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Viewing cable 09BUENOSAIRES267, U.S. Beef Legislation Targeting Argentina: Sending the

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Reference ID Created Released Classification Origin
09BUENOSAIRES267 2009-03-12 15:13 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0267/01 0711513
ZNR UUUUU ZZH
R 121513Z MAR 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 3212
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 000267 
 
USDA FOR FAS/OA/OCRA/ONA/OGA/OFSO 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAGR ECON EINV PGOV ELAB PHUM AR
SUBJECT: U.S. Beef Legislation Targeting Argentina: Sending the 
Right Signal 
 
Ref:  Buenos Aires 231 
 
------- 
Summary 
------- 
 
1.  (SBU) Argentine industry and government contacts are concerned 
by U.S. legislative proposals to restrict approval of the country's 
fresh beef exports to the United States, including provisions in the 
Omnibus Appropriations Bill.  The Argentine Government has placed a 
high priority on regaining access to the U.S. market since exports 
were suspended in 2001 after an outbreak of foot-and-mouth disease. 
President Fernandez de Kirchner and Production Minister Giorgi have 
both raised the issue with USG interlocutors and are encouraging 
Argentine ambassadors abroad to redouble efforts to open foreign 
markets to Argentine exports.  Taking all possible steps to move 
forward with approval of fresh beef imports, particularly in 
implementing the requirements in the Omnibus Appropriations Bill, 
would send a strong signal that the U.S. Government is committed to 
the use of sound science in making market access decisions, that we 
are abiding by our commitments to avoid protectionist measures and 
that Argentina is not being singled out to prohibit trade.  Given 
mounting pressures within Argentina to raise barriers to imports, 
this would be a valuable signal for us to send.  End Summary. 
 
2.  (SBU) The Argentine Government has placed a high priority on 
regaining access to the U.S. market for fresh beef.  Local industry 
and government contacts have expressed great concern over U.S. 
legislative proposals to restrict approval of imports of live 
cattle, sheep and swine, as well as fresh meat from Argentina.  The 
proposals were included in the Omnibus Appropriations Bill approved 
by the U.S. Congress (Section 737) and in separate pending 
legislation introduced as the "Foot and Mouth Disease Prevention Act 
of 2009" (HR 1226 and S.377). 
 
3.  (SBU) Argentine exports of fresh beef to the United States were 
suspended in 2001 after the Argentine Government tried to hide an 
outbreak of foot-and-mouth disease.  Neighboring Uruguay quickly 
acknowledged a similar outbreak in 2001 and gained approval to 
resume exports once again in 2003.  The Argentine Government has 
been working with the USDA for approval of fresh beef exports, but 
is concerned that legislative restrictions could block further 
movement in this area. The Argentines argue that the legislative 
restrictions take no account of the science based approach that U.S. 
officials have said the USG is taking. 
 
4.  (SBU) President Fernandez de Kirchner raised the issue of beef 
access to the U.S. (as well as approval of lemon exports) during a 
meeting with House Agriculture Committee Codel Peterson in September 
2008.  More recently, Production Minister Giorgi raised market 
access for fresh beef and lemons in a meeting with the Ambassador on 
February 25 (Reftel). 
 
------------------------------- 
Approval Process for Fresh Beef 
------------------------------- 
 
5.  (U) The USDA published a proposed rule to recognize the southern 
Patagonia region of Argentina as free of foot-and-mouth disease in 
2007.  The USDA sent an inspection evaluation team to review the 
sanitary situation of the region in February 2009.  The USDA has 
also conducted a risk assessment for imports of fresh beef debone, 
matured beef originating from the rest of the country, but has not 
published a proposed rule to allow imports. 
 
--------------------------- 
Omnibus Appropriations Bill 
--------------------------- 
 
6.  (SBU) As we understand, the provision approved in the Omnibus 
Appropriations Bill would prohibit the USDA from using FY 2009 funds 
to approve imports of fresh beef from Argentina until the USDA 
reports to Congress on the impact of such approval. 
 
7.  (U) The version of the legislative provision that we have 
received reads as follows:  "Sec. 737. None of the funds made 
available by this Act may be used to pay the salaries and expenses 
of any individual to conduct any activities that would allow the 
importation into the United States of any ruminant or swine, or any 
fresh (including chilled or frozen) meat or product of any ruminant 
or swine, that is born, raised, or slaughtered in Argentina: 
Provided, That this section shall not prevent the Secretary from 
conducting all necessary activities to review this proposal and 
issue a report on the findings to the Committees on Appropriations 
of the House and Senate: Provided Further, That this section shall 
only have effect until the Secretary of Agriculture has reviewed the 
domestic animal health aspects of the pending proposal to allow the 
importation of such products into the United States and has issued a 
report to the Committees on the findings of such review." 
 
--------------------------------------------- - 
President Kirchner Focused on Export Promotion 
--------------------------------------------- - 
 
8. (SBU)  Highlighting the GoA's focus on sustaining economic growth 
by opening foreign markets to Argentine exports, President Fernandez 
de Kirchner convened over 90 of Argentina's ambassadors abroad to 
Buenos Aires on March 9.  She personally encouraged them to 
concentrate on the crucial mission of "winning new markets in the 
world to sustain the country's economic activity in the middle of 
the international financial crisis and thus maintaining the export 
levels of 2008."  Local media reports that some Argentine 
ambassadors asked how to reconcile this official order to open 
foreign markets with current GoA restrictions on the exports of meat 
and grains.  The President responded that the GoA restrictions are 
not "a closed position set against international trade" but rather 
one that supports an international trade regime that is "more fair 
and less asymmetric." 
 
------- 
Comment 
------- 
 
9.  (SBU) Approval of legislative restrictions on Argentine beef 
imports could cause new tensions with the GoA and raise questions 
about the USG commitment to free trade in advance of the G-20 
meetings in April.  President Fernandez de Kirchner strongly 
criticized protectionism by developed countries in a talk on March 
9, and it is very possible that the GoA will seize on this issue in 
the preparations leading up to the G-20 meetings (despite 
Argentina's own moves to restrict imports).  We have been regularly 
urging GoA officials to abide by their G-20 commitments to avoid 
protectionist measures, pointing to worrisome GoA tightening of 
customs procedures among other measures.  We are working with 
officials in the Argentine government to minimize negative press 
coverage of the issue, but taking all possible steps to move forward 
with approval of fresh beef imports, particularly in implementation 
of the requirements in the Omnibus Appropriations Bill, would send a 
strong signal that the U.S. Government is committed to free trade 
and the use of sound science in making market access decisions and 
that it is not singling out Argentina to prohibit trade. 
 
WAYNE