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OO RUEHWEB

DE RUEHQT #0277 0331640
ZNR UUUUU ZZH
O 021640Z FEB 07
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6234
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6401
RUEHCV/AMEMBASSY CARACAS PRIORITY 2337
RUEHLP/AMEMBASSY LA PAZ FEB 0386
RUEHPE/AMEMBASSY LIMA PRIORITY 1368
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 1808
RUEHRC/USDA FAS WASHDC 0559

UNCLAS QUITO 000277 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USDA FOR FAS/OCRA AND APHIS/IS 
 
E.O. 12958: N/A 
TAGS: ECON EAGR EC
SUBJECT: AMBASSADOR MEETS WITH NEW AG MINISTER 
 
 
¶1.  (SBU) Summary: Ambassador and AgCounselor met with the new 
Ecuadorian Minister of Agriculture Carlos Vallejo on Tuesday, 
January 30.  In a very cordial meeting, Vallejo expressed his 
appreciation for past USG assistance to the Ecuadorian agricultural 
sector and requested additional assistance to meet the many 
challenges facing the sector.  The Ambassador and Minister Vallejo 
discussed a wide range of issues, including tQ challenges to 
agricultural reform within the current Ecuadorian political and 
economic structure, the persistence of poverty in rural areas and 
the importance of income and employment generation, Ecuador's WTO 
banana case, and Ecuador's National Agricultural Sanitary Service. 
Minister Vallejo stressed the tremendous growth potential of 
Ecuador's agricultural sector and noted the need for investment in 
agriculture research and for product diversification.  End Summary. 
 
¶2.   (U) The Ambassador asked Minister Vallejo how the country and 
economy had changed since he was first Minister of Agriculture in 
1981 (under the Hurtado administration).  Minister Vallejo opined 
that the two biggest changes were oil and the restructuring of the 
agricultural sector. (Note: twenty five years ago the agricultural 
sector was dominated by banana exports from the coast and 
subsistence elsewhere. Today, the agriculture sector is much more 
diverse and engaged in international trade with exports of flowers, 
coffee, and more recently broccoli). 
 
¶3.  (SBU) Minister Vallejo lamented the current status of the banana 
industry, mentioning the seasonal price variability and the 
difficulty in maintaining the government mandated minimum price. He 
expressed appreciation for US support in the Ecuadorian WTO case 
against the EU, noting that the second round of consultations will 
take place shortly. 
 
¶4.  (SBU) The Ambassador noted the USG's commitment to the National 
Agricultural Sanitary Service (SESA) and asked for Minister 
Vallejo's views on the future of the organization.  Minister Vallejo 
noted the importance of SESA for Ecuadorian producers to meet 
standard requirements in export markets.  He stated that just prior 
to the meeting, he had confirmed the new head of SESA (although he 
could not yet mention the individual's name).  He offered to 
introduce the new head of SESA to the AgCounselor the following 
week. 
 
¶5.  (SBU) Minister Vallejo specifically asked if PL 480 resources 
would be available for technical assistance to the Ministry. 
Ambassador confirmed that such resources were available and that the 
USG is very interested in continuing our cooperation with the 
Ministry.  Vallejo expressed his views that the Ecuadorian 
agricultural sector has tremendous potential and that with credit 
and technology, significant growth was possible.  He mentioned the 
need for investments in agriculture research and the need for 
diversification of production.  He identified ethanol and exotic 
fruits as two areas of future growth. 
 
¶6.  (SBU) Vallejo was the person whom candidate Correa chose to 
bring with him to a breakfast with the Ambassador several months ago 
at the onset of the campaign season - underscoring their close 
relationship.  His extensive experience in the sector and previous 
government work makes him an exception within this cabinet of 
neophytes and positions him potentially to be especially effective. 
However, his past political affiliations also make him suspect 
within the Correa camp and his appointment was controversial.  While 
regarded by some as a formidably smart left of center ideologue, if 
we can successfully partner with him on the several areas of 
convergence discussed, we may see good results. 
 
JEWELL