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Cablegate: Brazil: Wto Taft Goods Demarche Response

VZCZCXRO6519
PP RUEHRG
DE RUEHBR #0319 0541846
ZNR UUUUU ZZH
P 231846Z FEB 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 8186
INFO RUEHBS/USEU BRUSSELS
RUEHGV/USMISSION GENEVA 1514
RUCPDOC/USDOC WASHDC
RUEHRI/AMCONSUL RIO DE JANEIRO 3912
RUEHSO/AMCONSUL SAO PAULO 9272
RUEHRG/AMCONSUL RECIFE 6278

UNCLAS BRASILIA 000319

SIPDIS

SIPDIS

DEPT FOR EB/TPP/MTA/MST FOR AARON SCHEIBE
DEPT PASS USTR FOR BNORTON
USDOC FOR DMENDOZA AND EBRZYTWA

E.O. 12958: N/A
TAGS: ECON ETRD WTO BR
SUBJECT: BRAZIL: WTO Taft Goods Demarche Response

REF: A) State 20817

1. (U) EconOff delivered reftel points in to Peter Fox, GOB Deputy
Director of Division of Market Access at the MFA. Fox, who will
leave for the Geneva talks on 24 February, said that he had read in
full the USG position on the issue and, after discussions both
internally and externally with private industry groups, the GOB
identified two issues preventing it from co-sponsoring the USG text
as presented.

2. (U) First, he noted that the GOB is in the process of
standardizing labeling within Mercosul. Since this has not been
completed, the GOB does not have a base for comparison of Mercosul
standards to the USG position.

3. (U) Second, he stated that while awaiting a Mercosul policy, the
GOB is using an internally developed rule and the USG position does
not "precisely" fit GOB requirements. He added that the GOB is open
to discussions in Geneva to find common ground on this issue.

Sobel

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