PANAMANIAN PRESIDENT TORRIJOS AND REP DAN BURTON

C O N F I D E N T I A L PANAMA 000125 SIPDIS SIPDIS WHA/CEN FOR GSCHIFFER WHA/EPSC FOR URS & GUMBINER E.O. 12958: DECL: 01/31/2016 TAGS: BEXP ETRD OREP PM SUBJECT: PANAMANIAN PRESIDENT TORRIJOS AND REP DAN BURTON DISCUSS FTA AND CHAVEZ REF: 2005 PANAMA 2141 Classified By: AMBASSADOR WILLIAM A. EATON FOR REASONS 1.4 (B) AND (D) -------------- SUMMARY -------------- ¶1. (SBU) Congressman Dan Burton (R-IND) and the Ambassador called on President Torrijos on January 12th to discuss on-going U.S./Panama FTA negotiations and Hugo Chavez's influence in the region. Torrijos reiterated GOP commitment to free trade and sought Burton's help in resolving a key obstacle to concluding the FTA. Torrijos said Venezuela has expanded its diplomatic presence in Panama, but he did not see any interference in Panama's domestic affairs. Noting that the region is splitting ideologically, Torrijos suggested the USG reach out more consistently to likely successful presidential candidates and democratically elected leaders. He maintained that poor channels of communication to the USG with regional governments translate into opportunities for Chavez to increase his influence regionally. END SUMMARY -------------- TORRIJOS SEEKS HELP ON FTA -------------- ¶2. (SBU) President Torrijos sought the Congressman's support for Panama's position on unresolved sanitary and phytosanitary (SPS) issues that had stalled FTA negotiations in Washington. Torrijos stressed GOP plans to create a new, independent, science-based institution to handle the issuance of import permits for agricultural and food products. Torrijos complained that the USG's firm stance on SPS issues had already provoked a cabinet crisis, fueled opposition in the agricultural sector, and put Panama on a limb in a region which is increasingly turning against free trade and the U.S. Noting that the GOP sees growing support among Democrats on Capitol Hill, Torrijos urged the U.S. to "trust" Panama on this issue. Congressman Burton subsequently called USTR to convey GOP concerns and to encourage prompt resolution of the SPS issue. ¶3. (SBU) Note: As reported septel, the GOP has turned its focus from lobbying others in the USG and is now working to overcome fundamental USG concerns on SPS with a view to completing the FTA as soon as possible. -------------- TORRIJOS DISCOUNTS CHAVEZ INFLUENCE IN PANAMA -------------- ¶4. (C) Torrijos said that the GOV had expanded its diplomatic presence in Panama but the GOP had no evidence of GOV meddling in Panama's domestic affairs. However, he believes the region was splitting in two ideological camps. He advised the U.S. to reach out to opposition candidates (who may be successful candidates in the future) and democratically elected leaders in the area and, above all, to keep channels of communication open. Torrijos emphasized the importance of the USG engaging with Bolivia's President-elect Evo Morales. Torrijos plans to attend Morales' inauguration this week in La Paz where he expects to also see Chavez. ¶5. (C) Burton said he had spoken with Chavez twice, but that every time he has tried to reach out to the GOV, Chavez "said something stupid," making it politically impossible to reconnect. Burton said his Chief of Staff would be attending President Morales's inauguration. Burton stated this trip through Guatemala, Costa Rica and Panama left him with the impression that the U.S. was perceived as something of a "bully" in the area. He suggested that a summit of Central American/Latin American leaders with the U.S. as an invitee/participant and not as a sponsor/organizer might help the U.S. to be seen as a working partner. Torrijos agreed this was a good idea. -------------- COMMENT -------------- ¶6. (C) President Torrijos was cordial and open in this meeting, which lasted almost 45 minutes. Though Torrijos is wary of Chavez, his denial of Chavez's meddling is disingenuous. It certainly stands in stark contrast to concerns that a number of private sector contacts have expressed (reftel) to Emboffs about growing "bolivarian mischief" in Panama. EATON