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Viewing cable 06BRASILIA2245, BRAZIL PRESIDENTIAL ELECTION: A FEW OBSERVATIONS
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 06BRASILIA2245 | 2006-10-27 11:40 | 2011-07-11 00:00 | CONFIDENTIAL | Embassy Brasilia |
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C O N F I D E N T I A L SECTION 01 OF 04 BRASILIA 002245
SIPDIS
SIPDIS
C O R R E C T E D COPY - CHANGED PARA 13 TEXT.
E.O. 12958: DECL: 05/25/2016
TAGS: PREL BR
SUBJECT: BRAZIL PRESIDENTIAL ELECTION: A FEW OBSERVATIONS
ON FOREIGN POLICY AS A LONG CAMPAIGN WINDS DOWN
BRASILIA 00002245 001.2 OF 004
Classified By: POLITICAL COUNSELOR DENNIS HEARNE. REASONS: 1.4 (B)(D).
¶1. (C) Summary. Brazilian voters go to the polls on 29
October to select either incumbent Lula da Silva (Workers
Party - PT) or challenger Geraldo Alckmin (Social Democratic
Party - PSDB) for their president, with current polls
indicating a wide lead for Lula. As in past national
campaigns, foreign affairs have not been a major issue, but
as this year's presidential campaign winds down, we offer
herewith some observations on comparative foreign policy
perspectives of the candidates, based on the televised
debates, media articles, and conversations with knowledgeable
insiders, especially in the opposition Social Democratic
Party (PSDB). Throughout the campaign, Lula da Silva has
clearly reiterated his government's commitment to a foreign
policy that stresses regional integration and south-south
ties, even as PSDB challenger Geraldo Alckmin has repeatedly
criticized Lula for sacrificing Brazilian interests in the
name of ideological priorities, and emphasized the importance
of relations with the developed world, especially the United
States. It clearly appears an Alckmin foreign policy would
be distinctly more traditional and U.S.-oriented. While we
may be able to develop specific areas of enhanced bilateral
cooperation in a second Lula mandate -- e.g., on bio-fuels
policy, business and investment, and programs for Brazil's
poor northeast -- we can see no compelling current indication
that Lula,s policy would shift dramatically in a different
direction in a second term. End summary.
¶2. (SBU) In all three televised campaign debates this month,
PSDB challenger Geraldo Alckmin has aggressively criticized
Lula's foreign policy, citing its failures in producing a
permanent seat for Brazil in the UNSC or leadership spots in
other international organizations, its weak response to
Bolivia's nationalization of Petrobras assets, the decision
to declare China a market economy and the subsequent flooding
of Brazil's market with finished Chinese goods that compete
with Brazilian products, and the south-south orientation that
has placed priority on partnering with developing nations at
the expense of traditional relations with the U.S. and EU.
In that sense, Alckmin and the PSDB echo the critical views
that have taken hold throughout much of Brazil's educated
classes and are reflected widely in the media. Clearly, an
Alckmin government would immediately seek to distance itself
from Lula's foreign policy, in substance and in form.
¶3. (C) The PSDB has a deep bench of foreign policy experts --
former Foreign Minister Celso Laffer, former ambassadors
Rubens Barbosa and Sergio Amaral; even the PSDB's Senate
Leader, Arthur Virgilio, is a diplomat. They have advised
Alckmin and published op-ed columns throughout the campaign.
All view Lula's foreign policy as a fiasco, an
ideologically-driven, strategically unsound and incompetently
managed enterprise that has damaged national interests and
yielded few successes. In recent conversations with the
Ambassador, Amaral offered a concise critique of Lula,s
policy, while Barbosa outlined likely Alckmin positions in
both a recent op-ed column and a private meeting with the
Ambassador earlier in the month.
SERGIO AMARAL
¶4. (C) Retired diplomat Sergio Amaral, who held senior
positions in the Fernando Henrique Cardoso (FHC) government
and is the odds-on favorite to be Foreign Minister if Alckmin
is elected, discussed foreign affairs with Ambassador on 16
October in Sao Paulo. Amaral noted the stark difference
between the foreign policy visions of Alckmin and Lula.
Brazil,s foreign policy has historically been bipartisan,
but the Lula administration has been implementing a Workers
Party (PT) foreign policy. Brazil under FHC played a
BRASILIA 00002245 002.2 OF 004
moderating role in South America, said Amaral, but Lula,s
active, militant foreign policy is choosing sides between two
currents. It is supporting Chavez, Morales, and Kirchner.
The foreign policy also has a third-world flavor, as
evidenced by the opening of so many embassies in Africa.
¶5. (C) Amaral noted that he didn,t know whether Celso Amorim
would continue as Foreign Minister if Lula is re-elected.
Foreign policy advisor Marco Aurelio Garcia would like the
job, but his name would probably not be well received.
Regardless, he will retain a strong position in defining
foreign policy. The ideological, leftist foreign policy is
designed to counter-balance the government's more orthodox
economic policy and appease the left wing of the PT. It has
led to bad policies, such as Brazil,s agreeing to
Venezuela's entry into Mercosul. It is behind the GOB,s
unwillingness to move forward on FTAA. Foreign Ministry
(MRE) Secretary-General Samuel Pinheiro Guimaraes has always
opposed FTAA, and Lula himself has complained that the
negotiation is one-sided and dominated by the U.S. The
GoB,s unwillingness to accept FTAA has the symbolic value of
placing it in opposition to the United States and standing up
for the less powerful.
¶6. C) However, Amaral said, despite a great deal of rhetoric,
Lula and his foreign policy team have achieved no results.
Brazil does not have a single meaningful bilateral trade
agreement, largely because Amorim has little or no experience
in bilateral negotiations. As a result, Brazil is losing its
influence in South America, which is increasingly fragmented.
Amaral had originally expected Lula to move towards a more
centrist foreign policy in a second term, but there had been
so much polarization in the campaign that this now appears
unlikely. Lula will be looking to protect his legacy as a
defender of the poor, and a leftist foreign policy will be
part of that effort.
¶7. (C) Unlike his foreign policy team, however, Lula himself
is more pragmatic than ideological because of his years as a
union leader negotiating deals. Amaral urged the Ambassador
to continue to engage him, using trade and investment as a
building block. Instead of pushing or pressuring him, which
would likely be counter-productive, the U.S. should put Lula
and his foreign policy team on the spot, asking what they
want, and see what the response is and what kind of dialogue
it provokes.
RUBENS BARBOSA
¶8. (U) In a widely-published op-ed column on 10 October,
former Brazilian Ambassador to the U.S. and PSDB advisor
Rubens Barbosa outlined some basic tendencies of foreign
policy in an Alckmin presidency:
¶9. (U) Foreign policy would return to its natural role,
seeking to be consensual and non-partisan, Barbosa wrote. In
Alckmin government, foreign policy would be treated as a
policy of the state, within both medium and long term
perspectives, in which the national interest is above visions
that are ideological or passing governments.
¶10. (U) Barbosa wrote that an Alckmin foreign policy would
continue a strong regional focus, based on reciprocal
interests, and integration, but with an emphasis on national
interests, without ideology. Alckmin would also seek to
again intensify relations with the most dynamic centers of
the global economy and re-establish as a priority relations
with developed nations.
¶11. (C) Barbosa,s published views on the general principles
of an Alckmin foreign policy track closely with his comments
BRASILIA 00002245 003.2 OF 004
to Ambassador Sobel in their meeting in Sao Paulo earlier in
October. On more specific points, Barbosa made these
additional observations to Ambassador:
--South-South relations: Alckmin would not repudiate this
outright, but would return central focus to relations with
the U.S., EU, Japan and other developed partners.
--U.S.-Brazil relations: These would return to the forefront
of foreign policy, and Alckmin would look at intensified
cooperation in bio-fuels, defense, and other areas identified
already by the two governments for working group activities.
--Free Trade: Alckmin could re-engage on this, but in an
approach that resembles the "FTAA-light" model, not a more
comprehensive NAFTA-type accord. On Doha, Alckmin would not
be constrained by the G-20 and will look first and foremost
to defending Brazilian national interests.
--Chavez: There would be no relationship beyond formalities
and necessity, as Alckmin has no interest in doing anything
with Chavez. Alckmin takes a dim view of Chavez,s
participation in Mercosul, and Barbosa noted, with no further
comments, that Venezuelan full membership is still pending
formal approval in Brazil,s congress. Similarly, Alckmin
has no interest in close relations with Castro, and would
take only a correct diplomatic approach to Cuba.
--Bolivia: Alckmin would take a harder line with Morales on
Petrobras and Brazilian equities in Bolivia, but Barbosa did
not elaborate.
ADDITIONAL VIEWS
¶12. (C) In a 19 October private meeting with Ambassador and
PolCouns, Senator Tasso Jereissati, PSDB national president,
and Senator Arthur Virgilio, PSDB leader in the Senate, both
expressed concern that Lula's rhetoric may turn toward
populism in a second term, and this will be true in foreign
relations as well. Jereissati said the likely state of
legislative gridlock in domestic politics in a Lula second
term and continued trouble with corruption allegations will
lead Lula down a populist track. In foreign affairs, that
could mean rhetorical distancing from the U.S. in trade
issues and other foreign policy questions, though Jereissati
opined Lula will try to retain amiable contact with the USG
"behind closed doors." In the context of a weak political
situation overall, Lula could use leftist-populist rhetoric
on foreign affairs, Jereissati said, as a means to shore up
his fragile support on the far left.
¶13. (C) Comment: In recent days, as polls have indicated a
widening lead for Lula over Alckmin, a tantalizing article in
respected daily newspaper "Valor Economico" reported that
Lula government insiders were promising a tilt back toward
stronger relations with the U.S., and away from south-south
priorities, in a Lula second term. On the evidence we see,
that appears to be a planted canard intended to ameliorate
Alckmin's incisive attacks on Lula's foreign policy, not a
harbinger of a real change. During the television debates,
Lula defended his foreign policy vision, with no hint of a
shift in direction. At the top of the powerful Foreign
Ministry, Foreign Minister Celso Amorim -- Lula's obedient
servant -- and Secretary General Samuel Pinheiro Guimaraes --
a leftist ideologue viewed widely as an anti-American quack
even by many in his institution -- are both intent on staying
in their positions in a second term, according to our
high-level sources in their personal staffs. And we see no
evidence of a waning in the influence over Lula of Marco
Aurelio Garcia, Lula's foreign policy advisor and
decidedly a leftist in his orientation. We do think the GOB
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will focus on some specific and promising areas for increased
cooperation with us -- notably in bio-fuels policy, as Amorim
has stated to the Ambassador, and as we have reported in
septels. Working with the GOB on enhancing business and
investment, and on development programs for Brazil's
impoverished northeast also offer some potential for
enhancing bilateral cooperation. We also are not persuaded
at present that Lula's rhetoric on international issues will
head down the negative populist path that Jereissati foresees
-- we believe Lula prizes his self-image as influential
regional moderate, and we should encourage him in that role.
But, overall, we have to anticipate more of the same in
Lula's foreign policy in terms of its essentially south-south
orientation, come the second term that looks likely now,
three days away from the election. A real sea change, with
the tide flowing in our direction, would require an Alckmin
victory -- a long shot, at this point.
¶14. (U) AmConGen Sao Paulo contributed to this cable.
SOBEL
Sobel