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