VZCZCXRO7767
RR RUEHRG
DE RUEHBR #2626/01 3521416
ZNR UUUUU ZZH
R 181416Z DEC 06
FM AMEMBASSY BRASILIA
TO RUEHRC/USDA FAS WASHDC
RUEHC/SECSTATE WASHDC 7661
INFO RUEHSO/AMCONSUL SAO PAULO 8870
RUEHRI/AMCONSUL RIO DE JANEIRO 3569
RUEHRG/AMCONSUL RECIFE 6025
RUEHBU/AMEMBASSY BUENOS AIRES 4484
RUEHMN/AMEMBASSY MONTEVIDEO 6658
RUEHAC/AMEMBASSY ASUNCION 5850
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 BRASILIA 002626 
 
SIPDIS 
 
USDA FOR FAA SUSAN SCHAYES 
DEPARTMENT FOR WHA/BSC AND H 
STATE PASS USTR:SCRONIN 
USDOC FOR 3134/USFCS/OIO/WH/SHUPKA 
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D 
 
TOFAS 158 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR OREP EINV ETRD ENRG PREL PGOV BR
SUBJECT: BRAZIL:  CODEL GOODLATTE PARTICIPATES IN INFORMATIVE SET OF 
MEETINGS 
 
 
¶1. (SBU) SUMMARY:  CODEL Goodlatte, led by Chairman of the 
Agriculture Committee of the House of Representatives Bob Goodlatte, 
accompanied by eight members of the House Agricultural Committee and 
one member of the House Appropriations Committee, visited Rio de 
Janeiro on November 26-28.  During their brief stay, the delegation 
met with U.S. companies ADM and Monsanto, participated in an 
official lunch that included high level Brazilian government 
officials and industry representatives, received a briefing on 
flexfuel vehicles from General Motors, and engaged in an economic 
and business roundtable with prominent Brazilian business leaders. 
END SUMMARY. 
 
¶2. (SBU) The CODEL's meetings began with a country team briefing, 
led by the Deputy Chief of Mission and the Agricultural Counselor. 
Questions from the Congressmen included such topics as crime and 
drugs, the size of the middle class and the success of anti-hunger 
programs, level and quality of education, and the status of the U.S. 
pilots involved in the recent disaster over the Amazon, as well as 
transportation infrastructure, cost of agricultural inputs, land 
availability for food and biofuel production, and livestock 
production and meat exports. 
 
¶3. (SBU) The country team briefing was followed by a meeting with 
the presidents of U.S. agricultural companies ADM and Monsanto. 
Both ADM and Monsanto briefed the group on the challenges they and 
other agricultural enterprises face in Brazil, specifically the 
infrastructure challenges in transporting goods thousands of miles 
from the interior of the country to its main ports.  Congressmen 
asked a number of questions about transportation and port 
infrastructure, biofuel production, issues of intellectual property 
and how Monsanto charges for the use of their technology.  Monsanto 
addressed the congressmen's concerns about the pricing structure of 
key herbicides, demonstrating the similarity in pricing of such 
products in both Brazil and the U.S. 
 
¶4. (SBU) The official lunch was well attended by high-level 
Brazilian officials from the Ministries of Agriculture and Foreign 
Affairs including and industry representatives from Rio de Janeiro, 
Sao Paulo and Brasilia.  This provided the CODEL with the 
opportunity to discuss informally agricultural and trade issues with 
key decision makers. 
 
¶5. (SBU) General Motors-Brazil representatives provided the 
Congressmen a briefing on the history and capabilities of flexfuel 
vehicles in Brazil, and a Washington-based GM representative 
discussed issues associated with applying flexfuel vehicle 
technology to the United States.  GM described how its production 
has moved to almost all flexfuel cars over the past five years, and 
how the price of gasoline versus alcohol-based fuel has influenced 
that shift.  GM also highlighted that Brazilian Government mandates 
that fuel stations sell both types of fuel also had a significant 
impact. 
 
¶6. (SBU) Prior to their departure, Congressmen engaged in an 
economic, business and trade roundtable discussion with prominent 
Brazilian business and academic leaders from Rio de Janeiro and Sao 
Paulo.  Chairman Goodlatte remarked that this was his second CODEL 
visit to Brazil, and he was pleased that other members of the House 
Agriculture Committee had the opportunity to discuss with Brazilian 
government and business leaders issues of mutual interest to both 
countries.  He agreed with one member of the roundtable that the 
United States does not focus on Brazil enough and that we should be 
not only competitors, but also partners.  Congressman Peterson 
responded to one panel member's comments regarding Brazil's desire 
to export more ethanol to the United States by stating that "we're 
not interested," noting that the U.S. ethanol industry was 
relatively nascent compared to Brazil's and that the tax on imported 
ethanol would be necessary until our domestic industry strengthens; 
the United States wants to keep ethanol production in the hands of 
the rural community, rather than the large companies, and we should 
not let the regulators get involved in this market.  Other comments 
focused on infrastructure, educational needs and bilateral 
relations. 
 
¶7.  (U) This cable was not cleared by Codel Goodlatte prior to 
 
BRASILIA 00002626  002 OF 002 
 
 
transmission. 
 
SOBEL