US embassy cable - 05TEGUCIGALPA2314

C O N F I D E N T I A L TEGUCIGALPA 002314 
 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC, WHA/EX, WHA/PPC, EB/OIA/IFD 
TREASURY FOR DDOUGLASS 
STATE PASS AID (LAC/CAM) 
STATE PASS USTR: ANDREA MALITO 
GUATEMALA FOR COMMAT:MLARSEN 
 
E.O. 12958: DECL: 11/09/2015 
TAGS: ETRD, ECON, PGOV, HO 
SUBJECT: HONDURAS GRAVELY CONCERNED ABOUT IMPACTS IF IT IS 
LEFT OUT OF U.S. PRESIDENTIAL PROCLAMATION ON CAFTA 
 
 
Classified By: ECONCHIEF PDUNN FOR REASON 1.5 (B, D) 
 
 1. (C) During Ambassador's November 8 introductory courtesy 
call following his presentation of credentials, President 
Ricardo Maduro raised with Ambassador his grave concerns that 
the USG is preparing to issue a Presidential Proclamation 
that does not include Honduras certifying which countries are 
signatory to the Central American Free Trade Agreement 
(CAFTA).  According to Maduro, because the Honduran National 
Congress is in recess while campaigning in preparation for 
the November 27 elections, the few laws still pending to 
bring Honduras into full CAFTA compliance cannot be enacted 
until early December.  Until these laws are passed, the USG 
cannot certify that Honduras is fully compliant with CAFTA 
and thereby set a date for entry into force.  Maduro said 
issuing a proclamation that did not include Honduras would be 
a major setback for free trade in the region and an 
embarrassment for Honduras.  Maduro requested additional time 
(which he characterized as an additional week beyond what he 
believes is a December 1 deadline) to allow Honduras to pass 
these remaining laws. 
 
2. (C) In a separate meeting with EconChief on November 8, 
Minister of Trade and Commerce Irving Guerrero expressed the 
same concerns.  According to Guerrero, the five laws required 
to bring Honduras into full compliance are drafted and before 
Congress.  He expects easy ratification of all laws once 
Congress returns to session in December.  (Comment:  CAFTA 
was ratified by the GOH with an overwhelming majority of 124 
to 4; Post expects rapid passage of these laws as well.  End 
Comment.) 
 
3. (C) Guerrero listed these laws as:  (1) a law bringing 
Honduras into compliance with the Union for the Protection of 
New Varieties of Plants (UPOV) Convention; (2) a law bringing 
Honduras into compliance with the Patent Cooperation Treaty 
(PCT); (3) a law on the protection of intellectual property 
regarding microorganisms; (4) a law establishing equivalency 
of inspection regimes for sanitary and phytosanitary 
protections; and (5) a new contracts laws that eliminates 
mandatory dealer protections. 
 
4. (C) Guerrero said that, once these laws are passed, 
implementing regulations (already being developed) will be 
enacted administratively.  He said it is his understanding 
that El Salvador has proposed including its regulations in 
the legislation itself.  Guerrero does not agree with this 
approach, and pointed out that in Honduras, just as in the 
U.S., the law sets out the framework and the binding 
commitments, while regulations are administratively passed 
and can therefore be updated as future circumstances warrant. 
 
5. (C) Both Maduro and Guerrero have requested in the 
strongest terms that the USG refrain from issuing any CAFTA 
proclamation that does not include Honduras. 
 
6. (C) Comment:  Post supports this GOH request.  We find 
unquestioned political will to advance CAFTA and we foresee 
no difficulties in passing the required legislation.  We note 
that this legislation is already pending before Congress, 
which is only delayed in acting on it by upcoming national 
elections in just three weeks.  Post agrees that a piecemeal 
approach to announcing CAFTA implementation partners could 
weaken the benefits of CAFTA to the region, and would be a 
major embarrassment for the GOH.  End Comment. 
 
Ford 
Ford