UPDATED ON:
Friday, October 24, 2008
00:50 Mecca time, 21:50 GMT
 
News Americas
US suspends Bolivia trade pact
Morales accused Washington of imposing punitive sanctions similar to those on Cuba [EPA]

The United States has suspended a trade deal with Bolivia over what it said was the country's poor attempts to combat drug trafficking.

Condoleezza Rice, the US secretary of state, made the announcement on Thursday as Bolivian delegates arrived in Washington to negotiate the trade deal.

""We were prepared and remain prepared to work with the Bolivian government,"" Rice said, speaking after a meeting in Mexico.

""President [George] Bush has made very clear that there is no ideological test for co-operation and friendship with the United States.""

Bolivia estimates that 20,000 workers will lose their jobs as a result of the move and more than $300m of its exports will be moved out of the US market.

Evo Morales, Bolivia's president, criticised the suspension as being part of ""punitive"" sanctions similar to those placed on Cuba.

""We don't have to be afraid of an economic blockade by the United States against the Bolivian people,"" he said.

The 17-year-old Andean trade pact lowers fees for imports into the US from Colombia, Ecuador, Peru and Bolivia in exchange for co-operating with a US anti-drug campaign.

Bush had signed a six-month extension of the pact last week.

Job losses

The US is Bolivia's third-largest trading partner after Brazil and Argentina.

""We don't have to be afraid of an economic blockade by the United States against the Bolivian people""

Evo Morales, the Bolivian president

The suspension will raise US tariffs on jewelery, wood and other imports from the south American state.

Relations between the two countries have soured of late.

Morales ejected the US ambassador from the country last month, accusing him of interfering in local politics.

The US responded by sending home Bolivia's senior diplomat.

Bolivia also demanded that US development projects and drug agency officials withdraw from the coca-growing region of Chapare.

Washington then blacklisted Bolivia for what it said was a failure to co-operate in anti-drug efforts and Bush recommended the suspension of the trade pact.

'Further corrosion'

Luis Alberto Arce, Bolivia's finance minister, called the raised tariffs an ""injustice"".

He met Republican and Democratic congressmen on Capitol Hill on Thursday to lobby for the pact's restoration.

Eliot Engel, a Democratic member of the House of Representatives, urged Bush not to suspend the programme as it would lead ""to a further corrosion of US-Bolivia relations"".

Dick Lugar, a Republican senator, called it a critical moment in the two countries' relationship.

""When Bolivia stands at the cusp of a new era, with a new constitution, US assistance should be forthcoming as an effort to help Bolivia, and not to be an impediment to its progress,"" he said.

 Source: Agencies
Feedback Number of comments : 4
 
Ford Ballantyne III
United States
24/10/2008
Bolivia and drugs
Maybe we should address our drug problem rather than shifting the blame to South American countries who are only responding to market demand.

Randy
United States
27/10/2008
To: Richard of Canada
Maybe instead of canceling our free trade agreement with Bolivia, we should cancel the agreement with Canada. Since it's obvious you don't give a dam about your not so-called friends to the south, I'll excercise my right not to buy anything coming from the North. The point is, you can chose to do the same, and so can Bolivia. Quit holding the US to different standards then the rest of the world. I'm sure your position would be rah-rah, if Bolivia broke the free trade agreement first.

k.
Afghanistan
24/10/2008
Lucky Bolivia.

Richard
Canada
24/10/2008
Good Riddance, and Good for Bolivia
For the time being, this will be a nuisance for Bolivia. But in the longer term, Bolivia and so many other nations will be much, much better off without relations with the United Hates. No one needs so-called ""friends"" like the United Hates. You would not make friends with drunken, violent thugs lurching along skid-row streets. This is a classic instance of ""Good riddance to bad rubbish"" and Bolivia will be better off. Way better off. The rest of the world is following along in due course.

 
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