VZCZCXYZ0002
RR RUEHWEB

DE RUEHBU #1400 2841444
ZNR UUUUU ZZH
R 101444Z OCT 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 2222
RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 001400 
 
USDOC for 4321/ITA/MAC/OLAC/PEACHER 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD WTRO ECON AR
SUBJECT: Argentina Calls for Emergency Mercosur Summit to Address 
Global Crisis Impact 
 
Reftels:  A. Buenos Aires 1377 
          ¶B. Buenos Aires 1374 
          ¶C. Buenos Aires 1079 
 
¶1. (U) On October 8, Argentine Foreign Minister Jorge Taiana 
announced he would ask his fellow Mercosur Foreign Ministers as well 
as Economy Ministers to hold an emergency summit regarding the 
global financial crisis.  Daily La Nacion quoted a "high-ranking 
government official" as saying that "the intent is for the Economy 
and Foreign Ministers of MERCOSUR countries to analyze the crisis 
and coordinate common positions of the bloc" on the impact of the 
crisis on the region. 
 
¶2. (SBU) Adrian Makuc, National Director of Trade Policy in the 
Economy Ministry, just back from an October 8 meeting of the 
Mercosur Coordinating Committee in Rio de Janeiro, told Econoff that 
the international financial crisis and Taiana's request for a summit 
were the main topics of discussion there.  He expects the summit 
will take place October 27, and that the focus will be on 
coordinating macroeconomic, trade, and currency valuation policies 
"to avoid collisions."  On the recent, rapid depreciation of the 
Brazilian real relative to the Argentine peso (Ref A), Makuc noted 
"we have a problem with that, obviously."  Ernesto de la Guardia, a 
Foreign Ministry trade officer in the Foreign Ministry's Mercosur 
office, confirmed to Econoff October 9 that Argentine "angst" at the 
Brazilian central bank's hands-off policy on the value of the Real 
(versus the Argentine central bank's active stabilization 
intervention) would make exchange rate policy differences between 
Argentina and Brazil the primary topic of discussion.  He estimated 
that a meeting could take place the week of the 20th or 27th, and 
expected that Venezuela would be invited to participate. 
 
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Comment 
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¶3. (SBU) The summit request by the GoA (though current Mercosur 
president Brazil would host the summit if it occurs) apparently 
springs from the new GoA "Coordinating Table" chaired by Cabinet 
Chief Sergio Massa (Ref B).  Given recent frictions between 
Argentina and Brazil over end-game WTO Doha Round negotiations (Ref 
C), the two nations' distinct approaches to macro policy management, 
and the wild-card of Venezuela participation, finding common ground 
on financial crisis management could prove difficult. 
 
WAYNE