Trade Agreements For Bolivia

Bolivia once had a traditionally positive trade balance, fueled by the structural gas needs of the Brazilian and Argentine markets. Yet Bolivia has experienced a trade deficit over the past five years. Until 2014, Bolivia had benefited from the high international price of minerals, oil and other raw materials. However, since then, the prices of these products have fallen, which has an impact on the country`s economy. In 2018, Bolivia recorded a trade deficit of 475 million $US, slightly less than last year. Exports reached $8.9 billion, while total imports were worth $9.9 billion. In trade in services, imports amounted to $3.2 billion, while exports amounted to $1.4 billion. Bolivia`s exports of raw materials to any corner of the world and its lithium chloride reserves are the largest in the world. Bolivia operates a high regional trade, 4.4 billion dollars, or 43.7% of Bolivia`s total imports, were purchased from Latin American and Caribbean countries (excluding Mexico). The WTO will excessively reduce trade costs for developing countries like Bolivia. This rule, combined with the country`s growth, has supported Bolivia`s international business activity. In 2017, Bolivia`s trade policy was reviewed by the WTO, the last of which was obsolete (2005). The main changes made during the review were made by Bolivia to its investment regime, including the government-approved nationalization of enterprises.

In addition, tariffs were raised from 8.2% in 2005 to 11.1% in 2017. Bolivia is a member of various trade agreements that help it boost the country`s business and economic growth. Bolivia`s main trading partners are Brazil, Argentina, China, India, Japan, Peru, South Korea and the United States. Trade with neighbouring countries is growing, in particular thanks to several regional preferential agreements. Bolivia is a member of the Andean Community, along with Peru, Ecuador and Colombia, and an associate member of Mercosur (Common Market of South America) – a status the country is trying to change to become a full-time member. However, some of the country`s views could make it more difficult for them to become members of the trading bloc, including its loyalty to some undemocracy governments and its rhetoric against imperialism, which often puts the country isolated and diplomatically in a difficult situation. In addition, while Bolivia is an attractive recipient of foreign investment, its international treaties often lack transparency. . . .

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