VZCZCXYZ0006
RR RUEHWEB

DE RUEHMU #0935/01 1021907
ZNR UUUUU ZZH
R 121907Z APR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 9796
INFO RUEHBK/AMEMBASSY BANGKOK 0054
RUEHBR/AMEMBASSY BRASILIA 0090
RUEHBU/AMEMBASSY BUENOS AIRES 0064
RUEHBY/AMEMBASSY CANBERRA 0011
RUEHGT/AMEMBASSY GUATEMALA 2280
RUEHME/AMEMBASSY MEXICO 4406
RUEHMN/AMEMBASSY MONTEVIDEO 0109
RUEHOT/AMEMBASSY OTTAWA 0230
RUEHBS/USEU BRUSSELS
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS MANAGUA 000935 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR WHA/CEN, WHA/EPSC, EB/TPP 
DEPT PLEASE PASS TO USTR 
USDA FOR FAS/OCRA/WHA/CMARSTON, FAS/ONA/MED/LCOONROD, AND 
FAS/LPAO/CCHURCH 
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN, AND 
3134/ITA/USFCS/OIO/WH/MKESHISHIAN/BARTHUR 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR WTO NU
SUBJECT: NICARAGUA: TRADE MINISTER BRENES ON WTO CASE 
AGAINST U.S. AGRICULTURAL SUBSIDIES; PLUS A WORD ON THE 
AMERICAS COMPETITIVENESS FORUM 
 
REF: A. 06 MANAGUA 2383 
     ¶B. MANAGUA 0197 
     ¶C. MANAUGUA 0355 
 
¶1. (SBU) Summary and Introduction: On March 26, the Embassy 
received a letter in Spanish dated March 16 from Minister of 
Trade, Industry, and Development Horacio Brenes addressing 
the WTO case against U.S. agricultural subsidies, as filed by 
Canada and joined by Nicaragua and other countries.  In his 
letter, Brenes stresses that Nicaragus's sole interest is 
peanuts, and offers to establish a dialogue with the United 
States on the subject.  Brenes also suggests additional 
invitees to the Americas Competitiveness Forum in Atlanta 
this June.  Below, this cable reports the contents of Brenes' 
letter, an original copy of which has been provided to the 
Office of Central American Affairs in the Department of 
State.  End Summary and Introduction. 
 
¶2. (SBU) Begin unofficial translation of sections of Brenes' 
letter relating to the WTO Case: 
 
-- In search of a solution to the problem facing 
   Nicaragua related to gaining access to the U.S. 
   market for peanuts, I inform you that the United 
   States, in accordance with the official WTO document 
   WT/DS357/10 dated February 8 of this year, accepted 
   Nicaragua's petition to join Canada and other 
   countries in consultations with the United States; and 
   that within the framework of this process, Canada has 
   already held its first consultative meeting on 
   February 7, where it was confirmed that peanuts would 
   be one of the products included in consultations. 
 
-- I should not omit to mention to you that, in 
   accordance with Article 4.6 of the WTO's Dispute 
   Settlement Understanding, these consultations are 
   confidential and do not prejudice the rights of any 
   member from undertaking other possible measures. 
 
-- On the other hand, permit me to communicate to you 
   that the principal interest of Nicaragua in this 
   consultative process is peanuts, in view of thousands 
   of exporters, producers, and workers within the 
   Nicaraguan peanut sector who have been affected by 
   large distortions in the market caused by U.S. peanut 
   subsidies. 
 
-- Because of the points above, our government is 
   disposed to creating a dialogue with the United States 
   with the purpose of proposing reasonable reforms to 
   the 2007 USDA Farm Bill, so as to contribute to 
   sustainable development and the economic and 
   commercial interests of everyone. 
 
End unofficial translation of sections of Brenes' letter 
relating to the WTO Case. 
 
Americas Competitiveness Forum 
------------------------------ 

¶3. (SBU) At the end of his letter, Brenes suggests that the 
Minister of Education, Culture, and Sports (Note: Mission 
does not support this particular suggestion), a 
representative from the National Council of Universities, and 
the Director General for Business Development in the Ministry 
of Trade, Industry, and Development be invited to the 
Americas Competitiveness Forum in Atlanta on June 11-13. 
Post will be glad to distribute general information to the 
latter two individuals once provided by the Department of 
Commerce.  We note that while Brenes has not yet confirmed 
his attendance at the Forum, President Ortega has informed 
Secretary Gutierrez in a February 22nd letter that Vice 
President Jaime Morales Carazo will lead a delegation from 
Nicaragua to the forum that will include members from both 
the public and private sectors. 
TRIVELLI