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Viewing cable 06LAPAZ1565, EU AWAITS ANDEAN COMMUNITY STANCE TOWARD TRADE

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Reference ID Created Released Classification Origin
06LAPAZ1565 2006-06-08 21:30 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0036
RR RUEHWEB

DE RUEHLP #1565 1592130
ZNR UUUUU ZZH
R 082130Z JUN 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 9518
INFO RUEHAC/AMEMBASSY ASUNCION 5907
RUEHBO/AMEMBASSY BOGOTA 3220
RUEHBR/AMEMBASSY BRASILIA 7068
RUEHBU/AMEMBASSY BUENOS AIRES 4324
RUEHCV/AMEMBASSY CARACAS 1615
RUEHPE/AMEMBASSY LIMA 1607
RUEHME/AMEMBASSY MEXICO 1720
RUEHMN/AMEMBASSY MONTEVIDEO 3833
RUEHQT/AMEMBASSY QUITO 4249
RUEHSG/AMEMBASSY SANTIAGO 8796
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBS/USEU BRUSSELS
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 001565 
 
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 EINV ECON PREL PGOV BL
SUBJECT: EU AWAITS ANDEAN COMMUNITY STANCE TOWARD TRADE 
TALKS 
 
 
1. (U) Summary: At a June 8 breakfast, the European 
Commission Delegation's chief trade representative said the 
European Union (EU) would await a clear Andean Community 
stance toward trade talks before pursuing association 
agreement negotiations.  EU member states hope to see 
consensus emerge after the June 13-14 Andean Community 
meeting in Quito.  With a clear statement of the group's 
desire to initiate association agreement negotiations, the 
trade representative said, the EU could consider moving ahead 
with discussions later this year.  End summary. 
 
2. (U) At a June 8 breakfast, Angel Gutierrez, Chief of the 
Political, Economic, and Commercial Section of the European 
Commission Delegation in Bolivia, said the European Union 
(EU) would await a clear Andean Community stance toward trade 
talks before pursuing association agreement negotiations. 
Gutierrez noted that Venezuela's April 22 withdrawal from the 
Andean Community had thrown the group into disarray and said 
members displayed clear divisions over the group's external 
trade policies at the May 11-13 EU-Latin America and the 
Caribbean Summit in Vienna.  In light of such disunity, 
Gutierrez said, EU member states hesitated to push for trade 
talks. 
 
3. (U) EU members hope to see consensus emerge after the June 
13-14 Andean Community meeting in Quito, at which bloc 
members expect to debate their positions toward international 
commercial exchange and the EU's proposed association 
agreement.  Gutierrez said he hoped Bolivia and its 
counterparts would "put their house in order" and forge a 
common position on foreign trade.  He explained that the EU 
preferred multilateral to bilateral negotiations and would 
consider talks only on a multilateral basis. 
 
4. (U) With a clear statement of the Andean Community's 
desire to initiate association agreement negotiations, 
Gutierrez said, the EU could consider moving ahead with 
discussions later this year.  EU member states have proposed 
replacing existing Generalized System of Preferences benefits 
- under which 90 percent of Bolivian exports to the EU, 
including textiles and some agricultural goods, already enter 
EU markets duty-free - with a customs union.  The EU would 
seek common external tariffs, uniform customs administration, 
common trade policies, and lower intraregional non-tariff 
barriers to trade. 
 
5. (SBU) Comment: Gutierrez suggested the Andean Community's 
lack of consensus could be an obstacle to opening association 
agreement negotiations but stopped short of completely 
discounting the possibility.  It appears the EU genuinely 
hopes to begin discussions, even if the current outlook is 
uncertain.  End comment. 
GREENLEE