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Viewing cable 08BOGOTA2173, BRIEF TRUCKERS' STRIKE OVER RISING COSTS RESOLVED

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Reference ID Created Released Classification Origin
08BOGOTA2173 2008-06-17 15:50 2011-08-25 00:00 UNCLASSIFIED Embassy Bogota
VZCZCXYZ0008
PP RUEHWEB

DE RUEHBO #2173 1691550
ZNR UUUUU ZZH
P 171550Z JUN 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 3193
INFO RUEHBR/AMEMBASSY BRASILIA 8245
RUEHCV/AMEMBASSY CARACAS 0551
RUEHLP/AMEMBASSY LA PAZ JUN LIMA 6269
RUEHZP/AMEMBASSY PANAMA 1863
RUEHQT/AMEMBASSY QUITO 6937
UNCLAS BOGOTA 002173 
 
SIPDIS 
 
WHA/EPSC FOR ZSYED 
 
E.O. 12958: N/A 
TAGS: ECON ELTN ENRG ELAB PGOV CO
SUBJECT: BRIEF TRUCKERS' STRIKE OVER RISING COSTS RESOLVED 
 
REF: BOGOTA 2053 
 
1. (U) SUMMARY: A 22-hour strike by 145,000 Colombian 
truckers ended June 16 after industry representatives reached 
agreement with President Uribe on credits for the sector to 
replace aging vehicles and revamp regulations on shipping 
fees and rules.  Trucking representatives said they resorted 
to calling a strike after rising fuel costs made already 
difficult industry conditions untenable.  The strike caused 
only minimal delays at Buenaventura port and there were no 
reports of violence.  Normal operations are expected to 
resume June 17.  END SUMMARY. 
 
2. (U) Squeezed by unregulated trucks, high toll and fee 
costs, and now rising fuel costs, Colombia's Trucking 
Association (ACC) called a nationwide strike of its 145,000 
members at midnight on June 15.  ACC said approximately 60 
percent of its members participated in the strike.  Following 
a four-hour meeting between senior ACC representatives and 
President Uribe on June 16, the ACC called off the strike. 
 
3. (U) In the meeting with President Uribe the GOC agreed to 
provide low cost financing to retire 5,000 aging trucks, new 
rules to combat overweight vehicles, and a grace period on 
foreclosure of indebted trucking firms.  President Uribe also 
agreed to issue a decree reaffirming minimum shipping fees 
and establishing a electronic registry system to assure 
shipping agents do not contract unregulated trucks.  While 
the truckers pressed for relief on fuel prices through a 
revision of the existing diesel subsidy or a reduction in the 
value-added tax on fuel, the GOC announced no such measures. 
 
4. (U) GOC transportation and port officials told us that the 
short-lived strike resulted in relatively minor delays at 
Buenaventura port and no interruption of normal service in 
the Cartagena, Barranquilla or Santa Marta ports.  (NOTE: A 
17-day transport strike in 2004 cost the Colombian economy 
over USD 70 million. END NOTE)  ACC and GOC officials agreed 
that all trucking operations should return to normal June 17. 
 There were no reports of violence associated with the strike. 
 
5. (SBU) COMMENT: Although resolved quickly with minimal 
economic disruption, the decision by Colombian truckers to 
strike reflects the growing pressure less competitive 
industries feel from external factors such as higher fuel 
costs and the appreciation of the peso (reftel).  with no end 
in sight to external cost pressures for shipping and other 
sectors, more sector-specific strikes may arise soon. 
BROWNFIELD