VZCZCXYZ0009
RR RUEHWEB

DE RUEHBU #1012/01 2062113
ZNR UUUUU ZZH (CCY ADBB61CD MSI2856-695)
R 242113Z JUL 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1616
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 001012 
 
SIPDIS 
 
C O R R E C T E D COPY - CHANGED PARA 7B TO 8 
 
USDA FOR FAS/OA/OCRA/ONA/OGA/OFSO 
 
SENSITIVE 
 
E.O. 12958:  N/A 
TAGS: EAGR ECON EINV PGOV ELAB PHUM PINR AR
SUBJECT: ARGENTINE GOVERNMENT REPLACES AG SECRETARY 
 
REF: (A) Buenos Aires 1009 (B) Buenos Aires 0991 (C) Buenos Aires 
0890 and previous 
 
¶1. (SBU) Summary: The GOA appointed Carlos Cheppi as the new 
Secretary of Agriculture on July 23.  Secretary Cheppi replaces 
Javier de Urquiza in a widely expected change following the defeat 
in the Senate of the variable export tax proposal of the government. 
 The new Agricultural Secretary is a widely respected expert on 
agricultural issues who is seen as close to Planning Minister Julio 
De Vido and who collaborated in the development of the agricultural 
platform of former president Nestor Kirchner during the 2003 
presidential campaign.  In a sign that relations remain tense 
between the GOA and the farm sector, the major farm organizations 
were not invited to the inauguration ceremony.  The appointment of 
Secretary Cheppi is not expected to result in major changes in the 
direction of agricultural policy by the GOA.  End Summary 
 
¶2.  (SBU) The replacement of former Agriculture Secretary Javier De 
Urquiza was widely expected following the extended farm dispute and 
the defeat in the Senate of the government's variable export tax 
proposal.  De Urquiza was largely invisible during most of the 
dispute as he was left out of the major decisions on agricultural 
policy, starting with the implementation of the variable export tax 
on March 11 through the subsequent negotiations with the farm 
sector.  While De Urquiza was considered close to the Kirchners, 
most decisions were taken at a higher level (the position of 
Agricultural Secretary is not a ministerial position in Argentina 
and is under the Minister of Economy).  Secretary of Internal 
Commerce Moreno intervened heavily in the agricultural sector to 
hold down domestic food prices, further undercutting his authority. 
 
 
¶3.  (SBU) Carlos Alberto Cheppi was president of the National 
Institute of Agricultural Technology (INTA) from 2004 to 2008, where 
he was widely respected for his efforts to strengthen the 
institution.  Cheppi first started working in INTA in 1983 and met 
former president Nestor Kirchner while working in Santa Cruz 
province in 1991.  Local contacts report that he is a supporter of 
biotechnology and other new productivity enhancing technologies.  He 
is viewed as close to Planning Minister Julio De Vido and in recent 
years worked on high profile bilateral agreements to transfer 
Argentine agricultural technology to Venezuela.  He is a strong 
proponent of government intervention in the market to achieve a more 
equitable distribution of income.  During the congressional debate 
on the variable export tax, he gave extensive testimony strongly 
supporting the government measure. 
 
¶4.  (SBU) Secretary Cheppi is assuming the position in a very 
difficult time, with the role of the Secretary of Agriculture very 
limited in the current government.  Important functions such as 
control over agricultural exports have been transferred to other 
organizations, including the National Office of Commercial Control 
for Agriculture (ONCCA) and the Internal Commerce Secretariat led by 
controversial Guillermo Moreno.  He will also have to rebuild 
relations with the agriculture sector, which continues to have 
numerous complaints with government policy despite the repeal of the 
variable export tax.  The farm groups are now pressing for a 
reduction in current export taxes for medium and small farmers, and 
they are also pushing for the government to revise restrictions on 
exports aimed at keeping down the domestic prices of beef, dairy 
products, corn, wheat and other products. 
 
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Bio Note 
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¶5.  (U) Mr. Carlos Cheppi graduated as Agricultural Engineer at the 
National University of Mar del Plata in 1981.  He has a Master 
Degree on Latin American Economic Development from the International 
University of Andalucia. 
 
¶6.  (U) In 2004, Mr. Cheppi was appointed to his most recent 
position as president of the National Institute of Agricultural 
Technology (INTA, in Spanish) after being appointed Vice President 
in 2003.  In January 2000, he was appointed Director of Rural 
Development for the Province of Buenos Aires.  Between 1993 and 
1999, he worked in various provincial government positions, and 
management positions at INTA. He met former president Nestor 
Kirchner while acting as outside director of the Agricultural 
Council of Santa Cruz Province from December 1991 to September 1992. 
 
 
¶7.  (U) Cheppi first joined INTA in 1983, focusing on extension 
services and rural development.  He also worked in consulting 
projects for the Ministry of Foreign Relations and international 
organizations on extension, technology transfer, and rural 
 
development.  In addition, he is author of several publications, and 
has participated as speaker in various conferences in Argentina and 
other foreign countries. 
 
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Comment 
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¶7. (SBU) The appointment of Secretary Cheppi brings a respected 
technical expert into this position, but is not expected to result 
in major changes in the agricultural policies that led to the 
dispute with the farm sector.  The new Secretary will have to 
rebuild relations with the farm sector which, even after the repeal 
of the variable export tax, continues to have numerous grievances 
with the GOA over  many policies affecting the agricultural sector 
that are not under his direct control.  The decision of the 
government not to invite representatives of the major farm 
organizations to his inauguration ceremony will not make this task 
any easier. He has a major challenge in front of him.  End Comment 
 
WAYNE