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### Viewing cable 07BRASILIA2140, BRAZIL: AMBASSADOR SOBEL DISCUSSES UPCOMING ECONOMIC

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BRASILIA2140 | 2007-11-14 15:31 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

`

    VZCZCXRO6041
    RR RUEHRG
    DE RUEHBR #2140/01 3181531
    ZNR UUUUU ZZH
    R 141531Z NOV 07
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 0443
    INFO RUEHRG/AMCONSUL RECIFE 7369
    RUEHSO/AMCONSUL SAO PAULO 1171
    RUEHRI/AMCONSUL RIO DE JANEIRO 5434

` `

    UNCLAS SECTION 01 OF 02 BRASILIA 002140

    SIPDIS

    SENSITIVE
    SIPDIS

    STATE PASS TO E FOR TOM PIERCE
    STATE FOR WHA/EPSC LISA KUBISKE
    STATE FOR S/P WILLIAM MCILHENNY
    STATE FOR EEB/CIP, EEB/TRA

    E.0. 12958: N/A
    TAGS: ECON ETRD ECIN EAIR ECPS TSPA BR
    SUBJECT:  BRAZIL: AMBASSADOR SOBEL DISCUSSES UPCOMING ECONOMIC
    DIALOGUE WITH UNDER SECRETARY AZEVEDO

    ¶1.  (SBU) Summary:  Ambassador Sobel and Brazilian Ministry of
    External Affairs (MRE) Under Secretary Roberto Azevedo met on
    November 9 at the MRE to discuss the upcoming State-MRE Economic
    Dialogue scheduled for December.  During the meeting, Azevedo said
    the only deliverable he expected from the bilateral discussions was
    an agreement to increase flight frequencies. (In fact, negotiations
    led by State and ANAC are expected December 5-7 in Rio). Azevedo
    indicated that he would also like to pursue sectoral discussions on
    the textile industry.  He noted that the GoB was still exploring the
    possibility of OECD participation, but needed to determine the
    long-term effect of membership before continuing.  He did not place
    much emphasis on discussions of import safety or GMOs.  Azevedo
    indicated that the GOB was interested in discussing joint
    cooperation, both "offensive and defensive," in third markets, such
    as China and Korea.  The Ambassador encouraged the GoB to become
    involved in the discussion on the Chinese renminbi.  End Summary.

    ¶2.  (SBU) On November 9, the Ambassador met with Brazilian Ministry
    of External Affairs (MRE) Under Secretary Roberto Azevedo at the MRE
    to discuss the upcoming December State-MRE Economic Dialogue.
    During the meeting, Azevedo stressed that both sides should find
    areas where they can successfully work together. Azevedo said that
    although he thinks the discussions should not exclude the private
    sector, there should be a point when the USG and GoB select economic
    and commercial topics that address the overall strategy concerning
    the direction the USG and the GoB will take in the future.  Except
    for aviation, Azevedo did not expect any early deliverables as a
    result of the talks.  He told the Ambassador that, barring an
    unexpected senior officials meeting in Geneva, he would be available
    on December 13 and asked to hold the meeting on that date.

    ¶3.  (SBU) The Ambassador asked Azevedo what he felt were the most
    promising opportunities for the Economic Dialogue.  Azevedo
    (referring to sectoral discussions) replied that he felt positive
    results came out of a recent Washington meeting with textile
    industry representatives and suggested both governments explore this
    further.  He opined that USG and GoB support for private sector
    involvement in the talks would play well in the media.

    ------------------
    OECD Participation
    ------------------

    ¶4.  (SBU) The Ambassador inquired about Brazil's consideration of
    deeper OECD involvement, adding that it was Brazil's choice on how
    it wanted to proceed.  He noted that there are many opportunities
    for engagement in individual areas and asked if Azevedo thought
    there would be ready deliverables from discussion of this topic.
    Azevedo relayed that the GoB is looking for the correct approach to
    deepen its participation in the OECD.  One avenue being considered
    is the designation of a GoB official to establish OECD contacts and
    determine if a dialogue about key issues was possible, but he did
    not believe this discussion would necessarily have to produce
    deliverables at this time.  Instead, he preferred strategic talks on
    potential opportunities.  He said he was much less concerned about
    what committees Brazil should join than where OECD membership would
    lead, in order to determine if OECD membership makes sense for
    Brazil.

    -------------
    Other Issues
    -------------

    -- Aviation

    ¶5.  (SBU) The only major deliverable Azevedo believed may come out
    of the December meeting is an agreement on increased flights between
    the U.S. and Brazil.  The Ambassador noted that there was interest
    on all sides for increased air frequencies.

    -- Import Safety

    ¶6.  (SBU) Azevedo said there was some discussion (in Washington) on
    an import safety dialogue.  He indicated that he did not feel this
    was a strategic item and was not sure if this topic would yield any
    short-term deliverables.

    -- Genetically Modified Organisms (GMOs)

    ¶7.  (SBU) Azevedo brought up the topic of genetically modified
    organisms (GMOs), explaining that the country has a "split
    personality" on the issue.  While GMOs are an important business in
    Brazil, he pointed out that the subject is controversial with NGOs.
    He said it was an issue that "we can talk about and look at the

    BRASILIA 00002140  002 OF 002

    implications."

    -- Joint Cooperation in Third Countries

    ¶8.  (SBU) Azevedo stated that the GoB was interested in discussing
    joint cooperation, both "offensive and defensive," in third markets
    such as China and Korea.  As justification, he noted unspecified
    subsidy concerns.  The Ambassador encouraged the GoB to become
    involved in the discussion on the renminbi.

    Sobel

`