Identifier
Created
Classification
Origin
05BUENOSAIRES269
2005-02-07 19:49:00
UNCLASSIFIED
Embassy Buenos Aires
Cable title:  

AGRICULTURAL COUNSELOR'S MEETING WITH

Tags:  EAGR AR 
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UNCLAS SECTION 01 OF 03 BUENOS AIRES 000269 

SIPDIS

STATE FOR ECON WHA/BSC
PASS TO DEPUTY UNDER SECRETARY FOR FARM AND FOREIGN
AGRICULTURAL SERVICES DR. JIM BUTLER
USDA FOR FAS/ITP/LEGIS AFFAIRS/PECAD/COTS/G&FD/FAA

E.O. 12958: N/A
TAGS: EAGR AR
SUBJECT: AGRICULTURAL COUNSELOR'S MEETING WITH
CONGRESSWOMAN MARIA DEL CARMEN ALARCON AND MEMBERS OF "PAMPA
SUR"


Sensitive But Unclassified - Not for Internet distribution

UNCLAS SECTION 01 OF 03 BUENOS AIRES 000269

SIPDIS

STATE FOR ECON WHA/BSC
PASS TO DEPUTY UNDER SECRETARY FOR FARM AND FOREIGN
AGRICULTURAL SERVICES DR. JIM BUTLER
USDA FOR FAS/ITP/LEGIS AFFAIRS/PECAD/COTS/G&FD/FAA

E.O. 12958: N/A
TAGS: EAGR AR
SUBJECT: AGRICULTURAL COUNSELOR'S MEETING WITH
CONGRESSWOMAN MARIA DEL CARMEN ALARCON AND MEMBERS OF "PAMPA
SUR"


Sensitive But Unclassified - Not for Internet distribution


1. (SBU) SUMMARY: On January 27, the Agricultural
Counselor (AgCouns) and staff, and representatives from the
Political Section met with Congresswoman Maria del Carmen
Alarcon (Partido Justicialista - Santa Fe) and members of
the agricultural lobbying organization, "Pampa Sur". Deputy
Alarcon recounted the origins of "Pampa Sur", and outlined
the principal objectives of this organization, emphasizing
that influencing the Executive Branch and Congress to
implement policies which supported the development of
Argentina's agricultural and livestock sector, was "Pampa
Sur's" top, overarching priority. Deputy Alarcon mentioned
that while "Pampa Sur" members tended to be from Argentina's
agricultural principal growing areas (i.e., the Provinces of
Buenos Aires, Cordoba, Santa Fe, and La Pampa),the
organization had begun recruiting members that represented
Argentina's diverse agricultural and livestock interests
from all parts of Argentina. One of the projects which
"Pampa Sur" championed was a reorganization of the
Secretariat of Agriculture, Livestock, and Fisheries, whose

SIPDIS
aim was to promote and enhance cooperation among the various
constituent offices. The Agricultural Counselor offered to
assist "Pampa Sur" in meeting with USDA officials should
members decide to visit Washington to learn firsthand how
agricultural policy is carried out by the USG. END SUMMARY.



"Pampa Sur" Leaders Visit Embassy Agricultural Section
-------------- --------------
--------------

2. (SBU) Leaders of Argentina's agricultural-livestock
lobbying organization, "Pampa Sur" visited the Embassy's
Agricultural Section on January 27, to explain
organizational objectives, and to discuss specific
agricultural-livestock issues. The "Pampa Sur" delegation
was led by Congresswoman Maria Carmen del Alarcon (Partido
Justicialista [PJ]-Santa Fe),who is also the Chair of the
Argentine Chamber of Deputies Agricultural, Livestock, and
Fisheries Committee. Alarcon was accompanied by former
Secretary of Agriculture Rafael Delpech, former President of

SIPDIS
the Argentine Rural Confederation (CRA) Arturo Navarro, and

two "Pampa Sur" staff members.


3. (SBU) Alarcon opened the meeting describing the origins
of "Pampa Sur", which has been in existence for a little
more than a year. The impetus to its establishment, Alarcon
relayed, came from the "Partido Justicialista", although she
stressed that "Pampa Sur" had representatives from other
Argentine political parties. It was important to underline,
though, that this organization was not restricted to
politicians, and counted as its members the leaders of the
Argentine agricultural and livestock sectors.


4. (SBU) Initially, Alarcon continued, "Pampa Sur" focused
its energies and organization efforts on the provinces of
Buenos Aires, Cordoba, Santa Fe, and La Pampa, which
constitute Argentina's agricultural heartland. At present,
it was expanding its recruitment, and had formed regional
working groups for Northwestern and Northeastern Argentina
to assist in this initiative. To demonstrate the political
support, which this fledgling organization had already
garnered, Alarcon affirmed that "Pampa Sur" had received the
backing of Senators Carlos Reutemann (PJ- Santa Fe),and
Ruben Marin (PJ-La Pampa),among other Argentine political
leaders.

Issues on the Agenda of "Pampa Sur"
--------------

5. (SBU) Secretary Delpech then outlined some of the
issues, which were of concern to "Pampa Sur", beginning with
tax reform. Delpech asserted that tax laws, which currently
existed, were poorly enforced, and their lack of clarity
contributed to tax evasion. This environment fostered the
elaboration of fiscal measures whose execution unfairly
punished agricultural and livestock producers.


6. (SBU) Delpech then identified intellectual property
rights (IPR) as another critical issue, specifically the
drafting of legislation, which ensured the collection of
royalties for new seed varieties and biotech events.
Delpech opined that there were many different parties, both
private and official, who while verbally supporting the
concept of IPR, had been responsible for abuses.








7. (SBU) Delpech reiterated the importance that "Pampa Sur"
attached to IPR, and lamented the fact that the GOA and
private sector stakeholders were not debating it seriously.
In essence, "Pampa Sur" advocated the creation of an IPR
law, which would be in accord with international norms, and
most fundamentally, a law that could be effectively
enforced. In reference to the Argentine Seed Law which
permits growers to re-use seed, especially Monsanto's Round
Up Ready (RR) transgenic soybean seed, from one harvest to
the next, Delpech opined that this should be only applicable
to small growers, and all other growers should pay royalties
for the usage of the RR gene technology.


8. (SBU) The AgCouns then queried Delpech about "Pampa
Sur's" views on Monsanto's threat to force growers to pay
the royalties by embargoing Argentine soybean shipments
before they were discharged in countries in which Monsanto
had patent protection for the RR technology (Note: Monsanto
has stated that it will charge US$15 per ton on Argentine
soybeans that are not covered by export licenses issued by
Monsanto). Delpech responded that this measure would
intensify the politicization of this issue, and generate
conflict, which would ultimately jeopardize Monsanto and
Argentine growers alike.


9. (SBU) Alarcon changed the tack of the discussion,
raising food safety as another issue, which was of
fundamental importance to "Pampa Sur". Given Argentina's
leading role as an international agricultural and food
exporter, the Congresswoman asserted that traceability
requirements, which ensured high food safety standards,
should be built into current legislation. The AgCouns then
asked about the export taxes ("retenciones") that the GOA
applies to agricultural and food exports. One of the "Pampa
Sur" staffers responded that depending on relative commodity
prices, which were prevailing, the five percent export tax
applied to apple exports could be more punitive for growers
than the 23.5 percent tax imposed on soybean shipments.


10. (SBU) Delpech asserted that the GOA benefited from the
revenues generated by export taxes, which bolstered the
coffers of the treasury, did not have to be shared with the
provincial governments, and thus was disposed to maintain
them. The Argentine food industry, he continued, also
comprised a significant force, which lobbied the GOA to
continue this form of taxation, which ultimately subsidized
their production. Local prices of commodities reflected the
after-tax value, he emphasized, and thus, lowered the input
and production costs for the Argentine food industry.


11. (SBU) Alarcon then shifted the focus to the structure
of the Secretariat Agriculture, Livestock, and Fisheries
(SAGPYA),and lamented that the entities which constituted
SAGPYA did not communicate with one another very well. The
National Sanitary and Agri-Food Quality Service (SENASA),
Alarcon stated, enjoyed much autonomy, even though it was,
on paper, subordinated to the Office of the Secretary.
"Pampa Sur", she continued, would like to present a project
for the reorganization of SAGPYA to the Argentine Congress
with the idea that a well-planned restructuring would lead
to more efficient operations in support of the agricultural,
livestock, and fisheries sectors. Alarcon also stressed
that given the importance of the foregoing sectors to the
national economy, the SAGPYA should be elevated to a
Ministerial status.


12. (SBU) Upon hearing "Pampa Sur's " interests in
revamping SAGPYA, the AgCouns asked if the delegation
members would be interested in visiting Washington to learn
firsthand about USDA's organization and operations, and to
meet with USDA officials to discuss further their ideas.
Alarcon responded that "Pampa Sur" members would be very
interested in doing so, and in visiting with members of the
U.S. House Agricultural Committee as well. The AgCouns
assured the Congresswoman that he would relay these
interests to Washington, and would be happy to assist in
setting up meetings with the appropriate parties in USDA.


13. (SBU) Alarcon ended the meeting by announcing a major
event which "Pampa Sur" was organizing in Buenos Aires for
March 11-12, 2005: a conference on the role of Argentine
agriculture. The AgCouns responded that Embassy staff would
be keenly interested in attending.


14. (SBU) Note: Although the Argentine agricultural and
livestock sectors have had very little influence over GOA
policy for the last seventy-five years, with the emergence
of "Pampa Sur", it appears that this situation may be
gradually changing. This organization appears to be
garnering increasing support from influential politicians
and business leaders, and its agenda points in the right
direction. Much more and very hard work will need to be
done, however, to set the stage for the types of reforms
that its members envision.
LLORENS