ARGENTINA: CHAIRMAN PETERSON'S MEETING WITH AGRICULTURE

UNCLAS BUENOS AIRES 002304 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EAGR ETRD ENRG PREL OVIP AR SUBJECT: ARGENTINA: CHAIRMAN PETERSON'S MEETING WITH AGRICULTURE SECRETARY DE URQUIZA SIPDIS ¶1. Summary: House Agriculture Committee Chairman Colin Peterson, in Buenos Aires as a member of Representative Loretta Sanchez's CODEL, held separate meetings with GOA officials and Argentine legislators to discuss potential cooperation in biofuels, raise an IPR-related trade issue with Monsanto soybean seeds, and review the access of beef and other products to the countries' respective markets. The meetings were constructive and helpful in laying out several paths for working through existing problems as well as for identifying areas for further U.S.-Argentine collaboration on bios fuels and in agricultural research and development. End Summary. Secretary De Urquiza - Biofuels SIPDIS -------------- ¶2. House Agriculture Chairman Colin Peterson and Representative Roscoe Bartlett, in Buenos Aires November 20-21 as members of Representative Loretta Sanchez's HASC CODEL (septels),held a separate meeting with Argentine Agriculture Secretary Dr. Javier De Urquiza. Representatives Peterson and Bartlett were accompanied by Ambassador and AgCouns. Rep. Peterson noted that the normal focus on trade disputes has tended to distract from the potential for cooperation in agriculture. He said that biofuels is an area where there is particular potential to work together to the benefit of both countries. Secretary De Urquiza emphasized that Argentina is interested in working with the U.S., and that biofuels is an area that they are in the process of developing. In particular, they are working to develop small production plants owned by producers in the corn production areas. Rep. Peterson explained that this is an area where the U.S. has particular expertise and offered to facilitate contacts with the U.S. private sector. Rep. Bartlett raised during the discussion questions about the long-term sustainability of increased biofuels production. Secretary De Urquiza explained that sustainability is one of the criteria they are focusing on as they develop biofuels and that they are looking at new products to use for biofuels production that go beyond soybean oil and corn. Monsanto Roundup Ready Soybeans -------------- ¶3. Rep. Peterson also asked Secretary De Urquiza about the status of ongoing trade issues, including the payment of royalties for soybean seeds used with technology owned by Monsanto (roundup ready soybeans). The Secretary responded that they are currently dealing with the lawsuits that Monsanto brought in Europe against exports of soybean products using roundup ready soybeans, but that they are seeking a solution. They are aware that there are loopholes in the current law and are consulting with the technology companies, seed producers and users to develop a new law to deal with this issue. They want to ensure that companies do research and development in Argentina. Beef Imports -------------- ¶4. Rep. Peterson raised the issue of access for U.S. beef to Argentina, which is not currently allowed due to BSE-related restrictions. The Secretary responded by noting that Argentina is also looking to export fresh beef to the U.S. and would like to see the current Foot-and-Mouth Disease (FMD) related restrictions removed. Secretary De Urquiza noted that Argentina is not likely to greatly increase its exports to the U.S. (they currently restricting beef exports),nor is the U.S. likely to be a major exporter of beef to Argentina. Both sides need to find a way to open their markets to get this issue behind us. Argentine Lemons -------------- ¶5. Secretary De Urquiza inquired about the status of exporting lemons to the U.S., an issue that was discussed with Rep. Peterson during a previous visit. De Urquiza claimed that there were no solid scientific reasons for the current restriction and that Argentina would be shipping during the U.S. off season. Rep. Peterson responded that he had looked at this issue, but any resolution appeared to be very complicated. Direct contacts between producers in both countries could help to facilitate a solution, since there is potential for cooperation in areas such as scientific investigation. Ambassador Wayne noted that the Governor of Florida had recently visited Argentina and may return with a delegation that could include citrus producers. Agriculture Committee Chair Ana Maria Berraute -------------- ¶6. On November 21, Rep. Peterson and AgCouns met with his counterpart Representative Ana Maria Berraute, Chair of the Agriculture and Livestock Committee in the Argentine lower house (Camera de Diputados). The two legislators discussed the status of the U.S. Farm Bill legislation, development of the biofuels sector in Argentina, expectations for the political horizon in Argentina, and the status of a proposed biotech seed law related to Roundup Ready soybeans and corn. With respect to development of a corn-ethanol industry in Argentina, Rep. Peterson shared his view that it is important to create tax incentives and other supports to jump-start the industry. Berraute said the only legislation in Argentina so far is the biofuels law, and that biofuels development is occurring mainly in the biodiesel sector. Rep. Peterson asked whether Ms. Berraute has been working on the proposed seed law. She said that she read in the newspaper that Secretary De Urquiza is working on something, but there had not been any bill officially presented to the House. She doubted that any advancement would be made on the bill until President-Elect Christina Kirchner takes office on December 10. Berraute also noted that she was not sure whether she will remain as the head of the Agriculture Committee. ¶7. Comment: Post appreciates Representative Peterson's good dialogue with Argentine interlocutors and very much welcomes similar future visits. ¶8. Rep. Peterson did not have the opportunity to clear on this message before departure from Buenos Aires. KELLY