ORGANIZATION AND OBJECTIVES OF EL SALVADOR'S NEW CAFTA-DR

UNCLAS SAN SALVADOR 000326

SIPDIS

STATE PASS USTR
STATE PASS USAID/LAC
STATE ALSO PASS USTR
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN
3134/ITA/USFCS/OIO/WH/PKESHISHIAN/BARTHUR
SIPDIS

E.O. 12958: N/A
TAGS: ETRD EINV ECON ES
SUBJECT: ORGANIZATION AND OBJECTIVES OF EL SALVADOR'S NEW CAFTA-DR
OFFICE



1. SUMMARY. The Government of El Salvador's new CAFTA-DR Office at
the Ministry of Economy provides a dedicated staff to monitor
CAFTA-DR issues, including implementation, follow-on agreements, and
consistency with other trade agreements. The new office should help
simplify our efforts to monitor CAFTA-DR implementation and
compliance. END SUMMARY.


2. In late 2007, the Ministry of Economy (MINEC) established a new
office to advise the Minister and Vice-Minister on CAFTA-DR issues.
Currently the office has two staff: Jorge Mauricio Guzman, former
deputy director of MINEC's Trade Policy office, and Mr. Rodolfo
Villamariona, the GOES market access negotiator for CAFTA-DR. Their
objectives are to ensure the effective implementation of CAFTA-DR,
to track follow-on agreements and negotiations (e.g., the Pocketing
Amendment),to monitor foreign (including U.S.) legislation that
affects CAFTA-DR, to provide a clearinghouse for CAFTA-DR
information, and to avoid erosion of preferences by ensuring
consistency between CAFTA-DR and other trade agreements. At the
request of Vice-Minister Johanna Hill, they also specifically
monitor environmental and labor issues. According to Guzman, the
only area of CAFTA-DR in which they are not involved is intellectual
property rights (IPR),which remains with the IPR experts in MINEC's
Trade Policy office.


3. The CAFTA-DR office supplements rather than replaces the Trade
Agreements Administration Office (DATCO) and the Trade Policy Office
(DPC) in CAFTA-DR related matters. For example, DATCO would still
represent the GOES at a CAFTA-DR Coordinator's Conference, but the
CAFTA-DR office would have the lead in preparing for the conference.



4. Comment: The creation of the CAFTA-DR Office helps to ensure that
the GOES does not lose track of CAFTA-DR issues, especially while
the Ministry of Economy is busy negotiating other free trade
agreements, including an Association Agreement with the European
Union. The dedicated office, with staff who were actively involved
in the negotiations, should simplify our monitoring of CAFTA-DR
implementation and compliance and provide us a ready point of
contact for CAFTA-DR issues. End comment.

Glazer