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Viewing cable 06BOGOTA4066, COLOMBIA'S FRUSTRATION WITH FTA DELAYS

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Reference ID Created Released Classification Origin
06BOGOTA4066 2006-05-08 16:59 2011-08-30 01:44 CONFIDENTIAL Embassy Bogota
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 BOGOTA 004066 
 
SIPDIS 
 
E.O. 12958: DECL: 05/05/2015 
TAGS: ETRD PREL CO FTA USTR
SUBJECT: COLOMBIA'S FRUSTRATION WITH FTA DELAYS 
 
REF: A) BOGOTA 4004 B) BOGOTA 2283 
 
Classified By: DCM Milton K. Drucker for Reasons 1.4 (b&d). 
 
 1.  (C) Summary: The GOC is concerned over what it perceives 
as bad faith negotiating on the part of mid-level USTR 
officials.  While senior Colombia trade officials have 
generally been reserved in public statements about the status 
of the FTA final texts, recent press reports indicate the GOC 
is running out of patience.  At the request of the GOC, the 
final FTA texts may soon be published, but without the 
agriculture chapter.  Senior USTR and GOC officials will meet 
on May 9 to review descrepencies in the agriculture chapter, 
after lower-level eforts to reconcile the texts were not 
successful.  A quick reconcilliation of the ag chapter will 
ease critics' suspicions that the U.S. and GOC negotiators 
are hiding provisions deep within the agriculture text. 
During this period of increased tension in the Andean 
Community, our FTAs with Colombia and Peru represent an 
attractive alternative to other regional influences.  End 
Summary. 
 
------ 
Delays 
------ 
 
2.  (C) Post and USG agencies told the GOC soon after FTA 
negotiations were completed in February that the verification 
of the FTA texts was a time consuming process.  The GOC 
initially had hoped to quickly complete the verification of 
texts and move toward the signing, U.S. Congressional 
notification, and ratification of the agreement.  GOC 
officials waited patiently for the USTR version of the text, 
but as March gave way to April, Trade Minister Botero began 
to privately and then publicly express concern over the 
delay.  After Holy Week in mid-April, GOC trade officials 
reported that President Uribe, who has made the FTA an 
important plank of his reelection campaign, was having 
trouble defending the agreement in Colombia,s congress 
without a finalized text.  The fact that a majority of the 
U.S. text was ready for exchange and only the agricultural 
text was keeping the process from moving forward raised 
familiar concerns among Colombia,s protectionist agriculture 
sector. 
 
----------- 
Differences 
----------- 
 
3.  (C) On April 26, USTR transmitted to Colombia the U.S. 
version of the final text.  While initially pleased they 
finally had the text, the GOC quickly identified five (in 
their view) significant discrepancies in the agriculture 
text.  On May 2, the GOC and USTR held a conference call to 
discuss the verification of the FTA texts.  According to the 
GOC, the conversation did not go well.  Discouraged by the 
lack of progress at the working level in resolving these 
differences, Minister of Agriculture Andres Arias identified 
the following areas of concern in a May 3rd letter to USTR 
Ambassador Crowder: 
 
-- definitions related to the agreement on chicken leg 
quarters 
-- the U.S. alternative proposal concerning administration of 
the TRQ on rice and chicken leg quarters through the use of 
an export trading company 
-- reference to the Certificate of Quota Eligibility in the 
administration of the sugar quota 
-- differences in growth rates of the crude soy bean oil and 
variety meats, along with safeguard measures on spent fowl 
and beans 
-- other tariff line and text discrepancies 
 
In the letter, Minister Arias requested a meeting with 
Ambassador Crowder to resolves these differences, which will 
take place on Tuesday, May 9 in Washington. 
 
--------------------------------- 
Colombia Questions Our Good Faith 
--------------------------------- 
 
4.  (C) The delay in passing along the U.S. FTA text, the 
differences found in the agricultural chapters, and the 
USG,s perceived lack of attention to Colombia,s concerns 
have raised the public profile of what is normally a quiet 
government-to-government review of a negotiated agreement. 
During the week of May 2, Senior Colombian trade officials 
were called before members of the Colombian Congress to 
respond to questions concerning the delay in publication of 
the FTA texts.  During these sessions, Trade Minister Botero 
and Agriculture Minister Arias reported that differences in 
the USG version of the agriculture text were holding up the 
verification process.  The Colombian press seized upon this 
testimony and generated a number of reports accusing the U.S. 
of negotiating in bad faith through attempts to renegotiate 
the most sensitive areas of the agriculture deal. 
 
------------------------- 
Concerns Merit Press Play 
------------------------- 
 
5.  (U) After the initial flurry of reporting on the end of 
negotiations and the GOC's roll out of the agreement (Ref B), 
the press is now questioning the delay in publishing the FTA 
text.  These reports and others (Ref A) concerning 
descrepencies in the agriculture text are providing FTA 
critics an opportunity to attack the negotiation and 
verification process as lacking transparency.  Several 
liberal party politicians have come out against the FTA in 
press, suggesting the delay in publishing the text is an 
inidcation the U.S. and GOC are hiding sensitive provisions 
from the public.  The verification of the FTA text is 
front-page news in Colombia, and a critical mass of negative 
local reporting during this stage of the FTA process could 
affect ratification. 
 
----------- 
Way Forward 
----------- 
 
6.  (C) At the request of the GOC, the final FTA text, 
excluding the agriculture chapter, will likely be published 
early in the week of May 8.  FTA critics and press reports 
will likely focus on the absence of the agriculture chapter 
as confirmation that the two parties are far apart on 
sensitive issues that were suposedly concluded in February. 
Colombian officials hope the May 9 meeting with Ambassador 
Crowder will quickly resolve their concerns over 
discrepancies found in the ag chapter and quiet public debate 
of U.S. intentions.  The GOC will then focus on the signing 
of the FTA and ratification of the agreement through 
Colombia,s congress.  President Uribe will likely kick off 
the national debate concerning the FTA when he opens the new 
session of Congress on July 20.  The recent congressional 
elections resulted in a significant number of new 
legislators, and the GOC is preparing FTA-related materials 
public relations strategies designed to win the support of 
these new members of congress.  Parties that support 
President Uribe did very well in the election, and Ministry 
of Commerce officials are confident they will win 
ratification, perhaps as early as the end of this year (Note: 
There is no required consultation period between the signing 
and ratification of the agreement.  Debate on the FTA can 
begin in Colombia,s congress without a signed version of the 
agreement.) 
 
------- 
Comment 
------- 
 
7.  (C) Colombian trade officials are frustrated with the 
USG.  The GOC considers itself an important ally of the U.S. 
and one of the region,s strongest supporters of free trade. 
They are puzzled by a perceived lack of USG interest in 
moving forward with their agreement.  Given the recent 
turmoil in the Community of Andean Nations and the 
nationalization of the Bolivian gas fields, moving forward as 
quickly and collaboratively as possible on this FTA would 
provide an attractive alternative vision for the future of 
the region.  Publishing the FTA text without the agriculture 
chapter will raise even more questions about U.S. intentions. 
WOOD