDOC WASHDC PRIORITY 0001
RUEHPOD/AMEMBASSY PODGORICA 1216

UNCLAS PODGORICA 000024 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EINV ECON ECIN WTRO MW
SUBJECT: MONTENEGRO BLINDSIDED BY UKRAINIAN WTO MOVE 
 
¶1. (SBU) SUMMARY:  Ukraine's 11th hour request for bilateral 
negotiations as part of Montenegro's WTO accession process has 
thrown Montenegro's WTO negotiations team, led by Deputy Prime 
Minister Gordana Djurovic, for a loop. Having closed bilateral 
negotiations with the EU and the U.S., the GoM was confident 
that its long WTO accession process was nearing conclusion, and 
that Montenegro would be officially invited to join the WTO in 
early February.  The GoM has reacted bitterly to the Ukrainian 
initiative because of its late arrival, and also because it 
could seriously complicate the GoM's hope of a public relations 
success in advance of pre-term parliamentary elections this 
spring.  END SUMMARY. 
 
 
 
¶2. (SBU) Montenegro has worked hard over the past four years to 
conclude bilateral and multilateral negotiations for accession 
to the WTO.  The GoM's negotiating team, led by DPM Djurovic, 
concluded agreements with the EU in April 2008 and with the U.S. 
in early January.  The road ahead seemed clear for Montenegro to 
receive an invitation to join the WTO at the next WTO General 
Council meeting on February 3. 
 
 
 
¶3.  (SBU) However, Ukraine asked to open bilateral negotiations 
- completely within their rights according to WTO regulations - 
in late December and sent the GoM scrambling to find any 
possible quick fix that would allow Montenegro to officially 
submit its membership candidacy (the last real step in the 
process, though procedurally their application package would 
still need to be approved by all current members) to the 
organization as the GoM had publicly announced. 
 
 
 
¶4. (SBU) The surprise move by the Ukrainians has elicited a 
visceral, emotional reaction in GoM officials. The usually 
composed and professional Djurovic, unable to conceal her 
frustration, has made emotional statements to the press and has 
appealed repeatedly to European Union colleagues and to us to 
help  find a solution that would  avoid delaying accession. 
 
 
 
¶5. (SBU) The DPM also has pointed out to us and to the press 
that a request to open bilateral negotiations at such a late 
hour is unprecedented.  Djurovic also complained to us that 
despite repeated attempts to reach her Ukrainian counterpart, he 
has not returned calls and, in her opinion, does not want to 
speak with her. 
 
 
 
¶6. (SBU) Nevertheless, the DPM and her team are now fully 
engaged in responding to the Ukraine's request.  DPM Djurovic 
told us that she is concerned that negotiations with Ukraine 
could be long, but is buoyed by the moral support the 
Montenegrin team has received from the U.S., Europeans, and WTO 
Secretariat.  The Montenegrins have rolled up their sleeves and 
are currently working day and night to get a complete response 
as quickly as possible to Ukraine.  As the timeframe for 
Montenegro to conclude these new negotiations is currently 
uncertain and the WTO General Council only meets a few times a 
year, the next potential date for Montenegrin accession is May. 
 
 
 
Comment 
 
-------- 
 
¶7. (SBU) Ukraine's initiative has effectively scuttled the GoM's 
plans for a quick conclusion to the accession process.  The GoM 
understands that Ukraine is merely exercising its rights as a 
WTO member, but that has not diminished the Montenegrin side's 
resentment over the late date of the GoU request.  The GOM has 
been flummoxed by Kyiv's move, given the generally good 
relations between the two countries and the relative paucity of 
trade between them.  Compounding the GoM's frustration is the 
fact that DPM Djurovic and other GoM officials already had begun 
publicly predicting a February 2009 accession date last fall. 
The WTO "success story" was all but a sure thing and one that 
the government likely was hoping to point to during the upcoming 
election campaign (pre-term elections have been called s for 
March 29). 
 
MOORE