US embassy cable - 05SANSALVADOR2958

UNCLAS SAN SALVADOR 002958 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD, EAGR, OVIP, PREL, ES 
SUBJECT: SECRETARY GUTIERREZ' MEETING WITH MINISTER OF 
ECONOMY YOLANDA DE GAVIDIA 
 
REF: A. SAN SALVADOR 2875 
 
     B. SAN SALVADOR 2873 
 
1. (SBU) Visiting Secretary of Commerce Carlos Gutierrez met 
with his Salvadoran counterpart, Minister of Economy Yolanda 
Mayora de Gavidia, for a brief bilateral meeting on October 
21.  The bulk of the meeting was taken up with the Minister's 
presentation on GOES implementation of CAFTA-DR and its 
economic strategy.  Among the highlights: 
 
-- the GOES plans to finalize changes to laws and regulations 
to facilitate CAFTA implementation during October and submit 
them to the Legislative Assembly for approval in November; 
 
-- on the unresolved CAFTA-related issue of "retroactivity," 
de Gavidia stressed that El Salvador's proposal provides 
equivalent treatment as required by CAFTA-DR.  The Honduran 
proposal on retroactivity would be unconstitutional in El 
Salvador and could not be adopted here; 
 
-- on renegotiating certain rules of origin, the GOES wants 
to wait until after the January 1 target implementation date 
and will seek an agreement in writing, beginning with 
"pocketing" and moving on to other products. 
 
2. (SBU)  Concluding her presentation, de Gavidia proposed a 
cooperation agreement between the Ministry of Economy and the 
Department of Commerce.  This agreement would involve the 
Foreign Commercial Service, Economic and Statistics 
Administration, the Economic Development Administration, and 
the Patent and Trademark Office in activities to provide 
technical assistance in marketing, updating statistical 
methods and helping to strengthen the legal system.  The 
Minister also reiterated longstanding GOES requests for the 
placement of an APHIS official in El Salvador, assuring the 
Secretary that Salvadoran industry was prepared to pay for 
 
SIPDIS 
the inspectors, and support for an expanded U.S. Customs 
presence in El Salvador (i.e., a Container Security 
Initiative).  The Secretary answered that Commerce could 
consider a strategic alliance to explore cooperation and best 
practices once past the immediate task of CAFTA 
implementation.  In closing, the Secretary and the Minister 
agreed to focus their message to the press on the importance 
of CAFTA as the next step on in ongoing U.S.-Salvadoran 
relationship. 
 
3. (U) The content of paras one and two was cleared by the 
delegation following its return to Washington. 
 
4. (U) Comment:  The issues highlighted in para one have been 
addressed in subsequent, and ongoing, discussions between the 
GOES and USG on CAFTA implementation. 
Barclay