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Cablegate: Brazil Esth Update, June/July 2006

VZCZCXRO4480
PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHNG
RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHBR #1520 2091851
ZNR UUUUU ZZH
P 281851Z JUL 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 6158
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 2540
RUEHSO/AMCONSUL SAO PAULO 7565
RUEHRG/AMCONSUL RECIFE 5176
RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS

UNCLAS BRASILIA 001520

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: SENV TNGD KSCA EAGR BR
SUBJECT: BRAZIL ESTH UPDATE, JUNE/JULY 2006

NEW STATE PARK
---------------
1. The Government of the Brazilian state of Para has approved the
creation of the second the biggest protected area in the country.
The state forest (Flota) of Paru will be 36,000 square kilometers
(3.6 million hectares), an area larger than France, and it will be
used for both preservation and sustainable exploitation of natural
resources. All timber production will have to be certified and
there are also plans to develop activities such as research, mining
and tourism in the forest.

The Brazilian Government also has plans to approve another 13
state-forests, all of which will allow both conservation and
sustainable economic development of the areas. Paru state-forest
will be the model for the other 13 Flotas that the Brazilian
Government intends to establish.

PRESERVATION LAW HURDLES
-------------------------
2. Farmers and rural producers from the state of Sao Paulo do not
agree with new a preservation decree implemented in June, 2006. The
decree, part of a Brazilian Forest Code, requires that 20% of rural
properties be covered by native vegetation. The problem is that
most of the land in the state is already being used for agricultural
purposes. According to analysts from the Agriculture Economics
Institute (IEA), an estimated 3.7 million hectares of productive
land would have to be turned into native vegetation, resulting in
the loss of US$ 2.6 billion in agriculture revenues and 136 thousand
jobs.

BRAZILIAN NATIONAL FRESHWATER MANAGEMENT PLAN
---------------------------------------------
3. The Government of Brazil recently approved the country's first
National Freshwater Management Plan. The plan includes more than 25
national and regional programs that encompass objectives, goals and
guidelines for the sustainable use of Brazil's freshwater resources
until 2020. The plan's main components are the adoption of
scientifically defined freshwater ecoregions and analyses of
hydroelectric potentials, navigation and water utilization regimes
for drinking water, other household uses, industrial uses and
irrigation. Brazil possesses 12% of the world's freshwater reserves
and is the first country in Latin America to have a National Water
Management Plan.

CRITICAL DROUGHT SITUATION
---------------------------
4. Due to the second worst drought in the state's history, 45 cities
in Parana were put under a state of emergency, bringing the total
number to over 250 cities in Brazil's Southern region.
Approximately 1.8 million people in Parana will experience water
rationing over the next couple of weeks. River volumes are falling
daily and the financial loss in Parana's agricultural sector is
estimated to be US$ 845 million due to the lack of water. The rainy
season is expected to start in September.

BIOTECHNOLOGY NEWS
-------------------
5. A Brazilian consortium of GoB and private entities just unveiled
a US$ 3 billion strategy aimed at making Brazil a world leader in
biotechnology. The plan was announced during The Brazilian Forum of
Biotechnology Competitiveness and it will identify areas with the
potential to boost the competitiveness of Brazilian industry,
increase Brazil's participation in global trade, speed up the
industry's economic growth and create jobs. Out of the total
amount, US$ 530 million is earmarked for health-related
biotechnology, including the production of drugs and vaccines for
neglected diseases and research in the fields of genomics,
proteomics, nano-biotechnology and stem cell science. The plan,
which will be presented to President Lula da Silva for approval
later this year, also provides for new funding mechanisms, training
and improving infrastructure of research institutions.

CHICOLA

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