NEGOTIATIONS with LOADED DICE the Role of the Peruvian Private Sector in the Process of the Trade Promotion Agreement
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NEGOTIATIONS WITH LOADED DICE The role of the Peruvian private sector in the process of the Trade Promotion Agreement December 2009 Centre for Latin American Research and Education – CEDLA Bart-Jaap Verbeek MSc Cover illustration: 14 May 2004, Government Palace, Lima: Peru’s President Alejandro Toledo presents the official negotiating team four days prior to the first negotiating round in Cartagena, Colombia. Standing to Toledo’s right are Minister of Foreign Trade and Tourism Alfredo Ferrero Diez-Canseco, and Vice-Minister of Foreign Trade and Chief Negotiating Team Pablo de la Flor-Belaúnde. Note the presence of business leaders at the last row: second to the left is Roque Benavides and on the ultimate right is César Peñaranda, coordinators of CENI. In the centre of the last row stands Graciela Fernández-Baca, associated to CONFIEP. Source: Agronoticias No. 293, October 2004. NEGOTIATIONS WITH LOADED DICE The role of the Peruvian private sector in the process of the Trade Promotion Agreement December 2009 Centre for Latin American Research and Education – CEDLA Bart-Jaap Verbeek MSc 5989116 Master Thesis Latin American Studies CEDLA Master Programme Supervisor: Dr. B. Hogenboom Second Reader: Dr. P. van Dijck i Table of Content ACKNOWLEDGEMENTS ...................................................................................................................................................... iii LIST OF TABLES AND FIGURES ....................................................................................................................................... iv LIST OF ABBREVIATIONS ................................................................................................................................................... v 1 INTRODUCTION .............................................................................................................................................................. 1 1.1 The power of the paradigm .............................................................................................................................. 2 1.2 Objectives and outline of the thesis .............................................................................................................. 4 2 CONVERGENCE OF PUBLIC AND PRIVATE INTERESTS .......................................................................... 9 2.1 Neo-liberal market reforms: altering business-government relations ...................................... 9 2.2 Regulation, collective action and democracy ....................................................................................... 16 2.3 Policy networks in action: the Peruvian case ....................................................................................... 20 2.4 Concluding remarks........................................................................................................................................... 28 3 CLEARING THE PATH FOR THE TPA ............................................................................................................... 29 3.1 Competitive liberalisation .............................................................................................................................. 29 3.2 ATPDEA as the sword of Damocles? ......................................................................................................... 31 3.3 Impact and sensitivities of the TPA ........................................................................................................... 33 3.4 Concluding remarks........................................................................................................................................... 37 4 FORMAL AND REGULATORY LOBBYING ...................................................................................................... 39 4.1 Business Council for International Negotiations ................................................................................ 42 4.2 Positions of the gremios within CENI ....................................................................................................... 45 4.3 Negotiation Rounds and the Room Next Door ..................................................................................... 50 4.4 The Implementation of the TPA .................................................................................................................. 54 4.5 Concluding remarks........................................................................................................................................... 58 5 INFORMAL AND PRESSURE LOBBYING ........................................................................................................ 59 5.1 Balances of power and interests: within and behind CENI ........................................................... 60 5.2 Political pressures .............................................................................................................................................. 62 5.3 Ratifying the TPA in Peru ................................................................................................................................ 65 5.4 Ratifying the TPA in the United States ..................................................................................................... 68 5.5 Promotion of the TPA in Peru ....................................................................................................................... 71 ii NEGOTIATIONS WITH LOADED DICE 5.6 Concluding remarks........................................................................................................................................... 80 6 TRANSNATIONALISED INTERESTS ................................................................................................................. 81 6.1 US position and strategy ................................................................................................................................. 82 6.2 Assistance by US institutions ........................................................................................................................ 85 6.3 Trespassing national interests ..................................................................................................................... 87 6.4 American Chamber of Commerce (AMCHAM) ..................................................................................... 90 6.5 Concluding remarks........................................................................................................................................... 92 7 CONCLUSION .................................................................................................................................................................. 93 7.1 Business politics .................................................................................................................................................. 94 7.2 Transnationalised rules of trade policy................................................................................................... 97 7.3 Revision of the neo-liberal model on the verge? ................................................................................ 99 ANNEXES .................................................................................................................................................................................. 103 BIBLIOGRAPHY ................................................................................................................................................................... 115 iii Acknowledgements Though considered as culmination of an intensive study year, the fundamental basis for the conduction of this thesis was composed during the fieldwork research in Lima, Peru. In a period of three and a half months I gathered a great deal of written documents (magazines, opinion articles, studies, newspaper cuttings and much more material). Moreover, I had the pleasure to interview around thirty persons in private sector organisations, government agencies, NGOs and universities. I am grateful to these persons who sacrificed their valuable time to talk with me and to provide me with useful information. All talks were experienced as most enjoyable and by mentioning them here I hope to express my appreciation: Juan Rheineck Piccardo, Hernán Navarro, Iris Camacho, Jodie Judena (CEPES), Francisco Durand (University of Texas), Benjamín Armas (CNA), Juan Carlos Vargas (PLADES), Miguel Macedo and Guillermo Rebosio (CONVEAGRO), Juan Carlos León Siles (ADEX), Richard Inurritegui Bazán (SNP), Alejandra Alayza (RedGE), Miguel Canessa (PUCP), Alfredo Villavicencio (PUCP), Tom Calame (JW Marriott/AMCHAM), Ricardo Paredes (COMEX), Álvaro Henzler (UP), Luis Miguel Silva (SNI), Jaime García (Consultandes), Alvaro Díaz Bedregal (MINCETUR), Rubén Oscar Ríos Gamarra (CCL), César Peñaranda Castañeda (CCL/CENI), Aldo Defilippi (AMCHAM), Manuel Quindimil (AMCHAM), Jorge Chávez Alvárez (MAXIMIXE), Sandro Farfán Padilla (AGAP), Reynaldo Trinidad (Agronoticias), Pedro Francke (PUCP), Eduardo Albareda (USAID), and Graciela Fernández-Baca (CONFIEP). I furthermore thank those who wished to remain anonymous. I am especially grateful to those people who have helped me on my way in Lima. From an academic perspective I thank Francisco Durand, professor political science at the University of Texas at San Antonio, for making useful comments on my research. His great expertise on business groups in Peru have inspired me to conduct this thesis in the first place and I feel very fortunate