ALABAMA GOVERNOR LEADS TRADE MISSION TO COLOMBIA

C O N F I D E N T I A L BOGOTA 003383 SIPDIS E.O. 12958: DECL: 2019/11/13 TAGS: ETRD ECON OTRA EINV ELAB PREL PGOV CO SUBJECT: ALABAMA GOVERNOR LEADS TRADE MISSION TO COLOMBIA REF: BOGOTA 3313 CLASSIFIED BY: Tim Stater, Economic Counselor; REASON: 1.4(B),(D) ¶1. (C) Summary: Governor Bob Riley headed a 43-member Alabama delegation to Colombia and discussed trade opportunities and cooperation with President Uribe, five Governors, and representatives of Colombia's private sector and port authorities. In a private meeting, Uribe sought the Governor's views on prospects for approval of the U.S.-Colombia Trade Promotion Agreement (CTPA). Noting Venezuela had increasingly blocked Colombian exports entering Venezuela, Uribe emphasized that the U.S. trade accord would help bolster a U.S. ally in an increasingly hostile and complex neighborhood. The Governor invited President Uribe to address the Southern Governors Association at a conference next month in Austin, Texas. End Summary. Busy Agenda Focused on Trade And Investment -------------- -------------- ¶2. (U) During a busy November 2-4 agenda, Governor of Alabama Bob Riley and his delegation focused on increasing commerce and investment between Colombia and Alabama. The diverse delegation included ExIm Bank Board Member Diane Ferrell, U.S. Trade Development Agency (USTDA) Country Manager Patricia Arriagada, representatives of the State of Alabama, the U.S. Army Corps of Engineers Mobile Division, and 17 companies from the state. In addition to participating in a series of Gold Key matchmaking sessions organized by Post's U.S. Commercial Service, the visiting Trade Mission traveled to Cali and the coal operations in northern Colombia of the Drummond Corporation -- the largest U.S. investor in the country. ExIm Bank agreed to provide close to US$3 billion in financial support for a number of energy and development projects (septel). Uribe Concerned About Trade Deal and Declining Exports to Venezuela -------------- -------------- -------------- ¶3. (C) At the Narino presidential palace, President Uribe raised the prospects for CTPA approval in the U.S. Congress. Uribe noted that he did not think the trade agreement would be approved unless health care reform reached a successful conclusion later this year. Uribe expressed concern about Venezuela's increasingly aggressive behavior, notably the closure of the border �0A;in certain areas between Venezuela and Colombia. He emphasized that Colombia stands to lose about $5 billion in exports to its second largest trading partner Venezuela, representing a sizeable portion of Colombia's annual exports (approximately $38 billion). ¶4. (C) President Uribe acknowledged that the United States could not absorb the export losses traditionally sent to Venezuela. Nonetheless, Uribe indicated that approval of the U.S. trade accord would not only promote the country's free-market policies but also send an important signal to the region and Colombians. President Uribe recounted what he told President Obama, that Chavez's disruptive actions make the trade deal all the more necessary. ¶5. (C) Governor Riley noted that 76% of U.S. exports to Colombia originate in five southern U.S. states, which could become helpful allies in the approval campaign of the U.S.-Colombia trade deal. The Governor is the Chair of the Southern Governors Association and invited President Uribe to address the Governors of 16 southern states at the Association's meeting in Austin, Texas in December. Riley noted that both southern Republican and Democratic Governors tend to be supportive of trade agreements, having witnessed the economic growth and employment generation in their states. ¶6. (C) President Uribe also asked the Ambassador if he had any suggestions for how best to respond to the rising tensions with Venezuela. The Ambassador cautioned Uribe not to fall into a trap of escalating the confrontation, which would probably suit the Venezuelan leader. The Ambassador also suggested the GOC carefully explore what happened on the Venezuelan side of the border at Tachira (reftel) and publicly emphasize the progress made with Ecuador to improve bilateral relations. Colombian Governors Share Concerns -------------- -------------- ¶7. (U) The Governors of Cundinamarca, Antioquia, Risaralda, Caldas, and Cauca met with Governor Riley and his delegation for more than 2 hours, discussing common concerns such as crime, poverty, unemployment, and housing issues. Governor Riley was impressed by the trade and investment opportunities in the different departments, and invited the Colombian Governors to visit Alabama during the first quarter of 2010. Expansive Waterways in Common -------------- ¶8. (U) At a meeting with Colombian port authorities and Embassy representatives from the Commercial Service, NAS and Econ, Governor Riley commented on the similarities between Colombia and the State of Alabama, highlighting the vast waterways in both countries on which commerce is transported. Governor Riley noted that the Caribbean ports of Colombia -- Cartagena, Santa Marta, and Barranquilla-- are closer to the Port of Mobile than they are to Miami. The Governor invited the Colombian port directors to visit the Port of Mobile -- 10th largest in the United States -- when they travel to the United States to participate in a USTDA orientation trip, November 28-December 6. BROWNFIELD