This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 MADRID 001838 
 
SIPDIS 
 
STATE PLEASE PASS TO USTR MOWREY AND SANFORD; STATE FOR 
EUR/WE AND EB/IPC JURBAN 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR SENV EAGR SP
SUBJECT: NEW SPANISH SECRETARY OF STATE FOR TRADE SUPPORTS 
TRADE LIBERALIZATION 
 
REF: A. MADRID 1673 
 
     ¶B. MADRID 1651 
     ¶C. MADRID 1465 
 
¶1. SUMMARY:  In our first meeting with new Secretary of State 
for Tourism and Trade Pedro Mejia Gomez, he told us that 
Spain fully supported EU Trade Commissioner Lamy's efforts to 
move forward Doha negotiations and was not overly concerned 
about potential loss of agriculture subsidies, as long as 
there was reciprocity.  The GOS is disappointed that 
investment is not the EU's choice for priority Singapore 
Issue, but will not fall on its sword over it.  Mejia 
expressed relief that Spain was not included on the Special 
301 Watchlist and stressed his interest in working with the 
USG on intellectual property issues.  END SUMMARY 
 
¶2. On May 12 DCM, Economic Counselor and Econoff met with 
Secretary of State for Tourism and Trade Pedro Mejia Gomez. 
 
SIPDIS 
Mejia was accompanied by new DG for Trade and Investment 
Oscar Via Ozalla and Nicholas Lopez Lopez, Deputy Director 
for Trade and 133 Committee titulaire. While Mejia only 
recently took possession of his office, he has significant 
experience as a trade functionary in previous administrations 
(see reftel A for biographic info).Mejia said the Spanish 
strongly supported the Fischler-Lamy letter which pushed for 
movement forward on Doha Round negotiations via reduction of 
agricultural subsidies.  He noted, however, there would be no 
support for the move unless it was met with reciprocity from 
what Mejia termed as "traditional protectionists" including 
the United States, Japan, Canada and Australia.  He 
acknowledged that Spanish farmers were not happy at the 
prospects of receiving fewer subsidies, but Mejia pointed out 
that changes in EU export subsidies schemes would not 
necessarily have a large impact on Spain.  He estimated the 
effect on Spain would be "medium to low." 
 
¶3. Mejia conceded that in the interest of making progress in 
overall Doha negotiations it made sense to focus on only one 
Singapore Issue.  He said he agreed with Trade Commissioner 
Lamy that trade facilitation was important, especially for 
developing countries.  That said, the GOS continues to be 
interested in all four of the Singapore Issues, especially 
investment.  Mejia said that with such a high level of 
Spanish investments in Latin America, it would be ideal to 
make progress in eliminating barriers and restrictions 
through a multilateral investment agreement.  Spain knows 
there is little support at present for this. 
 
¶4. We took the opportunity of the meeting to highlight U.S. 
concerns on issues such as biotech and REACH chemicals policy 
since in the past we found that the Ministry of Industry 
(formerly the Ministry of Economy) preferred to let other 
ministries run with these issues despite clear trade 
implications.  Mejia admitted to not being familiar with the 
issues, so Lopez quickly briefed on the GOS position on 
biotech saying that Spain has almost always voted in favor. 
He claimed that the sudden change to abstentions in two 
recent votes did not signify that the new administration was 
changing direction.  He claimed the GOS remained open on 
biotech.  (NOTE: Based on our conversations with officials in 
other ministries and in the industry, we are not so sanguine. 
 See reftel C.)  We and Lopez also briefed on REACH.  We 
subsequently sent Mejia the latest REACH demarche points for 
his information. 
 
¶5. Even though Mejia had been present at the Ambassador's 
recent courtesy call on Minister of Industry, Tourism and 
Trade Montilla (reftel B), we reiterated our points on U.S. 
concerns about protection of intellectual property rights in 
Spain.  Mejia had obviously been briefed on this issue and 
expressed relief that Spain had not been named to the Special 
301 Watchlist despite the high levels of piracy.  He 
underscored Spanish commitment to combating piracy.  He told 
us that in the past 18 months enforcement officials have made 
enormous progress in their crack down on street sales of 
pirated goods.  Mejia admitted that the GOS has responded not 
only to U.S. government and industry pressure, but to demands 
from the Spanish music industry which has also been greatly 
effected.  He emphasized GOS interest in cooperating with the 
USG to make further progress in the fight against piracy. 
 
¶6. Mejia asked for the latest information on progress on the 
Hill to move forward legislation to repeal Foreign Sales 
Corporation.  He termed Senate passage of a draft law to be 
"a significant step forward." 
 
¶7. COMMENT: Mejia appears to be knowledgeable and reasonable. 
 Contacts tell us he has the support and respect of trade 
bureaucrats working for him, something his predecessor did 
not enjoy.  Under his management it looks likely that Spain's 
trade leanings will not stray far from the previous 
administration's. 
ARGYROS