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Viewing cable 06LAPAZ2079, GOB URGES "CREATIVE" APPROACH TO BILATERAL TRADE

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Reference ID Created Released Classification Origin
06LAPAZ2079 2006-08-02 20:15 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLP #2079 2142015
ZNR UUUUU ZZH
R 022015Z AUG 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 0121
INFO RUEHAC/AMEMBASSY ASUNCION 6023
RUEHBO/AMEMBASSY BOGOTA 3342
RUEHBR/AMEMBASSY BRASILIA 7192
RUEHBU/AMEMBASSY BUENOS AIRES 4455
RUEHCV/AMEMBASSY CARACAS 1730
RUEHPE/AMEMBASSY LIMA 1745
RUEHME/AMEMBASSY MEXICO 1761
RUEHMN/AMEMBASSY MONTEVIDEO 3942
RUEHQT/AMEMBASSY QUITO 4361
RUEHSG/AMEMBASSY SANTIAGO 8925
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 002079 
 
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: GOB URGES "CREATIVE" APPROACH TO BILATERAL TRADE 
 
REF: LA PAZ 2069 
 
1. (SBU) Summary: GOB trade officials expressed satisfaction 
August 1 with Vice President Garcia Linera's trip to 
Washington (reftel), which provided an opportunity to lobby 
for an extension of the Andean Trade Promotion and Drug 
Eradication Act (ATPDEA).  They noted the GOB's interest in 
negotiating a long-term trade agreement but said it would be 
"irresponsible" to start talks during Bolivia's Constituent 
Assembly, since delegates would make decisions on key 
trade-related issues.  Both officials urged a "creative" 
approach and in that vein promised to deliver a Bolivian 
proposal within 10 days, noting that the failure to win an 
ATPDEA extension or sign a comprehensive trade agreement 
could harm the bilateral relationship.  End summary. 
 
2. (SBU) In an August 1 meeting with the DCM, Vice Minister 
of Economic Relations and Foreign Trade Maria Luisa Ramos and 
Trade Advisor Pablo Solon expressed satisfaction with Vice 
President Garcia Linera's recent trip to Washington (reftel), 
which provided an opportunity to urge U.S. executive and 
legislative branch officials to extend the Andean Trade 
Promotion and Drug Eradication Act (ATPDEA) beyond its 
December 31 expiration.  Ramos remarked that she and other 
GOB officials knew it would be difficult to secure an 
extension but said they were pleased that Bolivia was allowed 
to make its case. 
 
3. (SBU) In response to the DCM's inquiry about the GOB's 
attitude toward a long-term trade agreement, both Ramos and 
Solon noted the government's interest in negotiating a 
comprehensive pact but said it would be "totally 
irresponsible" to start talks during Bolivia's Constituent 
Assembly, which will convene August 6 and may continue until 
mid-2007.  Solon said delegates would make decisions on key 
trade-related issues, including performance requirements, 
investor/state disputes, and intellectual property rights, 
and said the GOB could not negotiate knowing that Constituent 
Assembly decisions could materially affect the provisions of 
a long-term pact.  Solon acknowledged that Bolivia would join 
EU association agreement negotiations with other Andean 
Community members in January 2007, while the Constituent 
Assembly is likely still in session, but emphasized that 
discussions would continue for at least two years and would 
end after Constituent Assembly delegates settled important 
domestic debates. 
 
4. (SBU) Both Ramos and Solon urged a "creative" approach to 
two-way trade, noting that the failure to win an ATPDEA 
extension or sign a comprehensive trade agreement could harm 
the bilateral relationship.  Solon said he believed certain 
U.S. officials might be more flexible than others in working 
out the details of a trade pact and expressed hope that 
Bolivia and the United States could find common ground.  He 
mentioned that the GOB was developing an ATPDEA/trade 
proposal and suggested Embassy and GOB officials meet 
informally to discuss.  Solon acknowledged, however, that it 
might be impossible to reach agreement; in that case, he 
said, the GOB would probably not "fight" for a pact, as 
administration officials believed they could compensate 
Bolivian exporters for the estimated $15 million tariffs they 
would face if both ATPDEA and GSP trade preferences expired. 
Solon estimated tariffs of $8 million if GSP but not ATPDEA 
were renewed. 
 
5. (SBU) Comment: Ramos and Solon seemed reluctant to abandon 
hope for an ATPDEA extension.  We will continue to urge the 
GOB to look beyond an ATPDEA extension to a long-term trade 
agreement, with the U.S.-Peru pact as a model, but unless a 
"creative" solution is found, discussions may yield few 
concrete results.  End comment. 
GREENLEE