Identifier
Created
Classification
Origin
07LAPAZ801
2007-03-22 18:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
VENEZUELA RAISES BARRIERS FOR BOLIVIAN EXPORTS
how-toVZCZCXYZ0010 RR RUEHWEB DE RUEHLP #0801 0811808 ZNR UUUUU ZZH R 221808Z MAR 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 2936 INFO RUEHAC/AMEMBASSY ASUNCION 6661 RUEHBO/AMEMBASSY BOGOTA 3986 RUEHBR/AMEMBASSY BRASILIA 7872 RUEHBU/AMEMBASSY BUENOS AIRES 5127 RUEHCV/AMEMBASSY CARACAS 2351 RUEHPE/AMEMBASSY LIMA 2466 RUEHMD/AMEMBASSY MADRID 3394 RUEHMN/AMEMBASSY MONTEVIDEO 4507 RUEHQT/AMEMBASSY QUITO 4993 RUEHSG/AMEMBASSY SANTIAGO 9577 RUEHUB/USINT HAVANA 0234 RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 000801
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL PGOV BL
SUBJECT: VENEZUELA RAISES BARRIERS FOR BOLIVIAN EXPORTS
REF: 06 LA PAZ 1172
-------
SUMMARY
-------
UNCLAS LA PAZ 000801
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL PGOV BL
SUBJECT: VENEZUELA RAISES BARRIERS FOR BOLIVIAN EXPORTS
REF: 06 LA PAZ 1172
--------------
SUMMARY
--------------
1. (U) The Bolivian Institute of Foreign Trade revealed March
20 that Venezuela had introduced new obstacles for Bolivian
exports, after a February 28 decision by the Venezuelan
government to import only what Venezuela does not produce or
makes in insufficient quantity. The new barriers undermine
an April 2006 Peoples' Trade Agreement (reftel) promising to
boost bilateral trade and could significantly raise costs for
Bolivian exporters. End summary.
--------------
VENEZUELA IMPOSES NEW TRADE BARRIERS
--------------
2. (U) The Bolivian Institute of Foreign Trade revealed in a
March 20 press release that Venezuela had introduced new
obstacles for Bolivian exports, following the Venezuelan
government's February 28 decision to import only what the
country does not produce or makes in insufficient quantity.
According to a Venezuelan Food Ministry resolution,
Venezuelan importers will have to secure "certificates of
non-production or insufficient production" to obtain foreign
currency to pay for imports; acquiring the certificates
reportedly may take as long as three weeks.
3. (U) Institute General Manager Gary Rodriguez told Econoff
March 22 that the new barriers undermine an April 2006
Peoples' Trade Agreement (reftel) promising to boost
bilateral trade. He accused Venezuelan officials of
"systematically ignoring" the pact's trade provisions and
highlighted the arrangement's disappointing results, noting
that while Bolivian exports to Venezuela in 2006 were 23
percent higher than in the previous year, rising from $159
million to $195 million, they were 21 percent lower than in
2004. Rodriguez declared Venezuela's new policy blatantly
protectionist and underscored the new requirements' negative
implications for Bolivian exporters, who stand to lose as
much as $20,000 per day in demurrage fees while awaiting
permission to offload their goods in Venezuelan ports.
--------------
COMMENT
--------------
4. (SBU) Venezuela's move raises questions about its
willingness to match words with deeds, as it calls into
question promises to help neighbors and undermine Uncle Sam
by buying goods exporters are unable to sell in U.S. markets.
Many in Bolivia are questioning Venezuela's much-touted
commitment to regional solidarity; indeed, the Morales
administration has publicly stated that it will insist the
Venezuelan ambassador to Bolivia explain the new policy. End
comment.
GOLDBERG
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: ETRD EINV ECON PREL PGOV BL
SUBJECT: VENEZUELA RAISES BARRIERS FOR BOLIVIAN EXPORTS
REF: 06 LA PAZ 1172
--------------
SUMMARY
--------------
1. (U) The Bolivian Institute of Foreign Trade revealed March
20 that Venezuela had introduced new obstacles for Bolivian
exports, after a February 28 decision by the Venezuelan
government to import only what Venezuela does not produce or
makes in insufficient quantity. The new barriers undermine
an April 2006 Peoples' Trade Agreement (reftel) promising to
boost bilateral trade and could significantly raise costs for
Bolivian exporters. End summary.
--------------
VENEZUELA IMPOSES NEW TRADE BARRIERS
--------------
2. (U) The Bolivian Institute of Foreign Trade revealed in a
March 20 press release that Venezuela had introduced new
obstacles for Bolivian exports, following the Venezuelan
government's February 28 decision to import only what the
country does not produce or makes in insufficient quantity.
According to a Venezuelan Food Ministry resolution,
Venezuelan importers will have to secure "certificates of
non-production or insufficient production" to obtain foreign
currency to pay for imports; acquiring the certificates
reportedly may take as long as three weeks.
3. (U) Institute General Manager Gary Rodriguez told Econoff
March 22 that the new barriers undermine an April 2006
Peoples' Trade Agreement (reftel) promising to boost
bilateral trade. He accused Venezuelan officials of
"systematically ignoring" the pact's trade provisions and
highlighted the arrangement's disappointing results, noting
that while Bolivian exports to Venezuela in 2006 were 23
percent higher than in the previous year, rising from $159
million to $195 million, they were 21 percent lower than in
2004. Rodriguez declared Venezuela's new policy blatantly
protectionist and underscored the new requirements' negative
implications for Bolivian exporters, who stand to lose as
much as $20,000 per day in demurrage fees while awaiting
permission to offload their goods in Venezuelan ports.
--------------
COMMENT
--------------
4. (SBU) Venezuela's move raises questions about its
willingness to match words with deeds, as it calls into
question promises to help neighbors and undermine Uncle Sam
by buying goods exporters are unable to sell in U.S. markets.
Many in Bolivia are questioning Venezuela's much-touted
commitment to regional solidarity; indeed, the Morales
administration has publicly stated that it will insist the
Venezuelan ambassador to Bolivia explain the new policy. End
comment.
GOLDBERG