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Cablegate: Brazil: Ministery of Transportation Presents Draft Proposed

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RR RUEHWEB

DE RUEHBR #0106 0331933
ZNR UUUUU ZZH
R 021932Z FEB 10
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0403
INFO RUEHBR/AMEMBASSY BRASILIA
RUEHRG/AMCONSUL RECIFE
RUEHRI/AMCONSUL RIO DE JANEIRO
RUEHSO/AMCONSUL SAO PAULO

UNCLAS BRASILIA 000106

SENSITIVE
SIPDIS
STATE FOR EEB/TRA/OTP, WHA/BSC, WHA/EPSC
STATE PASS USDOT NBRAVO
STATE PASS USTDA FOR NYOUNGE, GMANDEL
STATE PASS USDOC FOR ADRISCOLL, LFUSSELL

E.O. 12958: N/A
TAGS: ECON ETRD EINV EIND BR
SUBJECT: BRAZIL: MINISTERY OF TRANSPORTATION PRESENTS DRAFT PROPOSED
ROADWAY COOPERATION AGREEMENT

REF: 09 BRASILIA 1238

1. (SBU) Summary: With the goal of enhancing roadway sector
cooperation, Brazil's Ministry of Transportation (MOT) and the U.S.
Department of Transportation (DOT) are negotiating a new
cooperation agreement. MOT has proposed text for a draft
Memorandum of Cooperation (MOC) designed to establish specific
areas of roadway sector engagement and identification of mechanisms
of cooperation. The MOC is the result of meetings that took place
in October 2009 between Brazilian transportation officials and
Nelda Bravo from DOT's Federal Highway Administration (FHWA)
(REFTEL). Post has forwarded the document to DOT and EEB/WHA and
understands both the DOT legal department and L are reviewing. End
Summary.

OVERVIEW OF THE PROPOSED MEMORANDUM

-----------------------------------

2. (SBU) The MOC draws its authorization from the Cooperation in
Science and Technology Agreement signed in 1984 between Brazil and
the United States and requires signatures from DOT and MOT
representatives. The document is scheduled to enter into force
from the date of its signing and will be effective for five years.
Renewal and review time lines are still being negotiated between
the 2 parties. The MOC's stated goal is to establish mutually
beneficial mechanisms that allow for the exchange of information,
technology and experience among experts and specialists in both
countries' roadway sectors. Possible areas of mutual cooperation
identified by MOT are: project management, technological
innovations in the areas of construction, rehabilitation and
maintenance of pavement and special projects such as bridges,
material engineering, road safety, and Intelligent Transportation
System (ITS)implementation (Note: Brazil's highway regulatory
agency ANTT officially adopted the U.S. based NTCIP protocol used
to implement ITS on December 29, 2009. It is estimated that one
specific potential ITS project in Sao Paulo is worth USD500
million. End Note). Modalities of cooperation included in the MOC
range from seminars, DVCs, and academic meetings, to personnel
training programs, imbedding experts and specialists under short
and long-term exchange scenarios, and technology and information
exchanges. The MOC designates Brazil's National Transportation
Infrastructure Agency (DNIT), Brazil's National Roadway Regulatory
Agency (ANTT), and DOT's FHWA as partner agencies in the pursuit of
the document's successful implementation.

3. (SBU) Comment: MOT's proposed MOC is consistent with the
proposals for cooperation DOT discussed during the September trip
to Brazil (reftel). The MOC offers an excellent roadmap towards
increasing highway regulatory cooperation and information exchange
between Brazil and the United States and provides an excellent
opportunity to promote U.S. business interests through the
implementation of the ITS in Brazil. Given Brazilian pre-election
prohibitions on undertaking new programs in the months leading up
to October's national elections, completing the agreement and
beginning work as soon as possible would optimize the potential for
concrete cooperation in the near-term. Upon receiving comments
and/or clearance from the legal departments at State and DOT, Post
will work with MOT to finalize the agreement and work toward a
signing in the near future. End Comment.
KUBISKE

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