GOM Views on Next Steps in Regional Precursor Control

UNCLAS MEXICO 000001


STATE FOR INL/LP AND WHA/MEX
DEA FOR OD, OF, OFC, AO, DO, NPSM
FBI DIR FOR LA/CU, OC/DB, OIU, CID

E.O. 12958: N/A
TAGS: SNAR KCRM KJUS PGOV PREL MX
SUBJECT: GOM Views on Next Steps in Regional Precursor Control
Project


1. (SBU) Summary: Nadia Levy-Popp, Director of Precursor Chemicals
in PGR/SIEDO, recently shared with Emboffs a report that reviews the
status of precursor controls in Central America (below). Levy-Popp
stressed the importance of training to the development of new
precursor regimes in Central America and to building the key
relationships that will strengthen the region's ability to control
precursors in the wake of Mexico's improved legal and enforcement
framework. Levy-Popp urges a major training effort from June to
September 2009 in either ILEA San Salvador or Mexico City, supported
jointly by the GOM, the USG, and the United Nations Office on Drugs
and Crime (UNODC). End Summary

EMPHASIS ON TRAINING EFFORT FOR THE REGION
--------------


2. (SBU) NAS Director and DEA Analyst met December 17 with Nadia
Levy-Popp, Director of Precursor Chemicals in PGR/SIEDO, and
formerly on contract as an advisor to the USG to work throughout
Central America and the Southern Cone developing new legal tools to
control the flow of precursor chemicals. Levy-Popp is working on
Mexico's precursor regime but remains focused on the region as well.
She shared with us a paper -- Reduction in Imports in Central
American and Southern Cone, Strengthening the Mechanisms of Control
-- which derives from the project she has been working on for the
past year. A translation of the paper is included below.


3. (SBU) Levy-Popp made two key points with regards to the future
of the effort to strengthen precursor controls. First, she believes
keeping Mexico engaged is crucial, as Mexican officials will often
have success in bringing together their Central American
counterparts, where U.S. officials might be less successful.
Second, regional training is vital to the effort. In addition to
the improved capacity it brings, training leads to networking among
the various officials who will be working on precursor controls,
always in a cross border setting, and opens doors for those
providing the training to high level officials throughout the
region. Levy-Popp urges a joint program by the USG and GOM, with
UNODC involved in support as the provider of key software. She
suggests a training effort from June to September 2009, held either
in Mexico City or ILEA San Salvador, in which participants are
provided computers and software which they would train on and then
take back to their home country.

REPORT ON STRENGTHENING THE MECHANISMS OF CONTROL
-------------- --------------


4. (SBU) Levy-Popp provided Emboffs with a report on the precursor
control project, a translation of which is provided below:

Begin Text

Title: Project -- Reduction in Imports in Central American and
Southern Cone, Strengthening the Mechanisms of Control

CENTRAL AMERICA DEVELOPMENTS (APRIL 2007)

-- Regional initiative to strengthen control mechanisms in Central
America: US Embassy in Mexico, GOM in coordination with authorities
from the region.

-- Training in: chemical identification, diversion techniques,
auditing techniques, NDS system and the COFEPRIS experience
(strategy to reduce imports),and PGR/SIEDO (presentation of
diversion cases).

-- Meetings with authorities to raise awareness on the problem of
diversion in the region and the necessity to update controls and
implement new mechanisms.

-- Coordination was handled by the Ministry of Health which has a
legal basis to strengthen regulations on narcotic, psychotropic and
chemical substances.


OBJECTIVE: Confirm the legal destination of precursor chemicals and
prevent diversion in Central America to Mexico and the United
Status.


FACTS:

-- Drastic reduction in imports to Mexico since 2004 and their
subsequent cancellation in 2008.

-- Lack of controls in Central America with respect to the import
and distribution of pseudoephedrine (raw materials and finished
pharmaceutical products).

-- The 1988 United Nations Convention against Illicit Traffic in
Narcotic Drugs and Psychotropic Substances requires control of raw
materials, not finished pharmaceutical products.

-- Result: Increase in illegal imports of pseudoephedrine to Central
America and the possible diversion of raw materials and finished
pharmaceutical products in internal chains of distribution.


NORTH AMERICA:

-- When the US and Canada strengthened their control mechanisms
through changed legislation, diversion moved to Mexico which peaked
at a legal import of 216 tons in 2004.

-- In a 2007 report, the International Narcotics Control Board
(INCB) warned that the multilateral chemical control initiative
Project Prism had led to a new trend in diversion; contraband in the
form of finished pharmaceutical products transit Central and South
America through internal chains of distribution toward North
America.


CENTRAL AMERICA STRENGTHS:

-- Signatory states of the 1988 Convention.

-- Participants in OAS/CICAD.

-- General legislation on chemical precursor control exists, but an
update addressing finished pharmaceutical products and efficient
enforcement is necessary. Some cases require substantial reform or
emission of concrete laws that state the Convention's commitments
and controls.


CENTRAL AMERICA WEAKNESSES:

-- Varied difficulties using the NDS 6.0 and PEN Online Systems
(INCB),except in Costa Rica.

-- Limited coordination between the responsible authorities
(Ministry of Health, customs, law enforcement, and prosecutors).

-- Health authority's limited involvement with the pharmaceutical
industry (self regulation).

-- Lack of material resources and sufficient capable staff.

PROGRESS BY COUNTRY:

PANAMA:

-- Currently analyzing imports against therapeutic needs and pushing
for the reformulation of pharmaceuticals by 2010.

-- The list of controlled substances has already been approved by
the National Commission for the Study and Prevention of Crime
Related to Drugs (CONAPRED) in accordance with Law 19, to be
published in the Official Gazette.

NICARAGUA:

-- July 25, 2007, Ministerial Resolution 223 - 2007: pseudoephedrine
and ephedrine were included in the list of psychotropic substances
and are controlled as such. Pseudoephedrine and products containing
it are controlled through import/export permits.

-- Currently drafting a Ministerial Resolution to prohibit the
import and sale of pseudoephedrine in Nicaragua.

EL SALVADOR:

-- Incorporated the diversion concept into the Regulatory Law of
Activities Related to Drugs and established civil sanctions and
penalties for the diversion of pharmaceutical products.

-- September 3, 2008, Agreement for the control and handling of
pseudoephedrine: fixes import quotas based on actual consumption,
sets a one-year deadline for the removal of the chemical from over
the counter drugs, and requires products with the chemical to be
restricted to retained-prescription only.

BELIZE:

-- June 21, 2008, Statutory Instrument 72: prohibits the import of
pseudoephedrine, ephedrine and pharmaceutical products that contain
them.

COSTA RICA:

-- The Costa Rican Drug Institute (ICD) is working to control
products that contain substances from Table I of the 1988
Convention, limiting their sale by medical prescription.

-- Once these controls exist, they plan to issue specific
instructions to pharmacies for registering sales of these drugs and
establishing limits on quantities sold.

-- Until the list of controlled substances is modified, the national
pharmaceutical industry, importers, and wholesale distributors have
the option of reporting imports/exports of these types of
medications on a voluntary basis to the ICD.

-- The modification of the list of controlled substances will
strengthen import/export permits on any medication that contains
substances from Chart I.

HONDURAS:

-- The Ministry of Health convened a "Commission to Reform the Legal
Framework."

-- June 4, 2008, Ministerial Agreement 997: calls for a 90%
reduction in pseudoephedrine and ephedrine imports. The substances
must be distributed solely by authorized establishments exclusively
for medical use and by retained-prescription. The agreement also
calls for the reformulation of existing pharmaceuticals.

-- An additional proposal seeks to prohibit the use of
pseudoephedrine and ephedrine in cold remedies

-- Within the framework of the National Council against Drugs,
Honduras has also created an inter-institutional commission to
control precursor chemicals.

GUATEMALA:

-- The Ministry of Health is working on the "Guatemala
pseudoephedrine free" project to control the import of products
containing the precursor and to establish a substitute.

-- Their goal is to reach complete independence from imports by

2010.


TRAINING:

Courses have allowed us to gain the trust of officials involved in
controlling chemical precursors from health agencies, customs,
federal police forces, drug enforcement, the judiciary, and national
drug councils.

-- Immersion Course: October 6-10, 2007, Mexico City, included
Central American agencies.
-- Training Course for the Judiciary
-- Training Course in Belize


-- Training Course in Paraguay
-- Training Course in Peru - "6 Fronteras"
-- NDS y PEN Online training (coordinated with UNODC)



CONCLUSIONS:

-- The Seminar on Chemical Control has helped Central America raise
consciousness and further recognize the dangers posed by synthetic
drugs highlighting the importance of control mechanisms.

-- Due to a lack of control over finished pharmaceutical products it
has been difficult for authorities to determine what is legally
imported in each country and whether imports have increased over
recent years.

-- Diversion moves from region to region in search of a lack of
legislation and norms.

-- While the number of countries with strengthened mechanisms on raw
materials increases, traffickers take advantage of loopholes in
legislation to divert finished pharmaceutical products.

-- Also, as international controls regarding finished pharmaceutical
products improve, traffickers develop new methods and diversion
routes, relying on internal distribution chains, taking advantage of
lax or non existent regulations.

End Text

BASSETT