Trade benefits cut to Bolivia, extended to Ecuador

Ecuador and Bolivia will face different outcomes regarding vital trade benefits from the U.S.

The U.S. Trade Representative's Office (USTR) announced yesterday that it will continue to sever tariff exemptions for Bolivia under the Andean Trade Preference Act (ATPA). According to the USTR the Bolivian government has engaged in an “"explicit acceptance and encouragement of coca production” and has hurt counternarcotics efforts by booting out DEA agents last year.

The White House’s move continues the decision by the Bush administration in late 2008 to remove Bolivia from APTA benefits. Thus, Bolivian president and ex-coca-growers' union leader Evo Morales was reluctant to blame the current U.S. regime:

"Let's hope that it isn't long before the president of the United States immediately repairs the damage done by former President (George W.) Bush, and not only the economic but the political damage," he said during a speech in La Paz on Tuesday night.

On the other hand, the White house decided to extend APTA benefits to Ecuador. The decision was seen unfavorably by several business interests including Chevron who’s facing a multibillion dollar environmental damage lawsuit in Ecuador.

Ecuador, Peru, and Colombia will all receive APTA help until the end of the year though the benefits are expected to be renewed.

Image- daylife.com (“A Bolivian woman chews coca leaves and places some on her face during a protest against the U.N. coca report, in La Paz March 10, 2008.”)
Online Sources- Guardian UK, Reuters, MarketWatch, ABC News