ARGENTINE FM TAIANA'S TRIP TO INDIA YIELDS FEW

UNCLAS BUENOS AIRES 001523 SIPDIS SIPDIS FOR WHA/BSC E.O. 12958: N/A TAGS: EFTA EAGR ETRD AR SUBJECT: ARGENTINE FM TAIANA'S TRIP TO INDIA YIELDS FEW CONCRETE RESULTS REF: BUENOS AIRES 0707 ¶1. (U) This message is sensitive but unclassified, and not for Internet distribution. ¶2. (U) Argentine FM Jorge Taiana led a delegation of over 70 businesspersons and GOA officials to India July 3-7. The mission's goal, according to the office of the MFA's Undersecretary for Foreign Trade, was to build on a trade relationship currently worth approximately USD 1 billion per year. The Argentine press reported small-scale individual successes for some of the mission's business executives, and quoted Taiana as saying that Indian PM Manmohan Singh "showed interest in closing cooperation agreements in the space, energy, food preparation, and pharmaceutical sectors." There were no reports of any real breakthroughs, however. ¶3. (U) While the USD 1 billion bilateral trade figure does not place India on the list of Argentina's top trading partners, the bilateral trade is fairly one-sided in Argentina's favor. Argentina enjoyed a USD 550 million surplus in its India trade in 2005, and sees India as an important growth market. India signed a fixed preference trade agreement with Mercosur in January 2004, but trade between Argentina and India had been growing rapidly even before that signing -- it is up over 70 percent since 1999. Argentina now senses an opportunity to diversify its exports to India, which have traditionally been dominated by soy products. Progress exporting Argentina's space technology (Reftel) would be especially welcome in Buenos Aires. ¶4. (SBU) Comment: On the heels of the failed WTO ministerial in Geneva, at which Argentina did not play a productive role, Argentina probably wanted to send a signal that it has a viable "Plan B" to turn to if the Doha round tanks. A large and successful trade mission to India might have sent that signal, but this was not that mission. That an Argentine vintner has orders for an extra 12,000 bottles is nice, but hardly the result Argentina was hoping for. There are indications that President Kirchner plans to visit India later this year; perhaps it was decided to save the real results for that trip. End Comment. GUTIERREZ