U.S. to cut off trade benefits to Bolivia

The U.S. is suspending a trade deal with Bolivia, Secretary of State Condoleezza Rice said Thursday. She called it unfortunate but necessary because Bolivian President Evo Morales has failed to improve anti-drug efforts.

Rice made the announcement just as Bolivian envoys arrived at the U.S. Trade Representative’s office in Washington to lobby for continued participation in the Andean trade pact, which lowers U.S. tariffs for Colombia, Ecuador, Peru and Bolivia in exchange for cooperation with the U.S. war on drugs.

Bush last week signed a six-month extension of the Andean Trade Promotion and Drug Eradication Act, and it wasn’t immediately clear when Bolivia would begin losing out. Rice said the U.S. Congress will decide.

The suspension will raise U.S. tariffs on imports of Bolivian jewelry, textiles, wood and other products. Bolivia estimates that 30,000 workers would lose their jobs and more than $300 million in exports would be priced out of the U.S. market.

Diplomatic relations between the U.S. and Bolivia have soured recently. Morales booted the U.S. ambassador last month, accusing him of supporting his opponents, which the former ambassador denies. The U.S. sent Bolivia’s top diplomat home in response.