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Cablegate: New Protectionist Non-Tariff Barriers Target

VZCZCXRO1199
RR RUEHWEB
DE RUEHBU #1628/01 2330953
ZNR UUUUU ZZH
R 210953Z AUG 07 ZFR
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 8967
INFO RUEHAC/AMEMBASSY ASUNCION 6461
RUEHBR/AMEMBASSY BRASILIA 6315
RUEHCV/AMEMBASSY CARACAS 1421
RUEHLP/AMEMBASSY LA PAZ 4837
RUEHMN/AMEMBASSY MONTEVIDEO 6669
RUEHSG/AMEMBASSY SANTIAGO 0691
RUEHRI/AMCONSUL RIO DE JANEIRO 2313
RUEHSO/AMCONSUL SAO PAULO 3480
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHINGTON DC
RUCPDOC/USDOC WASHDC
RUEHBJ/AMEMBASSY BEIJING 0155
RUEHHK/USCONSUL HONG KONG 0018
RUESLE/USCONSUL SHANGHAI 0015
RUEHGZ/USCONSUL GUANGZHOU 0093

UNCLAS SECTION 01 OF 02 BUENOS AIRES 001628

SIPDIS

SIPDIS

EB/TPP/BTA/EWH FOR BETH LAMPRON
WHA FOR WHA/BSC AND WHA/EPSC
PASS NSC FOR MICHAEL SMART
PASS FED BOARD OF GOVERNORS FOR PATRICE ROBITAILLE
PASS USTR FOR KATHERINE DUCKWORTH AND MARY SULLIVAN
TREASURY FOR ROSELLEN ALBANO
USDOC FOR 4322/ITA/MAC/OLAC/PEACHER
US SOUTHCOM FOR POLAD

E.O. 12958: N/A
TAGS: ECON ETRD EINV AR
SUBJECT: NEW PROTECTIONIST NON-TARIFF BARRIERS TARGET
CHINA, WOO DOMESTIC INDUSTRIAL SUPPORT

REF: A. BUENOS AIRES 1496
B. BUENOS AIRES 1445

BUENOS AIR 00001628 001.2 OF 002


///////////////////////////////////////////// ////////////
ZFR ZFR ZFR ZFR
///////////////////////////////////////////// ////////////

ZFR IMI ZFR ABOVE BUENOS AIRES 1628 AND BLANK ASSOCIATED
MCN. REPLACEMENT CABLE HAS BEEN SENT. RGDS.

///////////////////////////////////////////// ////////////
ZFR ZFR ZFR ZFR
///////////////////////////////////////////// ////////////


BUENOS AIR 00001628 002 OF 002


From his first days in office, Peirano has expressed his
conviction that promoting and sheltering the growth of a deep
and diverse industrial base is fundamental to improving
Argentina's terms of trade. This package of new and as-yet
poorly-defined non-tariff barriers speaks to Peirano's
protectionist philosophy and to growing domestic concern over
the surge in Chinese imports (which, in this era of Chinese
prowess in the export of consumer goods, follows ineluctably
from the GoA's consumption-led economic recovery strategy).
This step also reflects domestic industry's share of the
pre-election pinata after the GoA's recent announcement of
cuts in consumer income tax liabilities and an increase in
pension payments.
WAYNE

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