Identifier
Created
Classification
Origin
08BOGOTA277
2008-01-22 22:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bogota
Cable title:
VENEZUELAN CRACKDOWN ON SMUGGLING UNLIKELY TO HURT
how-toVZCZCXYZ0015 RR RUEHWEB DE RUEHBO #0277 0222202 ZNR UUUUU ZZH R 222202Z JAN 08 FM AMEMBASSY BOGOTA TO RUEHC/SECSTATE WASHDC 1052 INFO RUEHCV/AMEMBASSY CARACAS 9818 RUEHPE/AMEMBASSY LIMA 5819 RUEHZP/AMEMBASSY PANAMA 1117 RUEHQT/AMEMBASSY QUITO 6511
UNCLAS BOGOTA 000277
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ETRD PREL ECON CO
SUBJECT: VENEZUELAN CRACKDOWN ON SMUGGLING UNLIKELY TO HURT
COLOMBIA
REF: A. (A) 07 BOGOTA 8519
B. (B) 07 BOGOTA 7225
UNCLAS BOGOTA 000277
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ETRD PREL ECON CO
SUBJECT: VENEZUELAN CRACKDOWN ON SMUGGLING UNLIKELY TO HURT
COLOMBIA
REF: A. (A) 07 BOGOTA 8519
B. (B) 07 BOGOTA 7225
1. (SBU) On January 21, Venezuela initiated a crackdown on
the smuggling of subsidized food and gasoline into Colombia
via the northeastern Colombian border town of Cucuta.
Contacts tell us that so far the crackdown has had limited
impact. Pedro Sayago, Executive Director of the local
Chamber of Commerce, compared the posting of hundreds of
Venezuelan National Guards to the border near Cucuta with
President Chavez's threats to close cross-border trade late
last year (ref A) and the two border shutdowns earlier in
2007 (ref B). He said none of the three actions changed the
"rhythm" of border relations
2. (SBU) According to Lorena Garnica, special advisor to
the Colombian Ministry of Agriculture and Rural Development,
northeastern Colombia does not face the risk of a food
shortage. Garnica said Colombia easily produces sufficient
food to meet internal needs, noting that food exports to
Venezuela topped USD 750 million between January-October 2007
while legal food imports from Venezuela were less than USD 30
million during the same period. Still, Garnica agreed that
no one knows the value of the food smuggled into Colombia
from Venezuela.
3. (SBU) Colombian Farmers' Association (SAC) President
Rafael Mejia cautioned, nevertheless, that reducing the flow
of subsidized food from Venezuela would almost certainly
raise the price of food, especially milk, for Colombians near
the border. He estimated that border consumers might spend
15-25 percent more for food if the crackdown continues.
Mejia said the critical issue is whether the crackdown might
foreshadow a Venezuelan reduction in food imports from
Colombia. Such a reduction could, depending on its size,
have significant repercussions for Colombian farmers.
However, given Venezuela's large demand for imported food,
Mejia described such a reduction as Venezuela "cutting off
their nose to spite their face."
Brownfield
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ETRD PREL ECON CO
SUBJECT: VENEZUELAN CRACKDOWN ON SMUGGLING UNLIKELY TO HURT
COLOMBIA
REF: A. (A) 07 BOGOTA 8519
B. (B) 07 BOGOTA 7225
1. (SBU) On January 21, Venezuela initiated a crackdown on
the smuggling of subsidized food and gasoline into Colombia
via the northeastern Colombian border town of Cucuta.
Contacts tell us that so far the crackdown has had limited
impact. Pedro Sayago, Executive Director of the local
Chamber of Commerce, compared the posting of hundreds of
Venezuelan National Guards to the border near Cucuta with
President Chavez's threats to close cross-border trade late
last year (ref A) and the two border shutdowns earlier in
2007 (ref B). He said none of the three actions changed the
"rhythm" of border relations
2. (SBU) According to Lorena Garnica, special advisor to
the Colombian Ministry of Agriculture and Rural Development,
northeastern Colombia does not face the risk of a food
shortage. Garnica said Colombia easily produces sufficient
food to meet internal needs, noting that food exports to
Venezuela topped USD 750 million between January-October 2007
while legal food imports from Venezuela were less than USD 30
million during the same period. Still, Garnica agreed that
no one knows the value of the food smuggled into Colombia
from Venezuela.
3. (SBU) Colombian Farmers' Association (SAC) President
Rafael Mejia cautioned, nevertheless, that reducing the flow
of subsidized food from Venezuela would almost certainly
raise the price of food, especially milk, for Colombians near
the border. He estimated that border consumers might spend
15-25 percent more for food if the crackdown continues.
Mejia said the critical issue is whether the crackdown might
foreshadow a Venezuelan reduction in food imports from
Colombia. Such a reduction could, depending on its size,
have significant repercussions for Colombian farmers.
However, given Venezuela's large demand for imported food,
Mejia described such a reduction as Venezuela "cutting off
their nose to spite their face."
Brownfield