JUSTIFICATION FOR DECISION ON ATPA FOR BOLIVIA

C O N F I D E N T I A L STATE 070566

SIPDIS

E.O. 12958: DECL: 07/01/2019
TAGS: ASEC BL KDEM PGOV PREL
SUBJECT: JUSTIFICATION FOR DECISION ON ATPA FOR BOLIVIA

Classified By: A/S Thomas A. Shannon, Reasons 1.4 (b) and (d)


1. (SBU) This is an action request. See paragraph 5.

SUMMARY
--------------


2. (SBU) Following a review of the Andean Trade Preference
Act (ATPA) eligibility for Bolivia and Ecuador, the President
has decided not to reinstate benefits for Bolivia ) benefits
which were suspended last December due to inadequate
counternarcotics cooperation. We hope to continue working
with Bolivia on developing a new framework for bilateral
relations, including on counternarcotics cooperation. To
this end, A/S Shannon led an interagency delegation to La Paz
in May, launching a broad-based bilateral dialogue with the
Bolivian government. A second round of talks will be held in
Washington in July. Also as an indication of our commitment,
Secretary Clinton recently asked Maria Echaveste to serve as
Special Emissary for Bolivia. Ms. Echaveste traveled to
Bolivia for discussions aimed at moving our bilateral
relationship forward in a new direction. This cable provides
background and talking points for action posts to approach
highest appropriate host government authorities to explain
what has happened and to enlist their support in discussing a
renewed collaboration with Bolivia on counternarcotics
matters. Other addressees are invited to use these points at
their discretion. End summary.

BACKGROUND
--------------


3. (C) The U.S. Government suspended Bolivia,s
participation in ATPA December 15, 2008, following our
determination September 15, 2008 that Bolivia had &failed
demonstrably8 over the preceding 12 months to adhere to its
obligations under international counternarcotics agreements.
Congress had previously included Bolivia in the ATPA through
June 30, 2009, but extension of benefits beyond that date
were contingent upon a Presidential determination that
Bolivia meets the program,s eligibility criteria. Since the
December 2008 determination, however, counternarcotics
progress in Bolivia has not improved and the inter-agency and
Congress opposed reinstating benefits without demonstrable
improvements in counternarcotics cooperation. Therefore, the
President decided not/not to reinstate benefits at this time.
We understand the importance of ATPA in creating jobs and
strengthening the Bolivian economy; however, Bolivia needs to
show credible counternarcotics cooperation ) a critical
component of the ATPA program. We hope to work with Bolivia
to take advantage of this window of opportunity to
collaborate on building Bolivia,s national counternarcotics
capacity and renewing our bilateral cooperation, to pave the
way for future ATPA eligibility.


4. (C) Separately, we have been working with Bolivian
officials to review and reformulate relations on the basis of
mutual interests, including a review of joint cooperation
programs. The Bolivians have proposed a &Framework
Agreement8 to mark a new chapter in bilateral relations,
which affirms that our relationship is based on mutual
respect and non-interference and creates mechanisms for
improved communication and cooperation. We are reviewing the
agreement, and sent the Secretary,s Special Emissary Maria
Echaveste to meet with Bolivian officials June 27-28 to
discuss ways to move the relationship forward.

Action Requested
--------------


5. (U) The Department requests action addressee posts to seek
meetings at the highest appropriate levels in the host
government to explain our decision not to reinstate ATPA
benefits for Bolivia drawing on the following points.

Begin talking points:

-- On June 30, the President sent a report to Congressional
Trade Committees setting out the results of his review of
whether Bolivia and Ecuador are meeting the eligibility
criteria of the Andean Trade Preference Act (ATPA).

-- In the case of Bolivia, after reviewing that country's
performance under all of the eligibility criteria in the Act,
the President chose not to make the determination set out in
the Act that Bolivia is meeting the program's eligibility
criteria, particularly, with regards to counternarcotics
cooperation. This decision was not taken lightly. The
Administration consulted with the relevant Congressional
committees, whose members expressed serious concerns about
extending ATPA benefits to Bolivia in the absence of improved
counternarcotics cooperation.

-- As a result, certain imports from Bolivia will not qualify
for duty-free treatment under ATPA effective July 1, 2009.
(Note: The ATPA preference program expires at the end of
2009, unless renewed by Congress.)

-- This decision does not affect Bolivia's eligibility for
benefits under the Generalized System of Preferences, which
remains in effect and continues to cover most of Bolivia's
exports to the United States.

-- This is not a punitive action. It maintains the status
quo while we work with Bolivia to establish a common vision
on counterdrug cooperation.

-- The United States remains committed working with Bolivia
to establish a strong relationship based on shared interests
and mutual respect. We understand that Bolivia was focused
on ATPA trade preferences, and would like to be in a position
to offer them. Key members of our Congress have indicated
that improved counternarcotics cooperation is a sine qua non
for restoration of ATPA preferences.

-- We will continue to work with Bolivia in the coming months
to seek a way forward on counternarcotics cooperation that
could pave the way for Congress to reinstate Bolivia's
eligibility for ATPA benefits in the future. Since many of
the countries in the region share our concerns about drug
trafficking, we would welcome your ideas and support on
working with us and the Government of Bolivia on ways to
strengthen counternarcotics cooperation.

-- For example, ideas that could be explored might include
working towards a counternarcotics relationship focused on
building Bolivia's national capacity to attack and control
trafficking cartels and organized crime within Bolivia's
borders. We believe that such an approach, which would
mirror our cooperative efforts with Mexico and Central
America, is more likely to be effective and better reflects
the growing capabilities present in the hemisphere.

-- The Administration remains committed to working with
Bolivia to address the concerns summarized in the
President,s report to Congress. We hope that the bilateral
dialogue that Assistant Secretary Shannon initiated with the
Bolivian government officials in La Paz in May will lead to
closer cooperation and a strengthened bilateral relationship.
A second round of talks will be held in Washington in July.
Also as an indication of our commitment, Secretary Clinton
recently named Maria Echaveste as a Special Emissary for
Bolivia. Ms. Echaveste traveled to Bolivia over the past
weekend for discussions aimed at moving our bilateral
relationship forward in a new direction.

End Talking Points


6. (U) Please report feedback, upon receipt, to Bolivia desk
officer Barbara Rocha.
CLINTON