AMBASSADOR MEETS WITH ROBERTO RODRIGUES,

UNCLAS SECTION 01 OF 02 BRASILIA 000298 SIPDIS SENSITIVE USDA FOR SECRETARY JOHANNS USDA FAS FOR ADMINISTRATOR ETERPSTRA; AREA DIRECTOR JBAILEY USDA APHIS FOR ADMINISTRATOR DEHAVEN SAO PAULO FOR ATO/RVERDONK E.O. 12958: N/A TAGS: EAGR PGOV ECON BR SUBJECT: AMBASSADOR MEETS WITH ROBERTO RODRIGUES, BRAZILIAN MINISTER OF AGRICULTURE REF: BRASILIA 235 FOR USDA, THIS IS AN ACTION MESSAGE USDA/APHIS (SEE PARA. 8-9) AND USDA/FAS (SEE PARA. 12). ¶1. (SBU) SUMMARY. Ambassador Danilovich met with the Brazilian Minister of Agriculture, Livestock, and Food Supply ("MAPA" is the Portuguese acronym),Roberto Rodrigues, on January 25 in Brasilia to discuss trade concerns and issues leading up to the CCA meetings in Washington in March 2005. Rodrigues focused on the pending biosafety legislation in the Brazilian House of Representatives, the CCC agenda, access to the U.S. market for Brazilian fresh, chilled, and frozen beef, an increase in Brazil's sugar quota, access for papayas in the U.S. market, coffee contract C on the exchange in New York, and the upcoming RIMSA meetings in Mexico. Rodrigues also requested a meeting with Secretary Johanns in Washington on the afternoon of April 19 or morning of April 20. Participants in the meeting included Ambassador Mauricio Costas, the Minister's new International Affairs Advisor, and AgCouns Westman. END SUMMARY ¶2. (U) At a January 25 meeting with Brazilian MinAg Rodrigues, Ambassador complimented Brazil's increasing agricultural production and exports in recent years and its initial favorable ruling on the EU sugar and U.S. cotton cases in the WTO. He added that the U.S. continues to be an excellent customer for Brazilian agricultural products --importing ten times more ag products than we export to Brazil. FTAA Negotiations -------------- ¶3. (U) The Ambassador emphasized the importance of restarting the FTAA negotiations and commented that Ambassador Zoellick's move to become Deputy Secretary of State will provide outstanding leadership in this area. Minister Rodrigues commented that now is the time to resolve trade issues, construct mutually beneficial solutions, and truly address free trade in the hemisphere. U.S. Priorities -------------- ¶4. (U) Ambassador raised the following U.S. priority issues with the Minister: -- Consultative Committee on Agriculture (CCA) meetings planned for March 15-18 in Washington, D.C., and developing the proposed agenda as soon as possible; -- Biotechnology orientation tours with Brazilian Congressional representatives and the Brazilian media; -- USDA Food Safety and Inspection Service Audit (a comprehensive and detailed seven-week audit of the meat inspection system) scheduled for March/April, 2005; and, -- Reorganization of the Brazilian Ministry of Agriculture. Jockeying for Position in the Brazilian Congress -------------- --- ¶5. (SBU) Minister Rodrigues lamented the amount of time he had spent with the agriculture caucus in the Brazilian House of Representatives. (Note, Rodrigues was lobbying for Deputy Luiz Eduardo Greenhalgh (PT) to become the next Speaker of the House. Greenhalgh is President Lula's preferred candidate but his background as an attorney for the Landless Movement (MST) has made him unpopular with members of the ag caucus.) The Minister's Priorities -------------- ¶6. (U) Rodrigues had his own list of priorities prepared for the Ambassador's consideration: Biotechnology. Regarding the pending biosafety billin the House, the Minister felt confident that the Senate version of this bill (generally favorable to biotechnology) will easily pass in March. He was very encouraged by the Embassy proposal to sponsor two biotechnology orientation tours for Brazilian congressional representatives and the science press (reftel). He felt that the timing of the tours in May/June, 2005, after the vote on the biosafety bill was "ideal" because the congress would not be pressured yet would benefit from this orientation. The Minister suggested expanding the tours to include serious non-governmental organizations and offered to provide prospective candidates from the "nucleo organico" side of the Workers' Party. Consultative Committee on Agriculture (CCA) -------------- ¶7. (U) The Minister is very enthusiastic about the CCA and upcoming meetings in Washington in mid-March. He plans to ask former MAPA Executive Secretary (Vice Minister),Amauri Dimarzio, to travel to Washington with Luis Carlos Gedes Pinto, the new ExecSec at MAPA and former President of the National Supply Company (CONABsimilar to the Commodity Credit Corporation). Ambassador Costas, will contact the AgCouns regarding the proposed agenda for the CCA meetings. Fresh Beef Exports to the United States -------------- ¶8. (U) The Minister was informed, based on the last CCA meeting in Washington in September, that USDA/APHIS completed the risk analysis for fresh, chilled, and frozen (FCF) beef and now was in rule making. He wanted to know why this was taking so long. He noted that the same could be said for poultry (Note, AgCouns forwarded the new FSIS questionnaires to the MAPA the week of January 14.) Ambassador commented that rulemaking can take a considerable amount of time after completion of the risk analysis but the Mission would request an update/status report from APHIS. Papayas -------------- ¶9. (U) Rodrigues requested the status of approval to export papayas from northeast Brazil to the U.S. (also under rule making in Washington). Request to Increase the U.S. Sugar Import Quota -------------- -- ¶10. (SBU) The Minister requested that the U.S. double Brazil's share of the U.S. sugar import quota. This would allow him to placate the sugar producers/exporters in Sao Paulo who are in a political battle with producers in the nine northeastern states (the northeast is allocated the entire Brazilian quota based on economic assistance objectives for the region, which is the poorest in Brazil). Coffee and the New York Board of Trade -------------- ¶11. (U) Rodrigues requested the Ambassador's and USG's intervention with the New York Board of Trade (NYBOT) to permit inclusion of Brazilian coffee in the contract to price Washed Arabica Beans. Colombian producers oppose inclusion of Brazilian beans in contract C, and certain members of the U.S. Congress support their objectives, because of the potentially negative social costs to small producers of Arabica coffee. We understand that the NYBOT's Coffee Committee has not yet made a decision on this issue. Request for Meeting with Secretary Johanns -------------- ¶12. (U) Lastly, Minister Rodrigues requested a meeting with Secretary of Agriculture Johanns, in Washington, either on the SIPDIS afternoon of April 19 or the morning of April 20. Rodrigues will be in Washington, D.C., prior to participating in the RIMSA meetings in Mexico April 20-21, 2005. Post supports this request. DANILOVICH