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Viewing cable 09BOGOTA1515, COLOMBIA-EU TRADE TALKS PROGRESS, EYEING JULY

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Reference ID Created Released Classification Origin
09BOGOTA1515 2009-05-13 22:18 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bogota
VZCZCXRO3739
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHBO #1515/01 1332218
ZNR UUUUU ZZH
R 132218Z MAY 09
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 8641
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBR/AMEMBASSY BRASILIA 8859
RUEHCV/AMEMBASSY CARACAS 2181
RUEHGT/AMEMBASSY GUATEMALA 3157
RUEHLP/AMEMBASSY LA PAZ 0113
RUEHPE/AMEMBASSY LIMA 7483
RUEHMU/AMEMBASSY MANAGUA 2663
RUEHML/AMEMBASSY MANILA 0253
RUEHME/AMEMBASSY MEXICO 0107
RUEHOT/AMEMBASSY OTTAWA 2586
RUEHZP/AMEMBASSY PANAMA 3567
RUEHQT/AMEMBASSY QUITO 8223
RUEHSJ/AMEMBASSY SAN JOSE 5593
RUEHSN/AMEMBASSY SAN SALVADOR 2407
RUEHSG/AMEMBASSY SANTIAGO 2494
RUEHTG/AMEMBASSY TEGUCIGALPA 2132
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 BOGOTA 001515 
 
SENSITIVE 
SIPDIS 
 
WHA/AND 
WHA/EPSC 
USTR FOR HARMAN 
 
E.O. 12958: N/A 
TAGS: ECON ETRD ECIN CO
SUBJECT: COLOMBIA-EU TRADE TALKS PROGRESS, EYEING JULY 
CLOSURE 
 
REF: A. BOGOTA 558 
     B. 08 BOGOTA 3705 
 
1. (SBU) SUMMARY.  The May 4-8 EU-Andean trade negotiation 
round produced concrete results and optimism that following 
two subsequent rounds Colombia and Peru might close their 
negotiations in July.  Ecuador appears to be falling behind 
its two Andean neighbors and reportedly has asked for certain 
opt-outs or at least more time to negotiate.  Many 
significant issues remain to be resolved, most notably the 
EU's tariff on imported bananas.  END SUMMARY. 
 
TALKS PROCEED IN EARNEST 
------------------------ 
 
2. (SBU) The May 4-8 round in Brussels was the sixth overall 
and third since the two sides abandoned the "bloc-to-bloc" 
format after the Andean Community could not reach consensus 
in mid-2008 (Reftels).  GOC and EU Mission members in Bogota 
told us negotiators made solid progress at all of the 
thirteen tables and have already closed negotiations in some 
tables, including Capacity Building and Development.  GOC 
officials told us privately they  learned from their 
experience with the U.S. how prolonging trade talks carries 
political risks, and are eager to wrap up talks before the 
June EU election results could impact ratification. The next 
round is scheduled for June 15-19 in Bogota, followed by what 
GOC officials hope will be the final round for Colombia and 
Peru at the end of July in Lima. 
 
ECUADOR PROVIDES "BIZARRE INTERLUDE" 
------------------------------------ 
 
3. (SBU) An EU report that local EU Mission members shared 
with us describes the round as "an overall success, with a 
few bizarre interludes."  The latter reference concerns a 
letter dated April 30 that the EU received from Ecuador's 
Acting Foreign Minister, Lautaro Pozo, asking for certain 
opt-outs or at least more time to address areas that could be 
in violation of the Ecuadorian Constitution.  According to 
our EU Mission contacts, the Ecuadorian negotiating team in 
Brussels had no knowledge of Pozo's letter. 
 
BANANA TARIFF TOPS THE LIST OF OUTSTANDING ISSUES 
--------------------------------------------- ---- 
 
4. (SBU) EU officials told us they tabled an offer to lower 
the tariff on bananas from the current level of 176 euros per 
ton to 95 euros over a period of ten years, following entry 
into force of the FTA.  Colombia's counteroffer was 75 euros, 
which is very similar to Ecuador's, according to Colombian 
Trade Ministry officials. Also at issue is how and whether to 
link any deal on bananas in the FTA to the ongoing WTO banana 
case.  NOTE: The EU offer in 2008 Doha Round talks was 
reportedly to reduce tariffs to 114 euros per ton by 2016. 
END NOTE. 
 
5. (SBU) Other significant unresolved issues between Colombia 
and the EU include: 1) whether goods produced in Colombian 
free trade zones will be eligible to benefit from FTA 
provisions; 2) phaseout periods for Colombian tariffs on 
European vehicles and autoparts (10 years versus five years); 
3) a series of Colombian import restrictions on wines and 
liquors;  4) access to the Colombian market for European pork 
and dairy products; 5) access to the European market for 
Colombian sugar; 6) protection of Colombian biodiversity; 7) 
"free circulation" in the three Andean countries of European 
 
BOGOTA 00001515  002 OF 002 
 
 
goods imported into one of the three; 8) the patent 
protection period for pharmaceuticals (25 years versus 20 
years); and 9) the period for data protection (11 years 
versus five years). 
Nichols