Colombians Protest Trade Pact With U.S.

[Judi Lynn]

Colombians Protest Trade Pact With U.S.
Thousands in Colombia Protest Proposed Trade Pact With U.S., Accusing Uribe of Selling Out Nation
By CESAR GARCIA Associated Press Writer
The Associated Press

BOGOTA, Colombia Oct 12, 2005 — Tens of thousands of trade union workers and Indians took to the streets of Colombia's main cities Wednesday to protest a proposed free trade pact with the United States, accusing President Alvaro Uribe of selling out the country.

"Four more years of Uribe and we'll be in a coffin," chanted the demonstrators, who urged Colombia's highest court to strike down a measure that would allow Uribe to seek a second consecutive term in office during next year's presidential elections.

Thousands of state judicial, transport and education employees walked off the job, forcing the closure of public schools and notary offices in Bogota.

The protests snarled traffic. There were also fears that Colombia's main leftist rebel group, the Revolutionary Armed Forces of Colombia, or FARC, would infiltrate the marches and incite violence.

Purported FARC leaflets distributed in Bogota accused Uribe "of placing the country in the hands of the gringos" by accepting billions of dollars in mostly military aid from Washington over the past five years to fight the insurgents.
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http://abcnews.go.com/International/wireStory?id=1206965

[McKenzie]

1. and surprise surprise...there's oil in Colombia

<snip>

But in March 2004, as noted in our May 10 article: “Colombia’s Energy Minister Luis Ernesto Mejía announced in Houston, Texas that foreign companies could negotiate contracts with the National Hydrocarbon Agency without entering into partnership with Ecopetrol.” This declaration, along with the 2003 restructuring and reforms in 2001 that dramatically reduced royalties company’s had to pay to the Colombian government, allowed Harken energy to negotiate a new contract in which it pays low royalties rates and does not have to enter into partnership with Ecopetrol. As a result, Harken “will own 100% of the contract,” which translates into the company owning 100 percent of the oil. It also means that Harken is “subject only to an initial 8% royalty payable to the Colombian Ministry of Energy.”

Harken’s contract illustrates to what degree IMF-imposed reforms have forced Colombia to make its oil available for foreign exploitation. As was noted in our May article: “Clearly, the terms have shifted dramatically in favor of foreign companies considering contracts signed four years ago called for equal partnership with Ecopetrol” and “20 percent royalty payments.”

While the Uribe administration justifies its policies to the Colombian people as necessary to avoid Colombia becoming a net importer of oil, the reality is that little of the oil or the profits remain in the country. Technically, Colombia will likely remain an oil exporter because of new contracts like the one signed with Harken. However, because Harken “will own 100% of the contract,” the company will reap all the profits from the oil it ships out of Colombia for sale overseas (i.e. the United States). Colombia will only receive an eight percent royalty payment on the value of the oil, but will be considered a net oil exporter because Harken drilled “its” oil in Colombia.

</snip>

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/02/16/MN236927.DTL

[sadiesworld]

2. Where are all our resident free traders?

Maybe they need to explain again how CAFTA will benefit the people of CA.