PERU RESPONSE TO APEC PRIORITIES DEMARCHE

UNCLAS LIMA 003068

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: APECO ETRD ECON PE
SUBJECT: PERU RESPONSE TO APEC PRIORITIES DEMARCHE

REF: A) SECSTATE 121653

B) LIMA 0435


1. (SBU) Summary: The GOP generally supports the USG's priorities
for APEC, especially on trade. Commerce Vice Minister Chan was
pessimistic about real progress on IPR, but confident the
Counter-Terrorism Task Force's mandate would be extended. Peru's
priorities (Ref B) have been mainly trade-related: customs
procedures, sanitary and phytosanitary issues, investment
liberalization, and the elimination of fishing subsidies. The GOP
is paying closer attention to APEC issues than usual as it prepares
for hosting in 2008. With the new Garcia Administration having just
taken office on July 28, Commerce and Foreign Ministry officials are
still scrambling to brief their new bosses and obtain their approval
on the way forward. End Summary.


2. (SBU) Econoff discussed Ref A points with Ministry of Commerce
(MINCETUR) Vice Minister for APEC Julio Chan Sanchez on August 1,

2006. (Post is separately delivering Ref A points to Foreign
Ministry.) Chan said the GOP generally supported the USG's
priorities, especially on trade liberalization. He offered specific
comments on the following:

--Technology Choice: Peru has sent comments on the USG-drafted text
twice, but its comments have not been incorporated. The GOP is not
opposed to the USG vision, but feels the text should be simplified
and made "more direct." Chan opined that Malaysia and the PRC would
be the main obstacles to moving this forward.

--Single Windows: Chan noted that the GOP was having a difficult
time coordinating its many ministries to make single windows a
reality within Peru. He was interested in learning more about the
USG's experience.

--IPR: Chan was pessimistic about real progress on IPR, maintaining
that the laws of supply and demand would continue to lead to piracy
as long as the retail price of movie and music discs greatly
exceeded the price of pirated versions. He noted that although the
GOP had signed onto the relevant international commitments, its IP
agency, INDECOPI, faces huge implementation challenges because of a
lack of training, personnel and other resources. Econoff noted that
IP protection seemed to be important to Peruvian indigenous groups'
patrimony, and Chan said this aspect was a priority for the GOP.

--CTTF: Given continuing terrorist attacks around the world, Chan
felt there was "no doubt" the mandate of the Counter-Terrorism Task
Force would be extended. He knew of no interested candidates for
the chair position, but suggested that Indonesia may be interested
given its security issues.

--APEC Reform: The GOP is currently paying special attention to
APEC issues in preparation for Peru's role as host in 2008. Chan
said the GOP believes there are too many groups and too many new
topics within the APEC framework. He said the GOP would be
suggesting the dissolution or merger of some groups.

--Trade: The GOP will continue to strongly back APEC's role in
supporting the WTO and Doha agenda, and trade liberalization in
general. He said most countries were on standby awaiting the
resolution of the U.S.-EU agricultural impasse.


3. (SBU) Regarding Peru's priorities for APEC 2006 (Ref B),Chan
focused on the Trade and Investment Committee (CTI). Of the four
areas falling under trade facilitation, Peru is most interested in
customs procedures. The GOP also supports adding sanitary and
phytosanitary (SPS) issues as a fifth area, perhaps for the 2008
Peru meeting. Other GOP priorities include the liberalization and
facilitation of investments, and the elimination of fishing
subsidies. A new government just took office on July 28, so Trade
and Foreign Ministry personnel are getting ready to recommend
priorities and a plan of action to the new ministers for their
approval.

STRUBLE