PERU REQUEST FOR EEB FY08 BIOTECH FUNDS

UNCLAS LIMA 000226 SIPDIS SIPDIS STATE FOR EEB/TPP/ABT JFINN & GCLEMENTS E.O. 12958: N/A TAGS: EAGR ENRG SENV ECON ETRD TBIO KPAO PE SUBJECT: PERU REQUEST FOR EEB FY08 BIOTECH FUNDS REF: STATE 9674 AND PREVIOUS ¶1. This is an action request. See paragraphs 5-7. BACKGROUND -------------- ¶2. Post appreciates the opportunity to request funding for agricultural biotech initiatives. Peru is a high priority country (reftels) and our newest free trade agreement partner. Peru allows the import of agbiotech products, but does not allow them to be grown in-country. There is a proposed law promoting biotech pending before the Peruvian Congress, which would allow cultivation of biotech crops. U.S. firms, like Monsanto, are eager to plant biotech crops in Peru. EMBASSY ENGAGED ON BIOTECH -------------- ¶3. Embassy Lima's Foreign Agricultural Service (FAS) is in constant engagement with GOP officials on biotech issues and has been implementing a series of initiatives promoting biotech in Peru. FAS has sent Peruvians to past APEC High-Level Policy Dialogue on Agricultural Biotechnology (HLPDAB) meetings, which include private sector days, and is helping the GOP prepare to host the HLPDAB in late February ¶2008. In 2007, FAS also brought two academic speakers to Peru to explain the benefits and safety of agbiotech to the GOP, universities, NGOs, and the Peruvian Congress. FAS also sponsored a 2007 agbiotech survey o the greater Lima area to gauge understanding of the issues. FAS sponsored agbiotech toolbox training in Lima in November 2007 to assess needs and abilities, and will send Peruvians (from GOP's ag research institute) to the next phase of training in the Philippines in February 2008. Finally, FAS supported the creation of the first biotech NGO in Peru, PeruBio. FOCUS ON BIOFUELS IN 2008 -------------- ¶4. While the Embassy is fully engaged on biotech issues, we would like to increase our engagement in biofuels in response to GOP requests and U.S. investor interest. The GOP, which has established biodiesel and ethanol requirements for fuels beginning in 2009 and 2010, has repeatedly asked for USG assistance in this area. The GOP has selected U.S. standards for its biofuels, and we are exploring the possibility of signing a bilateral memorandum of understanding. U.S., European and Brazilian firms are swarming to Peru to take advantage of excellent agricultural and economic environments, as well as the provision of the U.S.-Peru Trade �00A;Promotion Agreement (PTPA) that grants Peruvian ethanol tariff free access to the U.S. market. FAS, the Economic Section and the Public Affairs Section plan on using Cochran Fellowships, Borlaug Fellowships, Faculty Exchange Programs, PL-480 funds, Embassy Science Fellowships, International Visitor Programs, and other opportunities to foster bilateral cooperation and exchanges on biofuels in 2008. ACTION: REGIONAL PROGRAM REQUEST -------------- ¶5. Embassy Lima is working with Embassy La Paz and the OES Hub in Brasilia to organize a biofuels conference in several sites in Peru and Bolivia. The main purpose of the conference will be to discuss ways to ensure a sustainable biofuels industry that fully takes into account environmental, development and agricultural (food crop substitution) aspects. Peruvian sites include Lima and possibly a jungle city (Iquitos or Pucallpa). We understand this proposal has already been submitted to EEB and we fully support the request for funds to help bring it to fruition. ACTION: BIOFUEL CROPS EDUCATION -------------- ¶6. In addition, post requests EEB funds to help both the Peruvian public and agricultural researchers understand the comparative benefits of the wide range of biofuel crops, including those that use biotechnology. We request $5,000 of funding for 2 experts (about $2,500 each) to come to Peru for four days to discuss these issues with GOP officials, researchers, and the public. The first two days in Lima would include meetings with GOP officials, a public presentation at a university and press interviews. The subsequent two days would be in Tarapoto, San Martin region (in the jungle) to have similar meetings at the regional level plus a much more technical exchange with the Tropical Crops Institute (ICT). ¶7. The ICT is a modern, USG-funded alternative development agricultural research center that is beginning to focus on biofuel crops. It was launched with NAS (INL) funding, and the USG has invested $10 million in what is Peru's best jungle research center. ICT provides training to farmers, conducts scientific agricultural research applicable to all of Peru's distinct environments, and is a key tool in alternative (to coca) development and poverty reduction. NAS funding for the center is drying up, so post is exploring ways to make the ICT self-sufficient, including through commercial applications, fee-for-service and incorporation of biofuel crops. The EEB funds would help us inform GOP decision makers and the Peruvian public, respond to the GOP's request for biofuels cooperation, and help keep the vital ICT afloat. EMBASSY POINTS OF CONTACT -------------- ¶8. Post's agbiotech POCs: Marcos Mandojana Deputy Economic Counselor mandojanamc(at)state.gov (51-1) 618-2411 Carlos Gonzalez FAS Agricultural Attache' carlos.gonzales(at)fas.usda.gov (51-1) 618-2789 MCKINLEY