U.S. moves to suspend trade benefits for Bolivia
Fri Sep 26, 2008 6:49pm EDT
By Doug Palmer
WASHINGTON (Reuters) - U.S. President George W. Bush is moving to suspend
longtime U.S. trade benefits for Bolivia because of that country's failure to
cooperate in drug-fighting efforts in the past year, the top U.S. trade official
said on Friday.
The move reflects the increasingly strained relations between the United States
and Bolivia under the leadership of Bolivian President Evo Morales.
"The Morales administration's recent actions related to narcotics cooperation
are not those of a partner and are not consistent with the rules of these
programs," U.S. Trade Representative Susan Schwab said in a statement.
"We regret that the proposed suspension that is prompted by the Bolivian
government's action could affect hard-working Bolivians," Schwab said. "Once
imposed, the suspension could be lifted as soon as the Bolivian government
improves its performance."
In La Paz, Bolivian Foreign Minister David Choquehuanca criticized the decision
as "revenge" for Morales' expulsion earlier this month of the U.S. ambassador,
accused by the leftist leader of fomenting violent protests.
"We consider this plan by President (George W.) Bush as yet another aggression
against Bolivian democracy," Choquehuanca told reporters.
He said while Bolivia would like to see trade benefits with the United States
extended, the country would strive to strengthen economic ties with Iran,
Vietnam, Brazil, Mexico, Japan, India and China.
Bolivia, Ecuador, Peru and Colombia have received duty-free status for most of
their goods under a program dating to 1991 to help fight the illegal drug trade.
Last year, U.S. imports from Bolivia totaled $362.6 million, far smaller than
from other Andean countries. That included $73 million worth of jewelry and
about $20 million of clothing and household textile goods, as well as $64
million of tin, $46 million of crude oil and $20 million of fuel oil.
The law governing the program requires the U.S. Trade Representative's office to
hold a hearing on the proposed suspension before it takes effect. That hearing
has not yet been scheduled, Schwab's office said.
COCA DISPUTE
Bolivia's recent expulsion of U.S. Agency for International Development
personnel and removal of U.S. Drug Enforcement Administration officials from the
country's main illegal coca production areas were two reasons behind the
proposed suspension of benefits, U.S. trade officials said.
"A marked increase in cocaine production, the government's failure to close
illegal coca markets, and publicly stated policies that increase
government-sanctioned coca cultivation, have placed in doubt the Bolivian
government's commitment to cooperate in the fight against drug trafficking," the
U.S. Trade Representative's office said.
Choquehuanca denied the claims and said coca cultivation in Bolivia had
increased only by 5 percent.
The decision came one day after five leading U.S. business groups urged the Bush
administration and Congress to consider ending trade benefits for both Bolivia
and Ecuador because of what they described as inadequate protections for foreign
investors in both countries.
The Andean trade preference program will expire at the end of the year unless
Congress renews it. The Bush administration has pushed Congress to extend
benefits for Colombia and Peru, while mulling what to do about Bolivia and
Ecuador.
A spokeswoman for the U.S. Trade Representative's office said the Bush
administration had not yet decided whether to propose suspending Ecuador from
the program.
Ecuador's ambassador to Washington, Luis Gallegos, said on Friday he was
surprised by the business group's letter
"Ecuador is the only country in the Andean region with zero coca cultivation.
The purpose of (the trade benefit program) is to combat drugs and there is no
better success story in the region than Ecuador in this regard," Gallegos said.
(Additional reporting by Eduardo Garcia in La Paz; Editing by Peter Cooney)
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