Search

 

Cablegate: Brazil: Economic Partnership Dialogue Meetings

VZCZCXRO8404
OO RUEHRG
DE RUEHBR #1523/01 3291827
ZNR UUUUU ZZH
O 241827Z NOV 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2979
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 6920
RUEHSO/AMCONSUL SAO PAULO 3116
RUEHRG/AMCONSUL RECIFE 8744

UNCLAS SECTION 01 OF 03 BRASILIA 001523

SIPDIS
SENSITIVE

STATE PASS USTR FOR KDUCKWORTH
STATE PASS EXIMBANK
STATE PASS OPIC FOR DMORONSE, NRIVERA, CMERVENNE
DEPT OF TREASURY FOR LTRAN, BONEILL
NSC FOR MICHAEL SMART
DOC FOR MAC/ANNE DRISCOLL

E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD BR
SUBJECT: Brazil: Economic Partnership Dialogue meetings

REF: A) BRASILIA 1418 B) BRASILIA 1482

SENSITIVE BUT UNCLASSIFIED

1. (SBU) SUMMARY: Brazilian External Relations Ministry (MRE) U/S
Mendonca welcomed the continuation of the Economic Partnership
Dialogue (EPD) in the October 30 meeting with WHA A/S Tom Shannon
and EEB A/S Dan Sullivan. The EPD agreed to expanded substantive
cooperation in third countries on development and social inclusion
goals. The group welcomed the civil aviation agreement, the
CPSC-INMETRO import safety MOU, and joint coperation in areas
including infrastructure, indstry sectors, and Haiti. Participants
discussedinvestment, OECD, and innovation issues, reported rogress
on distinctive products (cachaca and bouron), and agreed to explore
a way forward on a posible telecommunications equipment mutual
recogntion agreement. END SUMMARY

STRATEGIC OVERVIEW

2. (SBU) A/S Shannon confirmed the Economic Parnership Dialogue has
been a productive forum for positive cooperation on economic issues.
A/S Sullivan underlined the Dialogue had accomplished much in a
short time, with an emphasis on concrete action. Sullivan noted GOB
and USG are working together bilaterally to address global
challenges and now are expanding cooperation in third countries.

DEVELOPMENT/SOCIAL INCLUSION COOPERATION

3. (SBU) Participants welcomed a deeper partnership between the US
and Brazil in development assistance in third countries,
particularly in Haiti and Portuguese-speaking Africa. GOB welcomed
proposals to expand cooperation in areas such as health projects in
Mozambique and food security in Haiti, drawing on both sides'
experiences and expertise to explore trilateral projects. The USG
welcomed Brazilian participation in country-specific donor
coordination meetings. MRE proposed further cooperation on forced
labor, particularly child labor, issues as well as on advancing
Millennium Development Goals. Both sides welcomed the US-Brazil
Joint Action Plan to promote racial equality. As a former
Ambassador to Mozambique, U/S Mendonca particularly welcomed the
value of cooperation with the United States on development
assistance in Africa. In general, this topic generated palpable
excitement on the Brazilian side, as the country moves toward a
broader role as a donor country. Emphasizing assistance programs
have to be more collaborative and have to include social
inclusion/social justice aims, A/S Shannon underlined the value in
working with partners experienced in addressing the latter to build
institutions in less developed countries. Both sides agreed that
USG-GOB cooperation on biofuels assistance in third countries has
been excellent and serves as a model for increased bilateral
cooperation in assistance to developing countries.

AGRICULTURE

4. (U) Both sides expressed satisfaction with the USDA/Ministry of
Agriculture Consultative Committee on Agriculture (CCA) recent
discussions. Sullivan noted significant common interests and
potential for expanded agricultural cooperation between the United
States and Brazil, including in the Doha Round and biofuels. He
suggested cooperative work on increasing agricultural productivity
could be helpful in addressing food price spikes. Shannon agreed
that working together on food security issues could be an important
element of social inclusion cooperation. MRE took the opportunity
to reiterate its proposal that CODEX centralize meetings in Geneva,
rather than in committee-chair countries, to facilitate developing
country participation. FAS attach noted the United States also
wishes to ensure effective developing country participation in CODEX
and will co-host, with Mexico, a November CODEX workshop to develop
recommendations to address this issue. MRE confirmed GOB would
participate in the workshop and noted perhaps a "co-hosting" model
could address some of the budget implications of its proposal.

INFRASTRUCTURE

5. (U) MRE affirmed GOB continued commitment to the Program to
Accelerate Growth (PAC) infrastructure investment program, briefing
that President Lula strongly supports infrastructure investment's
counter-cyclical effects at a time of global financial crisis as a
way to stimulate tangible investment and countercapital flight.
MRE confirmed GOB does not inten to impose significant GOB
budgetary constraintson PAC spending. MRE noted GOB plans further
inrastructure roadshows in the United States, with the next sector
to be determined. MRE would also welcome a US trade mission to

BRASILIA 00001523 002 OF 003


Brazil, focused for example on oil drilling equipment or on
information technology products related to infrastructure
development.

SECTORAL COOPERATION

6. (U) Following the textiles sectoral cooperation seminar last
spring bringing together industry and government representatives,
MDIC (Commerce Ministry) would like to propose a similar event
focused on the software industry. MDIC, in cooperation with
Brazilian industry, has developed a "Forum for Software
Competitiveness" and proposes to invite USG to join their efforts to
promote Brazilian software in the United States. MDIC indicated the
idea is still in development. MRE also indicated an
aviation-related sectoral seminar idea is also being developed.
Sullivan confirmed there would be US interest in an aviation-related
cooperative initiative.

AVIATION
7. (SBU) Participants welcomed the June civair bilateral agreement.
A/S Sullivan noted the agreement's excellent potential for both
countries' companies and for the development of Brazil's northeast
region. Looking ahead, he expressed USG interest in eventually
reaching an Open Skies agreement with Brazil. MRE noted GOB is
approaching consideration of Open Skies with caution given that US
companies so far are using expanded routes more than Brazilian
companies, and Brazilian industry has difficulties competing, but
that industry and negotiators are becoming more interested over time
in considering exploring the possibility.

HAITI HOPE II

8. (SBU) MRE indicated GOB is interested in exploring if Brazil can
take advantage of HOPE II rules of origin to stimulate productive
investment in Haiti that could help that country reach development
objectives. MRE accepted DOC invitation to come to Washington in
December to explore the idea further. MRE further indicated it is
exploring the feasibility of a Brazilian HOPE-equivalent program.
Noting it might be able to offer such a program unilaterally to
Haiti, or with Mercosul partners if the program is created in
negotiation with Haiti, MRE emphasized a Brazilian HOPE-style
program enjoys strong, concrete Brazilian textile industry support.
A/S Sullivan confirmed USG interest in continuing this dialogue as
the GOB proposal becomes more concrete.

IMPORT SAFETY

9. (U) MRE noted with satisfaction the continuing bilateral
cooperation in this area, citing the September 5th import safety
discussions held in Washington and the recently signed Memorandum of
Understanding on October 22 between Brazil's National Institute of
Metrology, Standardization and Industry Quality (INMETRO) and the
U.S. Consumer Product Safety Commission (CPSC). MRE proposed
establishing a bilateral work group of experts tasked with
researching past product recall procedures in order to streamline
the process. MRE proposed that State and MRE take the lead on
overseeing future import safety cooperation, while the U.S. side
noted that USG procedures do not permit the State Department to take
the lead on the work of other agencies.
DISTINCTIVE PRODUCTS

10. (SBU) MRE confirmed that Agriculture Ministry will be able to
remove the current GOB definition of bourbon and can proceed to
identify bourbon and Tennessee whisky as uniquely of U.S. origin.
TTB noted that rulemaking on reclassifying cacheca as a Brazilian
origin product without the "rum" identifier is moving quickly and
will be ready soon for public comment. Both sides emphasized the
importance of the rulemaking process moving in parallel in both
Brazil and the United States to manage industry sensitivities. (see
ref B for complete discussion of October 29 technical meetings)

INNOVATION
11. (U) Over lunch, OES Bruce Howard offered a presentation on
fostering innovation, emphasizing in particular the importance of
intellectual property rights protection and noting OECD work on
innovation. MRE noted the Joint Commission on Science and
Technology (JCM) would discuss innovation cooperation in meetings
the next day, including IPR. Participants welcomed Brazilian DCM
Abreu's suggestion that the EPD review the results of JCM, CEO
Forum, and Council on Competitiveness/MBC private sector work on
innovation cooperation and decide in the future whether EPD can add
value to other ongoing processes.


BRASILIA 00001523 003 OF 003


INTERNET GOVERNANCE/TELECOMMUNICATIONS MUTUAL RECOGNITION AGREEMENT

12. (U) MRE reiterated GOB view that the ICANN MOU does not provide
a sufficient international role. A/S Sullivan noted the Internet
Governance Forum meetings have been productive. A/S Shannon noted
USG concerns that any stakeholder-driven process not serve to
constrain the internet or inhibit freedom of expression. Turning to
the potential for a US-GOB Mutual Recognition Agreement (MRA) on
telecommunications/information technology products explored in
previous EPD meetings, A/S Sullivan affirmed continued USG and
industry interest as a "win-win" for consumers and manufacturers.
MRE noted that Brazilian legislation in general requires
certification tests to be performed in Brazil, but some exceptions
exist for telecommunications/information technology products.
Possibilities therefore for MRA coverage may therefore be limited;
MRE committed to provide a paper laying out what products
potentially could be covered under a MRA.

INVESTMENT/TAX TREATY

13. (U) MRE noted the investment technical session October 29 (see
septel) was productive. MRE proposed holding another technical
discussion on the margins of the next EPD, expressing particular
interest in learning more how USG approaches disputes under NAFTA
Chapter 11 and how USG manages foreign investment under CFIUS. A/S
Sullivan noted the importance Brazilian and US industry attaches to
reaching a bilateral investment agreement as well as a bilateral tax
agreement. MRE welcomed progress in tax discussions to date.

OECD

14. (SBU) Emphasizing the OECD needs to reflect the diversity of the
21st century's global economy, A/S Sullivan welcomed Brazil's
enhanced engagement and contribution of its expertise in areas such
as biofuels and other energy issues. Noting sensitivities remain
among some in Brazil regarding the OECD, MRE welcomed increasing
developing country participation. MRE noted GOB has reviewed
interagency all the committees of the OECD and has identified
further committees Brazil can engage in that are "not too sensitive
for us." One MRE participant noted that Brazil has contributed
biofuels-related data that OECD chose not to incorporate, which does
not help convince internal nay-sayers of the value of the
organization.

COMMENT

15. (SBU) The EPD meeting served to affirm the value USG places in
this forum to foster concrete positive cooperation on economic
issues with GOB. The new Economic Undersecretary equally underlined
the value of the EPD for MRE. On the margins of the meeting, MRE
emphasized that FM Amorim remains strongly committed to and
interested in this Dialogue. The tangible progress on deepening
cooperation on development and social inclusion issues in third
countries was a particular highlight of this session. MRE interest
and commitment to working with the USG to expand this cooperation in
Africa and Haiti was evident. Mission believes the EPD has been
instrumental in achieving tangible successes in the economic area
with Brazil and strongly supports continuation of this Dialogue in
the new Administration. END COMMENT

16. (U) This cable was cleared by the delegation.

KUBISKE

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO: