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Viewing cable 06LAPAZ1466, BOLIVIA FORMALLY REQUESTS ATPDEA AND GSP EXTENSIONS

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Reference ID Created Released Classification Origin
06LAPAZ1466 2006-06-01 18:40 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLP #1466/01 1521840
ZNR UUUUU ZZH
R 011840Z JUN 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 9354
INFO RUEHAC/AMEMBASSY ASUNCION 5886
RUEHBO/AMEMBASSY BOGOTA 3199
RUEHBR/AMEMBASSY BRASILIA 7048
RUEHBU/AMEMBASSY BUENOS AIRES 4298
RUEHCV/AMEMBASSY CARACAS 1595
RUEHPE/AMEMBASSY LIMA 1576
RUEHME/AMEMBASSY MEXICO 1709
RUEHMN/AMEMBASSY MONTEVIDEO 3815
RUEHQT/AMEMBASSY QUITO 4231
RUEHSG/AMEMBASSY SANTIAGO 8771
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 001466 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
STATE PASS TO USTR FOR BHARMAN 
COMMERCE FOR JANGLIN 
TREASURY FOR SGOOCH 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL PGOV USTR BL
SUBJECT: BOLIVIA FORMALLY REQUESTS ATPDEA AND GSP EXTENSIONS 
 
REF: LA PAZ 1418 
 
1. (SBU) Summary: President Morales' newly-appointed advisor 
for international trade, Pablo Solon, called on the 
Ambassador May 31 to deliver a copy of a letter formally 
requesting extensions of the Andean Trade Promotion and Drug 
Eradication Act (ATPDEA) and the Generalized System of 
Preferences (GSP).  The original, signed by Morales and 
addressed to President Bush, will be delivered via the 
Bolivian embassy in Washington.  The Ambassador said the USG 
would seriously consider the letter but noted (again) that 
securing an ATPDEA extension appeared unlikely and urged 
Solon to earnestly explore alternatives.  The Ambassador also 
noted surprise at the letter's opening line, which mentioned 
that the letter was presented in the "spirit of developing 
relations of friendship and collaboration between our 
countries," and pointedly asked how Morales could talk of 
friendship just days after repeatedly insulting the United 
States during the visit of Venezuelan President Hugo Chavez 
and accusing the USG of attempting to assassinate him.  The 
GOB appears to be waking up to the need to engage the USG on 
trade issues, though they continue to demonstrate 
considerable ignorance about both how to pursue such a 
dialogue with us and the U.S. political realities on trade. 
End summary. 
 
2. (U) In a May 31 meeting with the Ambassador, President 
Morales' newly-appointed advisor for international trade, 
Pablo Solon, delivered a copy of a letter formally requesting 
extensions of the Andean Trade Promotion and Drug Eradication 
Act (ATPDEA) and the Generalized System of Preferences (GSP) 
trade benefits for Bolivia.  The letter also reiterated 
Bolivian concerns about the potential loss of Colombian soy 
markets, noting that the opening of these markets to U.S. soy 
exports under the recently signed Colombia-U.S. Free Trade 
Agreement would make it difficult for Bolivian producers to 
compete with less expensive U.S. exports.  The original 
letter, signed by Morales and addressed to President Bush, 
will be delivered via the Bolivian embassy in Washington 
within the next few days.  (A copy of the letter was faxed to 
WHA/AND--see paragraph 8 for  an informal translation.) 
 
3. (SBU) The Ambassador noted his surprise at the letter's 
opening line, which mentioned that the letter was presented 
in the "spirit of developing relations of friendship and 
collaboration between our countries," and pointedly asked how 
Morales could talk of friendship just days after repeatedly 
insulting the United States during the MAS party's kick-off 
for its Constituent Assembly campaign (reftel).  The 
Ambassador objected to Morales' regular attacks on USG 
officials and policies and said Morales' comments, together 
with GOB officials' frequently contradictory statements, made 
it difficult to determine the administration's true 
intentions and establish a relationship based on trust and 
mutual understanding. 
 
4. (SBU) Solon responded by saying Morales was aware of U.S. 
concerns and recognized that GOB officials' conflicting 
declarations confused many observers.  He said, however, that 
despite Morales' insults and attacks, the president valued 
existing trade relationships and sincerely wanted a positive 
relationship with the United States.  According to Solon, 
Morales believed ATPDEA and GSP extensions would provide a 
"pause" during which Bolivia and the United States could 
agree on a foundation for future trade arrangements.  Solon 
highlighted Morales' good intentions by calling attention to 
the letter's statement that the GOB's medium-term objective 
was to negotiate a trade agreement that would "take into 
account the immense inequality" in the two countries' 
economies and benefit "the most poor, small producers, 
farmers' organizations, and also (Bolivia's) businessmen." 
 
5. (SBU) The Ambassador said the USG would seriously consider 
the letter but noted (again) that securing an ATPDEA 
extension appeared unlikely.  He said his own conversations 
with USG officials suggested Congress was not disposed to 
renew the Act's trade preferences - in direct contrast to 
what Bolivian Minister of Planning Carlos Villegas reported 
after a recent trip to Washington - and urged Solon to 
earnestly consider alternatives.  The Ambassador also said 
(again) that neither party would re-open the Colombia-U.S. 
Free Trade Agreement to preserve Bolivian access to Colombian 
soy markets. 
 
6.  (SBU)  President Morales June 1 met with private sector 
representatives and told them about his recent letter to 
President Bush requesting an extension of ATPDEA trade 
benefits.  This letter, he explained, followed upon similar 
requests made to President Bush in their February 1 phone 
conversation and to Secretary Rice during their March 10 
meeting.  Morales then went to El Alto to tour several 
factories exporting textiles and other products to the United 
States.  Vice Minister of Foreign Affairs for Economic 
Relations Maria Luisa Ramos is quoted saying that "Bolivia is 
open to making commercial agreements (with the U.S.), but we 
have not yet defined dates, modalities, or anything as yet." 
Leading daily "La Razon" quotes an un-named GOB official as 
stating that any commercial agreement with the U.S. would 
exclude agriculture and intellectual property rights. 
 
7. (SBU) Comment:  The GOB appears to be waking up to the 
need to engage the USG on trade issues, though they continue 
to demonstrate considerable ignorance about both how to 
pursue such a dialogue with us and the U.S. political 
realities on trade.  Solon tried to defend and explain 
Morales' policies, but sought to avoid a detailed discussion 
of Morales' attacks against the USG, the most recent being 
his accusation that the United States is trying to 
assassinate him.  Solon seemed unable or unwilling to 
understand why such attacks would cause the USG to doubt 
Morales' wish for "developing relations of friendship and 
collaboration."  End comment. 
 
8. (SBU) Following is an informal translation of the letter 
from President Morales to President Bush: 
 
La Paz, Bolivia 
May 30, 2006 
 
Dear Mr. President: 
 
In the spirit of developing relations of friendship and 
collaboration between our countries, I address you to 
reiterate Bolivia,s petition for the extension of U.S. 
tariff preferences within the framework of ATPDEA and the 
Generalized System of Preferences (GSP).  As I expressed 
verbally on February 1 and reiterated in my letter of March 
10, the extension of tariff preferences is fundamental in 
guaranteeing continued exports to your country, thus 
preserving the jobs of people involved in this significant 
economic activity.  For the United States, the extension and 
enhancement of tariff preferences for Bolivia has practically 
no impact, since they represent no more than 0.07 percent of 
total U.S. imports.  On the contrary, for our country, this 
represents a possibility for manufacturers to reach one of 
their most important markets and to reduce the migration of 
Bolivians abroad due to lack of jobs. 
 
Further, we want to reiterate that we hope for understanding 
from your country regarding the preservation of markets for 
Bolivian soybeans in Colombia, which may be adversely 
affected by the Free Trade Agreement negotiated by this 
Andean country and the United States.  Currently, 40 percent 
of our soybean exports are destined to Colombia, and it will 
be very difficult to access this market if we have to compete 
under equal conditions with the massive soybean production of 
the United States. 
For a country with an indigenous majority, which for the 
first time in 180 years has an indigenous president, it is 
crucial to maintain and deepen economic stability, which will 
allow us to make broad change within a democratic regime. 
The Constituent Assembly, which we have convened in agreement 
with all political and social actors, will be the place to 
deepen our democracy by eliminating the exclusions of the 
past. 
 
Our government is a government with an indigenous and native 
identity of its own.  We have undergone more than 500 years 
of exclusion, but we do not seek anyone,s exclusion or 
expulsion.  What we want is to live harmoniously and 
complementarily among ourselves, with our neighbors, and with 
nature.  Our commitment to a "zero cocaine" policy is being 
developed through the streamlining of coca cultivation, 
carried out in coordination with agricultural producers 
themselves. 
 
With the United States, as well as with all countries in the 
world, we seek a spirit of peace and solidarity, which we 
expect will be strengthened by the gesture of extending 
tariff preferences and preserving markets for Bolivian 
soybeans in Colombia. 
 
Our medium-term objective is to be able to negotiate a trade 
agreement with your country that takes into account the 
immense inequality that exists between our economies in order 
to benefit the most poor, small producers, farmers, 
organizations, and also our businessmen.  In order to address 
this task, on the one hand we need to open a process of 
dialogue and mutual understanding regarding the realities and 
visions of our countries, and on the other hand, to 
successfully complete the process of re-founding Bolivia by 
means of the Constituent Assembly. 
 
Hoping that our trade relations continue undisturbed, I wish 
to reiterate my invitation for you to join us on August 6, 
for the occasion of the historic event of the inauguration of 
the Constituent Assembly in Bolivia. 
 
With this particular motive, I avail myself of this 
opportunity to express to Your Excellency the assurance of my 
highest and most distinguished consideration. 
 
Evo Morales Ayma 
Constitutional President of the Republic 
 
His Excellency 
George W. Bush 
President of the United States of America 
Washington, D.C. 
GREENLEE