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Cablegate: Brazil:Itamaraty Trade a/S - Economic Dialogue

VZCZCXRO5256
RR RUEHRG
DE RUEHBR #2234 3401242
ZNR UUUUU ZZH
R 061242Z DEC 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0588
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 5528
RUEHSO/AMCONSUL SAO PAULO 1277
RUEHRG/AMCONSUL RECIFE 7457
RUCPDOC/USDOC WASHDC

UNCLAS BRASILIA 002234

SIPDIS

DEPT PASS USTR FOR KATE DUCKWORTH
DEPT PASS DOC/ITA/MAC/OLAC ANNE DRISCOLL
DEPT PASS TREASURY LUYEN TRAN

SENSITIVE
SIPDIS

E.O. 12958:N/A
TAGS: ETRD ECON BR
SUBJECT: BRAZIL:ITAMARATY TRADE A/S - ECONOMIC DIALOGUE

Ref a) Brasilia 2174 b)e-mail Erath-WHA/EB various re Kleebank 12/4

1. (U) SUMMARY: Carlos Marcio Cozendey, director of the MRE Economic
Department (A/S equivalent) has the lead on the Economic Dialogue
and provided feedback on the December 13 agenda in a recent meeting
with EconCouns. (See ref B for expanded Brazilian feedback on
details of the dialogue). Cozendey also explained the organization
of his department and commented on the WTO negotiations. END
SUMMARY

2.(U) On the Economic Dialogue, Cozendey mentioned Itamaraty has
some reluctance to talk much about GMOs as this topic is currently
the subject of much inter-ministry disagreement on what Brazil's
position should be (with Environment strongly against and
Agriculture for agricultural biotechnology). On civil aviation
negotiations, he noted that, as MRE does not have the lead for
Brazil on this issue, welcoming the Dec 5-7 talks is about the level
of substance expected in the December 13 session. Similarly, they do
not expect heavy substance on telecom where MRE also does not have
the lead. On "sectors," Cozendey said the Brazilian textiles
industry is the only sector that actively asked for a dialogue with
US; the other proposed sectors were MRE ideas. The Brazilian
textiles industry originally wanted to talk to US industry about
pushing for a preferential US/Brazil agreement that would exclude
China (they wanted a similar dialogue with EU), according to
Cozendey, but MRE said that was a no-go. Instead, MRE is willing to
support an industry to industry dialogue on exploiting export
markets more effectively. He said MRE learned there is already a
similar industry to industry process for the steel sector led by DOC
and USTR, so they now do not expect steel to be included as a
"sectoral" conversation in the Economic Dialogue. He said MRE
envisions the Dialogue as a mix of issues where: 1) MRE/DOS have the
lead and can actively engage together; and 2) issues where MRE/DOS
push might help give impetus to issues/processes led by other
agencies.

3.(U) Cozendey noted Economics U/S Avevedo oversees three
departments: his, responsible for WTO, OECD, UNCTAD and other IOs
plus bilateral economic issues including disputes, antidumping,
agriculture, market access, and services/investment; Didonet's
Department (see ref a); and the Science and Technology Department
that covers intellectual property and sci/tech. Cozendey noted that
U/S for South America (now Enio Cordeiro) has the lead for
intra-Mercosul cooperation and regional integration and would
logically have the lead on regional infrastructure cooperation for
MRE (see septel readout of meeting with Integration A/S Cardoso).

4. (SBU) Commenting on the WTO Round, Cozendey said "success depends
on you." He said there was a lot of fear that upcoming elections in
the United States would constrain the ability to reach a deal.
"That's why I hold my cards close to my chest. I don't want to
reveal a final position, then leave it hanging out there. If
negotiations fritter out, nothing will happen until 2013."

5. (SBU) As Avezedo's deputy on WTO trade issues, Cozendey maintains
a heavy travel schedule and is comparatively rarely in Brazil. His
English is perfect, he can read upside-down and is clearly an
experienced, and personable, negotiator. He was in Brussels at the
Brazilian mission to the European Union before assuming his current
position two years ago. Cozendey joined the diplomatic corps in
1987, was at Marrakesh with Amorim (as the only minion among four
Brazilian Ambassadors, he fondly remembered) and has previously
served at ALADI, the Brazilian mission to Mercosul in Montevideo,
and as head of the Mercosul office in Brasilia.

CHICOLA

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