Bush removes the ATPDEA and Bolivia is searching markets

Trade. The market that generates $us 400 millions in exports is closing. The Chancellery takes it like an attack to the State and announces the search of new buyers, but admits that this is complicated.

Exporters: there are 120.000 jobs at risk and the fourth best client
The President of USA, George W. Bush, decided to suspend the preferential tariffs for Bolivia because of ‘their lack of cooperation in the fight against the drug trafficking’. This decision was described by David Choquehuanca, chancellor, as an aggression , and the producers express their concern about the possibility of losing a market of $us 400 million of manufacturated Bolivian products, that generate 40.000 direct employments and another 80.000 indirect. Bush announced the decision to suspend the benefit of the Law of Andean Trade Partnership and Drug Eradication Act (ATPDEA) in a statement sent by their Exterior Commerce Representative, Susan Schwab.

‘The recent actions of the Morales Administration in connection to the cooperation in the fight against the drug traffic, are not the ones of a partner and don’t honor the regulations of the program’, Schwab said in a press release, quoted by the EFE. The ruling party and the opposition coincide that this is a retaliation of the US Government due to the declaration of persona non grata (expulsion) of the ambassador Philip Goldberg, who Morales accused of the intromission in internal affairs and of conspiring to destabilize its Government.

Bush’s decision to come into effect needs, that his administration has to publish an add in an official journal. Then a 30 day deadline will pass and a public audience will be summoned to then elevate the tariffs for the Bolivian products that belong basically to wood, jewels and textiles. This procedure doesn’t need the approval of Congress, because it’s a unilateral benefit of the US. That can be suspended freely.

The Atpdea was terminated three years ago, but was extended three times by the American Congress. Bolivia requested formally a new extension, since the deadline ended on December 31st. Choquehuanca said that he considered Bush’s decision unfair, since Bolivia was the Andean Country which obtained the best results in the fight against drugs traffic from the last few years. Also, he assured that a mixed committee of the Government has, in two weeks, meetings with their peers in Vietnam and China to explore alternative markets to the USA.

In turn, the vice minister of Exterior Commerce and Economic Relations, Pablo Guzmán, explained that since last year the Government is looking for ‘alternative markets’ , although admitted that is very difficult to replace that niche, specially the American one.’ He added that the strategy to ‘diversify the buyers’ and therefore, new markets have been opened in Brazil and Venezuela. The exports in both countries have increased and reduced the shipments towards USA.

To Michiaki Nagatani, president of the Committee of Foreign relationships of the Chamber of Representatives, the bad news is not for President Morales, but for the poorest of the country, which are the ones that benefit from the Atpdea. ‘To USA this is not significant, but for Bolivia is vital. This is the consequence of the bad way in which Morales has handled the relations with USA. The ones paying the bill are going to be the people.’ He said. His peer of the Senate Tito Hoz de Vila coincides with Nagatani and adds that ‘we couldn’t wait that after giving the gringos a beating they would give us a hand extending the Atpdea’.

On his part, the chief of the party whips for MAS, César Navarro, member of the parliament, acknowledged that the decision is a reaction to the expulsion of Goldberg, but considers that this will isolate more the USA in the international community.

The deterioration of the relationships

Notifications. In four different occasions in less than a year, the chancellor, David Choquehuanca, summoned the US Ambassador, Philip Goldberg, to give explanations about his acts. The first one was about a photo in which he was next to a Colombian. The second time was about a statement about the president, the third one he accused him of conspiring and the fourth about a meeting with Ruben Costas.

The call. United States, confronting this situation, called Goldberg for consultation in Washington.

Take over. The coca growers occupied the offices of the United States Agency for International Development (USAID), demanding them to leave Chapare. Later, the alteños tried to take over the Embassy in La Paz. The police dispersed them and the commandant was dismissed.

Expulsion. At the end of August, the Vice minister of Social Defense, Felipe Caceres, announced that USAID had concluded its work in Chapare.
Non grata. In the past August 10th, president, Evo Morales, instructed Choquehuanca to pronounce Goldberg persona non grata so he should abandon the country in three days. USA did the same with Gustavo Guzman.

We don’t have to act impulsively
Hugo Siles / Analist

George Bush decision of suspending the preferential tariffs is a reaction of the North American exterior policy to the weakening of the bilateral relationships with Bolivia. It is a clear sign that USA doesn’t agree with the actions and declarations of President Morales, who accused Philip Goldberg of being part of the conflictive situation.

This will have implications and reactions from the Bolivian side, which will weaken even more the relations of both states. Morales might decide expel more American institutions, even make a complaint to multilateral entities, like the CAN. The alternative that will replace the lost market can be to ask the tariff suspensions to Europe, through a Generalized Preference System (SGT plus) . What we have to expect is that the reactions of our government aren’t impulsive, that they’ll remain calm and that they’ll think that in January, USA will have a new president. Whoever gets elected will have to review their relationships with Latin America and Bolivia. Then we should seek to revert that decision.

Source: El Deber Newspaper, September 27th, 2008
http://www.eldeber.com.bo/2008/2008-09-27/vernotanacional.php?id=0809270...