VZCZCXYZ0010
PP RUEHWEB

DE RUEHPE #0226/01 0381413
ZNR UUUUU ZZH
P 071413Z FEB 08
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 7858
INFO RUEHBO/AMEMBASSY BOGOTA 5497
RUEHLP/AMEMBASSY LA PAZ FEB QUITO 1740
RUEHSG/AMEMBASSY SANTIAGO 1739
RUEHBR/AMEMBASSY BRASILIA 7760
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS LIMA 000226 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EEB/TPP/ABT JFINN & GCLEMENTS 
 
E.O. 12958: N/A 
TAGS: EAGR ENRG SENV ECON ETRD TBIO KPAO PE
SUBJECT: PERU REQUEST FOR EEB FY08 BIOTECH FUNDS 
 
REF: STATE 9674 AND PREVIOUS 
 
¶1.  This is an action request.  See paragraphs 5-7. 
 
BACKGROUND 
---------- 
¶2.  Post appreciates the opportunity to request funding for 
agricultural biotech initiatives.  Peru is a high priority 
country (reftels) and our newest free trade agreement 
partner.  Peru allows the import of agbiotech products, but 
does not allow them to be grown in-country.  There is a 
proposed law promoting biotech pending before the Peruvian 
Congress, which would allow cultivation of biotech crops. 
U.S. firms, like Monsanto, are eager to plant biotech crops 
in Peru. 
 
EMBASSY ENGAGED ON BIOTECH 
-------------------------- 
¶3.  Embassy Lima's Foreign Agricultural Service (FAS) is in 
constant engagement with GOP officials on biotech issues and 
has been implementing a series of initiatives promoting 
biotech in Peru.  FAS has sent Peruvians to past APEC 
High-Level Policy Dialogue on Agricultural Biotechnology 
(HLPDAB) meetings, which include private sector days, and is 
helping the GOP prepare to host the HLPDAB in late February 
¶2008.  In 2007, FAS also brought two academic speakers to 
Peru to explain the benefits and safety of agbiotech to the 
GOP, universities, NGOs, and the Peruvian Congress.  FAS also 
sponsored a 2007 agbiotech survey o the greater Lima area to 
gauge understanding of the issues.  FAS sponsored agbiotech 
toolbox training in Lima in November 2007 to assess needs and 
abilities, and will send Peruvians (from GOP's ag research 
institute) to the next phase of training in the Philippines 
in February 2008.  Finally, FAS supported the creation of the 
first biotech NGO in Peru, PeruBio. 
 
FOCUS ON BIOFUELS IN 2008 
------------------------- 
¶4.  While the Embassy is fully engaged on biotech issues, we 
would like to increase our engagement in biofuels in response 
to GOP requests and U.S. investor interest.  The GOP, which 
has established biodiesel and ethanol requirements for fuels 
beginning in 2009 and 2010, has repeatedly asked for USG 
assistance in this area.  The GOP has selected U.S. standards 
for its biofuels, and we are exploring the possibility of 
signing a bilateral memorandum of understanding.  U.S., 
European and Brazilian firms are swarming to Peru to take 
advantage of excellent agricultural and economic 
environments, as well as the provision of the U.S.-Peru Trade 
Promotion Agreement (PTPA) that grants Peruvian ethanol 
tariff free access to the U.S. market.  FAS, the Economic 
Section and the Public Affairs Section plan on using Cochran 
Fellowships, Borlaug Fellowships, Faculty Exchange Programs, 
PL-480 funds, Embassy Science Fellowships, International 
Visitor Programs, and other opportunities to foster bilateral 
cooperation and exchanges on biofuels in 2008. 
 
ACTION: REGIONAL PROGRAM REQUEST 
-------------------------------- 
¶5.  Embassy Lima is working with Embassy La Paz and the OES 
Hub in Brasilia to organize a biofuels conference in several 
sites in Peru and Bolivia.  The main purpose of the 
conference will be to discuss ways to ensure a sustainable 
biofuels industry that fully takes into account 
environmental, development and agricultural (food crop 
substitution) aspects.  Peruvian sites include Lima and 
possibly a jungle city (Iquitos or Pucallpa).  We understand 
this proposal has already been submitted to EEB and we fully 
support the request for funds to help bring it to fruition. 
 
ACTION: BIOFUEL CROPS EDUCATION 
------------------------------- 
¶6.  In addition, post requests EEB funds to help both the 
Peruvian public and agricultural researchers understand the 
comparative benefits of the wide range of biofuel crops, 
including those that use biotechnology.  We request $5,000 of 
funding for 2 experts (about $2,500 each) to come to Peru for 
four days to discuss these issues with GOP officials, 
researchers, and the public.  The first two days in Lima 
would include meetings with GOP officials, a public 
presentation at a university and press interviews.  The 
subsequent two days would be in Tarapoto, San Martin region 
(in the jungle) to have similar meetings at the regional 
level plus a much more technical exchange with the Tropical 
Crops Institute (ICT). 
 
¶7.  The ICT is a modern, USG-funded alternative development 
agricultural research center that is beginning to focus on 
biofuel crops.  It was launched with NAS (INL) funding, and 
the USG has invested $10 million in what is Peru's best 
jungle research center.  ICT provides training to farmers, 
conducts scientific agricultural research applicable to all 
of Peru's distinct environments, and is a key tool in 
alternative (to coca) development and poverty reduction.  NAS 
funding for the center is drying up, so post is exploring 
ways to make the ICT self-sufficient, including through 
commercial applications, fee-for-service and incorporation of 
biofuel crops.  The EEB funds would help us inform GOP 
decision makers and the Peruvian public, respond to the GOP's 
request for biofuels cooperation, and help keep the vital ICT 
afloat. 
 
EMBASSY POINTS OF CONTACT 
------------------------- 
¶8.  Post's agbiotech POCs: 
 
Marcos Mandojana 
Deputy Economic Counselor 
mandojanamc(at)state.gov 
(51-1) 618-2411 
 
Carlos Gonzalez 
FAS Agricultural Attache' 
carlos.gonzales(at)fas.usda.gov 
(51-1) 618-2789 
MCKINLEY