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Viewing cable 08BOGOTA4178, COLOMBIA TO SIGN TRADE/INVESTMENT AGREEMENTS WITH

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Reference ID Created Released Classification Origin
08BOGOTA4178 2008-11-19 20:24 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bogota
VZCZCXRO5106
PP RUEHAO RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG
RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHBO #4178/01 3242024
ZNR UUUUU ZZH
P 192024Z NOV 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 5651
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEHBD/AMEMBASSY BANDAR SERI BEGAWAN 0009
RUEHBK/AMEMBASSY BANGKOK 0511
RUEHBJ/AMEMBASSY BEIJING 0180
RUEHBY/AMEMBASSY CANBERRA 0526
RUEHHI/AMEMBASSY HANOI 0169
RUEHJA/AMEMBASSY JAKARTA 0069
RUEHKL/AMEMBASSY KUALA LUMPUR 0043
RUEHML/AMEMBASSY MANILA 0238
RUEHMO/AMEMBASSY MOSCOW 0520
RUEHPB/AMEMBASSY PORT MORESBY 0006
RUEHUL/AMEMBASSY SEOUL 0623
RUEHGP/AMEMBASSY SINGAPORE 0112
RUEHKO/AMEMBASSY TOKYO 1245
RUEHWL/AMEMBASSY WELLINGTON 0010
RUEHHK/AMCONSUL HONG KONG 0751
RUEHIN/AIT TAIPEI 0123
UNCLAS SECTION 01 OF 02 BOGOTA 004178 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR HARMAN 
EEB/TPP MUNTEAN 
WHA/EPSC ROONEY 
WHA/AND MERRIN 
 
E.O. 12958: N/A 
TAGS: ECON ETRD ECIN PREL APEC CO
SUBJECT: COLOMBIA TO SIGN TRADE/INVESTMENT AGREEMENTS WITH 
CANADA AND CHINA AT APEC SUMMIT 
 
REF: A. BOGOTA 2459 
     B. BOGOTA 2120 
 
BOGOTA 00004178  001.2 OF 002 
 
 
1. (SBU) SUMMARY.  Colombia plans to sign its Free Trade 
Agreement with Canada as well as a Bilateral Investment 
Treaty with China on the margins of the APEC Summit in Lima, 
Peru, November 22-23.  Colombia will also use the occasion to 
formally accept an invitation from the P4 to begin accession 
negotiations.  While not an APEC member, Colombia 
participates in several working groups and hopes to use the 
Summit to raise the profile of its candidacy to eventually 
join APEC.  Colombia's ambitious economic agenda for the APEC 
Summit shows its seriousness about expanding trade and 
investment ties beyond traditional partners.  END SUMMARY. 
 
MOVING AHEAD WITH CANADA 
------------------------ 
 
2. (SBU) President Uribe, accompanied by Foreign Minister 
Jaime Bermudez and Trade Minister Luis Guillermo Plata, will 
lead the GOC delegation to Lima.  On November 23 Colombia and 
Canada will sign their bilateral Free Trade Agreement (FTA) 
and accompanying side agreements on labor and environment. 
There is a possibility they will sign a double taxation 
treaty as well.  The two sides closed FTA negotiations last 
June (Ref B) and have completed the required legal scrub. 
According to Vice Minister of Trade Eduardo Munoz, the 
required approvals by the Colombian Congress and, 
subsequently, the Constitutional Court could take as long as 
six months each, implying entry into force toward the end of 
2009.  Canada is already growing in importance as a source of 
Colombian imports (ranked 13th in 2007) and the FTA will only 
make Canadian exports to Colombia more competitive. 
 
STRENGTHENING TIES WITH CHINA 
----------------------------- 
 
3. (U) Colombia will also sign a Bilateral Investment Treaty 
(BIT) with China on the margins of the APEC Summit.  While 
growth in bilateral trade has been heavily skewed toward 
imports from China (currently Colombia's second largest 
source of imports), and an FTA with China unlikely in the 
near term, Colombian companies are showing increasing 
interest in China as an investment destination (Ref A).  The 
BIT will solidify this interest and deepen economic links 
between China and Colombia. 
 
REACHING ACROSS THE PACIFIC 
--------------------------- 
 
4. (SBU) According to Munoz, President Uribe will use his 
meeting with leaders of the four current members of the 
Trans-Pacific Strategic Economic Partnership (P4) -- Brunei, 
Chile, New Zealand, and Singapore -- to formally accept their 
invitation to begin accession negotiations in parallel with 
the U.S., provisionally scheduled for March 2009.  Colombian 
interlocutors on trade issues often lament the head-start 
that Chile and, increasingly, Peru enjoy in trade agreements 
with Asia, and hope the agreement with the P4 will help spur 
further efforts to diversify Colombia's trade toward Asia. 
 
COLOMBIA: AN ACTIVE NON-MEMBER OF APEC 
-------------------------------------- 
 
5. (SBU) While Colombia is not a member of APEC, President 
Uribe was invited to give the keynote address to a group of 
private sector leaders.  Colombia has made no secret of its 
desire to be "first in line" once APEC's moratorium on new 
 
BOGOTA 00004178  002.2 OF 002 
 
 
members ends.  Colombia has participated in several APEC 
Working Groups and Expert Groups in the past, and, according 
to Munoz, has renewed its commitment to being an active 
participant in the Investment and Energy Groups.  Colombia 
hopes to leverage its APEC involvement and eventual 
membership to further increase its international economic 
profile. 
 
COMMENT: IS WASHINGTON PAYING ATTENTION? 
---------------------------------------- 
 
6. (SBU) Colombia has made no secret of its intent to 
diversify international markets, with trade presently 
weighted heavily toward the U.S. and Venezuela.  The stalled 
FTA with the U.S., and Venezuela's unstable 
political/economic climate, have served to quicken the pace 
of GOC trade diplomacy. The EU's recent decision to negotiate 
directly with Colombia, Peru, and possibly Ecuador received 
much domestic fanfare.  These negotiations will likely begin 
in earnest at the beginning of 2009 and officials remain 
nominally committed to concluding talks by September, 2009. 
Munoz told us that the GOC goal was to have 90 percent of 
Colombia's exports fall under the auspices of a free trade 
agreement by 2010--a goal that necessarily requires an the 
U.S. agreement to be in force.  While the formal attention on 
November 23 will be centered in Lima, Bogota, Ottawa and 
Beijing, the GOC is hoping that ears will be perking up in 
Washington as well. 
BROWNFIELD