Identifier
Created
Classification
Origin
06MONTEVIDEO306
2006-03-29 20:44:00
CONFIDENTIAL
Embassy Montevideo
Cable title:  

VAZQUEZ SENDS STRONG SIGNAL ON FREE TRADE AGREEMENT

Tags:  PREL PGOV ETRD OVIP UY 
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VZCZCXYZ0000
PP RUEHWEB

DE RUEHMN #0306 0882044
ZNY CCCCC ZZH
P 292044Z MAR 06
FM AMEMBASSY MONTEVIDEO
TO RUEHC/SECSTATE WASHDC PRIORITY 5612
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 2502
RUEHCV/AMEMBASSY CARACAS 0400
RUEHLP/AMEMBASSY LA PAZ MAR SANTIAGO 2822
RUMIAAA/CDR USSOUTHCOM MIAMI FL//J-5//
RUEHC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHEHNSC/NSC WASHDC
,C O N F I D E N T I A L MONTEVIDEO 000306 

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DEPT FOR WHA/AS SHANNON AND EB/AS WAYNE
DEPT ALSO FOR WHA/BSC BARNES, CROFT AND MURRAY
DEPT PLEASE PASS USTR
TREASURY FOR OASIA FOR DOUGLAS
COMMERCE FOR ITA/MAC BASTIAN
NSC FOR FISK AND CRONIN
SOUTHCOM FOR POLAD

E.O. 12958: DECL: 03/28/2016
TAGS: PREL PGOV ETRD OVIP UY
SUBJECT: VAZQUEZ SENDS STRONG SIGNAL ON FREE TRADE AGREEMENT

REF: MONTEVIDEO 00229

Classified By: Charge D'Affaires James D. Nealon
for reasons 1.4 (B) and (D)

,C O N F I D E N T I A L MONTEVIDEO 000306

SIPDIS

SIPDIS

DEPT FOR WHA/AS SHANNON AND EB/AS WAYNE
DEPT ALSO FOR WHA/BSC BARNES, CROFT AND MURRAY
DEPT PLEASE PASS USTR
TREASURY FOR OASIA FOR DOUGLAS
COMMERCE FOR ITA/MAC BASTIAN
NSC FOR FISK AND CRONIN
SOUTHCOM FOR POLAD

E.O. 12958: DECL: 03/28/2016
TAGS: PREL PGOV ETRD OVIP UY
SUBJECT: VAZQUEZ SENDS STRONG SIGNAL ON FREE TRADE AGREEMENT

REF: MONTEVIDEO 00229

Classified By: Charge D'Affaires James D. Nealon
for reasons 1.4 (B) and (D)


1. (C) Summary: Minister of Industry and Energy Jorge Lepra
invited me to a private one-on-one meeting in order to
transmit an urgent message from President Vazquez. Lepra
relayed that Vazquez has not wavered in his commitment to a
Free Trade Agreement (FTA) with the U.S. and that he still
expects to raise it with POTUS during the White House meeting
scheduled for May 4. Vazquez clearly wishes to gauge the
prospects of concluding an FTA with us before he meets with
President Bush. End Summary.


2. (C) On the night of March 28, Minister of Industry and
Energy Lepra welcomed me to his home in order to allay U.S.
fears over Vazquez' recent, public comments on an FTA, and to
plan for the upcoming POTUS meeting. (Note: Lepra will lead
Uruguay's delegation to the Joint Commission on Trade and
Investment (JCTI) next week in Washington. In addition, he
is often used by President Vazquez as his surrogate Foreign
Minister on matters relating to the United States. End Note.)


3. (C) Lepra told me that he had transmitted to Vazquez our
unease and ""confusion"" over the President's remarks made two
weeks ago in Caracas, in which he participated in a rambling
press conference with Hugo Chavez and emphatically stated
that he did not intend to sign an FTA with the United States.
(Comment: In a face-to-face meeting a week earlier, Vazquez
had explicitly told me (reftel) that he wished to pursue an
FTA with us. End Comment.)


4. (C) According to Lepra, Vazquez wished to relay the
following messages to the U.S. Charge d'Affaires: (a) That he
(Vasquez) knows best how to manage the radicals within his
governing Frente Amplio (FA) coalition, and that he sometimes
needs to placate that crowd, and (b) that internal politics
have little effect on his foreign policy overtures towards
the United States.


5. (C) Lepra went on to say that Vazquez' first step in his
trade policy strategy for engaging the U.S. was to amend,
sign and ratify the Bilateral Investment Treaty (BIT),a
process which Uruguay completed last December. The second
step is to expand commercial ties through JCTI. The third
step entails beginning actual negotiations with the U.S. on
an FTA. Vazquez told Lepra that he had hoped to begin FTA
discussions next year. Lepra was then required to explain
the issue of Trade Promotion Authority (TPA) and the critical
timing and deadlines involved. (Note: Lepra has discussed
this subject at length with Ambassador Gianelli in Washington
and also with us. End Note.) After the explanation, the
President's response to Lepra was, ""Fine. If it has to be
this year, it has to be this year. I can discuss this with
President Bush,"" referring to his scheduled May 4 meeting
with POTUS.


6. (C) I had the impression throughout the conversation that
Lepra wanted assurances that we have the U.S. President's
commitment to an FTA.

Comment:
--------------


7. (C) We continue to find ourselves in an awkward position
when we discuss an FTA with the GOU. While the U.S.
President's National Security Strategy, our own Western
Hemisphere strategy document, and our agenda at the Summit of
the America's all list free trade at the top of our agenda,
we seem to have sent mixed signals to Uruguay regarding an
FTA. At least this is how President Vazquez perceives it.
End Comment.
Nealon