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### Viewing cable 08QUITO935, AMBASSADOR'S MEETING WITH AGRICULTURE MINISTER POVEDA

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08QUITO935 | 2008-09-29 20:20 | 2011-05-02 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Quito

`

    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

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