US embassy cable - 03TEGUCIGALPA652

UNCLAS TEGUCIGALPA 000652 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA/CEN, WHA/EPSC, AND EB 
STATE PASS AID FOR LAC/CEN 
PASS TO USTR FOR ANDREA GASH DURKIN 
 
E.O. 12958: N/A 
TAGS: PBTS, ETRD, PGOV, PREL, HO 
SUBJECT: MADURO GETS POLITICAL LIFT FROM SUSPENSION OF 
NICARAGUA 35 PERCENT TARIFF 
 
REF: TEGUC 00606 
 
1. (SBU) The news of the Nicaraguan Congress' vote to 
temporarily suspend the retaliatory 35 percent tariff on 
Honduran goods, after three years, was greeted with relief 
and a bit of triumph in Tegucigalpa.  On March 11, Honduran 
President Maduro immediately announced the news, after 
receiving a call from Nicaraguan President Bolanos.  Maduro 
thanked Bolanos and the Nicaraguan legislature, and 
indicated that the move was a welcome backdrop to the 
Central American Presidents' planned meetings in Washington 
on April 11, where regional integration was the key topic. 
Maduro also gave significant credit to the patience and 
maturity of the Honduran public and the National Congress. 
Privately, at least one member of the Honduran Cabinet has 
acknowledged that USG discussions with Nicaragua contributed 
greatly. 
 
2. (SBU) The tariff suspension represents a badly-needed 
political success for Maduro.  The Honduran media 
highlighted the fact that Maduro had made this a top 
objective from his first day in office and that he had been 
in constant discussion with Bolanos on the subject for the 
past year.  Hopefully, this recent cooperation between the 
executive branch, Congress and private sector will help 
bolster additional support for the critical tax and 
austerity measures that will soon be introduced in Congress. 
 
3. (SBU) Minister of the Presidency Luis Cosenza, Trade 
Minister Norman Garcia and key members of the business 
community believe that the Honduran Congress will drop their 
earlier plans to enact (and simultaneously suspend) 
retaliatory tariffs and fees on Nicaragua.  The government 
is arguing that if the Nicaraguan tariff is reinstated at 
any point, the Honduran Congress could easily take moves at 
that time. 
 
Palmer