VZCZCXYZ0007
RR RUEHWEB

DE RUEHLP #3370/01 3471817
ZNR UUUUU ZZH
R 131817Z DEC 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 1648
INFO RUEHAC/AMEMBASSY ASUNCION 6391
RUEHBO/AMEMBASSY BOGOTA 3715
RUEHBR/AMEMBASSY BRASILIA 7585
RUEHBU/AMEMBASSY BUENOS AIRES 4835
RUEHPE/AMEMBASSY LIMA 2160
RUEHCV/AMEMBASSY CARACAS 2087
RUEHME/AMEMBASSY MEXICO 1979
RUEHMN/AMEMBASSY MONTEVIDEO 4283
RUEHQT/AMEMBASSY QUITO 4724
RUEHSG/AMEMBASSY SANTIAGO 9309
RUEHBS/USEU BRUSSELS
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS LA PAZ 003370 
 
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: BOLIVIA REACTS ENTHUSIASTICALLY TO ATPDEA EXTENSION 
 
REF: A. LA PAZ 3356 
     ¶B. LA PAZ 1466 
 
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SUMMARY 
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¶1. (SBU) Bolivian government and business representatives 
reacted enthusiastically to news of the extension of the 
Andean Trade Promotion and Drug Eradication Act.  President 
Morales and other GOB officials expressed satisfaction and 
promised to send a team to Washington in January to begin 
negotiating a long-term trade agreement, and exporters 
declared the extension a "relief" and a sign of American 
goodwill.  Speaking at a press event December 11, the 
Ambassador declared the USG ready to negotiate a trade 
agreement but said the initiative lay with the GOB; the 
Ambassador also said the USG would be watching Bolivian 
democracy "closely" and noted that it would influence any 
future trade talks.  Vice President Garcia Linera told the 
Ambassador December 12 that the GOB considers the negotiation 
of a comprehensive trade arrangement an appropriate next 
step; ref A reports on the meeting in more detail.  End 
summary. 
 
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GOB OFFICIALS EXPRESS SATISFACTION 
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¶2. (U) GOB officials reacted enthusiastically to news of the 
extension of the Andean Trade Promotion and Drug Eradication 
Act (ATPDEA).  At the December 8-9 South American Summit in 
Cochabamba, President Morales claimed credit, declaring 
himself the first Andean leader to push for an extension and 
asserting that he was alone in encouraging the Act's renewal 
when he raised the issue in a May letter to President Bush 
(ref B).  He added that his government had secured an 
extension without spending millions on lobbyists, in contrast 
to previous administrations.  Minister of Planning Hernando 
Larrazabal expressed satisfaction with the extension and 
promised to send a team to Washington in January to begin 
negotiating a long-term trade agreement; his counterpart, 
Minister of Finance Luis Arce, claimed that the GOB had 
helped secure the extension by sending two ministers to 
Washington to lobby on Bolivia's behalf. 
 
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EXPORTERS AND AMBASSADOR DELIVER REMARKS 
---------------------------------------- 
 
¶3. (U) At a December 11 press event highlighting the 
extension of ATPDEA benefits, National Chamber of Exporters 
President Eduardo Bracamonte prefaced the Ambassador's 
remarks by declaring the extension a "relief" and suggesting 
it was a sign of American goodwill.  Bracamonte expressed 
gratitude for the extension and noted that thousands of 
Bolivian laborers would now be able to keep their jobs; he 
recognized, however, that the extension was only temporary 
and urged the GOB to consider negotiating a comprehensive 
trade arrangement.  Employees' representatives echoed 
Bracamonte's comments, calling on the GOB to act to protect 
their jobs and ensure long-term access to U.S. markets. 
 
¶4. (U) Speaking immediately afterward, before a crowd of 270 
employees of a La Paz apparel manufacturer exporting goods to 
Polo Ralph Lauren and other U.S. firms, the Ambassador 
declared the USG ready to negotiate a trade agreement but 
said the initiative lay with the GOB.  He noted that GOB 
officials had done little to secure a long-term economic 
agreement and urged them to decide whether they wanted 
Bolivia "to be more than just a strategic partner, but also a 
friend."  The Ambassador said the USG would be watching 
Bolivian democracy "closely" and noted that negative change 
could influence any future trade talks, particularly if 
events seemed to contradict democratic values. 
 
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VP SAYS THE GOB WANTS TO NEGOTIATE 
---------------------------------- 
 
¶5. (SBU) Vice President Alvaro Garcia Linera told the 
Ambassador December 12 that the GOB considers the negotiation 
of a comprehensive trade arrangement an appropriate next 
step.  He thanked the U.S. Congress for extending ATPDEA 
trade preferences and expressed appreciation for executive 
branch support, specifically mentioning Secretary Rice's 
letter urging a one-year extension for all four Andean 
countries.  Garcia Linera recognized the short-term nature of 
the extension and said the GOB wanted to negotiate a trade 
agreement (albeit one whose name does not include the word 
"free").  He mentioned that the GOB would like to begin 
discussions relatively soon and recommended that the USG pay 
special attention to the five or six issues highlighted in 
the GOB's mid-September trade paper; these include 
patentability, government procurement rules, and 
international arbitration for investment disputes.  Ref A 
reports on the meeting in more detail. 
 
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COMMENT 
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¶6. (SBU) GOB officials appear to understand that an 
additional six-month extension of ATPDEA trade preferences is 
possible only if a trade promotion agreement has been 
negotiated and ratified.  Pressure from exporters and 
laborers, along with the GOB's own desire to avoid the ire 
generated by the loss of thousands of jobs, will inevitably 
lead the Morales administration to press for a long-term 
trade arrangement.  If the GOB is serious about pursuing 
negotiations and begins to demonstrate its practical side, we 
will have to develop an appropriate response. 
GOLDBERG