WE'RE RUDE, WE'RE NUDE, WE WANT OUR '99 NISSANS

C O N F I D E N T I A L LA PAZ 000072 SIPDIS E.O. 12958: DECL: 01/14/2019 TAGS: PGOV ECON PREL SENV BL SUBJECT: WE'RE RUDE, WE'RE NUDE, WE WANT OUR '99 NISSANS Classified By: A/EcoPol Chief Joe Relk for reasons 1.4 (b,d.) ¶1. (C) SUMMARY. The Bolivian government is facing massive protests - some in the nude - relating to a December Presidential decree relating to used car imports. The decree limits the importation of used cars older than five years into Bolivia. Importers have been protesting for weeks, including one demonstration on January 12 where a mechanic died after being shot in the neck by a rubber bullet discharged by riot police. The Vice Minister of Transportation Jose Kinn told EconOff that the Government hadn't expected such an outcry, but they will not be rescinding the decree. The decree further caused problems with the Chileans, who claimed the now-banned used cars destined for Bolivia were jamming up their ports and roads. After a special Chilean delegation came to work out the problem, Finance Minister Luis Arce announced on January 14 that the decree would stand as is, with Chilean support. Further protests are expected, especially as Import-Export Chamber President Gary Rodriguez criticized the Government for their Chilean deal, saying that the delegation "apparently mattered more than the people marching in the streets." END SUMMARY. - - - - - - - - - - - - - - THE DEVIL'S IN THE DECRETO - - - - - - - - - - - - - - ¶2. (U) Decree 29836 was enact December 3, 2008. It specifically says that previous decrees relating to the importation of used autos did not establish what age of vehicle could enter the country and that 10,000 cars a month enter Bolivia causing "gasoline shortages, health problems, and pollution that has further damaged the ozone layer." The decree limits the importation of diesel vehicles and vehicles over five years old. While most of the public statements relating to the ban point to traffic as the main impetus for the decree, Vice Minister of Transportation Jose Kinn told EconOff January 5 that the country-wide gasoline shortages sparked the decree. He said that they did not expect the outcry that has ensued and that his office has been flooded with importers complaining about the new law. - - - - - - - - - - - -- - - - - - TRANSFORMERS: LEMONS IN DISGUISE - - - - - - - - - - - -- - - - - - ¶3. (U) In addition to the importers, thousands of Bolivian mechanics make a living by "transforming" cars that come into Bolivia from Asia from right-hand drive to left-hand drive. Recent reports suggest that nearly 60 percent of mechanics that perform the transformations will lose their jobs, 600 in El Alto alone. "This is humanly, technically and economically impossible for us," Luis Vargas, head of a mechanics union, told the press, after his group and others blocked three kilometers of road on the Bolivian-Chilean border, demanding that the Government allow in more than 1,200 vehicles waiting to enter the country. The importers want the decree to be changed to allow for vehicles seven years and younger to enter, instead of the current five year limit. - - - - - - - - - - - - - - - - NO SHIRT, NO SHOES, NO SEDANS - - - - - - - - - - - - - - - - ¶4. (U) Groups of importers almost immediately began protesting the decree. Since it was released, several demonstrations have taken place, including one on January 12 that the riot police had to disperse with tear gas and rubber bullets. One protester was killed when a rubber bullet struck his neck. Several groups announced that they would not only protest at the Public Works Ministry, but they would do so without clothing. About 3000 shirtless demonstrators arrived in La Paz from Cochabamba on January 8. Other protesters staged hunger strikes in La Paz. - - - - - - - - - - - - - - - - - - - - - - - - - - - CHILE: STOP CLOGGING THE SEA ACCESS WE TOOK FROM YOU - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶5. (C) Chilean officials were also none too pleased with the decree, as Bolivia-bound cars began to wash up in their customs bay and at their border posts. Ministry of Foreign Affairs (MFA) Legal Officer Paola Melendrez (strictly protect) told PolOff on January 7 that the MFA had been told to "make the issue go away" until after the January 25 referendum on the new constitution. A special delegation arrived from Chile January 13 to discuss the problem, and eventually Finance Minister Luis Arce announced that the decree would stand but would be "grandfathered in," with Chilean support. Arce said that importers need only show the International Cargo Manifest and the Bill of Landing to Bolivian customs to prove that the vehicles landed in Chile before the December 4th decree date to enter. Gary Rodriguez, who heads the Import-Export Chamber, criticized the decision, and further riled up the demonstrators by saying that the Government respects the Chilean government more than the Bolivian people. - - - - COMMENT - - - - ¶6. (C) These protests do not come at a good time for Morales, who is focused on maintaining a calm before the January 25 constitutional referendum. Additionally, relations with Chile remain a sensitive topic for most Bolivians, as talks of allowing Bolivian access to the sea linger on. While the decree is not without merit, it seemed to spring from no where and with no warning, giving several thousand Bolivians a taste of the "govern by decree" methods Morales has threatened to use in the months to come. END COMMENT. URS