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Cablegate: Dpm/Econmin Pawlak Proposes Cap Reform

VZCZCXRO9619
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHWR #1004 2401234
ZNR UUUUU ZZH
P 271234Z AUG 08
FM AMEMBASSY WARSAW
TO RUEHGV/USMISSION GENEVA PRIORITY 0863
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 6937
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHKW/AMCONSUL KRAKOW 2157
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHBS/USEU BRUSSELS

UNCLAS WARSAW 001004

SENSITIVE
SIPDIS

USDA FOR FAS/OCRA RCURTIS AND FAS/OFSO DYOUNG
BRUSSELS PASS AG MINISTER COUNSELOR
STATE FOR EUR/CE, EUR/ERA, EEB/TPP FOR DGROUT AND FINN
USTR FOR WMOORE
EUROPEAN POSTS FOR ECON AND FAS

E.O. 12958: N/A
TAGS: ECON ENRG ETRD EUN PGOV PL TBIO WTO
SUBJECT: DPM/ECONMIN PAWLAK PROPOSES CAP REFORM

REF: A. WARSAW 823
B. WARSAW 940
C. WARSAW 973
D. WARSAW DAILY 8/22/08

1. (U) This message is an action request - see para 3.

2. (SBU) Embassy Warsaw is receiving more signals that the
GoP - or elements within it - sees the failure of Doha Round
negotiations as a point of departure for deeper U.S.-EU
economic integration and liberalization. In Ref B meeting
with Charge, Deputy Prime Minister and Economic Minister
Waldemar Pawlak (PSL) first told us of his vision of deeper
U.S.-EU integration and of the GoP's effort to slowly,
quietly roll back Polish opposition to biotechnology. In a
follow-up meeting August 21, Pawlak went much further. He
proposed the reform of the EU's Common Agricultural Policy
(CAP) to break the link throughout the EU between
agricultural subsidies and production, replacing production
subsidies with "green box" payments based on land area and
ecological stewardship. Pawlak also noted standards,
regulations, and norms as another likely area for further
US-EU integration. Separately, Undersecretary Andrzej Dycha
of the PSL-controlled Agriculture Ministry reiterated to
AgCouns Pawlak's broad message of deepening U.S.-EU trade
integration and reported coordination between the Foreign
Affairs, Economy, and Agriculture Ministries to that end.
Pawlak is also interested in exploring with DOE contacts
clean-coal technology as part of Poland's overall strategy to
reduce its dependence on Russian energy.

3. (SBU) Pawlak will be in Washington to attend the October
8-9 Polish-American Conference on Science and Technology. He
welcomed our suggestions for meetings during that trip. We
request the Department's assistance in setting those meetings
with appropriate counterparts in USTR, State, DOE and USDA.

4. (SBU) Comment. Pawlak's analysis - which we share (see
Ref C) - is that the terms of Polish accession to the EU put
its agriculture sector at a competitive disadvantage to those
of the EU-15. Under the current CAP system, Polish farmers
will never see payments as high as their EU-15 counterparts -
an important driver of growing weakness of Poland's ag sector
- and presumably one reason for Pawlak's newfound interest in
CAP reform. End comment.
QUANRUD

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