(C) ARGENTINA REVIEW FOR SUSPENSION OF TITLE III

C O N F I D E N T I A L BUENOS AIRES 002286 SIPDIS SIPDIS E.O. 12958: DECL: 12/03/2017 TAGS: PGOV ETTC PREL ETRD CU AR SUBJECT: (C) ARGENTINA REVIEW FOR SUSPENSION OF TITLE III OF THE LIBERTAD ACT REF: A. SECSTATE 158768 ¶B. BUENOS AIRES 2124 ¶C. 06 BUENOS AIRES 2698 Classified By: Economic Officer Ian Sheridan, Reasons 1.4 (b and d). ¶1. (U) Embassy Buenos Aires keys the responses below to reftel A questions. ¶2. (SBU) NATURE OF INVESTMENTS THAT ARGENTINA BUSINESSES HAVE IN CUBA. The GOA imposes no requirement to register foreign direct investment and the Embassy has been unable to uncover any major investment by Argentine nationals or Argentine public corporations in Cuba. In a November 28 phone conversation with EconOff, Gustavo Infante, Counselor for Northern Hemisphere Economic Affairs (roughly office director equivalent) in the Ministry of Foreign Affairs (MFA),said that he was unaware of any significant Argentine investment in Cuba. Trade volumes are small: according to the Global Trade Information Service (gtis.com),two-way trade in 2006 totaled $97.9 million, well under one percent of Argentina's global two-way trade of $80.6 billion, and slightly less than its 2005 total trade with Cuba of $98.4 million. Argentine exports to Cuba in 2006 amounted to $95.6 million, about two-thirds of which were foodstuffs, while Argentine imports from Cuba totaled $2.3 million, about two-thirds of which were cigars. During the first half of 2007, Argentine exports to Cuba amounted to $61.3 million, a 113% increase from the same period as 2006, but only 18% more than during the same period of 2005. Over two-thirds of these exports were foodstuffs. Argentine imports of Cuban goods were $1.4 million in the first half of 2007, up 21% from the same period of 2006 and 518% since 2005. The majority of those imports were cigars. Trade between Argentina and Cuba was 0.14% of Argentina's total trade during this same time period. Infante noted that one topic which is still not resolved in the bilateral relationship was the debt owed by the GoC to the GoA, amounting to about $2 billion. Because of that debt, according to Infante, Argentine banks - public and private - will not provide unsecured trade credits to the GoC. ¶3. (SBU) BILATERAL TRADE AGREEMENTS BETWEEN ARGENTINA AND CUBA. The governments of Argentina and Cuba have a regional preferential trade agreement through MERCOSUR, signed at the MERCOSUR summit in Cordoba, Argentina, in July 2006. MERCOSUR reports note that this agreement consolidated prior bilateral trade agreements that MERCOSUR member nations had earlier signed with Cuba under ALADI auspices. Separately, World Bank reports note that Argentina signed a preferential trade agreement with Cuba in 1984. Infante also mentioned a bilateral Argentina-Cuba agreement designed to facilitate trade finance via the establishment of Cuban escrow accounts, which was signed in August 2004, but has never taken effect. The two countries also have a Bilateral Investment Treaty, ratified in 1997. ¶4. (C) EXCHANGE PROGRAMS BETWEEN ARGENTINA AND CUBA. The GOC sponsors a literacy program called "Yes, I Can," in Argentina. The program funds 400 centers and is present in twelve provinces. The program teaches reading skills to 2,683 Argentines annually. Some Argentine citizens have also reportedly benefited from "Operation Miracle," a joint GOC-Government of Venezuela initiative that provides free eye operations to low income people. The General Workers Confederation actively participates in both programs. We are unaware of any other exchange programs between Argentina and Cuba. ¶5. (C) PROMOTING THE ADVANCEMENT OF DEMOCRACY AND HUMAN RIGHT IN CUBA. Per reftels, the GoA continues to pursue a policy of "constructive engagement" toward Cuba on democracy and human rights issues. In general, the GoA's position is that engagement - however limited - is the best way to promote reform in Cuba. In 2007, Argentina voted for the annual UN resolution condemning the U.S. embargo on Cuba (ref B). Still, Argentina has at least twice raised the issue of human rights with the Cuban government in the context of the Dr. Hilda Molina case (see Ref C for more details),and Foreign Ministry officials have cited to us disagreement over treatment of Dr. Molina as a particular sore point in Argentina-Cuba relations. ¶6. (SBU) HIGH-LEVEL DIPLOMATIC VISITS BETWEEN CUBA AND ARGENTINA IN PAST SIX MONTHS. There have been no/no high-level visits between the two countries in the past six months. WAYNE