VZCZCXRO6041
RR RUEHRG
DE RUEHBR #2140/01 3181531
ZNR UUUUU ZZH
R 141531Z NOV 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0443
INFO RUEHRG/AMCONSUL RECIFE 7369
RUEHSO/AMCONSUL SAO PAULO 1171
RUEHRI/AMCONSUL RIO DE JANEIRO 5434

UNCLAS SECTION 01 OF 02 BRASILIA 002140 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO E FOR TOM PIERCE 
STATE FOR WHA/EPSC LISA KUBISKE 
STATE FOR S/P WILLIAM MCILHENNY 
STATE FOR EEB/CIP, EEB/TRA 
 
E.0. 12958: N/A 
TAGS: ECON ETRD ECIN EAIR ECPS TSPA BR
SUBJECT:  BRAZIL: AMBASSADOR SOBEL DISCUSSES UPCOMING ECONOMIC 
DIALOGUE WITH UNDER SECRETARY AZEVEDO 
 
 
¶1.  (SBU) Summary:  Ambassador Sobel and Brazilian Ministry of 
External Affairs (MRE) Under Secretary Roberto Azevedo met on 
November 9 at the MRE to discuss the upcoming State-MRE Economic 
Dialogue scheduled for December.  During the meeting, Azevedo said 
the only deliverable he expected from the bilateral discussions was 
an agreement to increase flight frequencies. (In fact, negotiations 
led by State and ANAC are expected December 5-7 in Rio). Azevedo 
indicated that he would also like to pursue sectoral discussions on 
the textile industry.  He noted that the GoB was still exploring the 
possibility of OECD participation, but needed to determine the 
long-term effect of membership before continuing.  He did not place 
much emphasis on discussions of import safety or GMOs.  Azevedo 
indicated that the GOB was interested in discussing joint 
cooperation, both "offensive and defensive," in third markets, such 
as China and Korea.  The Ambassador encouraged the GoB to become 
involved in the discussion on the Chinese renminbi.  End Summary. 
 
¶2.  (SBU) On November 9, the Ambassador met with Brazilian Ministry 
of External Affairs (MRE) Under Secretary Roberto Azevedo at the MRE 
to discuss the upcoming December State-MRE Economic Dialogue. 
During the meeting, Azevedo stressed that both sides should find 
areas where they can successfully work together. Azevedo said that 
although he thinks the discussions should not exclude the private 
sector, there should be a point when the USG and GoB select economic 
and commercial topics that address the overall strategy concerning 
the direction the USG and the GoB will take in the future.  Except 
for aviation, Azevedo did not expect any early deliverables as a 
result of the talks.  He told the Ambassador that, barring an 
unexpected senior officials meeting in Geneva, he would be available 
on December 13 and asked to hold the meeting on that date. 
 
¶3.  (SBU) The Ambassador asked Azevedo what he felt were the most 
promising opportunities for the Economic Dialogue.  Azevedo 
(referring to sectoral discussions) replied that he felt positive 
results came out of a recent Washington meeting with textile 
industry representatives and suggested both governments explore this 
further.  He opined that USG and GoB support for private sector 
involvement in the talks would play well in the media. 
 
------------------ 
OECD Participation 
------------------ 
 
¶4.  (SBU) The Ambassador inquired about Brazil's consideration of 
deeper OECD involvement, adding that it was Brazil's choice on how 
it wanted to proceed.  He noted that there are many opportunities 
for engagement in individual areas and asked if Azevedo thought 
there would be ready deliverables from discussion of this topic. 
Azevedo relayed that the GoB is looking for the correct approach to 
deepen its participation in the OECD.  One avenue being considered 
is the designation of a GoB official to establish OECD contacts and 
determine if a dialogue about key issues was possible, but he did 
not believe this discussion would necessarily have to produce 
deliverables at this time.  Instead, he preferred strategic talks on 
potential opportunities.  He said he was much less concerned about 
what committees Brazil should join than where OECD membership would 
lead, in order to determine if OECD membership makes sense for 
Brazil. 
 
------------- 
Other Issues 
------------- 
 
-- Aviation 
 
¶5.  (SBU) The only major deliverable Azevedo believed may come out 
of the December meeting is an agreement on increased flights between 
the U.S. and Brazil.  The Ambassador noted that there was interest 
on all sides for increased air frequencies. 
 
-- Import Safety 
 
¶6.  (SBU) Azevedo said there was some discussion (in Washington) on 
an import safety dialogue.  He indicated that he did not feel this 
was a strategic item and was not sure if this topic would yield any 
short-term deliverables. 
 
-- Genetically Modified Organisms (GMOs) 
 
¶7.  (SBU) Azevedo brought up the topic of genetically modified 
organisms (GMOs), explaining that the country has a "split 
personality" on the issue.  While GMOs are an important business in 
Brazil, he pointed out that the subject is controversial with NGOs. 
He said it was an issue that "we can talk about and look at the 
 
BRASILIA 00002140  002 OF 002 
 
 
implications." 
 
-- Joint Cooperation in Third Countries 
 
¶8.  (SBU) Azevedo stated that the GoB was interested in discussing 
joint cooperation, both "offensive and defensive," in third markets 
such as China and Korea.  As justification, he noted unspecified 
subsidy concerns.  The Ambassador encouraged the GoB to become 
involved in the discussion on the renminbi. 
 
Sobel