Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06LIMA3384, PERU SIGNS TRADE AGREEMENT WITH CHILE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06LIMA3384.
Reference ID Created Released Classification Origin
06LIMA3384 2006-08-25 15:28 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
VZCZCXYZ0027
RR RUEHWEB

DE RUEHPE #3384/01 2371528
ZNR UUUUU ZZH
R 251528Z AUG 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 2011
INFO RUEHBO/AMEMBASSY BOGOTA 3811
RUEHBR/AMEMBASSY BRASILIA 6950
RUEHBU/AMEMBASSY BUENOS AIRES 2553
RUEHCV/AMEMBASSY CARACAS 9735
RUEHLP/AMEMBASSY LA PAZ AUG QUITO 0633
RUEHSG/AMEMBASSY SANTIAGO 0805
RUEHGV/USMISSION GENEVA 0460
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
UNCLAS LIMA 003384 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
USTR FOR HARMAN, CARILLO 
COMMERCE FOR 4331/MAC/WH/MCAMERON 
 
E.O. 12958:  N/A 
TAGS: ETRD ENRG ELAB ECON EAID SENV CI PE
SUBJECT: PERU SIGNS TRADE AGREEMENT WITH CHILE 
 
 
1. (U) Summary.  Overcoming decades of distrust, Peru and Chile 
signed a trade agreement on August 22.  The agreement "amplifies" 
the 1998 Chile-Peru Economic Complementation Agreement (ECA), and 
provides for national treatment of Peruvian investors in Chile, most 
favored nation treatment by Chile to Peru, removal of non-tariff 
barriers and the creation of a system for dispute resolution. 
Opening of other areas, such as financial services, was put off 
until next year.  Other items, such as agricultural tariffs, were 
covered under previous agreements.  Nevertheless, trade between both 
countries could increase by up to $2 billion over the next year. 
Chile is likely to join the Andean Community of Nations (CAN), which 
would then negotiate an FTA with the European Union.  The GOP is now 
focusing on an agreement with Mexico.  End Summary. 
 
A NEW ERA IN CHILE-PERU RELATIONS? 
---------------------------------- 
2. (U) The Peruvian and Chilean governments signed an Amplified 
Agreement for Economic Complementation on August 22 in Lima. 
Foreign Minister Jose Garcia Belaunde and Trade Minister Mercedes 
Araoz Fernandez signed for Peru; Foreign Minister Alejandro Foxley 
and Director General for Internatioanl Economic Relations Carlos 
Furche signed for Chile.  In the Peruvian Trade Ministry's press 
release, Minister Araoz referred to the accord as a free trade 
agreement, although technically it is an expansion of the existing 
Chile-Peru Economic Complementation Agreement (ECA) signed in 1998. 
President Alan Garcia's government, in office since July 28, closed 
a deal initiated by President Toledo's government; the negotiations 
took six rounds and twelve months to complete. 
 
3. (U) The expanded ECA aims to create a level playing field for 
Peruvian investors by granting them national treatment in Chile, 
removing non-tariff barriers and origin requirements for service 
providers, and creating a system of dispute resolution.  Safeguards 
are also included in the agreement for sudden increases in imports, 
particularly in agriculture.  Other items covered include expedited 
customs clearance; a stand-still agreement on competition policies; 
extension of health services to Peruvian workers in Chile; and an 
equivalency agreement for sanitary and phytosanitary measures.  The 
Peruvian trade ministry MINCETUR has a summary of the agreement (in 
Spanish) on its Web site: 
http://www.mincetur.gob.pe/default.asp?pag=co mercio/ 
LEGAL/ACE38_ampliacion.html&lat=comercio/ 
lateral.asp?pag=comercio&num=3.  The complete agreement is available 
(in Spanish) at:  http://www.mincetur.gob.pe/ comercio/LEGAL/ 
ACE38_modificatorio.html. 
 
4. (U) The Chilean and Peruvian governments also signed Memoranda of 
Understanding for cooperation in migration and labor protection 
(including social security and the transfer of pension funds).  The 
creation of a number of joint labor mechanisms are currently being 
negotiated, including a Peru-Chile business council, a border 
committee, and committees on science and technical cooperation. 
 
WHAT IS NOT COVERED 
------------------- 
5. (SBU) The Agreement does not deal with several pressing disputes, 
notably Peru's ire over Chile's trademarking of Pisco, the distilled 
grape brandy that originated in Peru.  Also, the unresolved maritime 
sea border dispute has commercial implications, as the border area 
is a rich anchovy fishery.  Financial services and a full faith and 
credit provision for licensed professionals such as lawyers or 
doctors will be negotiated in the next 6 months.  Other subjects not 
covered include commercial airspace, hydrocarbons, and tariffs on 
agricultural products, financial services and intellectual property. 
 Agricultural tariffs were negotiated under previous agreements, and 
the last items, such as wine, are scheduled to go to zero by 2016. 
Trade Ministry officials who negotiated the agreement told us that 
while there were no chapters on IPR and labor, most of what would be 
in those chapters is covered either in this or the previous 1998 
agreement.  Also, the respective requirements under the Peru/U.S. 
and the Chile/U.S. free trade agreements made coverage unnecessary. 
 
EXISTING TRADE AND INVESTMENT 
----------------------------- 
6. (U) Chile and Peru already have extensive trade relations, and 
Peru has frequently run a surplus.  Trade has increased over 700 
percent from 1997 to 2005 and is expected to reach $2 billion in 
2007.  Of Peru's $1.13 billion in exports to Chile in 2005, 
molybdenum concentrates reached $694 million; other main exports 
include crude oil; copper concentrates; various iron and steel 
products; fish oil; zinc slabs; and liquefied propane gas.  The $573 
million in 2005 Chilean exports to Peru included diesel, gasoline, 
paper, ammonium nitrate, plastics, frozen fish, manufactured goods, 
and apples. 
 
7. (U) While Peru frequently runs a goods surplus, Chilean 
investments in Peru tower over those that Peruvian companies have 
made in Chile.  Chilean investments in Peru total around $4 billion 
(stock) while Peruvian investments in Chile are estimated at $50 
million.  The Peruvian media and some former Toledo administration 
officials have often raised concerns about this asymmetry, and 
Peruvian exporters have long complained that while Peru treats 
Chilean investors the same as any other foreign national, Chile 
discriminates against Peruvian investors in Chile. 
 
8. (U) Nevertheless, Chilean investment in Peru since the early 
1990s has provided a much-needed injection and expansion of capital, 
financing for infrastructure and credit -- all benefiting the 
Peruvian economy and consumer.  Chilean companies purchased power 
generation and distribution companies in the privatization process, 
retail outlets and other consumer-oriented businesses, and even 
established a bank geared to micro-lending in partnership with the 
largest Peruvian bank -- all of which were sold to Peruvian or other 
foreign companies.  Most visible among Chilean investments are two 
department stores (Saga-Falabella and Ripley), which have become the 
largest issuers in Peru of credit cards -- helping to make 
creditworthy thousands of Peruvians.  The largest domestic airline, 
Lan Peru, is owned by Chileans.  A Chilean pharmacy chain 
spearheaded the establishment of well-run, low-cost pharmacies open 
24/7. 
 
TOWARDS ASIAN AND EUROPEAN MARKETS 
---------------------------------- 
9. (U) In their recent meetings, Chilean Prime Minister Michelle 
Bachelet and Peruvian President Alan Garcia have emphasized the 
importance of regional cooperation in exports to the growing 
Asian-Pacific market.  Bachelet has proposed that Peru be 
incorporated in the P4 trans-Pacific pact -- with Brunei, New 
Zealand, and Singapore -- to promote trade links with Asia.  Peru 
will host the APEC summit in 2008. 
 
10. (U) This trade agreement should provide an additional impulse 
for Chile to rejoin the Andean Community of Nations (CAN), from 
which it withdrew in the 1970's.  The four existing CAN members 
(since Venezuela withdrew) recently asked Chile to rejoin; and Chile 
may announce its agreement to become an associate member within the 
next 30 days.  A CAN that includes Chile will be in a better 
bargaining position for negotiations with the EU, scheduled to start 
in 2007. 
 
COMMENT 
------- 
11. (SBU) Trade Minister Mercedes Araoz has gotten off to a roaring 
start with a signed trade agreement with a major partner within a 
month of taking office; the Ministry's negotiators now turn to an 
FTA with Mexico.  This agreement is certainly less than 
groundbreaking, and its coverage is limited, compared with U.S. free 
trade agreements.  But it provides a quick win for the Garcia 
Administration and hopefully will broaden public support for trade 
liberalization.  While this agreement does not explicitly make 
easier energy exports (natural gas) to Chile, the closer commercial 
cooperation that should follow may lead to a political climate more 
amenable to a natural gas connection.  While trade and investment 
issues remain, as well as thorny questions of the international sea 
border and arms spending, this agreement will help contribute to a 
stable, long-term commercial and economic relationship. 
 
12. (SBU) For both political and economic reasons, President Garcia 
has made it a priority to improve relations with Chile, making 
visits there long before his election.  Bachelet also has a history 
of ties with Peru, where her parents lived for long periods.  She 
was President Garcia's guest of honor at the country's July national 
day celebrations.  Still, the Garcia Administration's political and 
commercial rapprochement with Chile is controversial among many 
Peruvians; Chile's occupation of Peru and seizure of territory in 
1879 War of the Pacific still rankles many, as does Chilean arms 
spending.  For Garcia, with Bolivia and Ecuador in turmoil, Chile is 
an attractive, stable commercial partner in the region.  But as 
Garcia focuses on how to make Peru's impressive economic growth 
benefit its entire population, Chile also may be a partner worth 
emulating, as its left-of-center government has also made enormous 
strides against poverty by adopting free-market trade and investment 
policies. 
 
STRUBLE