VZCZCXYZ0009
RR RUEHWEB

DE RUEHGL #0234/01 2701520
ZNR UUUUU ZZH
R 261520Z SEP 08
FM AMCONSUL GUAYAQUIL
TO RUEHC/SECSTATE WASHDC 9548
INFO RUEHBO/AMEMBASSY BOGOTA 3399
RUEHCV/AMEMBASSY CARACAS 0481
RUEHLP/AMEMBASSY LA PAZ SEP LIMA 3820
RUEHQT/AMEMBASSY QUITO 0743

UNCLAS GUAYAQUIL 000234 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV ELAB PGOV EC
SUBJECT: GUAYAQUIL BUSINESS LEADERS FRET OVER ECONOMIC 
MANAGEMENT AND ATPA RENEWAL 
 
REF: QUITO 883 
 
 ¶1. (SBU) Summary.  On September 17, the Ambassador met for 
the first time with leaders of the Guayaquil business sector 
to hear views on the investment climate in Guayaquil, 
Ecuador,s commercial center, and priorities for the 
bilateral relationship between the U.S. and Ecuador.  Most 
participants expressed a pessimistic view of the economic 
climate and the policies of the Correa Administration.  They 
repeatedly stressed the importance of renewing trade 
preferences under ATPA.  The Ambassador discussed the 
bilateral dialogue, emphasized cooperation that increased job 
creation and reduce poverty, and sought cooperation with the 
private sector on shared goals.  End Summary. 
 
¶2. (U) On September 17, as part of the Ambassador,s first 
visit to Guayaquil, 34 representatives of the Guayaquil 
business community gathered to brief the Ambassador on the 
business situation in Guayaquil, and to hear her views on the 
bilateral relationship between Ecuador and the United States. 
 Maria Gloria Alarcon, President of the Guayaquil Chamber of 
Commerce (COC) hosted and mediated the informal question and 
answer session.  Also present from the US Mission were Deputy 
Chief of Mission, Guayaquil Consul General, Econ Counselor 
and Commercial Attache,. 
 
ATPA Renewal 
------------ 
 
¶3. (SBU) Alarcon began the meeting expressing her 
disappointment that the Free Trade Agreement (FTA) 
discussions were never completed.  She asked if any future 
treaty between Ecuador and the US would happen and if ATPA 
would be renewed.  Carlos Andrade, Interim President of the 
Guayaquil Chamber of Industry, emphasized that the GOE needed 
to work on some kind of agreement, even if it was not an FTA. 
 Bruno Leone of the Chamber of Fisheries emphasized the tuna 
industry,s long-term investments and the need for ATPA to be 
renewed.  Leone said that, "While the Correa government is 
populist, we want the USG to be more aggressive on the 
economic front.  It,s not just tuna, it,s flowers, 
broccoli-these are markets with long-term investment and we 
need to keep that in mind.'  He also noted that 
anti-narcotics cooperation with Ecuador remained strong and 
that the U.S. should renew ATPA to reward that cooperation. 
Augustin Jimenez, President of the Chamber of Fisheries, 
echoed the need for ATPA renewal, "If we don,t have 
markets, nothing matters.  We must insist on ATPA.  We can go 
on a pilgrimage to Washington if we have to."  Alarcon noted 
that Ecuadorian delegations from the fish and flower sectors 
have gone to Washington to lobby for ATPA renewal. 
 
Grim Outlook on Investment 
-------------------------- 
 
¶4. (SBU) Executive Director of the Guayaquil Chamber of 
Commerce Teodoro Maldonado told the Ambassador that the 
business community felt threatened by the lack of private 
investment as a result of concerns about the new constitution 
and the resulting instability.  AmCham President Maria 
Phillips underlined the special relationship Guayaquil has 
with the U.S. and the importance of Guayaquil as an 
employment center. The Chamber of Industry,s Andrade 
seconded the opinion: "There is no new investment and we 
need new investment for more production.  It is hard to see a 
willingness to invest.  This will depend on the GOE,s 
ability to loan money and our problem now is that the current 
government is not effective in its handling of funds." 
 
U.S. Assistance and Views of Ecuador 
------------------------------------ 
¶5.  (SBU) Andrade asked what the USG was doing to promote job 
creation in Ecuador.  The Consul General responded by 
discussing USAID projects that are being created to help 
develop the business and private sector, in particular 
micro-businesses.  Maldonado pressed the Ambassador to please 
emphasize to Washington that Ecuador was not the same as its 
neighbors in Venezuela or Bolivia and that the economic 
issues remain in the forefront of our bilateral relationship. 
 Richard Hall, a board director of the Chamber of Commerce, 
said, "We are in a place where governments are populist. 
This is their politics, but please don,t forget the business 
sector." 
 
¶6.  (U) The Ambassador briefed the business representatives 
on the Bilateral Dialogue between Ecuador and the United 
States, noting its objective of emphasizing areas of 
 
cooperation and exploring new areas of mutual interest where 
the two governments could work together. 
 
¶7. (SBU) Comment:  The group,s focus on ATPA renewal was 
notable.  These business leaders have been through the 
renewal process a number of times, and many have lobbied for 
it personally.  In a follow-on discussion, Chamber of 
Commerce President Alarcon told the CG that business leaders 
were mildly panicked about renewal this time.  Regional 
developments have the commercial sector very worried. 
Alarcon said that as soon as the news hit over Ambassador 
Goldberg,s removal from Bolivia, local business leaders were 
calling Alarcon to ask for her analysis on the impact on ATPA 
renewal. 
 
¶8.  (SBU) Comment continued: The Guayaquil business community 
has consistently had a more distant and skeptical 
relationship with the Correa Administration than has the 
Sierra business communities in Quito and Cuenca.  The 
Ambassador's business interlocutors in Guayaquil focused on 
the debilitating effects of economic uncertainty, and 
evidently do not have much access to the Correa government. 
In contrast, many members of the largely Quito-based U.S. 
business community report that they can work with the Correa 
administration, although they are also concerned about the 
unpredictable business climate (reftel). 
End comment. 
GRIFFITHS