VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0254/01 0391957
ZNR UUUUU ZZH
R 081957Z FEB 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 7238
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUEHAC/AMEMBASSY ASUNCION 5930
RUEHMN/AMEMBASSY MONTEVIDEO 6168
RUEHSG/AMEMBASSY SANTIAGO 0178
RUEHBR/AMEMBASSY BRASILIA 5781
RUEHSG/AMEMBASSY SANTIAGO 0179
RUEHLP/AMEMBASSY LA PAZ FEB CARACAS 1083
RUEHSO/AMCONSUL SAO PAULO 3162
RUEHRI/AMCONSUL RIO DE JANEIRO 2149

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E.O. 12958: N/A 
TAGS: EAGR PGOV ETRD AR
SUBJECT: SECRETARY OF AGRICULTURE GETS BROWN BAGGED 
 
 
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Summary 
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¶1. (SBU) On February 6, Argentine Secretary of Agriculture, 
Livestock, Fisheries and Food Miguel Campos officially resigned from 
his position, a move which is perceived as Campos having been fired 
by Argentine President Nestor Kirchner.  Campos has been replaced by 
Javier de Urquiza, the Under Secretary for Agriculture, Livestock 
and Forestry, who hails from the same province as President Nestor 
Kirchner.  Agricultural sector reps welcomed the change, as Campos 
has long been seen as unnecessarily combative and obstructionist. 
Campos may have been the key figure in the GoA preventing a 
resolution to Monsanto's long-standing dispute over royalty payments 
for its biotech products.  This change brings some hope that it may 
finally happen, which would improve Argentine soybean production. 
END SUMMARY 
 
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CAMPOS - PART OF THE PROBLEM 
---------------------------- 
 
¶2. (U) In the evening on February 6, President Nestor Kirchner 
accepted the resignation tendered by Secretary of Agriculture Miguel 
Santiago Campos earlier that day.  This position directly answers to 
the Minister of Economy.  Campos had held the position since May 25, 
2003, the first day of the Kirchner administration.  Campos will be 
replaced by his Under Secretary for Agriculture, Livestock, and 
Forestry, Javier de Urquiza, who hails from the same province in 
Patagonia (Santa Cruz) as Kirchner.  Agricultural sector leaders in 
Argentina hailed the move.  One such leader said the relationship 
with Campos was "worn out" and expressed hope for results from 
previously scheduled negotiations with the GoA, which will address 
GoA measures such as export taxes, export restrictions, and price 
controls.  De Urquiza will participate in those negotiations which 
are scheduled to begin on February 8. 
 
¶3. (SBU) The tenure of Campos was controversial, to say the least. 
He was indicted for alleged malfeasance in the distribution of the 
Hilton Quota (Argentina's 20,000 ton fresh beef quota with the EU), 
though charges were dropped in October 2006.  He has publicly 
ridiculed U.S. Secretary of Agriculture Johanns, misrepresented the 
substance of eetings with other USDA officials, and once got into a 
physical altercation with de Urquiza during a meeting.  In addition, 
Campos seemed to have turned a dispute with Monsanto into a personal 
issue; rather than try to facilitate a consensus solution, he 
actively campaigned against Monsanto.  (NOTE: The majority of soy 
produced in Argentina comes from Monsanto's biotech Roundup-Ready 
seed, most of which has been sold illegally without payment of 
royalties to Monsanto.  END NOTE)  Monsanto has sought to broker a 
deal with growers, but needs the support of the GoA.  Campos had 
consistently withheld that support.  In a meeting with FAS Counselor 
on February 6 prior to announcement of Campos' resignation, a 
Monsanto rep expressed little hope of progress.  However, following 
the change in leadership, the same rep is now more optimistic,. 
Monsanto says they have a sound relationship with de Urquiza, who 
has never attacked the company, and seems to understand the 
importance of resolving the royalties issue for Argentine 
agriculture. 
 
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DE URQUIZA - PART OF THE SOLUTION? 
---------------------------------- 
 
¶4. (SBU) De Urquiza is the former leader of the Santa Cruz Province 
chapter of the Argentine Rural Confederation ("Confereraciones 
Rurales Argentinas" - CRA), is closely tied to Planning Minister 
Julio De Vido, one of the most powerful members of the Kirchner 
Administration, and told Post that he went to school with Kirchner 
in Santa Cruz.  Unlike Campos, de Urquiza has a background rooted in 
 
the agricultural-livestock sector - his family raises sheep in Santa 
Cruz - while Campos was seen as a technician, without experience in 
the sector.  Given his past participation in the Argentine Rural 
Confederation, de Urquiza has good political contacts with farm 
organizations.  For the past year or so, he has been one of the 
GoA's principal interlocutors on ag-livestock issues, despite the 
fact that he was formally subordinate to Campos.  When the previous 
Ambassador raised the Monsanto royalties issue in May 2006 with 
Minister De Vido, De Vido told the Ambassador to work the issue 
through De Urquiza.  However, subsequent meetings with de Urquiza 
did not lead to a breakthrough. 
 
¶5. (SBU) Beginning on February 8, the GoA will be meeting with 
agricultural leaders (including the CRA) to try to re-initiate a 
dialogue on a number of outstanding issues, including export taxes, 
export restrictions, and price controls.  These measures have helped 
limit inflation in the short-term but have raised questions about 
future production and investment in the sector.  The meetings have 
been cited as the reason that Campos was fired, to facilitate 
dialogue.  The GoA delegation will include de Urquiza as well as 
Minister Miceli, and be led by Kirchner's Chief of Cabinet Alberto 
Fernandez.  This presumably could be a good chance for de Urquiza to 
demonstrate his political skills and allow the GoA a chance to 
finally come to terms with the issues above, which have alienated 
the agricultural and livestock sectors from the government.  The GoA 
reportedly plans to discuss recently announced plans to partially 
subsidize beef production, using funds raised through a recent 
increase in export taxes on soybeans and soy products. 
 
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COMMENT 
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¶6. (SBU) With presidential elections slated for October 28 of this 
year, de Urquiza will have little time in his new post to make an 
impact.  However, since the primary goal for the GoA is keeping beef 
and other prices down, rather than please the growers, he may have 
to do very little to be "successful."  However, if he can broker an 
end to the long-standing Monsanto dispute, Monsanto would finally 
release their next generation of biotech soy in Argentina, which 
would be good for them but even better for Argentina, as soybean 
yields would likely increase.  Other Post interlocutors in the 
Foreign and Economy Ministries (like De Vido, above) have indicated 
a willingness to see this issue resolved.  If de Urquiza can 
accomplish just that, and nothing else, his tenure will be better - 
for the U.S. and for Argentina - than that of Campos. 
 
¶7. (U) To see more Buenos Aires reporting, visit our classified 
website at:  http://www.state.sgov.gov/p/wha/buenosaires.< /a> 
 
WAYNE