Evaluation of U.S. Speaker on the U.S.-Central

UNCLAS SECTION 01 OF 03 TEGUCIGALPA 001498 SIPDIS STATE FOR IIP/T/ES; IIP/G/WHA (CBARONE; GLLOYD); WHA/PDA (MBUCKLEY) EMBASSIES FOR PAO E.O. 12958: N/A TAGS: OIIP KPAO HO SUBJECT: Evaluation of U.S. Speaker on the U.S.-Central American Free Trade Agreement (US-CAFTA),David E. Lewis, Tracker #17827 REF: Tegucigalpa 3391 SUMMARY: U.S. Speaker David E. Lewis addressed private sector organizations, labor, GOH, congressmen, academics, the general public and the media in his weeklong visit to Tegucigalpa and San Pedro Sula. PAS sponsored him the first three days and USAID/Honduras programmed him two days. PAS- arranged press events received excellent coverage and highlighted his message on the benefits and challenges of free trade. The program served to focus Honduran audiences focused on the upcoming V Round of the US-CAFTA Negotiations in Tegucigalpa June 16-20. END SUMMARY. A) Description of the Activity: Dr. David E. Lewis, Vice President of Manchester Trade, Ltd., visited Honduras June 1- 7, 2003, as a U.S. Speaker on the U.S.-Central American Free Trade Agreement (US-CAFTA). During his weeklong program, sponsored by PAS for the first three days and by USAID/Honduras the other two days, he spoke to private sector organizations, senior and mid-level government officials, academics, members of the Honduran Congress, labor union representatives, and the general public. He also participated in a PAS-organized press conference, a live morning TV talk show with the Minister of Industry and Commerce, and was guest of honor at a luncheon hosted by the PAO. B) Date: June 1 - 4, 2003 Fiscal year: FY-03, Third Quarter C) Justification and Objective: To discuss with Honduran audiences the benefits of free trade in promoting economic growth and development. D) Tracker No. 17827; MPP Goal: Regional Stability, U.S. Exports, Economic Development and Mutual Understanding. Audience reached: Approximately 350 people directly, including representatives from the public and private sectors; members of the labor unions; students and professors from the National Autonomous University's Central American Graduate Program in Economics and Development Planning (POSCAE); and the general public. His participation in a live TV program with nationwide coverage and a PAS-arranged press conference allowed Dr. Lewis to reach a large number of the general public. E) Result/Impact: Excellent/Excellent The post fully met its objective for this program by providing forums in which to discuss the opportunities, challenges and benefits for Honduras in the CAFTA, what U.S. business seeks, the importance of Central American integration, and the fact that CAFTA is only the first step in a long-term trade relationship with the U.S. Most important of all, Dr. Lewis stressed that CAFTA is an opportunity to reform the economy and the legal system. He also noted that it was the Central American countries who had requested a FTA with the U.S. Dr. David Lewis conducted an intensive program during his visit to Honduras in his dual role as a U.S. Speaker on the U.S.-Central American Free Trade Agreement and a consultant with USAID/Honduras. On his first program day, Dr. Lewis lectured 20 students and faculty (among them Dr. Hugo Noe Pino, former Honduran Ambassador to the U.S.) at the POSCAE, was briefed by the DCM and other Embassy officials, and was guest of honor at a lunch hosted by the Honduran-American Chamber of Commerce (AMCHAM). At the end of the day, he held a roundtable discussion with members of the Honduran Council for Private Enterprise (COHEP). The following day, Dr. Lewis appeared on "Frente a Frente," the interview segment of Honduras's most watched morning TV news program, with Minister of Industry and Commerce Norman Garcia. During the 45-minute program, he made the point that Central America needs to identify what the U.S. market demands and find out how they can supply it, that Central America is negotiating with two fronts - the internal process among the five countries and with the U.S., and that nothing is final until the negotiations end. The program moderator expressed appreciation of the U.S. Embassy's outreach with publications such as IIP's "The Language of Commerce" and the brochure "US-CAFTA." Afterwards, Dr. Lewis held a roundtable discussion with the Vice Minister of Finance, the Director of the Income Tax Bureau and Customs officials to discuss how lower tariffs will reduce government income and how to substitute for them. He also stressed the political decisions that will have to be taken to make the adjustments and noted that standardized import/export procedures are an incentive for foreign investment. Following this meeting, Dr. Lewis held a press conference in PAS, which was featured in all four newspapers and on national TV and four major radio stations PAO hosted a luncheon for David Lewis with members of the Honduran Congress, labor union leaders and representatives of private sector organizations. During the lunch, labor union officials asked if we could schedule a meeting with Dr. Lewis so that their leadership and the Minister of Labor could discuss their concerns in depth. In addition, one of the congressmen attending decided to arrange a meeting with the President of the National Congress and several members of the Commission on Trade. Dr. Lewis participated in a public program at the Tegucigalpa Chamber of Commerce, using his PowerPoint presentation "CAFTA and Honduras: Challenges and Opportunities" to address the background and issues surrounding CAFTA and initiate a discussion on how agricultural, small business and other sectors could take advantage of CAFTA. The following day, Dr. Lewis traveled to the northern city of San Pedro Sula, accompanied by the PAO and a USAID official, to meet with the Honduran Apparel Manufacturers Association ("Maquiladores") and the Cortes Chamber of Commerce and Industry (CCIC) and to participate in a public program. The "Maquiladores," by far the best-prepared sector in the negotiations, discussed the textile proposal on the table vis--vis CBI and GSP benefits and their hope that the U.S. would present a more liberal proposal. Upon returning to Tegucigalpa, Dr. Lewis continued his program with USAID/Honduras, meeting with the Minister of Industry and Commerce and members of the Honduran negotiating team, the President and Vice President of the Honduran Congress, and representatives from the labor unions. Throughout his presentations, Dr. Lewis tried to make the following points with all his audiences: (1) an FTA is an instrument for economic development, not a replacement for a national economic development plan to overcome poverty; (2) Honduras needs to invest in its human resources; (3) in international negotiations each nation must be aware of its important national interests in order to get the greatest benefit for its economy; (4) Honduras needs to decide where it wants to be 50 years from now; (5) CBI and GSP are government-to-government agreements and can be cancelled anytime, whereas an FTA is a contractual commitment that involves all sectors; and (6) countries need to find out what the market demands and how they can supply it. PAS Tegucigalpa highly recommends Dr. Lewis for future programs. His vast experience in international trade and his knowledge of Latin America, plus his fluent Spanish and hard-working disposition, make him an ideal speaker. He immediately establishes excellent rapport with his audiences and manages to keep the discussion on track. We would welcome him back at any time. Post distributed copies of IIP handouts, a pamphlet promoting our IRC, and Dr. Lewis's presentation at all the venues. F) Non-USG Sources of In-country Funding/In-kind Support and Amount: The private sector organizations provided venues and coffee breaks for the conferences, and the other host institutions provided conference facilities for their programs. G) Quality of U.S. Support and IIP Offices Involved: Very Good. Post appreciates Gloria Lloyd and Camille Barone's assistance in making financial arrangements for this program. Palmer