DEPUTY CHIEF OF MISSION'S VISIT TO BARRANQUILLA AND

UNCLAS BOGOTA 003536 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PREL PGOV ECON EAID MARR CO SUBJECT: DEPUTY CHIEF OF MISSION'S VISIT TO BARRANQUILLA AND CARTAGENA, OCTOBER 22 AND 23, 2009 SUMMARY -------------- ¶1. (U) The Deputy Chief of Mission, accompanied by USAID Mission Director and other embassy officers, travelled to Barranquilla and Cartagena on October 22-23, where he met with local political, business, and community leaders; visited commercial enterprises; and visited with beneficiaries of USAID-sponsored projects. In Barranquilla, the DCM toured the Mars factory, the Port of Barranquilla and a corporate social responsibility project. The DCM visited the Mayor of Barranquilla Alejandro Char. The DCM also met with various business leaders and members of the American Chamber of Commerce. In Cartagena, the DCM attended a discussion with Afro-Colombian academics, community leaders and students about the challenges faced by the Afro-Colombian community. He also hosted a lunch reception for U.S. historian David Bushnell, who was attending a Colombian Bicentennial History Conference. End Summary. Free Trade Agreement Critical to Bilateral Trade Relations for U.S. Company -------------- -------------- -------------- ¶2. (U) During an October 22 trip to Barranquilla, the DCM visited a Mars pet food factory to observe its operations and review the bilateral trade relationship from a U.S. company's perspective. Rodolfo Arbelaez, Mars' commercial and supply regional manager, noted that the majority of its capital and raw materials are imported from the United States. Arbelaez highlighted plans to expand pet food production, but cautioned that Colombian tariffs on U.S. imports more than offset U.S. products cheaper costs. The tariff driven differential may drive Mars to look for inputs from within South America, despite their higher raw material and shipping costs, unless a free trade agreement is signed between the U.S. and Colombia. USAID Assistance Promoting Income Generation Opportunities for Internally Displaced Persons (IDPs) -------------- -------------- -------------- ¶3. (U) The DCM and USAID Mission Director visited two beneficiaries of USAID's program to support IDPs. Aminta Castro Antilla produces glass fibers and ceramic inputs for industrial purposes, and Carmen Rosa Arias produces sandals. They thanked the DCM for USAID assistance that has successfully transformed their lives since they arrived in Barranquilla fleeing violence. USAID assistance was provided through Actuar Atl????ntico, a Colombian NGO dedicated to generating employment to combat poverty and violence in the Department of Atlantico. Between 2007 and 2009, the USAID program provided 1,750 persons with access to health services, gave job training to 307 heads of households and 50 youth, and supported 350 families with new or improved employment opportunities. Port of Barranquilla Poised for Growth -------------- -------------- ¶4. (U) The Commercial Director of the Port of Barranquilla, Enrique Carvajales, briefed the DCM, ECON officer, and Acting Commerical Attache on the recent growth of the Port of Barranquilla, the largest port facilities in Colombia. Seventy percent of the goods that pass through the port are imports, the majority from the U.S. Carvajales laid out the competitive advantages of the port. Barranquilla is the most important industrial and commercial city on the north coast of Colombia with infrastructure and supporting services that promote trade. Barranquilla is also the most important educational center in the North Coast with quality universities and an educated and skilled labor force. Carvajales noted that the port has the distinction of being the least affected by the economic crisis with an insignificant decrease in the cargo moving through the port. Carvajales noted that the port has an $178 million investment plan over the next 25 years, much of which will be in capital equipment including cranes and major upgrades to security and tracking systems software. The Sociedad Portuaria Regional de Barranquilla, which manages the port, also spends eight percent of its total revenue on corporate social responsibility projects through its foundation, Fundaport. The foundation assists small businesses, supports youth programs against drug abuse, and provides support to households with female heads. Mayor of Barranquilla Emphasizes Projects to Improve Human and Physical Capital -------------- -------------- -------------- ¶5. (U) Mayor of Barranquilla Alejandro Char thanked the DCM for continuing U.S. support for projects including the bilingual education programs funded through the American Chamber of Commerce (AmCham) and USAID projects to support the IDPs. The Mayor highlighted the progress that the city has made and the challenges ahead. He claimed that Barranquilla had made great strides towards ensuring that no children were outside the school system and that every resident had a health insurance card. Along with the emphasis on improving the human capital, the Mayor highlighted his public works projects, especially the transformation of the public transport system, which will replace older buses with low emission ones. On the topic of security, he felt that violence related to the actions of guerrillas and drug traffickers continued to be an area of concern. He said that the extradition of the heads of large drug outfits has resulted in small illegal armed groups fighting over territory. He emphasized that his program of free education and free lunch was essential to keeping kids off the street and away from such groups. ¶6. (SBU) The DCM asked the Mayor about his views on President Uribe's re-election prospects. The Mayor responded that he was very grateful for the support that he has received from President Uribe and that Uribe may be the best President the country has ever had. However, he expressed concern about the long-term institutional consequences of amending the constitution one more time. The Mayor maintained that he strongly supports U.S. assistance and use of Colombian military bases, offering his support for any U.S. operations in Barranquilla. DCM Meets with Business Leaders and American Chamber of Commerce -------------- -------------- -------------- ¶7. (U) Barranquilla AmCham Director Victoria Ibanez and the AmCham board hosted a reception for embassy officials. AmCham members stressed the positive business climate in the city, underscoring strong prospects for growth. The contrast between Colombia's economic policies and others in the region had led to strong investment by companies formerly based in Venezuela and Ecuador. Panama, however, was a major competitor for investment. Several AmCham members expressed concern about Colombia's relations with Venezuela, which had already harmed exports from Colombia's north coast. They also feared that bellicose rhetoric from Venezuela could lead to an actual armed conflict. Ibanez reviewed Barranquilla AmCham's programs to train English teachers and promote corporate social responsibility. The DCM thanked AmCham members for their leadership in improving ethical business practices and applauded the local business community for its commitment to these objectives. USG sponsored Good Governance Program Trains Private and Public Sector Employees -------------- -------------- -------------- ¶8. (U) The DCM addressed a class of 55 people taking a course entitled "Mastering Good Governance, Ethics and Sustainability for your Business." This was part of AmCham Barranquilla's Good (Corporate) Governance Program (GGP) sponsored by the U.S. Department of Commerce, through the International Trade Administration (ITA). The students are mostly mid-level managers in private companies along with a few public sector employees. The DCM discussed the U.S. financial crisis as an example of the large and long term consequences of many individuals in discrete parts of the economy choosing to avert their eyes from the ethical course of action when it conflicted with short term profit motives. Corporate Social Responsibility Project Improves Childhood Education -------------- -------------- -------------- ¶9. (U) The DCM traveled to a small school in a poor neighborhood of Barranquilla to donate books and learn about the Promigas Foundation's successful corporate social responsibility project, which strives to improve the quality of elementary and pre-school education for community children. The natural gas company Promigas (52% owned by Houston-based Ashmore Energy International) established the Foundation over ten years ago. The Foundation has assisted 500 official educational institutions and trained 2,000 teachers, benefiting over 200,000 students. The DCM encouraged the Foundation's director to find ways to measure the benefits of the program to refine and replicate its techniques. The DCM shared the Embassy book donation with a group of students and highlighted the importance of education. Afro-Colombian Academics, Civil Society Leaders in Cartagena -------------- -------------- -------------- ¶10. (U) The DCM met with Afro-Colombian academics, community leaders and students at the University of Cartagena. The community presented challenges that they face in the economic, social and cultural spheres and discussed how many Afro-Colombians refuse to self-identify themselves because of the apparent stigma attached with this identity. They emphasized the importance of educational and research initiatives that highlight the achievements of the Afro-Colombian community in Colombia's history. The DCM commended the leaders on their work in their community's cause and reiterated USG commitment to helping them achieve their goals. US historian David Bushnell -------------- ¶11. (U) DCM hosted a lunch in honor of U.S. historian and former Fulbright scholar David Bushnell, who specializes in Colombian history and is one of the most prolific twentieth century writers on the subject. A select group of participants attending the Bicentennial History Conference as well as members of the city government, private sector and University of Cartagena attended. David Bushnell was visiting Colombia to participate in an international seminar on Colombian history (Encuentro con Nuestra Historia) organized by the President's Office as one of many activities organized between July 2009 and 2010 to celebrate Colombia's Bicentennial in Cartagena. During the conference, Professor Bushnell addressed audiences in Cartagena on the subject of elections and political representation in Colombia. Bushnell also touched on these themes during the lunch and also spoke about his perceptions in the social and political changes in Colombia over the past 60 years. BROWNFIELD BROWNFIELD