FOOD AID AND THE WTO

UNCLAS LIMA 003256 SIPDIS STATE FOR WHA/AND WHA/EPSC FOR USAID TRADE AND FFP OFFICERS; LAC/RSD/BMACDONALD; DCHA/FFP/LLANDIS; USDA/FAS/ITP/SHEIKH; USDA/FAS/EC/CHAMBLISS ROME FOR AIDAC FODAG E.0. 12958: N/A TAGS: EAID EAGR ETRD WTRO SUBJECT: FOOD AID AND THE WTO REF: SECSTATE 119974 This is a joint STATE, USDA and USAID cable. ¶1. On Friday July 1 Ambassador J. Curtis Struble met with Foreign Relations Minister Ambassador Manuel Rodriguez Cuadros of Peru and delivered the talking points in reftel. Subsequently, a translation of the talking points was sent in a letter from the Ag Attache to the Ministers of Economy and Finance, Commerce, Industry and Tourism, Agriculture, and Women and Social Development. Post has followed up with phone calls to encourage Peru to make its opinions known in Geneva. ¶2. Post has been informed that official communication on this matter to the Peruvian delegation in Geneva is problematic because of the change of Ambassador Elizabeth Astete, who will leave Geneva at the end of this month. Furthermore, we understand Peru's representation in Geneva was not invited to the U.S. briefing on this subject. ¶3. So far there is general agreement among GOP officials contacted on the US position of continuing in-kind food assistance "for humanitarian emergencies". According to Victoria Elmore, National Director for Multilateral Matters and International Commercial Negotiations at the Ministry of Trade, Peru recognizes that food aid can be a form of direct subsidy, but that extremely poor populations are dependent on direct food assistance. Transition periods are needed to elevate these populations out of poverty. Lander Pacora, former Vice minister and Senior Advisor to the Minister of Agriculture, opined informally in support of empowering developing countries to request whatever form of assistance they need without pre- judgment. ¶4. Post will continue to follow-up with key Peruvian ministries and explore how messages will be transmitted through the Peruvian Embassy in Geneva. STRUBLE