FIDE CHIEF NORMAN GARCIA TO BE NEW TRADE MINISTER

UNCLAS TEGUCIGALPA 002893

SIPDIS

SENSITIVE

PASS TO USTR FOR ANDREA GASH DURKIN
FOR WHA/CEN, WHA/EPSC

E.O. 12958: N/A
TAGS: ETRD PGOV HO
SUBJECT: FIDE CHIEF NORMAN GARCIA TO BE NEW TRADE MINISTER



1. (SBU) President Maduro has tapped Norman Garcia,
Executive Director of the investment and export promotion
NGO, FIDE, to be the new Minister of Industry and Trade,
replacing Juliet Handal. He will be sworn in on October 17
by Acting President Vicente Williams. The GOH is also
creating a cabinet level task force, consisting of the
Ministry of Industry and Trade, the Ministry of Agriculture,
the Ministry of Foreign Affairs and the Finance Ministry, to
assure interagency coordination of ongoing trade
negotiations. This Trade Negotiation Cabinet will be led by
Minister of the Presidency, Luis Cosenza.


2. (SBU) Norman Garcia is a former Minister of Tourism
during the Flores Administration. He has wide contacts
throughout Central America and in the United States. His
English is excellent. Since President Maduro's election, he
has worked closely with Vice President Vicente Williams to
develop the Competitiveness Council, and was instrumental in
bringing Michael Porter to Honduras earlier this year. He
is a close associate of Minister of the Presidency Luis
Cosenza and Minister for Communications and Strategic
Affairs, Ramon Medina Luna (both former FIDE Directors as
well). He does not have direct experience in trade
negotiations and trade policy, but he should bring a much-
needed strategic vision to the Ministry. He is 58 years
old and has a degree in Industrial Engineering from
California State Polytechnic University. Garcia has been an
excellent Embassy and AID contact for many years.


3. (SBU) Garcia is well aware that Honduras needs to
accelerate its preparations for various trade negotiations:
WTO Doha Round, FTAA, Central America Free Trade talks with
the United States (USCAFTA),and regional customs union
talks. We hope that we will be able to determine shortly
whether he will attend the upcoming FTAA Ministerial. Both
USAID and Econcouns have spoken to Garcia and other GOH
officials about the need to complete quickly a National
Action Plan for Honduras for technical assistance in the
area of Trade Capacity Building, due on October 31. We
understand (and hope to confirm shortly) that Garcia plans
to keep Vice Minister for Foreign Trade Irving Guerrero and
his new team in place. SIECA consultant Alvaro Sarmiento is
continuing with his plans to provide rapid training to the
new employees in the Ministry; this assistance is financed
by USAID's G-CAP program.


4. (SBU) Comment: It is a very encouraging sign that the GOH
chose to replace former Minister Handal with a trusted
member of Maduro's inner circle, rather than trying to
create a new government entity to conduct the USCAFTA
negotiations. We also consider it encouraging that Cosenza
plans to lead the Trade Negotiation Cabinet and to keep it
small. While other Ministries will need to be included and
consulted (especially Labor and Natural Resources) from time
to time, we believe this approach demonstrates that the GOH
intends to now give trade policy the attention it deserves.
End Comment.

Palmer