ARGENTINA: LABOR SECRETARY CHAO MEETINGS WITH

UNCLAS BUENOS AIRES 000154

SIPDIS

SENSITIVE
SIPDIS

H FOR CINDY CHANG
WHA/BSC FOR DOUGLAS BARNES

E.O. 12958: N/A
TAGS: PGOV PREL ECON PARM AR SNAR
SUBJECT: ARGENTINA: LABOR SECRETARY CHAO MEETINGS WITH
LABOR MINISTER TOMADA


1. (SBU) Summary: On January 11, U.S. Labor Secretary Elaine
Chao paid a courtesy call on Argentine Labor Minister Carlos
Tomada. Secretary Chao took the opportunity to speak about
the benefits of free trade, noting that free trade was the
best way for Argentina to achieve the goals of continued
economic growth and lower unemployment. Secretary Chao asked
Minister Tomada about his views of Mercosur, and Tomada
described Mercosur as a vehicle to integrate Argentina with
the rest of the world. Secretary Chao and Minister Tomada
said they looked forward to seeing each other at the next ILO
meeting in Geneva and Tomada said he wanted to visit
Secretary Chao in Washington at some point in the future.

SIPDIS
End Summary.


2. (SBU) On January 11, U.S. Labor Secretary Elaine Chao,
accompanied by DCM and POL officer (notetaker),paid a
courtesy call on Argentine Labor Minister Carlos Tomada.
Minister Tomada thanked Secretary Chao for taking the time to
meet with him, recognizing that the Secretary was traveling
in an unofficial capacity while accompanying her husband,
Senator Mitch McConnell, on his fact-finding mission to
Argentina. Secretary Chao thanked Minister Tomada for his
time and noted the impressive Argentine economic recovery
during the past three years. Secretary Chao said that the
U.S. supports Argentina's efforts to strengthen its democracy
and hopes Argentina's economy continues to improve.


3. (SBU) Secretary Chao took the opportunity to speak about
the benefits of free trade and to encourage Argentina to
"keep an open mind" with regards to free trade opportunities.
Minister Tomada said that Argentina's economy was "open,"
but that the GOA was focused on economic growth with
employment. Minister Tomada said that in the past Argentina
had suffered from "brutal openness" and economic growth
without employment. Secretary Chao noted that even though
the openness of the U.S. economy allows some jobs to be
outsourced overseas, the U.S. is a large net winner of jobs
due to free trade, with millions of Americans working for
foreign companies operating on U.S. soil. Secretary Chao
said that the U.S. believes that free trade is one of the
best ways to achieve economic growth and greater employment.


4. (SBU) Secretary Chao asked Minister Tomada about his
views of Mercosur, and Tomada described Mercosur as a vehicle
to integrate Argentina with the rest of the world. Tomada
said that Argentina strongly supported the regional
integration of Mercosur, but noted that Argentina wanted to
avoid "disequilibriums" in the trade bloc at the same time.
Minister Tomada said that Mercosur helps to reinforce
democracy and peace, in addition to its trade benefits.


5. (SBU) Secretary Chao congratulated Argentina on assuming
the presidency of the International Labor Organization (ILO)
and said she looked forward to seeing Minister Tomada at the
next ILO meeting in Geneva. Minister Tomada said he also
looked forward to seeing Secretary Chao in Geneva and said he
wanted to visit Secretary Chao in Washington at some point in
the future.


6. (SBU) CODEL McConnell has cleared this cable.

GUTIERREZ