PERUVIAN PRIORITIES FOR APEC 2006

UNCLAS LIMA 000435

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR WHA/AND, EAP/EP FOR TLYNG

E.O. 12958: N/A
TAGS: APECO ETRD PE
SUBJECT: PERUVIAN PRIORITIES FOR APEC 2006

REF: SECSTATE 14967


1. (SBU) We spoke to Juan Carlos Capunay, Ambassador to
APEC at the Ministry of Foreign Affairs on February 1 to
discuss Peru's priorities for APEC 2006. While there are
several items of importance to Peru, Ambassador Capunay
highlighted the following areas as Peru's priorities:

--Trade: Peru wants to continue promoting the WTO and Doha
Development Agenda, particularly in light of the
developments in Hong Kong in December. Ambassador Capunay
stated that the GOP wants to promote enhanced dialogue with
the International Financial Institutions in the area of Asia-
Pacific Development.

--Small Business Competitiveness: Peru is particularly
interested in promoting capacity building measures for small
and medium enterprises (SMEs) to improve the business
environment.

--Health Issues: While Ambassador Capunay acknowledged that
health issues such as avian influenza are not as high on the
Peruvian domestic agenda, the GOP wants to support its Asian
partners in the battle against a possible epidemic.


2. (SBU) Ambassador Capunay further noted that the APEC
economies should make a decision on new membership rules in
2006/2007. He explained that during the last membership
expansion in 1998, APEC placed a 10-year moratorium on
further expansion. The Peruvian Government position on APEC
membership policies is that the current APEC economies
should first accomplish the Bogor Goals and reforms before
electing new members. Ambassador Capunay noted that he
recently spoke to the Singaporean delegation about the
possibility of an additional five-year moratorium on
membership; APEC would then open its membership to possible
candidates in 2013. The Peruvian Government will likely
push for reform on the membership process in 2006, calling
for a decision by 2007.


3. (SBU) Ambassador Capunay noted that some APEC member
economies are interested in promoting a Free Trade Area of
the Asia-Pacific (FTA-AP). The Peruvian position on the FTA-
AP is that while it supports the idea in general, Peru has
some concerns about how to move forward. Ambassador Capunay
noted that the GOP is adamantly against the Chilean proposal
for two classes of members with different rights. For Peru
to agree to an FTA-AP, he noted, all member economies should
be granted the same privileges, regardless of economic
strength and products traded. Ambassador Capunay also
indicated that the GOP believes that FTA-AP negotiations
could prove difficult, as the 21 APEC economies have very
different levels of development and different definitions of
sensitive products.


4. (SBU) The GOP will request a bilateral meeting with the
U.S. delegation during the Senior Officials Meeting in
Vietnam. One item on Peru's agenda will be a clarification
of the East Asia Forum, established in Malaysia last
December. Ambassador Capunay noted that this forum includes
almost all of the APEC economies, except the three Latin
American countries. The Peruvian delegation will likely
inquire about how the East Asia Forum will affect the
workings of APEC and whether the East Asia Forum will
eventually surpass APEC as the key Asian economic forum.

STRUBLE