NICARAGUA: TRADE MINISTER BRENES ON WTO CASE

UNCLAS MANAGUA 000935 SIPDIS SENSITIVE SIPDIS DEPT FOR WHA/CEN, WHA/EPSC, EB/TPP DEPT PLEASE PASS TO USTR USDA FOR FAS/OCRA/WHA/CMARSTON, FAS/ONA/MED/LCOONROD, AND FAS/LPAO/CCHURCH USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN, AND 3134/ITA/USFCS/OIO/WH/MKESHISHIAN/BARTHUR E.O. 12958: N/A TAGS: ETRD EAGR WTO NU SUBJECT: NICARAGUA: TRADE MINISTER BRENES ON WTO CASE AGAINST U.S. AGRICULTURAL SUBSIDIES; PLUS A WORD ON THE AMERICAS COMPETITIVENESS FORUM REF: A. 06 MANAGUA 2383 ¶B. MANAGUA 0197 ¶C. MANAUGUA 0355 ¶1. (SBU) Summary and Introduction: On March 26, the Embassy received a letter in Spanish dated March 16 from Minister of Trade, Industry, and Development Horacio Brenes addressing the WTO case against U.S. agricultural subsidies, as filed by Canada and joined by Nicaragua and other countries. In his letter, Brenes stresses that Nicaragus's sole interest is peanuts, and offers to establish a dialogue with the United States on the subject. Brenes also suggests additional invitees to the Americas Competitiveness Forum in Atlanta this June. Below, this cable reports the contents of Brenes' letter, an original copy of which has been provided to the Office of Central American Affairs in the Department of State. End Summary and Introduction. ¶2. (SBU) Begin unofficial translation of sections of Brenes' letter relating to the WTO Case: -- In search of a solution to the problem facing Nicaragua related to gaining access to the U.S. market for peanuts, I inform you that the United States, in accordance with the official WTO document WT/DS357/10 dated February 8 of this year, accepted Nicaragua's petition to join Canada and other countries in consultations with the United States; and that within the framework of this process, Canada has already held its first consultative meeting on February 7, where it was confirmed that peanuts would be one of the products included in consultations. -- I should not omit to mention to you that, in accordance with Article 4.6 of the WTO's Dispute Settlement Understanding, these consultations are confidential and do not prejudice the rights of any member from undertaking other possible measures. -- On the other hand, permit me to communicate to you that the principal interest of Nicaragua in this consultative process is peanuts, in view of thousands of exporters, producers, and workers within the Nicaraguan peanut sector who have been affected by large distortions in the market caused by U.S. peanut subsidies. -- Because of the points above, our government is disposed to creating a dialogue with the United States with the purpose of proposing reasonable reforms to the 2007 USDA Farm Bill, so as to contribute to sustainable development and the economic and commercial interests of everyone. End unofficial translation of sections of Brenes' letter relating to the WTO Case. Americas Competitiveness Forum -------------- ¶3. (SBU) At the end of his letter, Brenes suggests that the Minister of Education, Culture, and Sports (Note: Mission does not support this particular suggestion),a representative from the National Council of Universities, and the Director General for Business Development in the Ministry of Trade, Industry, and Development be invited to the Americas Competitiveness Forum in Atlanta on June 11-13. Post will be glad to distribute general information to the latter two individuals once provided by the Department of Commerce. We note that while Brenes has not yet confirmed his attendance at the Forum, President Ortega has informed Secretary Gutierrez in a February 22nd letter that Vice President Jaime Morales Carazo will lead a delegation from Nicaragua to the forum that will include members from both the public and private sectors. TRIVELLI