Identifier
Created
Classification
Origin
03TEGUCIGALPA652
2003-03-13 19:06:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tegucigalpa
Cable title:  

MADURO GETS POLITICAL LIFT FROM SUSPENSION OF

Tags:  PBTS ETRD PGOV PREL HO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS TEGUCIGALPA 000652 

SIPDIS

SENSITIVE

STATE FOR WHA/CEN, WHA/EPSC, AND EB
STATE PASS AID FOR LAC/CEN
PASS TO USTR FOR ANDREA GASH DURKIN

E.O. 12958: N/A
TAGS: PBTS ETRD PGOV PREL HO
SUBJECT: MADURO GETS POLITICAL LIFT FROM SUSPENSION OF
NICARAGUA 35 PERCENT TARIFF

REF: TEGUC 00606

UNCLAS TEGUCIGALPA 000652

SIPDIS

SENSITIVE

STATE FOR WHA/CEN, WHA/EPSC, AND EB
STATE PASS AID FOR LAC/CEN
PASS TO USTR FOR ANDREA GASH DURKIN

E.O. 12958: N/A
TAGS: PBTS ETRD PGOV PREL HO
SUBJECT: MADURO GETS POLITICAL LIFT FROM SUSPENSION OF
NICARAGUA 35 PERCENT TARIFF

REF: TEGUC 00606


1. (SBU) The news of the Nicaraguan Congress' vote to
temporarily suspend the retaliatory 35 percent tariff on
Honduran goods, after three years, was greeted with relief
and a bit of triumph in Tegucigalpa. On March 11, Honduran
President Maduro immediately announced the news, after
receiving a call from Nicaraguan President Bolanos. Maduro
thanked Bolanos and the Nicaraguan legislature, and
indicated that the move was a welcome backdrop to the
Central American Presidents' planned meetings in Washington
on April 11, where regional integration was the key topic.
Maduro also gave significant credit to the patience and
maturity of the Honduran public and the National Congress.
Privately, at least one member of the Honduran Cabinet has
acknowledged that USG discussions with Nicaragua contributed
greatly.


2. (SBU) The tariff suspension represents a badly-needed
political success for Maduro. The Honduran media
highlighted the fact that Maduro had made this a top
objective from his first day in office and that he had been
in constant discussion with Bolanos on the subject for the
past year. Hopefully, this recent cooperation between the
executive branch, Congress and private sector will help
bolster additional support for the critical tax and
austerity measures that will soon be introduced in Congress.


3. (SBU) Minister of the Presidency Luis Cosenza, Trade
Minister Norman Garcia and key members of the business
community believe that the Honduran Congress will drop their
earlier plans to enact (and simultaneously suspend)
retaliatory tariffs and fees on Nicaragua. The government
is arguing that if the Nicaraguan tariff is reinstated at
any point, the Honduran Congress could easily take moves at
that time.

Palmer