Identifier
Created
Classification
Origin
06MONTEVIDEO295
2006-03-28 12:11:00
UNCLASSIFIED
Embassy Montevideo
Cable title:  

FRENTE'S GENERAL ASSEMBLY OPENS WAY FOR FTA TALKS

Tags:  ECON ETRD EINV ECIN UY 
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DE RUEHMN #0295 0871211
ZNR UUUUU ZZH
R 281211Z MAR 06
FM AMEMBASSY MONTEVIDEO
TO RUEHC/SECSTATE WASHDC 5598
INFO RUCNMER/MERCOSUR COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
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UNCLAS MONTEVIDEO 000295 

SIPDIS

SIPDIS

STATE FOR WHA/BSC AND EB
DEPT PASS USTR
TREASURY FOR OASIA FOR DOUGLASS
USDOC FOR ITA/MAC/WBASTIAN

E.O. 12958: N/A
TAGS: ECON ETRD EINV ECIN UY
SUBJECT: FRENTE'S GENERAL ASSEMBLY OPENS WAY FOR FTA TALKS


UNCLAS MONTEVIDEO 000295

SIPDIS

SIPDIS

STATE FOR WHA/BSC AND EB
DEPT PASS USTR
TREASURY FOR OASIA FOR DOUGLASS
USDOC FOR ITA/MAC/WBASTIAN

E.O. 12958: N/A
TAGS: ECON ETRD EINV ECIN UY
SUBJECT: FRENTE'S GENERAL ASSEMBLY OPENS WAY FOR FTA TALKS



1. On March 25, the General Assembly of the Frente
Amplio (FA) overwhelmingly rejected a motion from the
Communist Party, which would have modified the FA's
program to explicitly prohibit any FTA talks with the
U.S. By doing so, the FA implicitly allowed President
Vazquez to open up FTA negotiations with the U.S. or
any other country. The Assembly approved a declaration
calling on the GOU to ""deepen the Government's national
policy to amplify and strengthen the country's foreign
trade, in order to achieve greater independence from
the sole regional market (Mercosur)"". The declaration
also stated that ""there are no ideological restrictions
preventing the expansion of trade with the U.S."" and
that ""the bilateral option is legitimate as long as it
does not cause prejudice to the country's production
and to regional integration.""


2. Press reports indicated that the Socialists, who
had originally planned on supporting the Communist
motion, changed their mind, apparently due to President
Vazquez' work behind the scenes. It was also reported
that Chile's President Bachelet's comments to Vazquez
on her visit here regarding the benefits of Chile's FTA
with the U.S. had made a positive impact. Reactions to
the FA vote were varied, with everyone, surprisingly,
claiming victory. Left-wing newspaper La Republica
blared that the ""FA had buried the FTA"" (with the
U.S.),while right-of-center El Pais titled that ""the
FA has given a de facto approval to FTA negotiations.""
It is true that the decision is vague enough for people
to read what they want. The important point, however,
is that a specific rejection of an FTA with the U.S.
was overwhelmingly voted down.


3. Ambito Financiero, a respected Argentine business
daily, led its Monday edition with a commentary
entitled ""The Uruguayan Left authorizes trade
negotiations with the U.S."". The commentary notes that
the Uruguayan Left appears to be signaling that it
wants to look like Chile's Left, moving away from
ideology and towards a project of economic growth. It
adds that the solitary opposition of the far-left did
not manage to slow down an idea supported even by the
Tupamaros (Note: In his weekend radio address, MPP
Leader Mujica was calling on Uruguayans to rid
themselves of ideology and to look at the world
realistically, ""for the sake of our children"". End
Note.) Ambito Financiero also commented that the FA's
vote could be interpreted as a clear message to Brazil
and Argentina, whose exclusive bilateral relationship
within Mercosur was widely criticized during the
General Assembly.

NEALON