VZCZCXYZ0001
PP RUEHWEB

DE RUEHPE #0129/01 0172055
ZNR UUUUU ZZH
P 172055Z JAN 07
FM AMEMBASSY LIMA
TO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 3617
RUEHC/DEPT OF LABOR WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASH DC PRIORITY
INFO RUEHBO/AMEMBASSY BOGOTA 4269
RUEHCV/AMEMBASSY CARACAS 0077
RUEHLP/AMEMBASSY LA PAZ JAN PANAMA 0807
RUEHQT/AMEMBASSY QUITO 0939
RUEHSG/AMEMBASSY SANTIAGO 1052
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC

UNCLAS LIMA 000129 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USTR FOR EISSENSTAT, HARMAN, CARILLO 
COMMERCE FOR BASTIEN,MCAMERON 
TREASURY FOR JEWELL, SHWARZMAN 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR ELAB PE
SUBJECT: PERU FURTHER REORGANIZES TRADE TEAM; EX-MINISTER 
BACK IN 
 
REF: LIMA 4771 
 
¶1. (SBU) SUMMARY.  On January 11, Trade Minister Mercedes 
Araoz named Toledo Administration official and textile 
executive David Lemor as her ministry's special 
representative based in Washington to work on Peru's lobbying 
effort for the Peru Trade Promotion Agreement (PTPA).  Lemor, 
a dynamic former Minister of Production and Trade under the 
Toledo Administration, is well known to Washington agencies 
as he participated in the PTPA negotiations.  Araoz also 
declared that the Trade Ministry would spearhead the GOP's 
efforts to gain approval of the PTPA in the U.S. Congress. 
As per reftel, Peru's Ambassador in Washington Felipe Ortiz 
de Zevallos will lead the GOP's Washington effort, but Araoz 
and others are counting on Lemor's "dynamism" to help the 
process.  END SUMMARY. 
 
¶2. (SBU) In a press release, Minister Araoz stated her belief 
that Lemor would strengthen the Peruvian effort, and that the 
process of achieving ratification involved teamwork.  An 
Araoz advisor told us that Lemor had a solid track record, 
and that the Washington effort would benefit from his 
energetic style.  Lemor has been vocal about his intentions 
regarding Peru's lobbying efforts for the PTPA, stating that 
he wants the PTPA on the U.S. Congress's agenda for the first 
quarter of 2007.  With that in mind, he says he will work to 
gain the support of Latino groups in the U.S., work closely 
with Ways and Means Chairman Charlie Rangel, and coordinate 
with union organizations in the U.S. and Peru.  In a recent 
column, he said he intended to work closely with the U.S. 
Congress and Administration to develop a labor side letter 
that satisfies Democrats and does not alienate Republicans. 
 
¶3. (U) Araoz also said that renowned economist Hernando de 
Soto would continue as the President's envoy, and that Lemor 
would "support (de Soto's) work."  De Soto has stated 
publicly that he would be focusing his efforts on the 
"internal FTA."  The "TLC hacia adentro" (in Spanish) will be 
based on de Soto's published work, stressing the importance 
of land and property titling, reducing bureaucracy and 
needless paperwork, and encouraging economic freedom. (Note: 
de Soto has not yet announced the details of his program.) 
 
¶4. (SBU) Reaction among those in the business community has 
been positive.  Privately, many businessmen are thrilled that 
the job is now in the hands of a former businessman.   Samuel 
Gleiser, president of the Lima Chamber of Commerce said he 
believed Lemor would do an excellent job.  Eduardo Farah, 
president of the National Industrial Society (SNI), said 
Lemor's presence would provide "a major impetus" for the 
GOP's team. 
 
¶5. (U) Araoz also announced the establishment of a Permanent 
Committee that will coordinate the free trade agreement 
process through weekly meetings and will be integrated with 
the efforts of the Peruvian Embassy in Washington and 
technical staff in the Ministries of Trade and Foreign 
Relations.  The GOP, according to Araoz, will also continue 
to retain their Washington lobbyists and consultants 
including the law firm of Patton Boggs. 
 
¶6. (U) Born in Lima, Lemor graduated as an industrial 
engineer from North Carolina State University in 1976.  He 
then launched a successful career in the textile industry. 
In the 1990s, Lemor participated in various trade 
organizations, became a director of SNI, and later was a 
member of the Peruvian Export Promotion Agency (PROMPEX) and 
the National Strategic Plan for Exporting (PENX).  His track 
record shows that he is not averse to supporting anti-dumping 
measures.  In the Toledo Administration, he was Minister of 
Production and Trade and served as Vice President of the 
National Council of Competitiveness and as an able member of 
Peru's negotiating team for the PTPA.  During his service to 
the Toledo Administration, he enjoyed good relations with the 
former housing minister, Carlos Bruce, who is now Chairman of 
 
the Congressional Trade Committee. 
 
COMMENT 
------- 
 
¶7. (SBU) Lemor will play an important role in energizing and 
better focusing Peru's lobbying efforts in Washington.  His 
engaging personality is probably better suited to the style 
of Washington lobbying, and his trade and business background 
are plusses.  His appointment is all the more encouraging 
since it shows that Araoz overcame some personal difficulties 
with Lemor for the good of the country in selecting him. 
Araoz worked for Lemor in 2005, and was asked to resign when 
Lemor changed his team. 
POWERS