VZCZCXYZ0015
RR RUEHWEB

DE RUEHLP #2207 2281842
ZNR UUUUU ZZH
R 161842Z AUG 06 ZDK
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 0254
INFO RUEHAC/AMEMBASSY ASUNCION 6050
RUEHBO/AMEMBASSY BOGOTA 3367
RUEHBR/AMEMBASSY BRASILIA 7217
RUEHBU/AMEMBASSY BUENOS AIRES 4482
RUEHCV/AMEMBASSY CARACAS 1755
RUEHPE/AMEMBASSY LIMA 1775
RUEHME/AMEMBASSY MEXICO 1767
RUEHMN/AMEMBASSY MONTEVIDEO 3967
RUEHQT/AMEMBASSY QUITO 4386
RUEHSG/AMEMBASSY SANTIAGO 8953
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS LA PAZ 002207 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
COMMERCE FOR JANGLIN 
TREASURY FOR SGOOCH 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON PREL PGOV BL
SUBJECT: EXPORTERS' EXPECTATIONS OF ATPDEA EXTENSION BEGIN 
TO FADE 
 
REF: LA PAZ 2079 
 
¶1. (SBU) Summary: Expectations of an extension of the Andean 
Trade Promotion and Drug Eradication Act (ATPDEA) have begun 
to fade, as exporters gradually accept that the GOB stands 
little chance of securing a continuation of existing trade 
preferences.  Even so, many La Paz and Santa Cruz businessmen 
seem reluctant to face reality, holding out hope that Garcia 
Linera's proposed September trip to Washington will yield 
positive results.  Despite our warnings that an ATPDEA 
extension for Bolivia is unlikely (reftel), neither 
businessmen nor the GOB seem ready to abandon their push for 
an extension or consider a comprehensive trade arrangement. 
End summary. 
 
¶2. (SBU) Widespread expectations of an extension of the 
Andean Trade Promotion and Drug Eradication Act (ATPDEA) have 
begun to fade, as exporters gradually accept that the GOB 
stands little chance of securing a continuation of existing 
trade preferences.  Confederation of Private Businessmen 
President Roberto Mustafa told Econoff August 10 that recent 
comments from U.S. congressmen have begun to sink in, 
increasingly convincing exporters of the near impossibility 
of obtaining an ATPDEA extension.  Marcos Iberkleid, 
President of Ametex, Bolivia's leading apparel manufacturer 
and largest private employer, echoed Mustafa's statements 
August 11, noting that Vice President Garcia Linera's July 
19-23 trip to Washington had provided little reason to hope 
for favorable U.S. congressional action. 
 
¶3. (SBU) Despite signs that an ATPDEA extension is highly 
unlikely, many La Paz and Santa Cruz businessmen seem 
reluctant to face reality, holding out hope that Garcia 
Linera's proposed September trip to Washington will yield 
positive results.  Iberkleid mentioned that many businessmen 
viewed the impending lobbying effort as the GOB's last chance 
to make its case for an extension, with some expressing 
guarded optimism that Garcia Linera would return with signs 
of greater U.S. congressional interest in extending existing 
trade preferences.  Iberkleid's comments coincided with those 
of Gabriel Dabdoub, President of the Santa Cruz Chamber of 
Industry, Trade, Services, and Tourism (CAINCO), who told 
Econoff August 14 that many exporters may not seriously 
prepare for the end of ATPDEA until they learn the final 
results of GOB lobbying efforts. 
 
¶4. (SBU) Comment: Despite our warnings that an ATPDEA 
extension for Bolivia is unlikely (reftel), neither 
businessmen nor the GOB seem ready to abandon their push for 
an extension or consider a comprehensive trade arrangement. 
Mustafa said he believed the U.S. congress would find it 
prudent to renew ATPDEA to prevent Bolivia from slipping 
entirely into the Chavez/Castro orbit, while Iberkleid noted 
that GOB officials seemed convinced the United States would 
have no choice but to extend ATPDEA trade preferences, lest 
critics accuse it of "turning its back" on Bolivia.  While 
these perceptions persist, GOB officials will likely cling to 
their hopes of an ATPDEA extension.  End comment. 
GREENLEE