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Cablegate: Cop-13 Trade Ministers' Side Meeting

VZCZCXRO2795
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #3308 3380703
ZNR UUUUU ZZH
R 040703Z DEC 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 7255
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 2423
RUEHBK/AMEMBASSY BANGKOK 8255
RUEHGP/AMEMBASSY SINGAPORE 6236
RUEHDT/AMEMBASSY DILI 0901

UNCLAS JAKARTA 003308

SIPDIS

SINGAPORE FOR SUSAN BAKER

SIPDIS
SENSITIVE

DEPT PASS TO USTR SCHWAB
DEPT FOR EAP/MTS, EAP/RSP, EB/TPP, EB/TPP/BTA
COMMERCE FOR SBERLINGUETTE
USTR FOR BWEISEL
TREASURY FOR IA-BAUKOL

E.O. 12598: N/A
TAGS: BEXP EINV ECON ID
SUBJECT: COP-13 TRADE MINISTERS' SIDE MEETING


1. (SBU) SUMMARY: Minister of Trade Mari Pangestu hosted a November
30 briefing to discuss the program and objectives for the Informal
Trade Ministers Dialogue on Climate Change (ITMD - CC) in Bali on
December 7-8, 2007. The dialogue's purpose is to discuss how trade
and investment policies can contribute to achieving global climate
change objectives. The Trade Ministers' dialogue is scheduled on
the margins of the 13th Conference of Parties of the United Nations
Framework of Convention on Climate Change (UNFCCC), hosted by the
Government of Indonesia (GOI) in Bali. End Summary.

Adjusting Expectations
----------------------

2. (SBU) The Trade Ministerial, originally described as a
"high-level dialogue," was reframed by the Ministry of Trade (MOT)
as an "informal brainstorming session" to discuss the linkages
between trade policies and climate change. The reframing appears to
be a deliberate means to adjust expectations and assuage participant
concerns of an overly ambitious agenda. Minister Pangestu stated
that although she hopes the ITMD would provide input to the UNFCCC,
it is not intended for negotiating or influencing the UNFCCC
process. She also insisted the conference was not designed as a
proxy to invigorate stalled WTO discussions.

Trade Policy Used for Good, Not Evil
------------------------------------

3. (SBU) Minister Pangestu proposes to discuss how trade and
investment policies can help achieve sustainable patterns of
economic growth. She hopes the Ministerial will address specific
policies and initiatives that could serve to "align global trade
policies with climate change objectives" while promoting sustainable
economic growth. She outlined potential policy instruments with
suggestions on implementation, including next steps and follow-on
actions. The outline also includes proposed commitments and hints
at shared conclusions.

Possible Policy Instruments
---------------------------

4. (SBU) Pangestu proposed possible policy instruments to align
trade policy with climate change objectives, including:

-- Liberalization of trade and investment in low-emission goods,
including eliminating tariffs and non-tariff barriers (NTB) on
environmental goods and services;

-- Developing of international product standards to facilitate trade
in low carbon products;

-- Providing incentives for shift toward a low-carbon economy via
reduction of subsidies on high emitting energy fuels and commitment
to IPR to facilitate transfer of low-carbon technology to developing
countries.

Pangestu cites the UNFCCC as a means for coordinating a uniform
approach to pricing greenhouse gas emissions as well as
"accelerating" the "technology transfer agenda." She also suggested
international financial institutions could be engaged to develop
aid-for-trade programs designed to facilitate climate change
objectives.

Ministerial as Academic Roundtable
-----------------------------------

5. (SBU) Pangestu's portrayal of the Ministerial as a relaxed,
intellectual brainstorming session reflects her training as a former
academic. Her briefing did suggest conclusions and follow-up
actions that could conceivably be presented to the UNFCCC as jointly
agreed recommendations. Pangestu insists the Ministerial is meant
to be informal and not intended to produce any specific deliverable
beyond providing input to the UNFCCC process. According to
Pangestu, input includes identifying actions and/or proposals for
possible follow up. MOT staff members we talked with reinforced the
same message.

HUME

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