PERU TO JOIN CAIRNS GROUP IN 2007

UNCLAS LIMA 004514 SIPDIS SIPDIS DEPT FOR E, H, EB AND WHA COMMERCE FOR 4331/MAC/WH/MCAMERON USTR FOR EEISSENSTAT, BHARMAN AND JMCCARTHY GENEVA FOR USTR E.O. 12958: N/A TAGS: ETRD EAGR PGOV PE SUBJECT: PERU TO JOIN CAIRNS GROUP IN 2007 REF: LIMA 3486 ¶1. Upon returning from the APEC Ministerial in Hanoi, Peru's Trade Minister Mercedes Araoz announced that Peru had been formally invited to join the Cairns Group of agricultural exporting countries and would become its nineteenth full member during the ministerial meeting scheduled for April 2007 in Pakistan. From the Cairns Group Summit in Geneva, Australian Trade Minister Warren Truss, the current chair, confirmed on November 21 that the Cairns Group members had immediately approved Peru's membership, citing Peru's "strong commitment to the Doha negotiations and the need for fundamental reform of trade in agriculture." Truss also said that Peru had benefited from recently liberalizing its agricultural sector and wanted to "help the Cairns Group continue the fight to break down the barriers to world trade in farm products." ¶2. COMMENT: GOP efforts to join the Cairns Group are part of a broader Garcia Administration strategy to support global free trade while diversifying Peru's export markets through bilateral agreements. While awaiting U.S. Congressional approval of the U.S.-Peru Trade Promotion Agreement (PTPA), the GOP has signed or is discussing trade deals with Chile, Canada, Singapore, South Korea, Australia, China, and New Zealand. Under Garcia, Peru also joined the G-20 (reftel), but has clearly positioned itself as one of the stronger free market advocates in South America. STRUBLE