GSP GRADUATION SETS OFF TRADE TALK DISCUSSIONS AT ANNUAL

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000297

SIPDIS
SENSITIVE

STATE FOR WHA/CAR, WHA/EPSC, INR/IAA AND EEB/TPP/BTA
PASS USTR FOR E.EISSENSTAT AND K.SHIGETOMI
NSC FOR V. ALVARADO
USDOC/ITA/LATIN AMERICA & CARIBBEAN - G.WORD, M.BROOKS

E.O. 12958: N/A
TAGS: ETRD PREL ECON TD
SUBJECT: GSP GRADUATION SETS OFF TRADE TALK DISCUSSIONS AT ANNUAL
CARICOM HEADS MEETING

REF: (A) PORT OF SPAIN 295 (B) PORT OF SPAIN 289
(C) PORT OF SPAIN 288 (D) STATE 69093(NOTAL)
(E) STATE 69707

SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY


1. (SBU) SUMMARY: News of Trinidad and Tobago's GSP graduation led to
a trade discussion among CARICOM leaders gathered in Antigua in early
July, according to Foreign Minister Paula Gopee-Scoon. The leaders'
consensus was the region needs to negotiate now a more "predictable"
trade relationship with the U.S. and cannot wait until CBI/CBTPA is
about to expire in 2010. Admitting her Ministry is not the trade lead,
and being somewhat unclear, the FM implied T&T might be willing to
negotiate alone with the USG on such issues. This is the fourth time
in recent weeks T&T officials have raised trade concerns with us.
Within existing political and manpower constraints, Post recommends
USTR and State consider responding to these importunings by reengaging
T&T on trade matters. END SUMMARY.

A GSP Surprise
--------------


2. (SBU) Foreign Minister Paula Gopee-Scoon told DCM July 5 that
Trinidad's GSP graduation led to a lengthy trade conversation among
CARICOM leaders who just finished their annual meeting in Antigua.
Speaking shortly after her return to T&T, and on the margins of the
Venezuelan National Day reception, the FM explained that the graduation
had come as a surprise.

A More Predictable Trade Relationship
--------------


3. (SBU) The FM continued that she did have time to talk to PM Manning
on the way to Antigua, based on her conversation with the Ambassador,
but granted that neither he nor other CARICOM leaders fully grasped at
the time of their meeting what the graduation meant. That
understanding came later to Manning, upon further research and
briefings by other Cabinet members. Nonetheless, the assembled
Caribbean leaders took the graduation news as a wake-up call that "a
more predictable" trade relationship with the U.S. must be negotiated.
The region should not be subject to unilateral U.S. actions and this
can only be avoided through a negotiated trade pact, she stated.

Bilaterally or Multilaterally?
--------------


4. (SBU) Asked if such a pact, if feasible, would be negotiated with
CARICOM as a group or bilaterally with T&T, the FM hesitated and did
not clearly respond. She did add, however, that only Trinidad and one
other CARICOM country really are in a position to negotiate with the
U.S. so that even if talks were formally multilateral (i.e., with
CARICOM) they would really be almost bilateral in nature.


5. (SBU) The DCM then noted that negotiating with CARICOM has been
slow and not overly productive, witness the TIFA. The FM was not aware
of the TIFA and granted that she was really straying into the Trade
Ministry's area, but implied her comments flowed from the PM's words at
the Antigua meetings. In closing, and emphasizing he was speaking
personally, the DCM cautioned that the U.S. electoral calendar and
change of Administrations might make any in-depth trade discussions
over the coming months difficult to pursue. In response, the FM said
she was aware of that, but with CBI expiring in 2010, T&T and CARICOM
"could not afford to waste any time."

Comment: Time to Engage, if Feasible
--------------


6. (SBU) COMMENT: While admitting that hers is not the guiding Cabinet
trade voice, the FM's comments represent at least the fourth time in
recent weeks that T&T officials have raised this topic (two of these
conversations -- refs c and d -- directly involved the PM). Thinking
here does not appear fully congealed around what this might mean (other
than further unilateral trade concessions such as on packaging of
goods) or whether T&T would go alone into talks or seek a CARICOM
format (especially now that a T&T national reportedly has been named to
head the CRNM).


7. (SBU) Recognizing the potential political and human resource
constraints involved in possibly beginning trade talks bilaterally or
multilaterally, Post suggests that Washington agencies consider
engaging the GOTT on trade issues in an exploratory and fact-finding
mode. Doing so would send a signal of our responsiveness, clarify GOTT
intentions, gauge how ready the country/region is for in-depth talks at
a later date (the regional back-and-forth on the EPA suggests some

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caution here),and instill a greater sense of reality and understanding
over what is and is not feasible. This conversation, which initially
need not be at a high level and could touch on GSP (ref e) and broader
matters, could be held in Washington or Port of Spain [or by DVC,
though a face-to-face meeting is preferable]. Post would welcome USG
visitors if that decision were made.

AUSTIN