VZCZCXYZ0002
RR RUEHWEB

DE RUEHPE #0435 0331608
ZNR UUUUU ZZH
R 021608Z FEB 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 8522
INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION 0001

UNCLAS LIMA 000435 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR WHA/AND, EAP/EP FOR TLYNG 
 
E.O. 12958: N/A 
TAGS: APECO ETRD PE
SUBJECT: PERUVIAN PRIORITIES FOR APEC 2006 
 
REF: SECSTATE 14967 
 
¶1.  (SBU) We spoke to Juan Carlos Capunay, Ambassador to 
APEC at the Ministry of Foreign Affairs on February 1 to 
discuss Peru's priorities for APEC 2006.  While there are 
several items of importance to Peru, Ambassador Capunay 
highlighted the following areas as Peru's priorities: 
 
--Trade:  Peru wants to continue promoting the WTO and Doha 
Development Agenda, particularly in light of the 
developments in Hong Kong in December.  Ambassador Capunay 
stated that the GOP wants to promote enhanced dialogue with 
the International Financial Institutions in the area of Asia- 
Pacific Development. 
 
--Small Business Competitiveness:  Peru is particularly 
interested in promoting capacity building measures for small 
and medium enterprises (SMEs) to improve the business 
environment. 
 
--Health Issues:  While Ambassador Capunay acknowledged that 
health issues such as avian influenza are not as high on the 
Peruvian domestic agenda, the GOP wants to support its Asian 
partners in the battle against a possible epidemic. 
 
¶2.  (SBU) Ambassador Capunay further noted that the APEC 
economies should make a decision on new membership rules in 
2006/2007.  He explained that during the last membership 
expansion in 1998, APEC placed a 10-year moratorium on 
further expansion.  The Peruvian Government position on APEC 
membership policies is that the current APEC economies 
should first accomplish the Bogor Goals and reforms before 
electing new members.  Ambassador Capunay noted that he 
recently spoke to the Singaporean delegation about the 
possibility of an additional five-year moratorium on 
membership; APEC would then open its membership to possible 
candidates in 2013.  The Peruvian Government will likely 
push for reform on the membership process in 2006, calling 
for a decision by 2007. 
 
¶3.  (SBU)  Ambassador Capunay noted that some APEC member 
economies are interested in promoting a Free Trade Area of 
the Asia-Pacific (FTA-AP).  The Peruvian position on the FTA- 
AP is that while it supports the idea in general, Peru has 
some concerns about how to move forward.  Ambassador Capunay 
noted that the GOP is adamantly against the Chilean proposal 
for two classes of members with different rights.  For Peru 
to agree to an FTA-AP, he noted, all member economies should 
be granted the same privileges, regardless of economic 
strength and products traded.  Ambassador Capunay also 
indicated that the GOP believes that FTA-AP negotiations 
could prove difficult, as the 21 APEC economies have very 
different levels of development and different definitions of 
sensitive products. 
 
¶4.  (SBU) The GOP will request a bilateral meeting with the 
U.S. delegation during the Senior Officials Meeting in 
Vietnam.  One item on Peru's agenda will be a clarification 
of the East Asia Forum, established in Malaysia last 
December.  Ambassador Capunay noted that this forum includes 
almost all of the APEC economies, except the three Latin 
American countries.  The Peruvian delegation will likely 
inquire about how the East Asia Forum will affect the 
workings of APEC and whether the East Asia Forum will 
eventually surpass APEC as the key Asian economic forum. 
 
STRUBLE