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### Viewing cable 05BRASILIA3252, NODEL ENGLISH BRAZIL MEETINGS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05BRASILIA3252 | 2005-12-13 18:51 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 03 BRASILIA 003252

    SIPDIS

    NSC FOR CRONIN
    USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D
    USDOC FOR 3134/ITA/USCS/OIO/WH/RD/DDEVITO/DANDERSON/EOL SON
    DEPT PASS USTR FOR LEZNY/SULLIVAN
    BOGOTA FOR IRS
    TREASURY FOR OASIA - PARODI

    E.O. 12958: N/A
    TAGS: ETRD PREL PGOV OREP KIPR BR
    SUBJECT: NODEL ENGLISH BRAZIL MEETINGS

    ¶1. (U) Summary:  A congressional delegation led by
    Congressman Phil English, coordinator of the U.S. House of
    Representatives' Brazil Caucus, met on December 1 in
    Brasilia with Chamber of Deputies President Aldo Rebelo,
    Minister of Development, Industry and Trade Furlan and
    participated in a dialogue with members of the Chamber
    Foreign Relations Committee.  Nodel participants called for
    the negotiation of a bilateral tax treaty and for continued
    progress in trade negotiations in both the WTO Doha Round as
    well as the Free Trade Area of the Americas (FTAA).
    Minister Furlan expressed pessimism on the outcome of the
    Hong Kong WTO ministerial, noting that an agreement on
    reducing agricultural subsidies must be reached before
    progress can be made on the other issues on the table.  End
    Summary.

    ¶2. (U) Background:  A congressional delegation led by
    Congressman Phil English, sponsored by the Congressional
    Economic Leadership Institute (CELI) and the Wilson Center
    for Scholars, visited Sao Paulo, Brasilia and Rio de Janeiro
    Brazil from November 28 to December 2.   In addition to a
    substantive schedule in Sao Paulo, the group held meetings
    in Brasilia on December 1.  The delegation included the
    following members of Congress: Congressman Phil English (R-
    PA), Congressman Mike Honda (D-CA) (Sao Paulo only),
    Congressman Jim Costa (D-CA), Congressman Dennis Cardoza (D-
    CA), Congresswoman Eddie Bernice Johnson (D-TX), and
    Congressman Michael Capuano (D-MA).  The delegation's visit
    formed part of a CELI-sponsored effort to encourage dialogue
    among legislative branches of different countries.
    Delegation members also visited Sao Paulo and Rio de
    Janeiro.

    Sao Paulo Meetings -- IPR, Ag and Bio-fuels
    -------------------------------------------

    ¶3. (U) In Sao Paulo, the Nodel visited the Brazilian
    Mercantile and Futures Exchange (BMF) and witnessed
    agricultural trading on the exchange floor.  During the
    lunch hosted by the BMF, former Minister of Agriculture and
    current President of the Brazilian Beef Council Vinicius
    Moraes gave a complete overview of the Brazilian
    agricultural sector and urged greater cooperation with the
    U.S., including pursuing the FTAA.  Deputy Mendes Thame
    (PSDB) discussed the virtues of bio-fuels.  Congressman
    Capuano participated in a panel on IPR at the Amcham
    "International Negotiations" Forum.  The delegation also
    visited the operations center of major U.S. information
    services company EDS in Sao Bernardo for a briefing on the
    information services market in Brazil.  They closed out
    their Sao Paulo schedule with a visit to the Embraer factory
    in Sao Jose dos Campos.

    Ministry of Development, Industry and Trade
    -------------------------------------------

    ¶4. (U) The delegation's meeting with Minister of
    Development, Industry, and Trade Luiz Furlan and Mario
    Mugnaini, Head of the GOB's Foreign Trade Council, focused
    on the Hong Kong Ministerial, ethanol and IPR.  Congressman
    English, a "Cancun Veteran," commended Brazil for being a
    moderating force leading up to the Hong Kong Ministerial and
    discussed the USG's offer on agricultural subsidies.
    Minister Furlan, who was visibly exhausted, voiced pessimism
    about progress on the negotiations in the upcoming Hong Kong
    Ministerial, but said that Brazil was still going into the
    talks seeking an ambitious outcome.  He added that he
    believed that there would have to be an additional
    ministerial meeting in March.  Furlan stated that an
    agreement on agricultural subsidies must be reached prior to
    further movement on any of the other issues on the table,
    noting that a key question will be the timing for phasing
    out export subsidies.  He characterized the agricultural
    subsidies issue as a social matter.

    ¶5. (U) Congressional representatives Costa and Cardoso
    voiced their concerns about reducing agricultural subsidies
    while Congressman Capuano, noting that his district contains
    MIT and other R&D institutions, emphasized the need for
    stronger IPR enforcement.  Furlan declared that Brazil has a
    strong regime governing IPR protection and that IPR
    enforcement is a problem worldwide, including the US.  He
    stated that Brazil's IT service market is growing and
    exports are expected to reach $2 billion in 2007, adding
    that the gray market for PCs has shrunk and that Microsoft
    has launched low-priced windows software.

    ¶6. (U) Minister Furlan then turned to the subject of
    ethanol, noting that energy is a strategic issue in the U.S.
    Furlan noted that he had met with the U.S. Secretaries of
    Agriculture, Commerce and Energy as well as the California
    State government to discuss the GoB's offer to transfer
    ethanol production technology to the U.S. Brazil has 30
    years of experience in ethanol production and 60% of
    Brazilian new cars sales are of flex-fuel vehicles.  He said
    that Brazil has 50 new ethanol projects and that ethanol
    exports have increased by 800 million liters to three
    billion liters over the past three years.

    Chamber of Deputies Sessions
    ----------------------------

    ¶7. (U) After a courtesy call on Brazilian Chamber of
    Deputies President Aldo Rebelo, Nodel English members
    participated in a session of the Chamber of Deputies'
    Foreign Relations Committee.  The dialogue centered
    primarily on a few broad themes, including bilateral
    economic relations, multilateral trade negotiations, the
    environment, migration issues, the war in Iraq and the war
    on terror.  Congressman English called for the negotiation
    of a bilateral tax treaty.

    ¶8. (U) Multiple Members of the U.S. Congress and the
    Brazilian Chamber of Deputies called for progress in
    multilateral trade negotiations.  Congressman English
    emphasized the economic benefits of free trade, highlighting
    a World Bank study that predicted a successful Doha Round
    would lift hundreds of millions of people out of poverty.
    English called for Brazil to show leadership in the Doha
    Round negotiation process, warning that there needed to be
    progress on services in order for the U.S. to show
    flexibility on agriculture.  Other Nodel members also called
    for progress towards a FTAA that includes adequate
    protections for labor and the environment.  A majority of
    the Brazilian Deputies present emphasized the importance
    they place on a "balanced" FTAA.  One noted the Brazilian
    Congress lacks a mechanism to monitor and set limits on the
    executive branch as Trade Promotion Authority (TPA) does in
    the U.S. system.

    ¶9. (U) Migration - Multiple Brazilian Deputies emphasized
    the importance they place on the protection of Brazilian
    immigrants in the United States.  Representative Cardoza
    acknowledged the important role immigrants play in the U.S.
    economy but highlighted the importance of reducing illegal
    immigration to preserve the rule of law and mitigate the
    stresses on government social services.  Deputy Nelson
    Marquezelli argued that the FTAA could help slow migration
    to the U.S. as it opened up more opportunities for
    Brazilians at home.

    ¶10. (U) Environment - Deputy Andre Costa, seconded by
    Foreign Relations Committee Chairman Cedraz and other
    deputies, called for the U.S. to play a "more responsible"
    international role on global environmental issues.
    Congressmen Capuano and Jim Costa noted their belief that
    the USG needed to do more to reduce global warming but
    emphasized that there was a vigorous debate on environmental
    issues both in the Congress and among the U.S. public.
    Congressman English underlined the importance of policies
    based on "sound" science.  He further argued that the Kyoto
    Protocol was fatally flawed because major developing nations
    such as China had opted to remain outside the system.

    ¶11. (U) War in Iraq - Brazilian deputy Socorro Gomes, of the
    Communist Party, sharply criticized the war in Iraq,
    prompting a defense of USG actions from Deputy Marquezelli
    (of the PTB party).  Congressman English argued that Islamic
    terrorism represented a threat to all of the Americas.

    ¶12. (U) This cable was not cleared by NODEL prior to
    transmission.

    CHICOLA

`