VZCZCXRO5256
RR RUEHRG
DE RUEHBR #2234 3401242
ZNR UUUUU ZZH
R 061242Z DEC 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0588
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 5528
RUEHSO/AMCONSUL SAO PAULO 1277
RUEHRG/AMCONSUL RECIFE 7457
RUCPDOC/USDOC WASHDC

UNCLAS BRASILIA 002234 
 
SIPDIS 
 
DEPT PASS USTR FOR KATE DUCKWORTH 
DEPT PASS DOC/ITA/MAC/OLAC ANNE DRISCOLL 
DEPT PASS TREASURY LUYEN TRAN 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:N/A 
TAGS: ETRD ECON BR
SUBJECT: BRAZIL:ITAMARATY TRADE A/S - ECONOMIC DIALOGUE 
 
Ref a) Brasilia 2174 b)e-mail Erath-WHA/EB various re Kleebank 12/4 
 
¶1. (U) SUMMARY: Carlos Marcio Cozendey, director of the MRE Economic 
Department (A/S equivalent) has the lead on the Economic Dialogue 
and provided feedback on the December 13 agenda in a recent meeting 
with EconCouns. (See ref B for expanded Brazilian feedback on 
details of the dialogue). Cozendey also explained the organization 
of his department and commented on the WTO negotiations. END 
SUMMARY 
 
2.(U) On the Economic Dialogue, Cozendey mentioned Itamaraty has 
some reluctance to talk much about GMOs as this topic is currently 
the subject of  much inter-ministry disagreement on what Brazil's 
position should be (with Environment strongly against and 
Agriculture for agricultural biotechnology).  On civil aviation 
negotiations, he noted that, as MRE does not have the lead for 
Brazil on this issue, welcoming the Dec 5-7 talks is about the level 
of substance expected in the December 13 session. Similarly, they do 
not expect heavy substance on telecom where MRE also does not have 
the lead. On "sectors," Cozendey said the Brazilian textiles 
industry is the only sector that actively asked for a dialogue with 
US; the other proposed sectors were MRE ideas.  The Brazilian 
textiles industry originally wanted to talk to US industry about 
pushing for a preferential US/Brazil agreement that would exclude 
China (they wanted a similar dialogue with EU), according to 
Cozendey, but MRE said that was a no-go. Instead, MRE is willing to 
support an industry to industry dialogue on exploiting export 
markets more effectively. He said MRE learned there is already a 
similar industry to industry process for the steel sector led by DOC 
and USTR, so they now do not expect steel to be included as a 
"sectoral" conversation in the Economic Dialogue.  He said MRE 
envisions the Dialogue as a mix of issues where: 1) MRE/DOS have the 
lead and can actively engage together; and 2) issues where MRE/DOS 
push might help give impetus to issues/processes led by other 
agencies. 
 
3.(U) Cozendey noted Economics U/S Avevedo oversees three 
departments:  his, responsible for WTO, OECD, UNCTAD and other IOs 
plus bilateral economic issues including disputes, antidumping, 
agriculture, market access, and services/investment; Didonet's 
Department (see ref a); and the Science and Technology Department 
that covers intellectual property and sci/tech.  Cozendey noted that 
U/S for South America (now Enio Cordeiro) has the lead for 
intra-Mercosul cooperation and regional integration and would 
logically have the lead on regional infrastructure cooperation for 
MRE (see septel readout of meeting with Integration A/S Cardoso). 
 
¶4. (SBU) Commenting on the WTO Round, Cozendey said "success depends 
on you." He said there was a lot of fear that upcoming elections in 
the United States would constrain the ability to reach a deal. 
"That's why I hold my cards close to my chest. I don't want to 
reveal a final position, then leave it hanging out there.  If 
negotiations fritter out, nothing will happen until 2013." 
 
¶5. (SBU) As Avezedo's deputy on WTO trade issues, Cozendey maintains 
a heavy travel schedule and is comparatively rarely in Brazil.  His 
English is perfect, he can read upside-down and is clearly an 
experienced, and personable, negotiator. He was in Brussels at the 
Brazilian mission to the European Union before assuming his current 
position two years ago. Cozendey joined the diplomatic corps in 
1987, was at Marrakesh with Amorim (as the only minion among four 
Brazilian Ambassadors, he fondly remembered) and has previously 
served at ALADI, the Brazilian mission to Mercosul in Montevideo, 
and as head of the Mercosul office in Brasilia. 
 
CHICOLA