Identifier
Created
Classification
Origin
04PARAMARIBO39
2004-01-16 11:22:00
UNCLASSIFIED
Embassy Paramaribo
Cable title:  

IIP U.S. RICE POLICY SPEAKER DR. GAIL CRAMER WINS

Tags:  KPAO EAGR PREL NS 
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UNCLAS PARAMARIBO 000039 

SIPDIS


DEPT FOR WHA/PD - APRUITT, IIP/G/WHA - CBARONE, IIP/T/ES -
GCHRISTISON, WHA/CAR - MSEIBEL

E.O. 12958: DECL: N/A
TAGS: KPAO EAGR PREL NS
SUBJECT: IIP U.S. RICE POLICY SPEAKER DR. GAIL CRAMER WINS
SURINAMERS OVER, DISPELS POPULAR MISCONCEPTIONS ABOUT US
RICE POLICY

Ref: PARAMARIBO 517

-------
SUMMARY
-------

UNCLAS PARAMARIBO 000039

SIPDIS


DEPT FOR WHA/PD - APRUITT, IIP/G/WHA - CBARONE, IIP/T/ES -
GCHRISTISON, WHA/CAR - MSEIBEL

E.O. 12958: DECL: N/A
TAGS: KPAO EAGR PREL NS
SUBJECT: IIP U.S. RICE POLICY SPEAKER DR. GAIL CRAMER WINS
SURINAMERS OVER, DISPELS POPULAR MISCONCEPTIONS ABOUT US
RICE POLICY

Ref: PARAMARIBO 517

--------------
SUMMARY
--------------


1. Dr. Gail Cramer, the Head of the Department of
Agricultural Economics and Agribusiness at Louisiana State
University, educated Surinamers about U.S. Rice Policy
during an October 12-16 visit to Suriname. He met with a
variety of government officials, politicians, rice farmers
and exporters both in Nickerie, Suriname's rice district,
and in the capital Paramaribo; toured Suriname's most
successful rice company; attended an Amcham-hosted
breakfast; taped an impromptu television program; and
delivered two well-received public lectures. Throughout his
visit, Dr. Cramer emphasized the US's commitment to free
trade and its desire to end agricultural subsidies through
World Trade Organization negotiations; the domestic
considerations that drive US agricultural policy; and facts
about the US's PL480 program, particularly with regard to
Jamaica. While he acknowledged the long list of problems
plaguing Suriname's rice sector, Dr. Cramer called on
Surinamers to take steps that would allow Suriname to become
more competitive on the global rice market, steps such as
the reduction of production costs, investment in
infrastructure and research, the tapping of new markets, and
increased production of rice products. By presenting
complex US rice policy in a straightforward manner, Dr.
Cramer advanced key USG themes, specifically that of free
trade and mutual understanding, and effectively disarmed
critics of US rice policy. End Summary.

-------------- --------------
CRAMER WOWS AUDIENCE IN NICKERIE, SURINAME'S RICE DISTRICT
-------------- --------------


2. IIP US Agricultural Policy speaker Dr. Gail Cramer, the
Head of the Department of Agricultural Economics and
Agribusiness at Louisiana State University, visited Suriname
October 12-16 to educate Surinamers about US rice policy.
During an October 14 visit to Nickerie, Suriname's rice
district, Dr. Cramer met with farmers and government
officials to discuss their concerns regarding the rice
sector -- rice is Suriname's most important agricultural

product. Hardheo Ramadhin, the District Commissioner for
Nickerie, and Kadi Kartosoewito, Director of Adron, a rice
research center, spoke at length with Cramer about the lack
of investment in the rice sector, the lack of funding for
research to develop new varieties of grains, and the unfair
competition Suriname faces from larger rice growing
countries, such as the United States. Both men voiced the
common misperception that the United States is dumping
subsidized American rice on the Caricom market through the
PL480 program in Jamaica. (See Reftel for further
discussion of Suriname's troubled rice sector).


3. Dr. Cramer addressed these concerns during a lecture
held at Adron, which was attended by influential rice
farmers and exporters. Cramer rejected the claim that the
United States' rice policy was hurting Suriname, one of
Caricom's two rice exporting countries. He explained that
the United States is subsidizing rice, but is not providing
rice export subsidies or subsidies to cover production
costs. According to Cramer, U.S. farmers can grow rice
cheaper than all but two countries, even without US
government assistance. Countering allegations that the U.S.
is pursuing a double standard by subsidizing its domestic
rice industry on the one hand and by promoting free trade on
the other, Cramer said that the U.S. government was prepared
to terminate all rice subsidies in 2002. However, due to
large surpluses and a decrease in world rice prices, the USG
was forced to change course. The USG remains committed to
cutting subsidies only via World Trade Organization talks,
Cramer said, as domestic political realities make it
impossible for the US to terminate subsidies unilaterally.
As for the PL480 program, Cramer explained that the U.S. had
stopped providing rice to Jamaica for at least two years and
that all current sales to Jamaica are commercial in nature.
Dr. Cramer urged Surinamers to increase their
competitiveness by reducing production costs, investing in
research and infrastructure, tapping into new markets, and
expanding production of rice products.


4. Two issues raised by Cramer -- the degree to which US
domestic politics influences US rice policy and the PL 480
program with Jamaica -- sparked lively discussions. Rice
stakeholders were surprised about the active role Congress
has played since 1929 in passing specific legislation to

support US rice farmers and about the billions of dollars in
subsidies rice farmers receive annually. Attendees were
surprised to learn that the United States is no longer
supplying Jamaica with cheap American rice and expressed
appreciation to Dr. Cramer for dispelling that popular
misconception. In reaction to Dr. Cramer's presentation,
Leakhat Mahawathkan, a National Assembly member who is also
a rice farmer, told attendees that local politicians should
learn from the US example and educate themselves even more
about the rice sector and that the Government of Suriname
should subsidize rice farmers. Mahawatkhan and the other
attendees were so impressed with Dr. Cramer's presentation
that they arranged for him to deliver an impromptu
presentation on a local television program. The program was
later dubbed in Dutch and Hindi to attract a wider audience.

--------------
VISIT TO A RICE FARM
--------------


5. Following his lecture, Dr. Cramer attended a lunch
hosted by the Soechit family, one of the most important and
successful rice producers in the country, and toured the
family's rice company. During the tour, Dr. Cramer had the
opportunity to view the entire rice production process, from
harvesting, to the drying and grinding of rice paddy, to the
packaging of the end product. The Soechit family later told
the Embassy that they appreciated the opportunity to discuss
the intricacies of the rice business with an American rice
expert, one who had research experience in neighboring
Guyana and who knew firsthand about the type of difficulties
Surinamese farmers are currently facing.

-------------- --------------
MEETING WITH POLICYMAKERS, RICE EXPERTS IN PARAMARIBO
-------------- --------------


6. Dr. Cramer reiterated the points made with various
interlocutors in Nickerie during a breakfast sponsored by
the American Chamber of Commerce, a meeting with Rick Van
Raavenswaay of Celos, the rice institute at Anton De Kom
University, and a meeting with Jaswananth Sathoe, the
Ministry of Agriculture's Permanent Secretary, in
Paramaribo. While Cramer successfully conveyed U.S. rice
policy to Van Raavenswaay and Amcham members, the meeting
with Sathoe proved to be exasperating. Even though the
Embassy stressed that Dr. Cramer is a university professor
and not a government official, Sathoe refused to permit
Cramer to speak, declaring "I do not want to listen to what
you [Cramer] have to say." While the meeting with Sathoe
amounted to a one-way barrage about the evils of US rice
policy, which allegedly prevents small countries like
Suriname from benefiting from free trade, it exposed Cramer
to Surinamese sensitivities on this subject and to the
tendency by some Surinamers to blame the US for their
troubles.

-------------- --------------
DR. CRAMER CAPTIVATES AUDIENCE WITH HIS PARAMARIBO LECTURE
-------------- --------------


7. Dr. Cramer delivered a well-received lecture October 15
on US rice policy to a group of influential policymakers and
rice stakeholders, including the Ministers of Trade and
Industry and Agriculture, and political leaders from various
parties. Like others before them, the audience was
surprised by the amount of subsidies US rice farmers receive
from the USG, the US commitment to ending subsidies via the
World Trade Organization, and the termination of the US
PL480 rice program for Jamaica. Because Dr. Cramer managed
to disarm critics of US rice policy with his effective
presentation, members of the audience focused on taking
advantage of the Minister of Trade and Industry's presence
to urge the government to invest in infrastructure and
research, to help Surinamese farmers to compete, and to
search for new markets. Many stayed for some time after Dr.
Cramer's lecture to continue one-on-one discussions with
him.

--------------
GPRA DATA
--------------


8. Justification and objectives: Embassy intended to
promote a better grasp of U.S. Rice Policy and mutual
understanding with Dr. Cramer's visit. Suriname is one of
Caricom's two rice-producing countries. Many stakeholders
in the rice sector, which has been in decline for some time
now, blame the US for adding to Suriname's woes by providing

cheap rice to Jamaica, which reportedly dumps cheap American
rice on the Caricom market. Surinamers also regularly
denounce the US for promoting free trade on one hand and for
providing subsidies to its farmers on the other. Embassy
hoped that Dr. Cramer's visit would dispel myths and provide
factual information about US rice policy to Surinamese rice
stakeholders. Several contacts had requested that the
Embassy make some presentations on this topic, but due to
lack of information, the Embassy was unable to fulfill these
requests. Thanks to IIP's responsiveness and excellent
coordination, we were able to find the perfect speaker for
this narrow topic.

--------------
RESULTS/IMPACT
--------------


9. Results/Impact: Dr. Cramer did not convince many local
rice merchants to support free trade in agriculture.
Instead, discussions about the level of US subsidies/support
to US rice farmers encouraged calls for GOS subsidies as
well as greater GOS investment in Suriname's rice industry
(i.e. infrastructure improvements, development of new
varieties, and business management consulting). However,
Dr. Cramer's visit helped educate Surinamers, particularly
the movers and shakers in the rice sector, about US rice
policy, the domestic considerations US politicians must take
into account, the US commitment to free trade, and the PL480
program. Many contacts expressed appreciation for this
Embassy initiative, noting that Dr. Cramer provided them
with information on US rice policy that they had no access
to previously and that their opinions had changed in favor
of the U.S. on this topic.

--------------
COMMENT
--------------


10. Dr. Cramer succeeded in providing Surinamers with
information on an issue that they knew little about but
often criticized: U.S. rice policy. With his well-
articulated, engaging style, Dr. Cramer captivated audiences
in Paramaribo and in Nickerie District with the facts about
US rice policy, while dispelling popular misconceptions
about the US's alleged "hypocrisy" regarding free trade and
its "dumping" of rice on the Caricom market. To our
delight, Dr. Cramer's visit prompted a lively discussion by
Surinamers of the need for politicians to educate themselves
about the rice sector in order to make more informed
decisions about the country's rice policy. The Embassy
recommends Dr. Cramer as a speaker to other posts. End
Comment.

BARNES


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