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Viewing cable 08SANTIAGO1124, CODEL MEEKS HIGHLIGHTS IMPORTANCE OF U.S.-CHILE FTA WITH

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Reference ID Created Released Classification Origin
08SANTIAGO1124 2008-12-19 18:34 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Santiago
VZCZCXYZ0000
OO RUEHWEB

DE RUEHSG #1124/01 3541834
ZNR UUUUU ZZH
O 191834Z DEC 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4167
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 2226
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SANTIAGO 001124 
 
STATE PLEASE PASS TO USTR KATE DUCKWORTH 
STATE FOR WHA/BSC, EEB/TPP/BTA, WHA/EPSC 
TREASURY FOR SSENICH 
COMMERCE FOR KMANN 
 
SENSITIVE 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD EINV ECIN PGOV PREL CI
 
SUBJECT:  CODEL MEEKS HIGHLIGHTS IMPORTANCE OF U.S.-CHILE FTA WITH 
DG CARLOS FURCHE 
 
1. (SBU) SUMMARY:  Representatives Meeks, Ryan, and Hinojosa 
underlined the success of the U.S. - Chile Free Trade Agreement to 
Chile's de facto trade minister.  DG Furche echoed their assessment, 
noting the positive impact of the FTA on Chile.  He cited many signs 
of the benefits of free trade to both countries, including growth of 
almost 300% in exports to and imports from Chile.  The Congressmen 
urged Chile to spread the message about its successful economic and 
democratic model throughout the region.  They also encouraged Chile 
to highlight support for the Colombia FTA.  Furche explained Chile 
had been vocal about its support for the Colombia FTA and would 
continue to be so.  Furche also noted Chile's top multilateral 
priorities: the Pathways for Prosperity and the Trans-Pacific 
Partnership.  Representative Meeks said the Congress was considering 
the creation of a Latin America Caucus.  Furche said Chilean 
officials would be delighted to work with the proposed Caucus.  END 
SUMMARY. 
 
2. (U) Representative Gregory Meeks(D-NY), Representative Paul 
Ryan(R-WI), Representative Ruben Hinojosa(D-TX), Ambassador, Ms. 
Sophia King, CAPT Joe McClain, Econoff, and Poloff met December 16 
with DIRECON Director General Carlos Furche, Head of Market Access 
Division Paulina Nazal, and Head of North America Division Sandra 
Ramos.  Furche serves as Chile's de facto trade minister, although 
he is technically under MFA purview. 
 
U.S. - Chile FTA a Model to the Region 
----------------------------------------- 
 
3. (SBU) Representative Meeks explained the U.S. and Chile shared 
the view that their FTA is a success.  Both countries had netted 
positive results because of the agreement, including the creation of 
many jobs.  Meeks noted all three members of the delegation had 
voted for every major FTA in the last 10 years, including with 
Chile.  He predicted the Obama Administration's view of the 
importance of trade would continue to complement Chile's 
perspective.  Meeks called for better enforcement of Intellectual 
Property Rights (IPR) protections.  In every other area of the FTA 
both countries could demonstrate impressive gains.  Meeks said the 
FTA could serve as a model to the region. 
 
4. (SBU) Representative Ryan similarly cited the FTA as a model of 
success that should be replicated across the continent.  He also 
emphasized the importance of respecting IPR.  He asked about the 
access of Class III dairy products to the Chilean market and noted 
he had heard about the existence of non-tariff barriers.  Ryan hoped 
to replicate the success of resolving access for U.S. beef products 
with cheese products.  Paulina Nazal responded she was unaware of a 
problem, as the topic had not been raised during the recent Free 
Trade Commission, December 12.  She promised to look into the issue. 
 
 
5. (SBU) Representative Hinojosa noted Chile was an attractive 
trading partner.  He was impressed with Chile's investment in 
education, which he predicted would yield "a 3-fold return."  The 
U.S. was considering a major initiative to invest in infrastructure 
across the country.  Hinojosa thought this might benefit Chile, 
especially in terms of copper exports. 
 
6. (SBU) DG Furche agreed the FTA had a significant positive impact 
on Chile.  The volume of trade in both directions had increased by 
almost 300%.  The U.S. was likely to enjoy a trade surplus with 
Chile in 2008.  In fact, all indicators pointed to a successful 
agreement.  The number of enterprises involved in trade, the number 
of products traded, and their volume and value were all increasing. 
Furche noted Chile had just hosted the Fifth Free Trade Commission 
in Santiago, December 12.  He said there were no major issues 
concerning implementation of the FTA, although there were always 
improvements that could be made.  The U.S. and Chile had even begun 
to accelerate tariff elimination for certain products. 
 
Chile Can Encourage Approval of Colombia FTA 
-------------------------------------------- 
 
7. (SBU) Representative Meeks said he was a proponent of the U.S. - 
Colombia FTA pending before Congress and was cautiously optimistic 
it could be passed.  However, it was critical to have the input of 
other Latin American countries.  He hoped members of Congress would 
also visit Colombia to see for themselves how violence was down and 
efforts to reduce poverty were succeeding.  Although there was still 
a lot to be done, such as on environment and indigenous peoples 
issues, Colombia had made significant progress.  Meeks had 
 
encouraged heads of state in the hemisphere to communicate with 
President-Elect Obama about the importance of the FTA to the region. 
 Meeks urged Furche to pass this message to President Bachelet. 
 
8. (SBU) Furche assured Meeks the GOC (at all levels, including 
President Bachelet) had and would continue to express Chile's 
support for the Colombia FTA.  Representative Ryan asked how Chile 
and public opinion would react if the Colombia FTA did not pass. 
Furche thought it would send a negative signal to the region.  There 
was a split in the hemisphere between countries that espoused the 
democratic and open-market economy model (e.g., Brazil, Chile, 
Colombia, and Peru) and those that had turned away from that model 
(e.g., Argentina, Bolivia, Ecuador, and Venezuela).  The position of 
the latter group could only be reinforced if the U.S. Congress 
failed to approve the Colombia FTA.  Public perception of U.S. 
interest in the region would also suffer. 
 
9. (SBU) Representative Hinojosa called for more awareness on issues 
related to indigenous peoples and poverty.  It was a key issued that 
could affect voting on the Colombia FTA.  Furche responded by noting 
poverty in Chile had been cut from 42% in 1990 to 13% in 2007, due 
in no small part to the U.S.-Chile FTA.  He believed this was the 
most successful example of poverty reduction in Latin America. 
Representative Meeks said Chile could encourage passage of the 
Colombia FTA by making this kind of argument to members of the U.S. 
Congress and throughout the region. 
 
Further U.S.-Chile Links 
------------------------ 
 
10. (SBU) DG Furche said Chile would focus on two multilateral trade 
priorities in 2009, the Pathways to Prosperity and the recently 
expanded Trans-Pacific Partnership (P-4).  Chile had participated in 
the Pathways Ministerial in Panama December 10.  The GOC had agreed 
to lead one of the working groups in the Pathways initiative.  Chile 
is also working to expand the P-4 to include Australia, the U.S., 
and Vietnam when negotiations begin in March 2009.  If the U.S. and 
Chile could build on their successful FTA in the P-4, it could one 
day result in an Asia-Pacific regional FTA. 
 
11. (SBU) Representative Meeks noted the Congress was considering 
the formation of a Caucus on Latin America to deepen links with and 
further discussion about issues in the region.  Furche welcomed the 
development, explaining Chile and other countries in Latin America 
had high hopes for the Obama Administration and the new Congress. 
He said GOC officials would be delighted to work with the Caucus to 
demonstrate the strong ties between Chile and the U.S. 
SIMONS