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