VP/FORMIN ON EVO MORALES AND U.S.-PANAMA FTA MOOD

C O N F I D E N T I A L PANAMA 000147 SIPDIS SIPDIS DEPT FOR WHA/CEN - SCHIFFER ALSO FOR WHA/EPSC - URS AND GUMBINER ALSO FOR EB/TPP/BTA - LAMPRON STATE PASS USTR - SCHWAB, CROWDER, AND MALITO ALSO PASS USDA/FAS/ITP - SPITZER USDOC/MAC FOR GAISFORD E.O. 12958: DECL: 01/24/2016 TAGS: EAGR ECON ETRD PREL PGOV PM SUBJECT: VP/FORMIN ON EVO MORALES AND U.S.-PANAMA FTA MOOD REF: PANAMA 0127 Classified By: Ambassador William A. Eaton for Reasons 1.5(b and d) (C) Just back from attending Evo Morales' presidential inauguration in Bolivia, First Vice President and Foreign Minister Samuel Lewis Navarro opined to the Ambassador on January 23 that Morales had delivered a "fairly moderate" inaugural address. Lewis hoped this signaled Morales' desire to "open a bridge of dialog" to the U.S. Lewis also said that during President Torrijos' swing through Chile and Bolivia, the GOP discussed its free trade prospects in a series of meetings other counterparts. He said the GOP sees the window of opportunity for its bilateral FTA with the U.S. closing rapidly. Noting that some within the GOP see a fading of USG will to close the deal, Lewis wondered aloud if "perhaps it's time postpone the FTA." (As reported reftel, old-guard PRD party members, including some in Torrijos' cabinet, want to put the FTA on ice - perhaps permanently - and put the Panama Canal expansion effort to the front of the GOP's agenda.) Lewis complained that, absent a strong political will in Washington to overcome obstacles to the FTA, the FTA will languish. Ambassador responded that the political will exists in Washington to conclude the agreement, but the remaining issues are substantive, not political. EATON