Identifier
Created
Classification
Origin
06LAPAZ544
2006-03-02 20:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:  

BUSINESSMEN PUSH FOR FTA, SEEK TO INFLUENCE MORALES

Tags:  ETRD EINV ECON PREL BL 
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VZCZCXYZ0003
RR RUEHWEB

DE RUEHLP #0544 0612025
ZNR UUUUU ZZH
R 022025Z MAR 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 8268
INFO RUEHAC/AMEMBASSY ASUNCION 5635
RUEHBO/AMEMBASSY BOGOTA 2903
RUEHBR/AMEMBASSY BRASILIA 6774
RUEHBU/AMEMBASSY BUENOS AIRES 3995
RUEHCV/AMEMBASSY CARACAS 1341
RUEHPE/AMEMBASSY LIMA 1246
RUEHME/AMEMBASSY MEXICO 1661
RUEHMN/AMEMBASSY MONTEVIDEO 3593
RUEHQT/AMEMBASSY QUITO 3976
RUEHSG/AMEMBASSY SANTIAGO 8497
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 000544 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
STATE PASS TO USTR FOR BHARMAN

E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL BL
SUBJECT: BUSINESSMEN PUSH FOR FTA, SEEK TO INFLUENCE MORALES


UNCLAS LA PAZ 000544

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
STATE PASS TO USTR FOR BHARMAN

E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL BL
SUBJECT: BUSINESSMEN PUSH FOR FTA, SEEK TO INFLUENCE MORALES



1. (SBU) Summary: In a February 23 meeting, members of the
Private Businessmen's Confederation urged President Evo
Morales to secure Bolivia's entry into the proposed Andean
Free Trade Agreement (FTA),emphasizing the negative
consequences to industry and labor of Bolivia's failure to
sign. Confederation President Roberto Mustafa told Econoff
Morales was not categorically opposed to an agreement, noting
Morales asked the business community to "convince him" of the
benefits of an FTA and agreed to visit several leading
exporters. Through conversations like these, the business
community is seeking to shape Morales' decisions and may
provide a means of expanding our own influence on the new
administration's policies. End summary.


2. (SBU) In a February 23 meeting, representatives of the
more than 30 trade groups comprising the Private
Businessmen's Confederation urged President Evo Morales to
secure Bolivia's entry into the proposed Andean Free Trade
Agreement (FTA),emphasizing the negative consequences to
industry and labor of Bolivia's failure to sign. Leading
businessmen warned Morales that the GOB's failure to secure
an agreement would lead to sharp drops in exports and
thousands of job losses and urged him to commit to
negotiations and work with USG officials to achieve a
mutually beneficial agreement.


3. (SBU) Confederation President Roberto Mustafa told Econoff
Morales was not categorically opposed to an agreement. He
noted that Morales asked the business community to "convince
him" of the benefits of an FTA, saying he had heard only bad
things and now wanted to hear the good. Mustafa and others,
including Marcos Iberkleid, President of Ametex, Bolivia's
leading apparel manufacturer and largest private employer,
agreed to work with the Bolivian Foreign Trade Institute to
draft a report outlining the FTA's potential benefits and
suggested Morales visit factories to see for himself the
advantages of an export-driven economy. Morales accepted the
invitations, tentatively scheduling early March visits to
leading apparel, wood, jewelry, and leather manufacturers,
many of them in El Alto.


4. (SBU) Comment: Through conversations like these, the
business community is increasing its contact with Morales and
seeking to influence his decisions. According to Mustafa,
reaching Morales is key, as his closest advisors, Vice
President Alvaro Garcia Linera and Minister of the Presidency
Juan Ramon Quintana, have very different social and economic
views and seem to compete for the president's ear. In
Mustafa's opinion, Morales lacks deep-seated, clearly defined
beliefs on economic issues and so is open to everything,
often swayed by whoever reaches him first. Mustafa said he
planned to strengthen his relationship with Morales and other
GOB officials to try to shape their views on trade and other
economic issues. We may wish to work with Mustafa and other
business leaders toward this end. End comment.
ROBINSON