VICE FOREIGN MINISTER REVIEWS THE RELATIONSHIP

C O N F I D E N T I A L QUITO 001534 SIPDIS SIPDIS TREASURY FOR SGOOCH USTR FOR BENNETT HARMAN E.O. 12958: DECL: 07/06/2017 TAGS: ETRD PREL SNAR EC SUBJECT: VICE FOREIGN MINISTER REVIEWS THE RELATIONSHIP Classified By: Ambassador Linda Jewell. Reason: 1.4 B and D. ¶1. (C) Summary. In reviewing the main messages that the GOE delivered in Washington during its lobbying efforts for ATPA extension, the Vice Foreign Minister presented Ecuador's take on the key elements in our relationship: the importance of ATPA renewal, the need to think about what might succeed ATPA, the GOE's commitment to democracy, that Venezuela has an important but not privileged relationship with Ecuador, Ecuador's improving but uneasy relationship with Colombia, its commitment to combating narcotic trafficking, the problem with the Manta FOL is the presence of foreign troops, and that the government is interested in establishing an Economic Dialogue. End summary. ATPA Renewal -------------- ¶2. (C) The DCM, accompanied by EconCouns, met with Vice Minister for Political Affairs Rafael Paredes on June 27, at Paredes' request. Paredes opened the meeting by welcoming the bipartisan, bicameral agreement in the U.S. Congress, reached the day before, to extend the Andean Trade Preferences Act (ATPA) by eight months. He said that he understands that arriving at this point was not easy, and that many factors, including the different situations with Peru, Colombia, Bolivia, as well as Ecuador went into the decision. He extended the Foreign Minister's appreciation for the Administration's support for ATPA extension. Overview of the U.S.-Ecuador Relationship -------------- ¶3. (C) Paredes then asked rhetorically what would happen in eight months, and said that was the reason he requested the meeting. He proceeded to review the main points made by the Ecuadorian lobbying delegation during its meetings in Washington June 12-15, in response to concerns and issues raised by the U.S. Congress and Administration. The delegation was led by Minister for Economic Coordination Mauricio Davalos and Minister for Security Coordination Fernando Bustamente. Paredes and VM for Trade Antonio Ruales also participated. The GOE's Vision -------------- ¶4. (C) Paredes said that the Ecuadorian delegation explained the GOE's democratic vision, in response to concerns raised by members of U.S. Congress. Paredes said the government is committed to democratic solutions to its problems, but that developing those responses is complicated by the concentration of economic power in Ecuador. He asserted that decision-making in Ecuador has been captured by a small number of economic groups, which control state decisions for the benefit of those economic groups. In attempting to deal with this concentration of power, it may give the impression that the government is against the private sector and is promoting statism. However, Paredes asserted, the government is making decisions for the broader good of the state. Venezuela and Ecuadorian Regional Policy -------------- ¶5. (C) Paredes explained that the GOE delegation told its interlocutors in Washington that Ecuador's relationship with Venezuela is important but not privileged. He said that Venezuela is important to Ecuador in the same way that its relations with other countries in the region are important. Paredes stressed that Correa's first official visit in the region was to Brazil, the Foreign Minister's first trip was to Chile, that Ecuador received a visit by the First Lady of Argentina, and most recently, Correa and his cabinet met with their Peruvian counterparts on the border. Paredes noted that similar visits have not happened with Venezuela. Relations with Colombia -------------- ¶6. (C) Paredes said that Ecuador has had important advances in its relations with Colombia, and that a bilateral commission to consider the question of spraying along the border will meet in Bogota on July 8. Returning to the subject later in the conversation, Paredes said that he is not optimistic that much will come from the meeting, since Colombia's approach to the issue is more political than scientific. The DCM noted that Colombia makes the same argument regarding Ecuador's position. Counternarcotics Cooperation and Manta FOL -------------- ¶7. (C) Paredes said that the GOE delegation also discussed in Washington the work that Ecuador has done on combating narcotics, which should be recognized as successful. He noted that there is very little planting in Ecuador, so little that it is not a problem. Meanwhile, drug seizures are up. He added that it has been costly for Ecuador to maintain a military and police presence along the border, but noted that this reflects the GOE's commitment to control illegal drugs. ¶8. (C) He continued that the GOE delegation's message on the Manta Forward Operating Location (FOL) is that it is not against the FOL, but that the Ecuadorian people have indicated that they are opposed to any foreign troops in Ecuador. The DCM stressed that it would be useful to improve Ecuadorians' understanding of the FOL, since much of the U.S. presence is civilian, not military, and it has a law enforcement mission that is more civilian than military. Economic Dialogue -------------- ¶9. (C) Turning to the delegation's discussion with the State Department on the proposed Economic Dialogue, Paredes said that Ecuador is open to the idea. He welcomed that the notional agenda reviewed by the two sides does not focus on a trade agreement and appreciated the effort to create a basis to improve economic relations. He noted that Minister Davalos is interested in moving forward on practical issues, such as cooperation on sanitary and phytosanitary issues that can also advance our trade relations. Paredes said that the next step would be for Ecuador to develop its ideas on how to enrich the notional agenda. Comment -------------- ¶10. Paredes' review of key points that the GOE addressed in Washington was a careful, thorough presentation by a professional diplomat. Implicit, but never articulated in the discussion, is that Ecuador appreciates the importance of its relationship with the United States and wants to ensure that we understand its perception of the key elements in our relationship. JEWELL