USA - US suspends Bolivian trade deal over drug war

[Mr. Giraffe]

US suspends Bolivian trade deal over drug war

By DAN KEANEThe Associated Press
Thursday, November 27, 2008; 12:10 AM

LA PAZ, Bolivia -- President George W. Bush is suspending a key trade pact with Bolivia, saying the South American country failed to cooperate with U.S. anti-drug efforts.

Bolivia's participation in the Andean Trade Promotion and Drug Eradication Act will end Dec. 15, the White House announced on Wednesday, dealing another blow to deteriorating relations between the two countries.
The trade agreement gives Andean nations breaks on some U.S. tariffs as a reward for cooperation in the drug war. Though the effects are still unclear, the suspension could jeopardize some 20,000 Bolivian manufacturing jobs and $150 million in trade between the two countries.
U.S. State department officials could not be reached for comment, and the Bolivian government did not immediately comment on the suspension.
But President Evo Morales has expressed little remorse over losing special status with his country's third-largest trading partner, having long opposed U.S. involvement in Bolivia as a threat to its sovereignty.
"We have decided to continue dignifying Bolivia by rejecting any condition on trade," Morales said at a trade fair held earlier this month to encourage Venezuelan businesses to buy products that went to the U.S.
He also suggested Brazil and Mexico were possible alternate markets "for those Bolivian products punished by the United States government."
But some business owners are worried.
"What we're doing here is trying to find a replacement" for the U.S. market, said Marcos Iberkleid, owner of the Bolivian textile manufacturer Ametex, while attending the Venezuelan trade fair. "But that's just substituting one market for another, when what Bolivia needs is to grow. We should be adding markets instead."
The decision was widely expected after the U.S. placed Bolivia on an anti-narcotics blacklist in September, amid growing tensions.
Coca farmers in Chapare expelled U.S. development aid workers, saying their programs were ineffective. Then Morales eventually booted the U.S. ambassador and Drug Enforcement Agency, accusing both of conspiring with the opposition.
U.S. officials have repeatedly denied any political meddling. They counter that American cooperation with Bolivian anti-drug efforts dates back three decades and includes governments across the political spectrum.
Ametex is concerned the suspension could result in layoffs.
Iberkleid's 3,500 employees churn out one million T-shirts a month, including designer lines such as Polo, with some 70 percent going to the United States.
Under the suspension, the shirts will be tagged with an 18 percent tariff _ a hike Ametex officials say will kill their chance at competing in the cutthroat U.S. market.
"President Morales has to understand he shouldn't mix politics and business," said Rodolfo Ramos, a labor union leader representing Ametex workers. "Venezuela's got a different ideology too, but they do still plenty of business with the United States."

Link: http://www.washingtonpost.com/wp-dyn...26.html?sub=AR

Reputation Comments on this post:

Danke for posting news on Evo Morales. I love reading about his adventures that may very well set off a wildfire of oppo...