Identifier
Created
Classification
Origin
07BRASILIA956
2007-05-25 19:43:00
CONFIDENTIAL
Embassy Brasilia
Cable title:
BRAZIL - SUSPENSION OF TITLE III OF THE LIBERTAD ACT
how-toVZCZCXRO7345 PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHNG RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC DE RUEHBR #0956 1451943 ZNY CCCCC ZZH P 251943Z MAY 07 FM AMEMBASSY BRASILIA TO RUEHC/SECSTATE WASHDC PRIORITY 9046 INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS RHEHNSC/NSC WASHDC
C O N F I D E N T I A L BRASILIA 000956
SIPDIS
SIPDIS
DEPT FOR WHA/CCA, WHA/EPSC AND WHA/BSC
E.O. 12958: DECL: 05/23/2017
TAGS: ETTC PREL ECON ETRD BR CU
SUBJECT: BRAZIL - SUSPENSION OF TITLE III OF THE LIBERTAD ACT
REF: A) SECSTATE 65523
B) 06 BRASILIA 875
Classified by Charge d'Affaires Phillip T. Chicola, Reasons 1.4
(b) and (d).
C O N F I D E N T I A L BRASILIA 000956
SIPDIS
SIPDIS
DEPT FOR WHA/CCA, WHA/EPSC AND WHA/BSC
E.O. 12958: DECL: 05/23/2017
TAGS: ETTC PREL ECON ETRD BR CU
SUBJECT: BRAZIL - SUSPENSION OF TITLE III OF THE LIBERTAD ACT
REF: A) SECSTATE 65523
B) 06 BRASILIA 875
Classified by Charge d'Affaires Phillip T. Chicola, Reasons 1.4
(b) and (d).
1. (C) Brazil has a close relationship with Cuba and the GoB
does not publicly criticize the Castro regime's human rights
policies. During the last six months, President Lula and Cuban
President Fidel Castro have sparred publicly over Brazil's
ethanol policy. Castro echoed Venezuelan President Chavez's
criticism of the USG-Brazil MOU to promote cooperation on
development of ethanol production and use, arguing that using
corn and sugar for fuel production would drive up food prices
and starve the poor. President Lula used the Isla Margarita
Mercosul energy summit to rebut that criticism, albeit in a
low-key fashion, pointing out that production of Brazilian
sugar-cane based ethanol in Brazil has increased dramatically
without raising food prices. Castro also questioned labor
conditions on Brazilian sugar cane plantations.
2. (SBU) We know of no high level GoB diplomatic visits to Cuba
during the last six months. Cuban Vice Minister of Foreign
Affairs Alejandro Gonzalez Galiano visited Brasilia in early
March 2007 as part of a reportedly annual set of bilateral
meetings between the ministries of foreign affairs. President
Lula's Foreign Affairs Advisor, Marco Aurelio Garcia, plans to
travel to Cuba the week of May 28. Separately, Cuba and Brazil
maintain educational exchange programs and Cuba offers
scholarships for the study of medicine in Cuba, although none of
these programs has a particularly high profile.
3. (SBU) On the trade front, on July 20, 2006, Cuba signed a
free-trade agreement with the Mercosul customs union, of which
Brazil is the largest member. The agreement makes multilateral
all of Cuba's existing bilateral agreements with Mercosul
members, thus applying any trade preference granted to any
Mercosul member to all equally. The GoB supported the Mercosul
agreement with Cuba, which does not contemplate full Mercosul
membership for Cuba.
4. (SBU) Bilateral Brazilian trade with Cuba grew to US$374.8
million in 2006, up from US$284 million in 2005. Brazilian
2006 exports of US$343.3 million to Cuba were led by exports of
sugar, auto parts, beef, electrical equipment, chicken parts,
and coffee. 2006 imports from Cuba of US$31.6 million (down
from US$38.9 million in 2005) were dominated by medicines and
medical products, Portland cement, insecticides, nickel,
aluminum scrap, insecticides, cigars and vaccines. Brazil's
National Development Bank (BNDES) provides trade finance lines
to Brazilian companies, including those trading with Cuba. Over
the period 2001-2003, the most recent data available, BNDES
provided US$52.3 million in export credits to finance the export
of automobiles and buses to Cuba. Local accounts suggest that
potential BNDES export credits for Cuba are under-utilized.
5. (SBU) The most recent Central Bank data available on
Brazilian investments, for 2005, show that Brazilian companies
invested US$21 million in Cuba, up from US$19 million in 2004.
Post does not have data on the make-up of these investments.
CHICOLA
SIPDIS
SIPDIS
DEPT FOR WHA/CCA, WHA/EPSC AND WHA/BSC
E.O. 12958: DECL: 05/23/2017
TAGS: ETTC PREL ECON ETRD BR CU
SUBJECT: BRAZIL - SUSPENSION OF TITLE III OF THE LIBERTAD ACT
REF: A) SECSTATE 65523
B) 06 BRASILIA 875
Classified by Charge d'Affaires Phillip T. Chicola, Reasons 1.4
(b) and (d).
1. (C) Brazil has a close relationship with Cuba and the GoB
does not publicly criticize the Castro regime's human rights
policies. During the last six months, President Lula and Cuban
President Fidel Castro have sparred publicly over Brazil's
ethanol policy. Castro echoed Venezuelan President Chavez's
criticism of the USG-Brazil MOU to promote cooperation on
development of ethanol production and use, arguing that using
corn and sugar for fuel production would drive up food prices
and starve the poor. President Lula used the Isla Margarita
Mercosul energy summit to rebut that criticism, albeit in a
low-key fashion, pointing out that production of Brazilian
sugar-cane based ethanol in Brazil has increased dramatically
without raising food prices. Castro also questioned labor
conditions on Brazilian sugar cane plantations.
2. (SBU) We know of no high level GoB diplomatic visits to Cuba
during the last six months. Cuban Vice Minister of Foreign
Affairs Alejandro Gonzalez Galiano visited Brasilia in early
March 2007 as part of a reportedly annual set of bilateral
meetings between the ministries of foreign affairs. President
Lula's Foreign Affairs Advisor, Marco Aurelio Garcia, plans to
travel to Cuba the week of May 28. Separately, Cuba and Brazil
maintain educational exchange programs and Cuba offers
scholarships for the study of medicine in Cuba, although none of
these programs has a particularly high profile.
3. (SBU) On the trade front, on July 20, 2006, Cuba signed a
free-trade agreement with the Mercosul customs union, of which
Brazil is the largest member. The agreement makes multilateral
all of Cuba's existing bilateral agreements with Mercosul
members, thus applying any trade preference granted to any
Mercosul member to all equally. The GoB supported the Mercosul
agreement with Cuba, which does not contemplate full Mercosul
membership for Cuba.
4. (SBU) Bilateral Brazilian trade with Cuba grew to US$374.8
million in 2006, up from US$284 million in 2005. Brazilian
2006 exports of US$343.3 million to Cuba were led by exports of
sugar, auto parts, beef, electrical equipment, chicken parts,
and coffee. 2006 imports from Cuba of US$31.6 million (down
from US$38.9 million in 2005) were dominated by medicines and
medical products, Portland cement, insecticides, nickel,
aluminum scrap, insecticides, cigars and vaccines. Brazil's
National Development Bank (BNDES) provides trade finance lines
to Brazilian companies, including those trading with Cuba. Over
the period 2001-2003, the most recent data available, BNDES
provided US$52.3 million in export credits to finance the export
of automobiles and buses to Cuba. Local accounts suggest that
potential BNDES export credits for Cuba are under-utilized.
5. (SBU) The most recent Central Bank data available on
Brazilian investments, for 2005, show that Brazilian companies
invested US$21 million in Cuba, up from US$19 million in 2004.
Post does not have data on the make-up of these investments.
CHICOLA