UNCLAS LIMA 000129

SIPDIS

SENSITIVE
SIPDIS

USTR FOR EISSENSTAT, HARMAN, CARILLO
COMMERCE FOR BASTIEN,MCAMERON
TREASURY FOR JEWELL, SHWARZMAN

E.O. 12958: N/A
TAGS: ETRD EAGR ELAB PE
SUBJECT: PERU FURTHER REORGANIZES TRADE TEAM; EX-MINISTER
BACK IN

REF: LIMA 4771


1. (SBU) SUMMARY. On January 11, Trade Minister Mercedes
Araoz named Toledo Administration official and textile
executive David Lemor as her ministry's special
representative based in Washington to work on Peru's lobbying
effort for the Peru Trade Promotion Agreement (PTPA). Lemor,
a dynamic former Minister of Production and Trade under the
Toledo Administration, is well known to Washington agencies
as he participated in the PTPA negotiations. Araoz also
declared that the Trade Ministry would spearhead the GOP's
efforts to gain approval of the PTPA in the U.S. Congress.
As per reftel, Peru's Ambassador in Washington Felipe Ortiz
de Zevallos will lead the GOP's Washington effort, but Araoz
and others are counting on Lemor's "dynamism" to help the
process. END SUMMARY.


2. (SBU) In a press release, Minister Araoz stated her belief
that Lemor would strengthen the Peruvian effort, and that the
process of achieving ratification involved teamwork. An
Araoz advisor told us that Lemor had a solid track record,
and that the Washington effort would benefit from his
energetic style. Lemor has been vocal about his intentions
regarding Peru's lobbying efforts for the PTPA, stating that
he wants the PTPA on the U.S. Congress's agenda for the first
quarter of 2007. With that in mind, he says he will work to
gain the support of Latino groups in the U.S., work closely
with Ways and Means Chairman Charlie Rangel, and coordinate
with union organizations in the U.S. and Peru. In a recent
column, he said he intended to work closely with the U.S.
Congress and Administration to develop a labor side letter
that satisfies Democrats and does not alienate Republicans.


3. (U) Araoz also said that renowned economist Hernando de
Soto would continue as the President's envoy, and that Lemor
would "support (de Soto's) work." De Soto has stated
publicly that he would be focusing his efforts on the
"internal FTA." The "TLC hacia adentro" (in Spanish) will be
based on de Soto's published work, stressing the importance
of land and property titling, reducing bureaucracy and
needless paperwork, and encouraging economic freedom. (Note:
de Soto has not yet announced the details of his program.)


4. (SBU) Reaction among those in the business community has
been positive. Privately, many businessmen are thrilled that
the job is now in the hands of a former businessman. Samuel
Gleiser, president of the Lima Chamber of Commerce said he
believed Lemor would do an excellent job. Eduardo Farah,
president of the National Industrial Society (SNI), said
Lemor's presence would provide "a major impetus" for the
GOP's team.


5. (U) Araoz also announced the establishment of a Permanent
Committee that will coordinate the free trade agreement
process through weekly meetings and will be integrated with
the efforts of the Peruvian Embassy in Washington and
technical staff in the Ministries of Trade and Foreign
Relations. The GOP, according to Araoz, will also continue
to retain their Washington lobbyists and consultants
including the law firm of Patton Boggs.


6. (U) Born in Lima, Lemor graduated as an industrial
engineer from North Carolina State University in 1976. He
then launched a successful career in the textile industry.
In the 1990s, Lemor participated in various trade
organizations, became a director of SNI, and later was a
member of the Peruvian Export Promotion Agency (PROMPEX) and
the National Strategic Plan for Exporting (PENX). His track
record shows that he is not averse to supporting anti-dumping
measures. In the Toledo Administration, he was Minister of
Production and Trade and served as Vice President of the
National Council of Competitiveness and as an able member of
Peru's negotiating team for the PTPA. During his service to
the Toledo Administration, he enjoyed good relations with the
former housing minister, Carlos Bruce, who is now Chairman of

the Congressional Trade Committee.

COMMENT
--------------


7. (SBU) Lemor will play an important role in energizing and
better focusing Peru's lobbying efforts in Washington. His
engaging personality is probably better suited to the style
of Washington lobbying, and his trade and business background
are plusses. His appointment is all the more encouraging
since it shows that Araoz overcame some personal difficulties
with Lemor for the good of the country in selecting him.
Araoz worked for Lemor in 2005, and was asked to resign when
Lemor changed his team.
POWERS