VZCZCXYZ0001
PP RUEHWEB

DE RUEHSJ #0999/01 3582210
ZNR UUUUU ZZH
P 232210Z DEC 08
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 0374
INFO RUEHRC/USDA FAS WASHDC 2063
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS SAN JOSE 000999 
 
SIPDIS 
 
STATE FOR H, WHA/CEN AND RM/F/DFS/FO/AA/CAA 
USDA FAS FOR OFSO/WHO, H. MAGINNIS 
 
E.O. 12958: N/A 
TAGS: EAGR CR OREP PREL PGOV ENRG AFIN
SUBJECT: SFRC STAFFDEL MEACHAM-WHITESEL RESEARCH FOOD SECURITY 
ISSUES IN COSTA RICA 
 
RE: STATE 123682 
 
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SUMMARY 
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¶1.  SFRC staffers Carl Meacham and Aaron Whitesel visited Costa Rica 
December 7-9 and Guatemala December 9-13 to conduct research on food 
security issues.  They compared and contrasted the experiences of 
two countries with far different food security issues.  The findings 
will help inform and shape SFRC action on food security policy. 
Unlike other countries in Central America, relatively better-off 
Costa Rica has not yet faced serious food security problems. 
Nevertheless, the GOCR is working to improve the country's food 
production and food supplies. 
 
¶2.  In Costa Rica, the Staffdel met with the Ambassador, members of 
the country team, the Minister of Agriculture; officials from the 
Institute for InterAmerican Cooperation on Agriculture (IICA); the 
Vice Minister of the Economy and key legislators.  The Staffdel also 
traveled to EARTH University in Guapiles to tour the campus, meet 
with faculty and staff, and review agricultural development programs 
with future food security applications.  The STAFFDEL's 
interlocutors described Costa Rica's plans to increase local rice 
and bean production to improve food security, noted the negative 
impact of the world financial crisis on farm credit and stressed the 
importance of training and infrastructure, as well as credit access, 
to help Costa Rica ensure its own food security.  The site visits 
showed how Costa Rica-based regional and international entities are 
helping other countries better address food security issues. END 
SUMMARY. 
 
¶3.  BACKGROUND:  Senator Lugar directed minority staff of the Senate 
Foreign Relations Committee (SFRC) to undertake a study of global 
food security.  The study will, in part, support a bill introduced 
by Senators Richard Lugar (R-IN) and Robert Casey (D-PA) titled the 
"Lugar-Casey Global Food Security Act".  The purpose of the bill is 
to improve the U.S. emergency response to food crises, to establish 
a Global Food Security Strategy overseen by a Special Coordinator 
for Global Food Security, to increase resources for long-term rural 
development programs, and to enhance human capacity through higher 
education for agriculture and extension. 
 
¶4. MEETINGS WITH THE U.S. EMBASSY:  With the Ambassador and DCM 
Peter Brennan, the STAFFDEL asked about overall security issues in 
the region and CAFTA-DR implementation.  The STAFFDEL learned that 
despite relatively low security threats in Costa Rica compared with 
neighboring states, the security situation is deteriorating, with 
narcotic trafficking and violent crime on the rise.  Although the 
final steps are somewhat complicated, the Ambassador and DCM told 
the STAFFDEL that CAFTA-DR is expected to enter into force for Costa 
Rica on January 1, 2009.  DCM chaired a follow-on meeting for the 
STAFFDEL with members of Embassy San Jose's country team, which 
provided the staffers a broad overview of bilateral and regional 
issues. 
 
¶5.  MEETING WITH MINISTRY OF AGRICULTURE:  Staffers met with 
Minister Javier Flores and Vice Minister Roman Solera to discuss 
Costa Rica's approach to food security.  Flores expressed strong 
support for imports into Costa Rica to meet its food security needs. 
However, the minister stated that he planned to promote efforts to 
increase local production of rice and beans in order to improve food 
security.  Costa Rica depends on the United States for virtually all 
of its rice imports.  Minister Flores also stated that the credit 
crunch is affecting farmers because they cannot obtain small loans. 
The minister's personally supports biotechnology; however, he 
acknowledges that many in the GOCR oppose the application of 
biotechnology to agricultural production. 
 
¶6.  MEETING WITH IICA:  Dr. Chelston Brathwaite, IICA Director 
General, led the delegation from IICA.  To promote food security, 
IICA proposed increased efforts to train farmers, provide credit and 
improve agricultural infrastructure to help them produce and ensure 
food security.  As a response to the recent spike in food prices, 
IICA expects to see an increase in support subsidies for poor 
farmers.  However, the aim of the subsidies would change from 
shielding domestic production from competition to focusing on 
building infrastructure and capacity. 
 
¶7.  MEETING WITH COSTA RICAN GOVERNMENT OFFICIALS:  Over lunch, the 
staffers met with Vice Minister of Economy Eduardo Sibaja and 
legislators Evita Arguedes (IND), Andrea Morales (IND), Jose Manuel 
Echandi (IND) and Guyyon Massey (PRN).  The legislators represented 
key committees and the national legislature's leadership.  All but 
Morales were pro-CAFTA, but she broke with her party to not oppose 
CAFTA following the 2007 national referendum on the issue. 
 
¶8. In frank and wide-ranging discussions, the STAFFDEL heard about 
 
the need for additional U.S. aid for Costa Rica, optimistic 
expectations for the Obama administration, plans to address food 
security, Costa Rica's goal to carve out niche export markets with 
the EU and China (once CAFTA is completed), the growing importance 
of the international service sector to Costa Rica ("back office" 
operations by multinationals and call centers), and Costa Rica's 
planned accession to Petrocaribe - Venezuela's oil program.  The 
legislators agreed with Meacham's assessment that renegotiation of 
CAFTA (as called for by the leading opposition party) was highly 
unlikely in the next administration.  They also candidly described 
the structural, legal and political impediments that made Costa Rica 
difficult to govern effectively or efficiently.  On Petrocaribe, 
Sibaja reiterated that the GOCR was acting out of economic 
pragmatism; there were no plans to move closer to Venezuela 
politically.  He and the legislators also noted Costa Rica's 
interest in greater involvement in bio-fuel initiatives. 
 
¶9.  EARTH UNIVERSITY VISIT:  Staffers traveled east of San Jos to 
Guapiles, Costa Rica, where they toured EARTH University. 
Originally founded with a generous grant from USAID, EARTH was 
inaugurated in 1990 as an international, private, not-for-profit 
university dedicated to education, extension, research and the 
generation of value through production, transformation and 
commercialization activities.  The academic program, leading to a 
"licenciatura" degree, emphasizes the agricultural sciences and the 
rational management of natural resources.  EARTH programs focus on 
sustainable development, with its 400 students drawn from 
under-developed and developing countries in Latin America and the 
Caribbean, Asia, and Africa. 
 
¶10.  Accompanied by Provost Dr. Daniel Sherrard, the STAFFDEL viewed 
student projects in Costa Rica; learned about EARTH-supported 
education and extension projects in Africa and Asia; and visited 
EARTH's on-site livestock operation, banana paper mills, and banana 
plantations.  EARTH University has approximately 10,000 hectares of 
bananas in Cost Rica; the majority of production is sold to Whole 
Foods. 
 
¶11.  STAFFDEL Meachan-Whitsel did not clear this cable in advance. 
 
CIANCHETTE