Ambassador Anne W. Patterson's Remarks before the Members of the Club de Ejecutivos, U.S. Embassy in Colombia, April 26, 2001

Ambassador Anne W. Patterson's Remarks before the Members of the Club de Ejecutivos, U.S. Embassy in Colombia, April 26, 2001
Ambassador Anne W. Patterson's Remarks before the Members of the Club de Ejecutivos

Bogotá, Thursday, April 26, 2001

I'm very pleased to have the opportunity to be with you today. I thank Enrique Chiappe and Rodolfo Amaya of the Executive Club for inviting me. I am especially glad to have the opportunity to talk with Colombia's business leaders about our bilateral priorities this year. We have a very full agenda.

First of all, I would like to share with you, as business leaders, the priority topics for this year's bilateral trade and investment agenda, including the extension and expansion of the Andean Trade Preferences Act.

Second, I would like to give a brief progress report on the U.S. counter-narcotics and alternative development activities that began in December of last year as the U.S. contribution to Plan Colombia.

Thirdly, I would like to comment briefly on how the security situation in Colombia is affecting the business and investment climate; the impact of security concerns on our bilateral trading relationship, and what the embassy is doing to help.

Bilateral relations between our governments have never been better. In the trade and investment area, we are in continual contact with your Ministry of Foreign Trade, with PROEXPORT, and COINVERTIR. Minister of Foreign Commerce Marta Lucia Ramirez de Rincon, PROEXPORT President Angela Maria Orozco, and CONINVERTIR President Enrique Umaña all work with us and the Colombian American Chamber of Commerce on a variety of programs designed to promote Colombia's competitive advantages as a business and investment partner for U.S. companies.

If last year the primary focus of the U.S.-Colombian relationship was the successful effort to convince the U.S. Congress a major new assistance package was vital, this year attention will be focused on an equally important and sensitive area: trade policy. In President Pastrana's meetings with President Bush and other top officials during his visit to Washington in February, the topics of trade and investment were treated with the same interest as counternarcotics, security, and human rights issues which in recent years have formed our agenda.

The Washington meeting effectively produced a work plan for our two countries to intensify bilateral commercial relations. Perhaps the best known subject was the Andean Trade Preferences Act (ATPA) which expires in December. The U.S. has committed to the renewal of this legislation which, by providing tariff concessions for a range of non-traditional products, such as cut flowers, has created thousands of jobs in Colombia and the U.S.

According to Ministry of Foreign Commerce estimates, between 1992 and 1999 ATPA generated $1.2 billion in products and more than 140,000 jobs in Colombia. ATPA continues to have a major impact on the Colombian economy. For example, cut flower exports to the U.S. increased approximately 14%, from $310 million to $350 million, between 1999 and 2000.

During the Summit of the Americas in Quebec last weekend President Bush renewed his commitment to extend ATPA as an integral part of the Andean Initiative. But besides extending ATPA, the Bush Administration has said clearly it is interested in expanding its reach to include other categories of products. This is an effort to achieve the original objective of ATPA: to strengthen the legal economies of the beneficiary countries to enable them to confront the narcotics trafficking.

We all need to be extremely clear-headed about extension of ATPA. The unilateral trade preferences are always controversial in the U.S. and elsewhere. ATPA beneficiaries in the public and private sectors will have to work with the Bush Administration to present to the U.S. Congress a strong case demonstrating how this expansion serves our common interests. They will also need to be realistic about what trade preferences they can hope for, and coordinate their efforts along those lines. There will to be a great debate about apparel and textiles. I am confident Colombia, which played a key role when the U.S. Government debated the original ATPA ten years ago, will again show leadership.

But important as ATPA is, it is not the only area in which our two countries look to deepen their trade partnership. During President Pastrana's visit, our two countries agreed to work together to negotiate a Bilateral Investment Treaty (BIT). Such agreements provide foreign investors with a high level of legal protection, comparable to domestic firms. The Bilateral Investment Treaty would build upon President Pastrana's successful effort to amend Colombia's constitution to repeal a provision which allows in principle expropriation of foreign businesses without compensation.

Such a treaty would send a signal to U.S. corporations that Colombia offers good investment possibilities and would help overcome perceptions of security problems in Colombia. It is my hope our two governments can work together quickly to reach agreement on the text of a Bilateral Investment Treaty - which is in our strong mutual interest.

The third key element of our two countries' trade policy agenda is the regional effort to negotiate a Free Trade Area of the Americas (FTAA). The meetings of heads of state at last week's Summit of the Americas in Quebec demonstrates the importance of the trade policy agenda for our two countries and the region. The Summit was a great success. Important meetings took place between the heads of state of the Hemisphere, particularly between President Bush and the heads of state of the Andean countries. The Declaration of Quebec promises to establish the Free Trade Area of the Americas by the year 2005.

The FTAA will extend the benefits of free trade to all countries of the Hemisphere and has the potential to put this hemisphere on the track of sustained economic growth. When it enters into effect, the FTAA will be the largest free trade area in the world, with a gross regional product of more than $10 trillion. To achieve this goal President Bush has promised to request "fast track" authority from Congress. This will be controversial and I know the Bush Administration is studying the best way to proceed.

During the Summit President Bush also spoke about his proposal to finance the Andean Regional Initiative after October 2002. This initiative will include $882 million in development assistance, for the strengthening of democratic institutions and for regional counter narcotics programs.

I know you have followed the progress of our counter-narcotics activities in the media, as well as your government's consultations with other nations about the broader economic and social development needs. And I know that you, as Colombians, are extremely concerned about important questions regarding the future stability and prosperity of Colombia. For that reason I would like to speak to you briefly about U.S. support for Plan Colombia.

The first stage of Plan Colombia has been simple: attack coca in Putumayo, which has the highest concentration of coca cultivation ever seen. This gives us an advantage, because it is easer to attack concentrated growth than small plots throughout the Andes.

Of practically the same urgency has been fortifying Colombia's legitimate security forces, the National Police and the Armed Forces of Colombia, to increase their capacity to act against the traffickers and protect civilians. Without these two vital elements, none of the other parts of the solution can be accomplished.

Other elements of Plan Colombia, such as alternative development and strengthening the justice system and local governments, are of equal or greater importance for Colombia. Nonetheless, they cannot be achieved without first achieving greater security. This package of policies can increase national security, contribute to social peace and improve the investment climate and job creation.

Plan Colombia has started to show success. The government of the United States has already started delivering the first $1.3 billion of assistance.

The Bush Administration will request another $500 million for Colombia and a similar sum for the other Andean countries to fight drugs, for alternative development and for social programs. It has always been understood the majority of U.S. assistance, specially in the first stage of Plan Colombia, would be to support a quick start of the eradication and security programs. Therefore, more than $800 million of the initial assistance is for helicopters, spray planes, training and other forms of assistance for the police and the counter narcotics brigade of the Colombian Army.

The 500 million dollars we are requesting this year will be divided equally between social and security programs. The U.S. and Colombia have counted on Europe for help with significant financing of the social programs of Plan Colombia. It has been a slow process, but we hope the Europeans will soon join in and commit to significant support.

The plan has started very well. As of last December 19, working more airplanes, more than 35,000 hectares of coca in Caquetá and Putumayo and 4,000 hectares of coca in southern Bolívar have been sprayed and destroyed. To better understand this figure: in all of last year only 45,000 hectares were eradicated. This means 100 tons of cocaine will not reach the United States and Europe, nor will they fuel the FARC or the paramilitaries.

The two counter narcotics battalions, currently the best trained troops on the continent, have destroyed more than 100 cocaine base laboratories, captured or killed many guerrillas involved in drug trafficking, and destroyed their encampments. These troops operate accompanied by legal and human rights authorities to assure they comply with international human rights standards. In general, I would say these troops have realized that, facing a disciplined, well trained, organized and equipped force, the FARC are not such a difficult adversary.

If we continue at this rate, Colombian forces will have achieved a substantial reduction in the production of narcotics in Putumayo before the end of the first two year stage of Plan Colombia. It is already evident many coca workers are not returning to Putumayo.

Many governors and mayors are opposed to forced eradication and prefer manual eradication. Many complain fumigation harms the environment. Forced eradication is essential for many reasons: because much of the coca and poppy cultivation is in combat zones or areas initially controlled by the guerrillas; because without the stick of forced eradication there are insufficient incentives for coca growers to sign a manual eradication agreement, and because some cultivations are so large and located in areas of such low population manual eradication is not a practical option.

Finally, I would say the only way to save the jungle is to convince the criminals they cannot gain from its destruction. Once planted, coca takes from 12 to 18 months to produce. The authorities are going to destroy coca faster than it can be planted, and long before it produces a profit.

Colombia is at an economic, social and political crossroads with very positive prospects if it can progress toward peace and stability. Nonetheless, the country cannot achieve its potential without resolving internal conflicts and putting an end to trafficking, processing and large scale cultivation of coca. We believe it is of global interest that Colombia do so.

The United States has achieved some success in reducing demand. But even if we were able to reduce demand considerably, it would probably enough to cause serious problems in Colombia. It simply is a question of size: we are an economy of more than $9 trillion, more than 100 times the size of that of Colombia.

Although economists agree the recent Colombian recession has ended and they note growth in certain sectors, currently few businessmen think only in economic terms. Business and investment confidence has been gravely weakened by uncertainty and lack of security.

There is a very vigorous international business community in Colombia, with hundreds of well-established companies committed to their long term presence here. This is not difficult to understand given what Colombia has to offer in terms of natural and human resources, a strategic location, well developed infrastructure and industrial capacity and a modern business environment. Colombia is one of the most under-valued and most competitive economies in the region.

I am aware that some parts of the Colombian business community believe the State Department Travel Advisory is not fair because it does not differentiate between security conditions in the rural areas and in the major cities. We have explained the State Department warning is general, designed for the broadest possible audience. It does not differentiate between the risks of travel in Colombia's troubled regions, and travel to major cities such as Bogotá, Medellin, Cali and Barranquilla and resort areas such as Cartagena.

I understand how difficult this is for companies that need to do business with U.S. companies. Often their corporate boards and security executives in the U.S. (or their corporate liability lawyers) decide, on the basis of the warning, or what they see on the news, that all of Colombia is simply too dangerous a place. They do not want anyone to travel to Colombia, much less establish a business here. It is unfortunate the international media frequently focus only on violence and Colombia's problems, instead of mentioning the natural beauty, the cultural riches or the hospitality of the Colombian people.

I cannot promise the State Department will change its travel advisory until the security situation improves throughout Colombia. There are very real security and liability concerns here that caused the warning in the first place. However, I think there are some things we in the Embassy can do to help visitors make informed decisions about travel to various parts of Colombia.

The Embassy works closely with business organizations in Bogotá, Cali, Medellin, Barranquilla and Cartagena to make sure communication and coordination between the embassy and the U.S. business community are the best possible. What the United States Government and the Embassy in Colombia do - and will do - is provide the best information and cooperation possible to help them. We recognize businesses are deterred by negative coverage in the media and the travel advisory and that many of them are missing excellent trade opportunities.

The regional security officer, Charlie Sparks, and the commercial counselor, Karla King, are always available to talk to individual companies about their business objectives and travel plans. I suggest you refer your clients to them for more specific questions.

In addition, I am willing to offer my own support to organizations recruiting U.S. participants for trade shows and events and conferences in Colombia. For example, right now we are working very closely with ASOCOFLORES to help them recruit for PROFLORA, their international trade fair promoting the Colombian flower industry. We hope there is a large and enthusiastic turn out of American buyers and equipment and services suppliers in September. We are also supporting ANDINAPACK, the large food processing and packaging show scheduled for October at Corferias in Bogotá.

While I'm still on frustrating subjects, I would like to acknowledge the difficulties some businesses are encountering because of the visa situation. The consular section handles 1,400 case every day. Currently there is an almost a two year backlog in the availability of appointments for non-immigrant visas, including those for business and tourism. This is because the enormous increase in demand by Colombian citizens for U.S. visas has overwhelmed the consular section's capacity to process them. This is particularly frustrating for people who need to travel to the U.S. to conduct business, or to participate in training and trade events. There is no instant solution, but we recognize business must go on.

My first piece of advice is that you, as executives, start the visa process now for any employee who might need to travel to the U.S. in the next several years. That way they will be prepared when they need a visa. Second, on rare occasions, when unexpected business events of mutual interest arise, the commercial service of the Embassy may be able to assist you. If your requirements meet strict criteria they can request an early appointment for the visa interview with the Consular Section. However, let me emphasize this is a special case and the request for early appointment does not guarantee a visa will be granted. That is a consular decision based on established criteria.

I know that in the past few weeks there has been a lot of publicity about the decision of the Immigration and Naturalization Service to require a visa for Colombian citizens to transit the U.S. en route to other destinations. This is an unfortunate but necessary action to deal with the escalating rate of visa fraud and abuse by Colombians, particularly in Miami.

Fortunately, there are many other routings available to travel without transiting the United States. In those few cases where there are unusual emergency circumstances or no other alternatives to travel, the consulate general will try to accommodate the traveler.

In closing, I wish to thank you for the opportunity to meet with you today. I am optimistic. I think we are making progress on trade, investment and security. I am committed to working with the Government of Colombia to bring peace and prosperity to Colombia.

Thank you.

Bogotá, D.C.
April 26, 2001

As of May 17, 2001, this document was also available online at http://usembassy.state.gov/posts/co1/wwwha007.html