VZCZCXYZ0004
RR RUEHWEB

DE RUEHMU #0026/01 0060046
ZNR UUUUU ZZH
R 060046Z JAN 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4840
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHDG/AMEMBASSY SANTO DOMINGO 0488
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS MANAGUA 000026 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN, WHA/EPSC, EB 
DEPARTMENT PASS TO COMMERCE, TREASURY, USTR, USAID 
SAN JOSE FOR 
 
E.O. 12958: N/A 
TAGS: ETRD NU
SUBJECT: NICARAGUA'S PREPARATIONS FOR NEGOTIATIONS WITH 
USTR ON A CAFTA REFORM PACKAGE 
 
REF: STATE 2910 
 
¶1.  (SBU) Summary: Vice Minister of Development, Industry and 
Trade (MIFIC), Julio Teran, expressed enthusiasm and high 
expectations about upcoming discussions with USTR on legal 
and regulatory reforms required to meet CAFTA obligations, 
tentatively scheduled for next week.  Teran reiterated 
throughout a January 5 meeting with Econoff the political 
necessity of completing the CAFTA package as quickly as 
possible, to take advantage of a legislative climate that he 
perceived as favorable in the National Assembly.  In order to 
meet his stated timeline for introducing a legislative 
package in January, Teran understood that the GON would have 
to demonstrate flexibility.  Teran expressed concern about 
three factors that might upset his time-line: first, any 
local perceptions that legal or regulatory reforms exceed 
treaty obligations, second, the addition of new issues during 
upcoming negotiations with USTR, and third, the continued 
delay of a Nicaraguan meat and poultry inspection audit 
required before the GON recognizes as equivalent the USDA 
meat and poultry inspection system.  End Summary. 
 
¶2.  (SBU) Teran illustrated the flexibility of the GON 
negotiating posture on tariff-rate quotas (TRQs) and IP 
protections.  With respect to the transparent and 
nondiscriminatory administration of TRQs, Teran stated that 
Nicaragua was prepared to accept a "formulation similar to 
what USTR negotiated with El Salvador."  Teran also expressed 
optimism about MIFIC's efforts to encourage local advocates 
on IP protections, adding that the involvement of Nicaraguan 
artists in MIFIC's public affairs and legislative strategies 
would provide political cover for the acceptance of more 
robust enforcement measures.  He mentioned a breakfast 
meeting with leadership of the Superior Council of Private 
Enterprise (COSEP), and expressed satisfaction that leading 
business chambers were expected to accept, and lobby for, 
Nicaragua's package of CAFTA reforms. 
 
¶3.  (SBU) Teran's concerns about accepting the USDA's meat 
and poultry inspection system were not based on substantive 
issues (he admitted to little knowledge of the issue) but on 
the procedural need for USDA counterparts at the Nicaraguan 
Ministry of Agriculture and Forestry (MAGFOR) to complete an 
audit of the USDA inspection system at the earliest possible 
opportunity.  Teran explained somewhat sheepishly that MAGFOR 
apparently lacked the funds to send its audit team to the 
U.S., indicated that MAGFOR had requested MIFIC's financial 
support for the audit, and solicited Econoff for USG support 
for the visit.  Teran expected (unrealistically) that the 
MAGFOR inspection audit could be organized by next week, so 
that MIFIC might benefit from the MAGFOR assessment during 
its discussions with USTR. 
 
¶4.  (SBU) FAS has already supported MAGFOR's preparations for 
the audit inspection by providing model schedules that MAGFOR 
might apply to its upcoming trip.  San Jose FAS Attache 
informed Econoff on January 5 that she is coordinating with 
Washington counterparts to identify funds to support the 
MAGFOR audit and is optimistic that funds can be found. Given 
the pressing time-frame for CAFTA implementation, any MAGFOR 
inspection will necessarily be abbreviated.  Attache will 
encourage MAGFOR to prepare quickly for meetings and site 
visits over a period of four to five days during January. 
The expected result of such an audit would be GON acceptance 
of shipments from any federally-inspected plant.  According 
to FAS, any special certification statements (generally blank 
on shipment certificates) must also be addressed.  (Comment: 
MAGFOR appears unaware of the urgent need to complete an 
inspection audit expeditiously.  In coordination with FAS, 
Post will share the good news about possible USG financial 
support for the MAGFOR visit with MIFIC, along with the 
caveat that the audit must be both abbreviated and 
comprehensive in its conclusions about the USDA inspection 
system, so that shipments from any U.S. plant are covered. 
In this way, it is hoped that MIFIC can stimulate MAGFOR to 
quick and decisive actions on meat and poultry equivalency. 
End Comment.) 
 
¶5.  (U) Vice Minister Teran expects to travel to Washington 
on Sunday, January 8 as head of a delegation of five GON 
officials, including MIFIC Director of Intellectual Property 
Ambrosia Lezama, MIFIC Legal Advisor Christian Martinez, 
 
Manuel Mayorga (customs/market access issues) and Pablo de la 
Roca (telecommunications issues). 
TRIVELLI