VZCZCXYZ0004
RR RUEHWEB

DE RUEHQT #0935/01 2732020
ZNR UUUUU ZZH
R 292020Z SEP 08
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 9440
INFO RUEHBO/AMEMBASSY BOGOTA 7763
RUEHCV/AMEMBASSY CARACAS 3201
RUEHLP/AMEMBASSY LA PAZ SEP LIMA 2823
RUEHGL/AMCONSUL GUAYAQUIL 3825
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/USDA FAS WASHDC 0609

UNCLAS QUITO 000935 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR MEWENS 
USDA/FAS/OFSO FOR HMAGINNIS 
USDA/FAS/OCRA FOR ASLUSHER AND CMARSTON 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD EC
SUBJECT: AMBASSADOR'S MEETING WITH AGRICULTURE MINISTER POVEDA 
 
¶1.  (U) Summary:  The Ambassador paid a courtesy call on Agriculture 
Minister Walter Poveda on September 15.  Also in the meeting were 
Agriculture Vice Minister Cevallos, Embassy DCM, and Agricultural 
Attache Gonzalez.  Poveda emphasized the need for international 
cooperation and sought renewal of USDA's food aid program for 
Ecuador, which would help with the Correa administration's priority 
of assisting poor rural farmers.  He also sought increased U.S. 
investment and USG assistance in new agricultural projects for the 
export market.   End Summary. 
 
¶2.  (SBU) Minister Poveda began by briefly discussing the Correa 
administration's agriculture priorities, which included refocusing 
attention and resources on impoverished rural areas.  He claimed 
that his office was more focused on an agricultural plan than his 
predecessors, and that he wanted to reactivate international 
cooperation and highlight the benefits of this cooperation for 
Ecuadorian farmers.  Poveda added that market forces had been 
hurting the small farmer, as had the competition from free imports 
and exports, which is why the GOE had begun implementing price 
control policies.  He commented that current ministers have greater 
interaction with President Correa than in the past, and that this 
increased communication was being reflected in more successful and 
task-oriented ministries. 
 
Minister Seeks Extension of Food Aid Program... 
--------------------------------------------- -- 
 
¶3.  (SBU) The Minister's first request was for an extension of 
USDA's PL-480 food aid program (which will expire in December 2009). 
 Alternatively, he asked us to develop another program to continue 
USG assistance and collaboration with the Agriculture Ministry.  He 
noted that PL-480 had been helpful in stimulating the agricultural 
sector and that he did not want to lose its cooperative 
opportunities and funding.  With the Ministry's new focus on the 
poor small farmer, he believed it was an ideal time to restart the 
program.  The Ambassador explained that such a decision would fall 
to Congress and that it was highly unlikely the program would be 
extended.  The Agricultural Attache commented that FAS would try to 
use other USDA funds and programs to continue collaborative and 
capacity building projects in Ecuador's agriculture sector. 
 
...And U.S. Investment, Assistance in Export Projects 
--------------------------------------------- -------- 
 
¶4.  (SBU) Another priority for the Ministry was to attract increased 
U.S. investment.  The Minister noted the wide variety of raw 
materials produced by Ecuador - such as palm oil, cacao, and the 
potential for cotton production  - and asked for USG assistance in 
publicizing this information as well as attracting U.S. investors. 
He commented on the potential for producing value-added products in 
Ecuador, with the assistance of the USG and U.S. investors. 
Mentioning a new 70,000 hectare agricultural area that the MAG wants 
to develop for high-value agricultural exports to the United States, 
Poveda also requested USG assistance with identifying potential 
products, markets, importers, and quality standards.  He noted that 
Ecuador's agricultural production capacity far exceeded its 
consumption and, with the current instability in Africa and safety 
issues in China, that it was positioned to become a premier 
agricultural supplier to the United States.  The Ambassador noted 
that perception was critical to U.S. investors, so Ecuadorian laws 
and policies must be clearly seen as encouraging and protecting 
foreign investment. 
 
¶5.  (U) Minister Poveda highlighted Ecuador's need for 
higher-quality, higher-production "certified" seed programs, as well 
as on-site agricultural training for farmers (including agricultural 
schools and capacity building programs).  The Vice Minister and the 
Agricultural Attache agreed to continue discussions on possible 
cooperation in this area.  Poveda also requested cooperation and 
assistance for processing potatoes to create alcohol, which could be 
used as fuel and thus help support potato prices.  Finally, he asked 
for technical assistance to begin reforestation projects.  Ecuador 
aims to plant one million hectares of forest (for sustainable wood 
production and environmental protection) within the next 20 years. 
 
 
¶6.  (SBU) Comment:  The meeting was friendly and collaborative, with 
a useful exchange on a number of potential cooperation projects. 
USDA's PL-480 food aid program for Ecuador is unlikely to be 
renewed, since Ecuador's level of development has increased beyond 
the levels of the program.  However, Foreign Agricultural Service 
staff plan to continue working on technical capacity building 
initiatives in Ecuador. 
 
HODGES