Identifier
Created
Classification
Origin
06LAPAZ276
2006-02-06 18:37:00
UNCLASSIFIED
Embassy La Paz
Cable title:
GOB TRADE POLICY REMAINS UNCLEAR
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHLP #0276 0371837 ZNR UUUUU ZZH R 061837Z FEB 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 7958 INFO RUEHAC/AMEMBASSY ASUNCION 5579 RUEHBO/AMEMBASSY BOGOTA 2844 RUEHBR/AMEMBASSY BRASILIA 6714 RUEHBU/AMEMBASSY BUENOS AIRES 3926 RUEHCV/AMEMBASSY CARACAS 1288 RUEHPE/AMEMBASSY LIMA 1185 RUEHME/AMEMBASSY MEXICO 1647 RUEHMN/AMEMBASSY MONTEVIDEO 3544 RUEHQT/AMEMBASSY QUITO 3926 RUEHSG/AMEMBASSY SANTIAGO 8442 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 000276
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
STATE PASS TO USTR FOR BHARMAN
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL BL
SUBJECT: GOB TRADE POLICY REMAINS UNCLEAR
REF: LA PAZ 186
UNCLAS LA PAZ 000276
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
STATE PASS TO USTR FOR BHARMAN
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL BL
SUBJECT: GOB TRADE POLICY REMAINS UNCLEAR
REF: LA PAZ 186
1. In conversations with USG officials, President Morales and
Vice President Alvaro Garcia Linera have repeatedly said they
understand the importance of free trade and may wish to
negotiate Bolivia's entry into the proposed Andean Free Trade
Agreement (FTA). Both have indicated their desire to improve
the economic conditions of Bolivians by creating jobs, and
both seem to recognize the potential of an FTA to do just
that. Lead FTA negotiator Julio Alvarado recently told
Econoffs a decision on whether to continue FTA negotiations
would likely be delayed as the incoming administration mulls
over its priorities (reftel),but he seemed to expect the GOB
to move ahead.
2. (U) GOB officials' public statements have been less clear
and not encouraging. According to press reports, President
Morales recognized the importance of acquiring new markets
for Bolivian goods but declared that existing and new trade
arrangements should benefit small and medium producers,
without "conditions, blackmail, or threats." Minister of
Foreign Affairs David Choquehuanca made similar remarks,
assuring listeners that the GOB was not opposed to FTA
negotiations but warning that the proposed agreement and
similar arrangements, including those with the Andean
Community and Mercosur, would have to be carefully evaluated.
In a contradictory statement, new Minister of Economic
Development Celinda Sosa said small businesses would gain
more from "rejecting" than from negotiating trade agreements,
arguing that small and micro enterprises could not be
expected to compete in markets whose rules were determined by
the United States. Other GOB representatives have stated
that FTA negotiations should only be pursued if the United
States respects Bolivia's "sovereignty and dignity."
3. (U) Comment: Until the GOB formulates an official policy
on the FTA, there seems to be little basis on which to hold
further discussions, particularly in light of President
Morales' decision to ride the anti-FTAA, anti-Bush train at
last year's Summit of the Americas. Bolivia's three previous
governments formally stated their interest in negotiating an
agreement, and we believe the present administration should
do the same. Given resistance to free trade by many in
Morales' inner circle and among his supporters, however, such
a move will be politically difficult. End comment.
GREENLEE
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
STATE PASS TO USTR FOR BHARMAN
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL BL
SUBJECT: GOB TRADE POLICY REMAINS UNCLEAR
REF: LA PAZ 186
1. In conversations with USG officials, President Morales and
Vice President Alvaro Garcia Linera have repeatedly said they
understand the importance of free trade and may wish to
negotiate Bolivia's entry into the proposed Andean Free Trade
Agreement (FTA). Both have indicated their desire to improve
the economic conditions of Bolivians by creating jobs, and
both seem to recognize the potential of an FTA to do just
that. Lead FTA negotiator Julio Alvarado recently told
Econoffs a decision on whether to continue FTA negotiations
would likely be delayed as the incoming administration mulls
over its priorities (reftel),but he seemed to expect the GOB
to move ahead.
2. (U) GOB officials' public statements have been less clear
and not encouraging. According to press reports, President
Morales recognized the importance of acquiring new markets
for Bolivian goods but declared that existing and new trade
arrangements should benefit small and medium producers,
without "conditions, blackmail, or threats." Minister of
Foreign Affairs David Choquehuanca made similar remarks,
assuring listeners that the GOB was not opposed to FTA
negotiations but warning that the proposed agreement and
similar arrangements, including those with the Andean
Community and Mercosur, would have to be carefully evaluated.
In a contradictory statement, new Minister of Economic
Development Celinda Sosa said small businesses would gain
more from "rejecting" than from negotiating trade agreements,
arguing that small and micro enterprises could not be
expected to compete in markets whose rules were determined by
the United States. Other GOB representatives have stated
that FTA negotiations should only be pursued if the United
States respects Bolivia's "sovereignty and dignity."
3. (U) Comment: Until the GOB formulates an official policy
on the FTA, there seems to be little basis on which to hold
further discussions, particularly in light of President
Morales' decision to ride the anti-FTAA, anti-Bush train at
last year's Summit of the Americas. Bolivia's three previous
governments formally stated their interest in negotiating an
agreement, and we believe the present administration should
do the same. Given resistance to free trade by many in
Morales' inner circle and among his supporters, however, such
a move will be politically difficult. End comment.
GREENLEE