Identifier
Created
Classification
Origin
06BRASILIA2487
2006-11-24 23:32:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brasilia
Cable title:  

EU DELEGATION SEEKS EMBASSY SUPPORT ON REGULATION OF

Tags:  ETRD EAGR EIND BR 
pdf how-to read a cable
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R 242332Z NOV 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 7488
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 3415
RUEHRG/AMCONSUL RECIFE 5925
RUEHSO/AMCONSUL SAO PAULO 8704
RUEHBU/AMEMBASSY BUENOS AIRES 4433
RUEHAC/AMEMBASSY ASUNCION 5805
RUEHMN/AMEMBASSY MONTEVIDEO 6608
RUEHSG/AMEMBASSY SANTIAGO 5940
RUCPDO/USDOC WASHDC
RUEHRC/USDA WASHDC
UNCLAS SECTION 01 OF 02 BRASILIA 002487 

SIPDIS

SIPDIS
SENSITIVE

STATE PASS USTR - SCRONIN/MSULLIVAN
USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD
USDOC FOR 3134/ITA/USCS/OIO/WH/RD/SHUPKA
USTDA FOR AMCKINNEY
AID/W FOR LAC
USDA FOR FAS

E.O. 12958: N/A
TAGS: ETRD EAGR EIND BR
SUBJECT: EU DELEGATION SEEKS EMBASSY SUPPORT ON REGULATION OF
GENERIC AGROCHEMICALS

UNCLAS SECTION 01 OF 02 BRASILIA 002487

SIPDIS

SIPDIS
SENSITIVE

STATE PASS USTR - SCRONIN/MSULLIVAN
USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD
USDOC FOR 3134/ITA/USCS/OIO/WH/RD/SHUPKA
USTDA FOR AMCKINNEY
AID/W FOR LAC
USDA FOR FAS

E.O. 12958: N/A
TAGS: ETRD EAGR EIND BR
SUBJECT: EU DELEGATION SEEKS EMBASSY SUPPORT ON REGULATION OF
GENERIC AGROCHEMICALS


1. (U) Action Request - paragraph 3.


2. (SBU) On November 24, EU Econ Counselor Fabian Delcross
contacted Emboff to enlist USG support in persuading the GOB to
proceed with plans to tighten up current regulations governing the
import of generic agrochemicals. According to Delcross, the
national agricultural lobby (CNA) was seeking to get the Executive
Office of President Lula to reverse course and water down the
measure currently under review. Should this come to pass, Delcross
argued, both European and U.S. chemical manufacturers would suffer
as low-cost Asian generic manufacturers displaced us from the market
and consumers might be subject to increased health risks from
agricultural products imported from Brazil. Delcross suggested that
the Embassy consider engaging in a joint approach with the EU
Delegation and its Member States to the Brazilians, or, at a
minimum, make a separate supportive demarche to the GOB on this
issues. Emboff replied that prior to responding, he would first
seek instructions from Washington.


3. (U) Action Request -- Embassy requests guidance on how to
respond to the EU delegation suggestion.


4. (SBU) Delcross provided us with a copy of the following
explanatory paper.

Begin Text

Registration and Sales License for Generic Agrochemicals in the
Brazilian Market

Currently, Brazil's registration law for agrochemicals follows FAO
guidelines and is comparable to the legislation of most developed
countries, e.g., and the United States. The legislation is
currently under review in order to include and allow the
registration of technical and formulated generic products - the so
called "similarity" rules. This is necessary to comply with the
Mercosul agreements on the harmonization of registration in the
region.

The revised version was discussed and a draft was agreed on after
public consultation by the three ministers involved, Agriculture,
Health, and Environment, which followed FAO criteria to ensure the
quality of any product, including generic products. It is now ready
to be signed by the Presidency (Casa Civil),either as a draft law
or as a medida provisoria [temporary measure].

Should the law enter into force in its current version, it would
maintain fair competition in the market between R&D and generic
companies and ensure that agricultural products exported to EU, USA
and other more developed countries do not face restrictions due to
residue of unknown substances.

However, due to the difficult situation agriculture and farmers have
been facing over the past two seasons, several farmer associations
and parliamentarians from the Agricultural Commission (both from the
Senate and the Lower House),have put the Casa Civil under pressure
to allow a more flexible registration law, centralizing the
decisions on similarities only in the Ministry of Agriculture.
According to them, such a measure would allow farmers to buy
products in the Mercosul region at much lower prices than those paid
in Brazil at the order of 30-40% (which is doubtful). Should this
happen, we anticipate a strong invasion of low quality and unknown
agrochemicals entering the Brazilian market (without health and
environmental profiles),especially those coming from Asian
countries. For obvious reasons, this would affect the interest of
EU companies.

A joint action might be appropriate to express concerns about a
possible softening up of criteria for registration. Minister Dilma
Rousseff (head of the Casa Civil) seems to be the right person to
receive representations expressing the EU's interest in a
pesticide-registration that follows international rules (FAO minimum
standards).

End Text

BRASILIA 00002487 002 OF 002



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