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Viewing cable 08BUENOSAIRES1153, MONSANTO ARGENTINA PRESIDENT ON SEED ROYALTY ISSUE

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Reference ID Created Released Classification Origin
08BUENOSAIRES1153 2008-08-15 12:47 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0009
RR RUEHWEB

DE RUEHBU #1153 2281247
ZNR UUUUU ZZH
R 151247Z AUG 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1791
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE
UNCLAS BUENOS AIRES 001153 
 
USDA FOR FAS/OA/OCRA/ONA/OGA/OFSO 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958:  N/A 
TAGS: EAGR ECON AR
SUBJECT: MONSANTO ARGENTINA PRESIDENT ON SEED ROYALTY ISSUE 
 
1. (SBU) Summary: Juan Ferreira, outgoing president of Monsanto 
Argentina, met with the Ambassador to say farewell prior to his new 
assignment to Europe and to thank the Ambassador for his support for 
Monsanto in dealing with the GOA.  Ferriera noted a decision by the 
GOA to impose additional duties on Monsanto's pesticide imports from 
production plants in Brazil (the GOA is claiming that the Brazilian 
content is not sufficient qualify for Mercosur duty-free treatment) 
and Monsanto's strategy of focusing on ensuring adequate IPR 
protection for new GMO seed technologies that it hopes to introduce 
to the Argentine market in the future.  Ferriera also discussed 
development of new agricultural technologies and the impact they 
will have on production in Argentina.  Subsequently, Ambassador was 
able to support Monsanto's agreement with Chaco province to work 
with local cotton farmers on using biotechnology to improve 
production. End Summary. 
 
2.  (SBU) Ferriera requested the meeting with the Ambassador on July 
22 to discuss Monsanto's domestic operations and to thank the 
Ambassador for the support and advise he has provided for Monsanto 
in its dealings with the GOA.  Ferriera stated Monsanto has 
frequently been the target of the Argentine government and noted 
that the most recent incident was the decision of the GOA to charge 
additional duties on Monsanto pesticide imports from its production 
plants in Brazil.  The GOA is alleging that the Brazilian content is 
insufficient to qualify for duty-free treatment under Mercosur 
internal free trade rules.  Ferriera stated that Monsanto is quite 
certain that it is complying with Argentine and Mercosur 
requirements and will be appealing the decision. 
 
3.  (SBU) Ferriera reviewed the ongoing dispute over payment of 
royalties for seeds using Monsanto's technology, including Round Up 
Ready seed varieties.  He explained that Monsanto is continuing its 
revised strategy of focusing on the future and ensuring IPR 
protection for new technologies that it will be introducing in the 
future.  Monsanto would like to see in Argentina a similar system to 
the royalty collection system now in place in Paraguay and Brazil. 
In both countries, producers are paying for the seed technology they 
are using and part of the money is being used to development new 
technologies specific to those countries. 
 
4.  (SBU) Monsanto did not have high-profile discussions with the 
GOA on the royalty issue during the extended farm strike, but it has 
maintained contacts with farm organizations and provincial governors 
to build support for a system to ensure that suppliers are paid for 
introducing new technologies to improve production in Argentina.  In 
response to the Ambassador's question about technologies that will 
be available if Monsanto can resolve the issue of royalties, 
Ferriera explained that new soybean seed varieties will allow 
Argentine producers to increase yields by 10 to 15 percent. 
Monsanto also has available technology for significantly improving 
yields for cotton varieties. 
 
5.  (SBU) Ferriera said that Monsanto was having good discussions 
with cotton producers expanding use of Bt cotton in Chaco province 
in the north of Argentina and helped to expand cooperation there. 
On August 12, Monsanto signed a cooperation agreement with the 
governor of Chaco province.  Ambassador was able to support this 
effort in an op-ed carried August 13 in Chaco's leading daily and in 
conversations with the governor on this same day.  Governor 
Capitanich was very enthusiastic about working with Monsanto to 
improve and expand local cotton production. 
 
 
6.  (SBU) COMMENT:  The weak Argentine rules on IPR enforcement for 
seed varieties remain a significant impediment for U.S. companies 
that wish to introduce new seed technology in Argentina.  The 
current emphasis of Monsanto on highlighting new yield-enhancing 
technologies that could be made available is an approach we support, 
as they work to build support for improvements in IPR protection in 
genetically modified seed stock.  The Embassy agriculture section is 
currently working with Monsanto to organize the visit of a group of 
Argentine journalists to the U.S. to learn about new technologies 
and the importance of IPR protection.  Ambassador will meet the 
journalists August 15. END COMMENT. 
 
WAYNE