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

UNCLAS GUATEMALA 000102 
 
SIPDIS 
 
DEPT PASS USTR 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL ECIN KIPR EAGR GT CAFTA
SUBJECT:  VP and congressional leader stubborn on sanitary 
equivalency and patents 
 
¶1.  (U) In comments to the press on January 18, Vice President 
Eduardo Stein sharply criticized the US for adding "new" 
requirements for CAFTA implementation, focusing specifically 
on the controversial law on patents and data protection 
(number 30-2005).  Also referring to the US requirement for 
SPS equivalency and changes to telecoms legislation, Stein 
threatened that Guatemala would not cede and would simply not 
implement CAFTA.  President Berger, after an AmCham event on 
January 17, was quoted in less strident terms, saying that "we 
will not permit changes in the themes since they have been 
signed off on; we must be respectful." 
 
¶2.  (U) The President of the congressional Economic 
Commission, Mariano Rayo, a key ally in CAFTA ratification and 
chief drafter of the CAFTA implementation bill now pending, 
was as emphatic as Stein to the press and even more so in a 
meeting with Econ Counselor on January 18.  He stressed, among 
other things, that sanitary/phyto-sanitary equivalency must be 
reciprocal, that law 30-2005 is as far as congress can go, and 
that a key article on telecoms deleted from the latest 
implementation bill is covered elsewhere in the law.  The 
powerful chambers of industry and agriculture also publicly 
supported Stein's tough stance on not adding new requirements, 
while AmCham was quoted as agreeing with the US pharmaceutical 
industry (Fedefarma/PhRMA) that the executive branch does not 
understand the patent and data protection issue and is wrong 
in its opposition to further patent law reform. 
 
¶3.  (SBU) Stein announced that he would head a delegation to 
Washington, including the ministers of agriculture and economy 
and influential presidential commissioners, to make his points 
to top USG officials.  (Note:  As of 1/19 Stein's plans are 
unclear, since Deputy Secretary Zoellick is not available, but 
the agriculture and economy ministers are still planning on 
going to meet with top State, USTR, Commerce and USDA 
officials.  End note).  For his part, President Berger will be 
joining other CAFTA country presidents on Sunday in El 
Salvador to discuss implementation delays and USG 
requirements. 
 
¶4.  (SBU) Comment:  Both Stein and Rayo can be quite direct 
and outspoken, so their comments should be evaluated in that 
light.  However, the opposition to reform of the 2005 
amendment to the IPR law (patents and date protection) is 
widespread and entrenched, and is led by influential members 
of the administration like Stein, Rigoberta Menchu and Health 
Minister Sosa.  Neither the executive branch nor congress want 
to reopen this politically damaging issue.  The requirement to 
recognize US meat inspection standards as equivalent to 
Guatemala's should be easier, since Guatemala already accepts 
US meat.  However, opposition is rallying around the lack of 
reciprocity (a rhetorically appealing but not realistic point) 
and that this requirement was not put in writing in the CAFTA 
text.  While many lesser issues should be cleared up during an 
upcoming technical meeting between USTR and the Guatemalans, 
these two issues. along with perhaps telecoms, will continue 
to slow overall progress on CAFTA implementation in Guatemala. 
 
Derham