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DE RUEHSO #0718 1801509
ZNR UUUUU ZZH
O 291509Z JUN 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5337
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 6424
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7226
RUCPDOC/USDOC WASHDC 2504

UNCLAS SAO PAULO 000718 
 
SIPDIS 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: WORLD TRADE: WTO DOHA ROUND NEGOTIATIONS IN 
GENEVA; SAO PAULO 
 
 
"New Attempt To Overcome The Doha Round Impasse" 
 
Business-oriented Valor Economico editorialized (6/29): "It would be 
excessive optimism to expect that the diplomats who will meet as of 
today in Geneva can make a significant step forward to remove the 
negotiations from the enormous impasses in which they are involved. 
There are old and profound differences, and more controversial 
proposals are on their way.... Understanding [between developing and 
developed nations] has shown no progress since the Hong Kong 
meeting.... The EU, a champion of agricultural protectionism, 
refuses to make important concessions to permit the access to its 
markets and partially disarm the high barrier it raised in the form 
of tariffs.... Despite George W. Bush's many speeches urging the 
conclusion of the Doha Round, the US is a major part of the problem, 
because it is reluctant in reducing the heavy system of domestic 
support to its farmers.  US internal subsidies are gigantic, as well 
as are those of its partners.... If the current differences were not 
enough, the US has just added another important one to the list. It 
has resuscitated the so-called 'peace clause,' which had been 
cancelled in 2003, to prevent its internal policies from being 
opposed at the WTO, as was the case of cotton, in which the US was 
defeated. In such an environment of minimal concessions, the 
proposal was included in the long list of the unacceptable ones. A 
Doha Round failure or its postponement - the most likely scenarios - 
will harm more the developing nations.... Brazil is right to give 
priority to the Doha Round, but it will be particularly unprotected 
if the round is not successful.  Brazil has neglected the FTAA 
creation, obtains little progress in the negotiations with the EU, 
and tends to lose trade advantages within its own region as a result 
of the agreements the US is working on in the Andes and in the 
Caribbean." 
McMullen