Identifier
Created
Classification
Origin
06GUATEMALA102
2006-01-20 13:39:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Guatemala
Cable title:  

VP and congressional leader stubborn on sanitary

Tags:  PREL ECIN KIPR EAGR GT CAFTA 
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UNCLAS GUATEMALA 000102 

SIPDIS

DEPT PASS USTR

SENSITIVE

E.O. 12958: N/A
TAGS: PREL ECIN KIPR EAGR GT CAFTA
SUBJECT: VP and congressional leader stubborn on sanitary
equivalency and patents

UNCLAS GUATEMALA 000102

SIPDIS

DEPT PASS USTR

SENSITIVE

E.O. 12958: N/A
TAGS: PREL ECIN KIPR EAGR GT CAFTA
SUBJECT: VP and congressional leader stubborn on sanitary
equivalency and patents


1. (U) In comments to the press on January 18, Vice President
Eduardo Stein sharply criticized the US for adding "new"
requirements for CAFTA implementation, focusing specifically
on the controversial law on patents and data protection
(number 30-2005). Also referring to the US requirement for
SPS equivalency and changes to telecoms legislation, Stein
threatened that Guatemala would not cede and would simply not
implement CAFTA. President Berger, after an AmCham event on
January 17, was quoted in less strident terms, saying that "we
will not permit changes in the themes since they have been
signed off on; we must be respectful."


2. (U) The President of the congressional Economic
Commission, Mariano Rayo, a key ally in CAFTA ratification and
chief drafter of the CAFTA implementation bill now pending,
was as emphatic as Stein to the press and even more so in a
meeting with Econ Counselor on January 18. He stressed, among
other things, that sanitary/phyto-sanitary equivalency must be
reciprocal, that law 30-2005 is as far as congress can go, and
that a key article on telecoms deleted from the latest
implementation bill is covered elsewhere in the law. The
powerful chambers of industry and agriculture also publicly
supported Stein's tough stance on not adding new requirements,
while AmCham was quoted as agreeing with the US pharmaceutical
industry (Fedefarma/PhRMA) that the executive branch does not
understand the patent and data protection issue and is wrong
in its opposition to further patent law reform.


3. (SBU) Stein announced that he would head a delegation to
Washington, including the ministers of agriculture and economy
and influential presidential commissioners, to make his points
to top USG officials. (Note: As of 1/19 Stein's plans are
unclear, since Deputy Secretary Zoellick is not available, but
the agriculture and economy ministers are still planning on
going to meet with top State, USTR, Commerce and USDA
officials. End note). For his part, President Berger will be
joining other CAFTA country presidents on Sunday in El
Salvador to discuss implementation delays and USG
requirements.


4. (SBU) Comment: Both Stein and Rayo can be quite direct
and outspoken, so their comments should be evaluated in that
light. However, the opposition to reform of the 2005
amendment to the IPR law (patents and date protection) is
widespread and entrenched, and is led by influential members
of the administration like Stein, Rigoberta Menchu and Health
Minister Sosa. Neither the executive branch nor congress want
to reopen this politically damaging issue. The requirement to
recognize US meat inspection standards as equivalent to
Guatemala's should be easier, since Guatemala already accepts
US meat. However, opposition is rallying around the lack of
reciprocity (a rhetorically appealing but not realistic point)
and that this requirement was not put in writing in the CAFTA
text. While many lesser issues should be cleared up during an
upcoming technical meeting between USTR and the Guatemalans,
these two issues. along with perhaps telecoms, will continue
to slow overall progress on CAFTA implementation in Guatemala.

Derham