VZCZCXYZ0001
OO RUEHWEB

DE RUEHBU #0149/01 0262030
ZNR UUUUU ZZH
O 262030Z JAN 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7081
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000149 
 
SIPDIS 
 
STATE FOR INR/R/MR, I/GWHA, WHA, WHA/PDA, WHA/BSC, 
WHA/EPSC 
CDR USSOCOM FOR J-2 IAD/LAMA 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KPAO OPRC KMDR PREL MEDIA REACTION
SUBJECT: MEDIA REACTION TIFA BETWEEN THE US AND URUGUAY; 01/26/07 
 
 
¶1. SUMMARY STATEMENT 
 
All major newspapers report on the signing of a Trade and Investment 
Framework Agreement between the US and Uruguay and DUSTR John 
Veroneau's statement that "The TIFA's will  help us find ways to 
explore and broaden economic opportunities  as well as identify 
further opportunities between the two countries." 
 
¶2. OPINION PIECES 
 
- "Commercial agreement between Uruguay and the US - a yellow light 
for Mercosur" 
 
Leading "Clarin" (01/26) reports "It is a Trade and Investment 
Framework Agreement, but it could well lead to an FTA, which could 
infringe on Mercosur rules. The initiative sparked irritation in 
from Frente Amplio." 
 
"... DUSTR John Veroneau said 'We were impressed by the presentation 
made by the Uruguayan delegation in the US, and by the fact that 
they were eager to strengthen the bilateral relationship.'" 
 
- "Washington analysts dismiss a broader agreement" 
 
Leading "Clarin's" Washington-based correspondent Ana Baron writes 
(01/26) "The TIFA signed by the US and Uruguay raises new questions 
about  the future of Mercosur. Is this the preliminary step  to an 
FTA, which could force   Uruguay out of  Mercosur? International 
trade experts consulted by 'Clarin' believe that the current 
political obstacles not only in Uruguay but also in the US will 
hinder the signing of an FTA between the two countries. 
 
"... Experts think that the fact that the US and Uruguay have not 
signed an FTA does not rule out  a greater Mercosur crisis." 
 
- "Argentina and Brazil are on the alert, but, still,  confident" 
 
Leading "Clarin's" political columnist Natasha Niebieskikwiat 
(01/26) reports "Mercosur main partners are on a state of alert 
given  the possibility of an FTA between Washington and 
Montevideo... However, Argentine Secretary for International 
Economic Relations Alfredo Chiaradia said: 'Countries are sovereign 
and we do not have any comments as long as commitments with other 
countries are honored.'" 
 
- "Uruguay signs a commercial and investment deal with the US" 
 
Daily-of-record "La Nacion's" "Economy and Business" supplement 
heads reports (01/26) "Uruguay and the US signed yesterday a Trade 
Investment Framework Agreement... Both delegations decided to set up 
a Council on Trade and Investment with representatives from both 
countries... The US delegation was led by Deputy USTR John Veroneau, 
who is scheduled to be  in Argentina today to discuss the Doha Round 
and other commercial issues." 
 
- "Uruguay signs an investment deal with the US" 
 
Conservative "La Prensa" reports (01/26) "(The TIFA) is a 
preliminary step toward   an FTA between Montevideo and the US." The 
paper reports "The US and Uruguay signed yesterday a Trade 
Investment Framework Agreement to promote trade and investment with 
the US. 
 
"The USG officials  who were signing were DUSTR John Veroneau, 
Assistant USTR for the Americas Everett Eissenstat, the USTR 
Director for the Southern Cone, Susana Cronin, and US Ambassador to 
Montevideo Frank Baxter. 
 
"Relative to the TIFA signed between the US and Uruguay, a bilateral 
council will gather... to 'explore opportunities' to liberalize 
trade and investment as well as remove commercial barriers. This is 
why the pact is considered a first move toward  an FTA. In a press 
round, Uruguayan Economy Minister Astori did not rule out the 
possibility of making progress in this direction." 
 
- "Montevideo and Washington closer to  an FTA" 
 
Business-financial "InfoBae" (01/26) reports "... Washington, which 
did not manage to obtain the support from most of the countries of 
the region to make progress on the FTAA, decided then to develop a 
broad network of bilateral FTAs... 
 
"Veroneau asserted that 'if Uruguay were to be considered a  share, 
I would purchase it, and voiced Washington's interest in reaching 
trade deals with the region." 
 
- "'Venezuela and Bolivia complicate Mercosur" 
Business-financial, center-right "InfoBae" (01/26)  reports an 
interview with Jorge Rodriguez Aparicio, head of the 
Argentine-Brazilian Chamber of Commerce, who said that the bloc is 
stalled, criticized its 'ideology-driven impetus' and warned that in 
the current situation, new partners will cause new problems. 
 
"'Although I believe that the FTAA is dead, we should think of 
future bi-national deals, such as the one the Vazquez administration 
is going to sign with the US...'" 
 
- "Uruguay steps away  from Mercosur by signing  a deal with the 
US." 
 
Business-financial "Ambito Financiero" (01/26) reports "Uruguay 
finally signed a Trade and Investment Framework Agreement (TIFA), in 
a move  seen by analysts as a preliminary step toward an  FTA with 
the US, something which could imply distancing away from Mercosur. 
 
"... Rapprochement between Uruguay and the US raises concern in 
Mercosur given the bloc's rules prohibiting country's fellow members 
from negotiating free-trade deals with other countries. 
 
"DUSTR John Veroneau said 'The TIFA's purpose is to help us find 
ways to explore and broaden economic opportunities as well as 
identify further  opportunities for  both countries.' 'The TIFA is a 
very important step forward, but we should "let the ink dry" before 
starting to talk about any other  kind of deal.'" 
 
- "Claim on the US for removal of sanitary barriers" 
 
Business-financial "El Cronista" (01/26) reports "(Argentine Economy 
Minister) Felisa Miceli and FM Jorge Taiana will ask the USG 
official who signed a commercial agreement with Uruguay for the US 
to remove sanitary barriers. The agenda will also include 
investment" 
 
"... DUSTR will talk about Washington's concern over the role of 
Venezuelan Hugo Chavez and Bolivian Evo Morales in Mercosur. He will 
also reiterate the US interest in signing new FTAs with South 
American countries." 
 
- "The US promotes an energy pact against Chavez" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacion," comments (01/26) "Without resounding 
announcements and political debate, the USG and Brazil have made an 
alliance to promote hemispheric  manufacturing and marketing of 
bio-diesel  in order to reduce oil dependence and get some 
protection against  Venezuelan President Hugo Chavez's U-turns. 
 
"According to sources who attended negotiations in this city, the 
agreement between Washington and Brasilia will also include other 
countries manufacturing ethanol or facing serious social challenges, 
but not Argentina, which is a newcomer  in this field. 
 
"The energy pact, called 'Bio-diesel strategy for Latin America and 
the Caribbean' will be launched this year. According to 
negotiators, funds have been allotted to the project,  aimed at 
moving billions of dollars in  the near future through a 'strategic 
regional partnership between the US and Brazil ' 
 
"According to Argentine and American sources, the US State 
Department's  number three Nicholas Burns, and the USG's officer for 
Latin America Tom Shannon will travel to Brazil and Argentina  early 
in February, but their agenda  for Buenos Aires will not include 
this project. 
 
"The alliance is aimed at diversifying the purchase of energy  from 
the US, which imports oil from Iran, Iraq, Nigeria and Venezuela, 
among other  unruly countries." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE