Cablegate: Media Reaction: Western Hemisphere: President Bush and Ustr

VZCZCXYZ0007
OO RUEHWEB

DE RUEHSO #0197 0731759
ZNR UUUUU ZZH
O 141759Z MAR 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6567
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7683
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7894
RUCPDOC/USDOC WASHDC 2741

UNCLAS SAO PAULO 000197

SIPDIS

SIPDIS

STATE INR/R/MR; IIP/R/MR; WHA/PD

DEPT PASS USTR

USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: WESTERN HEMISPHERE: PRESIDENT BUSH AND USTR
SCHWAB IN BRAZIL; SAO PAULO

"The USTR Message"

Center-right national circulation daily O Estado de S. Paulo
editorialized (3/14): "USTR Susan Schwab's meetings with
representatives of Brazilian industrial and agribusiness sectors are
the best reference for an evaluation of President Bush's visit to
Brazil last week. Maybe President Lula's visit to Washington in
early April will produce some more concrete results for bilateral
trade and for the advancement of the Doha Round multilateral
negotiations.... The results [of Schwab's meetings in Sao Paulo]
were very poor in general.... The most disappointing for those who
had some expectation about the visit was her message about the U.S.
barriers on Brazilian ethanol.... Not only does the USG intend to
postpone the complete opening of its ethanol market to more
competitive producers, it plans to maintain an important protection
component - the special tariff - out of the Doha Round negotiable
concessions. Given that attitude, it is very difficult to seriously
consider a joint project to develop alternative fuels. Brazil's
competitive strength in this area is internationally recognized and
none of its major trade partners will concede anything to it, unless
it is absolutely necessary. Only the GOB seems to believe in the
idea of an international cooperation in the sector when the nature
of the dispute is different.... Only Brazil is willing to yield
technology for free to possible competitors. Making even more
obvious this detail may have been the most positive effect - or
perhaps the only one - of President Bush's visit to Brazil."
McMullen

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