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### Viewing cable 07AITTAIPEI923, DIRECTOR'S MEETING WITH COA CHAIRMAN SU: CCA AGENDA AND

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07AITTAIPEI923 | 2007-04-26 05:33 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | American Institute Taiwan, Taipei

`

    VZCZCXYZ0011
    PP RUEHWEB

    DE RUEHIN #0923/01 1160533
    ZNR UUUUU ZZH
    P 260533Z APR 07
    FM AIT TAIPEI
    TO RUEHRC/USDA FAS WASHDC PRIORITY 2632
    RUEHC/SECSTATE WASHDC PRIORITY 5015

` `

    UNCLAS AIT TAIPEI 000923

    SIPDIS

    SENSITIVE

    FAS FOR OCRA/HIGGISTON; OFSO/THURSLAND
    STATE FOR EAP/TC
    STATE PASS USTR FOR ERIC ALTBACH

    SIPDIS

    E.O. 12958: N/A
    TAGS: EAGR ETRD EFIS TW
    SUBJECT: DIRECTOR'S MEETING WITH COA CHAIRMAN SU: CCA AGENDA AND
    FISHERIES MOU

    REF: TAIPEI 00908

    SENSITIVE BUT UNCLASSIFIED

    ¶1. (SBU) Summary. On April 24, Director Young met with Council of
    Agriculture (COA) Chairman Su Jia-chyuan to review a number of
    issues, including the status and plans for the Consultative
    Committee on Agriculture (CCA). Noting recent Executive Yuan (EY)
    approval of the founding documents and imminent signing of those
    documents in Washington, the Director and Chairman Su agreed the
    next step is to develop a constructive agenda and suggested a
    deadline of August to complete that task. Director Young also noted
    recent progress and cooperation on several key issues, including
    apples and rice. Chairman Su described ongoing problems with high
    corn prices and the threat this poses to U.S. corn exporters. In
    discussing the proposed renewal of the fisheries MOU, COA said it
    will likely take some time to comply with a number of the
    requirements raised by the U.S. side. End summary.

    CCA: Time to Initiate Agenda Discussion
    --------------------------------------------- --------

    ¶2. (SBU) Thanking COA for its coordination of the EY clearance
    process, the Director noted the documents to establish the CCA are
    now ready for signing in Washington, DC. He also noted that he was
    recently in Washington and during his meeting with senior USDA
    officials, confirmed that early fall remains the proposed date for
    the inaugural meeting of the CCA in Taipei. The Director suggested
    that both sides begin discussions on an agenda for the meeting and
    raised the following as proposed topics:

    ¶A. Outlook for the WTO Doha Round: The Director pointed out that
    President Bush has expressed U.S. determination to bring the round
    to a successful conclusion. The Director also said that in his
    meeting with Vice Premier Tsai earlier that morning, he suggested
    that Taiwan show its support for the U.S. position and noted U.S.
    concern over Taiwan's alliance with the G-10. (See reftel)
    ¶B. Energy Policy, Biofuels, and the Impact on Grain Prices
    ¶C. Review Results of Recent Bilateral Technical Discussions on
    Sanitary and Phytosanitary Issues
    ¶D. Role of Agricultural Biotechnology
    ¶E. The Cooperative Program on Agricultural Sciences

    ¶3. (SBU) Director Young also pointed out that this summer's TIFA
    meeting will include a number of agriculture issues and will help
    pave the way for this fall's CCA. In response, Chairman Su suggested
    that AIT and COA each propose suggested agenda items and review
    these proposals by the end of July with a goal of finalizing the
    agenda in August. Note: In preliminary meetings held in late
    February, AIT Ag Chief proposed similar topics for the CCA agenda
    and COA generally agrees. On item B, COA will likely want to explore
    collaborative research and commercial opportunities with USDA and
    others. In that earlier meeting, there was also agreement that each
    topic should include an outcome that will guide future cooperation
    and action. USDA has completed an internal review of topics, so both
    sides are already fairly far along in the agenda-setting process.
    End Note.

    ¶4. (SBU) Picking up on the WTO Doha theme, Chairman Su said that
    some blame U.S. domestic support programs in agriculture as the
    primary reason the Doha round has not concluded. He feels, however,
    that pointing fingers and casting blame is not the answer. Rather,
    what is needed is persuasion. Chairman Su noted that the EY is
    determined to help conclude the round, recognizing that even though
    Taiwan's agriculture will have to endure some "bitterness", the
    overall benefits for Taiwan are definitely positive.  He claims that
    Taiwan is relatively open-minded on its Doha position, but its G-10
    partners are more vocal opponents of liberalization. Nonetheless,
    given the constant threat of pressure from China and as a relatively
    small member, Taiwan feels compelled to remain in a grouping like
    the
    G-10 for the support and assistance it can provide.

    Cooperative Efforts on Apples, Rice, and Grain
    --------------------------------------------- --------

    ¶5. (SBU) Director Young acknowledged several specific issues and
    programs where recent developments illustrate the value of continued
    cooperation. One such issue is COA's initiative to review with USDA
    the current Apple Work Plan.  USDA will send a team of experts to
    Taiwan in late June and we look forward to a constructive
    discussion.

    ¶6. (SBU) A second issue is Taiwan's March notification of its new
    rice tariff-rate quota to the WTO. The Director reaffirmed the U.S.
    agreement to help Taiwan address any objections that might be raised

    by other WTO members and asked if there have been any questions
    raised in Geneva.  Director General Chen Wen-deh of the
    International Cooperation Department said that Vietnam requested
    details on Taiwan's rice import polices. COA responded with a
    general description of import policies, but did not provide details
    of the new quota system as notified to the WTO.  He said that COA
    has not yet received any comment from Egypt, but noted the comment
    period does not close until June 15.

    ¶7. (SBU) The Director also expressed his understanding of the
    difficulties current high grain prices place on COA and Taiwan's
    livestock producers. He said that AIT and U.S. industry groups will
    continue to provide updated market information to COA and Taiwan
    industry groups and have technical programs planned that offer price
    risk management training. Chairman Su said that corn prices have
    jumped from about NT$5/kg to more than NT$7/kg. This is close to
    Taiwan's own corn production cost of NT$8/kg. He also noted the
    pressure to open Taiwan's market to Chinese corn and the likelihood
    that alternative feed sources will be developed. He suggested that
    should Taiwan producers switch to other suppliers or alternative
    inputs, it will be very difficult for the United States to recapture
    its current near total domination of a 4.5 million ton corn market.

    Fisheries MOU: More time needed?
    --------------------------------------------- --------

    ¶8. (SBU) The Director raised U.S. concerns that Taiwan still needs
    to address specific conservation, management, and enforcement issues
    as identified in the joint work plan before the AIT/TECRO Fisheries
    MOU can be renewed. The existing MOU expires on July 30. The
    Director noted that Taiwan needs to work with a number of regional
    fisheries commissions, provide timely data on fish catch and
    by-catch, help conserve sharks as a targeted species and conserve
    turtles and sea birds as by-catch, adopt a plan of action concerning
    Illegal, Unreported, and Unregulated (IIU) fishing, and strengthen
    enforcement to combat IIU.

    ¶9. (SBU) Director General Hsieh Dah-wen of the Fisheries Agency
    noted that Taiwan's scale of operations is so large it may take time
    to comply with this list of requirements.  For example, FAO has
    international plans-of-action for by-catch and Taiwan has its own
    national plans for sharks and sea birds. DG Hsieh noted that the
    United States proposed a so-called shopping list related to regional
    fishery organization regulations at the March joint work plan
    meeting. Taiwan plans to make a counter-proposal and, while it
    intends to stick to the spirit of the current bilateral MOU with the
    United States, it must still manage these regional regulation issues
    multilaterally. DG Hsieh also made a plea for U.S. support for
    Taiwan's membership status in some of the regional organizations.
    Current observer status must be renewed every year.

    ¶10. (SBU) Comment:  The exchange on WTO/Doha and apparent
    willingness by COA to consider making tough political choices on
    agriculture is a shift from its initial outright rejection of the
    U.S. Doha proposal on agriculture. It suggests there is an
    opportunity for a senior-level dialogue at both the upcoming TIFA
    and fall CCA on the options available to Taiwan to moderate its Doha
    position. End Comment.

    YOUNG

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