VZCZCXYZ0011
RR RUEHWEB

DE RUEHLP #0726 0761323
ZNR UUUUU ZZH
R 171323Z MAR 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 8463
INFO RUEHAC/AMEMBASSY ASUNCION 5689
RUEHBO/AMEMBASSY BOGOTA 2956
RUEHBR/AMEMBASSY BRASILIA 6838
RUEHBU/AMEMBASSY BUENOS AIRES 4068
RUEHCV/AMEMBASSY CARACAS 1389
RUEHPE/AMEMBASSY LIMA 1307
RUEHME/AMEMBASSY MEXICO 1671
RUEHMN/AMEMBASSY MONTEVIDEO 3639
RUEHQT/AMEMBASSY QUITO 4031
RUEHSG/AMEMBASSY SANTIAGO 8550
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS LA PAZ 000726 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
COMMERCE FOR JANGLIN 
TREASURY FOR SGOOCH 
STATE PASS TO USTR FOR BHARMAN 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON PREL PGOV BL
SUBJECT: MORALES VOWS NEVER TO NEGOTIATE AN FTA 
 
REF: A. LA PAZ 712 
 
     ¶B. LA PAZ 691 
 
¶1. (U) Summary: President Evo Morales vowed March 15 never to 
negotiate a "free trade agreement," proposing instead a 
People's Trade Agreement to benefit Bolivian small producers 
(ref A).  Business representatives reacted strongly, 
declaring Morales' announcement "a shame" and reiterating 
demands for a comprehensive pact.  End summary. 
 
¶2. (U) In a March 15 media appearance, President Evo Morales 
vowed never to negotiate a "free trade agreement" with the 
United States, proposing instead a People's Trade Agreement, 
or Tratado de Comercio de los Pueblos, to benefit Bolivian 
small producers (ref A).  Vice President Alvaro Garcia Linera 
later clarified the statement, saying Morales proposed an 
alternative agreement "as part of (an ongoing) debate, 
without closing options," but declined to explain how a new 
arrangement would protect the interests of microenterprises, 
cooperatives, and other groups. 
 
¶3. (U) Business representatives reacted strongly to Morales' 
statement.  Marcos Iberkleid, President of Ametex, Bolivia's 
leading apparel manufacturer and largest private employer, 
called the president's announcement "a shame" and reiterated 
the private sector's demand for a comprehensive pact.  He 
said he was frustrated by the GOB's "double talk" - Morales 
recently told business representatives he was open to a free 
trade agreement (ref B) - and lack of coherent policy.  He 
and other exporters are increasingly pessimistic about their 
chances of convincing the GOB to pursue a broad agreement and 
note that recent conversations with GOB officials have 
generated few results. 
 
¶4. (SBU) Comment: Morales' proposal is more than semantics 
and posturing.  It is increasingly clear that he is looking 
for a way to cut through the polemics surrounding "free 
trade" to work toward some kind of job-creating, 
export-focused pact that does not create instant populist 
opposition.  Morales is on a learning curve; this new spin is 
a tentative step forward.  End comment. 
GREENLEE