USTR SCHWAB-LED CODEL DISCUSSES COLOMBIA TRADE

C O N F I D E N T I A L BOGOTA 007998

SIPDIS

SENSITIVE
SIPDIS

USTR FOR MCARRILLO STATE FOR WHA/EPSC AND EEB/TPP/BTA

E.O. 12958: DECL: 11/07/2017
TAGS: ETRD PGOV PREL ECON OVIP USTR USDA CO
SUBJECT: USTR SCHWAB-LED CODEL DISCUSSES COLOMBIA TRADE
PROMOTION AGREEMENT WITH PRESIDENT URIBE

Classified By: AMBASSADOR WILLIAM R. BROWNFIELD FOR REASONS 1.4 (B) & (
D)


1. (U) Sunday, November 3, 2007; 8:00 - 10:00 a.m.


2. (U) Participants:

U.S.
USTR Ambassador Susan Schwab
Acting Secretary of Agriculture Chuck Conner
Ambassador William R. Brownfield
Senator Lindsey Graham (R-SC)
Senator Blanche Lincoln (D-AK)
Senator Maria Cantwell (D-WA)
Rep. John Tanner (D-TN)
Rep. Roger Wicker (R-MS)
Rep. Dennis Cardoza (D-CA)
Rep. Bob Goodlatte (R-VA)
Demetrios Marantis - Majority Trade Counsel, SFC
Robert Holifield - Office of Sen. Lincoln
Jen Olson - Office of Sen. Graham
Jonathan Hale - Office of Sen. Cantwell
Kevin Kramp - House Ag Committee
David Burns, Office of Rep. Tanner
AUSTR Everett Eissenstat
AUSTR Sean Spicer
DAUSTR Andy Olson
USDA Deputy U/S Ellen Terpstra
USDA A/S Linda Strachen
USDA Communications Director Terri Teuber
Economic Counselor Larry Gumbiner
Deputy Economic Counselor William Popp (notetaker)

Colombia
President Alvaro Uribe
Minister of Defense, Juan Manuel Santos
Minister of Trade, Luis Plata
Colombian Ambassador to the U.S. Carolina Barco
Vice Minister of Foreign Affairs Camilo Reyes
Vice Minister of Agriculture Fernando Arbelaez
National Reintegration Program Director Frank Pearl
Special Envoy for FTA, Sandra Suarez
Secretary to the President, Alicia Arango

SIPDIS
MFA Coordinator for North America, Patricia Cortes
Trade Ministry Advisor Santiago Ospina


3. (C) SUMMARY: USTR Ambassador Schwab, Acting USDA Secretary
Conner and Members of Congress met with President Uribe
regarding the importance of the U.S.-Colombian Trade
Promotion Agreement (CTPA) to Colombia's economic and
political development. Schwab and Conner both praised
Colombia's progress, reiterated President Bush's commitment
to the CTPA, and noted that the USG continues to encourage
Members of Congress to visit Colombia and see the progress
for themselves. President Uribe outlined Colombia's advances
on security, counternarcotics, human rights and poverty
reduction. He reiterated his government's commitment to
eliminating impunity and asked that the U.S. Congress not
delay approving the CTPA, which he said Colombia needs to
consolidate its gains. Members of Congress congratulated the
Uribe Administration on its successes and inquired about
local union opposition to the CTPA, progress on prosecutions
of labor violence, reintegration efforts, and public
security. END SUMMARY

Not Paradise, But Getting Better
--------------


4. (C) President Uribe explained that Colombia has made
significant progress, with USG assistance, in reducing
violence, establishing state authority in large areas of the
country, and increasing economic opportunity. Noting that
previous Congressional delegations had suggested the GOC make
a dramatic movement to demonstrate improvements, the
President hailed the October 28 local and departmental
elections as a tangible indicator of the GOC's progress in
dismantling paramilitary and guerrilla influence. The
President described the low level of violence and the large
increase in the number of candidates participating (87,000 in
2007 vs. 45,000 in 2000) as proof that Colombia has
successfully recovered state authority throughout the
country. He characterized the CTPA as vital to economically
and politically reinforcing these gains.


The Stakes
--------------


5. (C) President Uribe stated that "we are winning (against
illegal armed groups),but we have not won yet". He added
that while the CTPA may not hold great economic significance
for the U.S., the agreement remains very important to
fostering private investment in Colombia. Only through such
increased investment and business activity can Colombia
continue to reduce the poverty that fuels coca cultivation
and insurgency. Politically, President Uribe said the
agreement was important for both countries. He stressed
Colombia's position as the United States' closet ally in the
region and its willingness to work closely with the U.S.
despite trends in the region pushing back against pluralism
and economic liberalization. The President noted that
failure to pass the CTPA would put the GOC in the awkward
position of explaining to Colombians and others in the region
why the U.S. entered into free trade agreements with other
nations but not with Colombia.


6. (C) Representative Goodlatte asked whether Venezuela's
interference in the region would increase. President Uribe
noted that Colombia's long border with Venezuela and its
growing trade relationship required the GOC to handle its
relationship with Venezuela carefully. The President said
that he has frank private conversations with President Chavez
to encourage Venezuela to uphold democratic values and
cooperate more closely with Colombia against illegal armed
groups. In public, however, he speaks cautiously to avoid
direct conflict. The President indicated that a CTPA failure
will make it more difficult to defend the democratic values
and cooperation with the U.S. that Colombia now represents in
the region.

Union Opposition and Efforts to Reduce Impunity
-------------- --


7. (C) In response to a question from Representative Wicker
about labor union opposition to the CTPA, President Uribe
said he meets every six weeks with union leaders to discuss
their concerns on labor issues as well as the CTPA. He
explained that public sector unions opposed the CTPA for
political purposes due to their resistance to Uribe
administration efforts to reform public sector companies. He
pointed out that private sector unions expressed much more
support as they had a direct interest in increasing
investment to expand employment and restructure failing
industries.


8. (C) Senator Cantwell noted the high number of unsolved
cases of violence against labor leaders and encouraged the
GOC to take all steps possible to eliminate impunity. She
said slow progress on prosecutions fueled the belief that
some in Colombia do not want to see justice served.
President Uribe responded that the overall number of
homicides in Colombia, including against union members, fell
from almost 35,000 in 2002 to 17,400 in 2006 and that the GOC
expected a further five percent decrease in 2007. He
emphasized that his administration had committed to doing
even more to bring down this rate. For example, despite
fiscal constraints, the GOC continued to increase the number
of unionists, journalists, and human rights activists in the
national protection program, at a cost of over USD 40 million
in 2007. Likewise, under the new accusatory criminal justice
system, prosecutions now move more rapidly. The President
said the GOC would begin providing regular monthly updates on
prosecutions to the U.S. Congress.


9. (C) President Uribe also pointed out that his
administration, unlike previous ones, had not given blanket
amnesty to paramilitaries or guerrillas but rather required
confession, reparation and justice with prison sentences and
disbarment from public office. He contrasted this approach
with the pardons previous administrations gave to M-19
guerrillas in the 1980s and 1990s that allowed some of them
to now serve in the Colombian congress. The President added
that the GOC had extradited almost 700 narcotics traffickers
and criminals to the United States in the last five years
versus only 60 prior to his administration.

Progress on Reintegration and Public Security

--------------


10. (C) Senator Lincoln praised efforts in Medellin to
reintegrate displaced and demobilized persons and asked about
GOC plans to replicate the efforts nationwide. The President
said the GOC had demobilized 46,000 former illegal combatants
to date and continues integrating displaced persons as well.
However, finding employment remains difficult. National
Reintegration Director Frank Pearl said that of the 19,000
demobilized combatants now employed, 74 percent worked in the
informal economy. He stressed that the CTPA institutes the
best way to encourage the investment needed to create formal
sector jobs and economic opportunity for these vulnerable
populations.


11. (C) Rep. Tanner suggested that the GOC redouble efforts
to convey in Washington its progress in expanding state
presence and public security in Colombia. President Uribe
welcomed the suggestion and highlighted GOC increases in
security spending as well as its progress in reducing
narcotics cultivation. However, he said Colombia's vast
areas, difficult terrain, and long delays in receiving
military equipment purchased from the U.S. complicated
efforts to completely eliminate the threat posed by
narco-terrorists.


12. (U) Ambassador Schwab, Secretary Conner and the
Congressional delegation have not cleared this message.
Brownfield