Bolivia

Over the last two years, COPLA has investigated a wide range of topics relating to trade, poverty and social exclusion in Latin America. Given the failings of orthodox trade theory to deal with these issues, our researchers have applied cutting-edge research techniques to help them to understand these complex linkages.

The arrangement establishes that the Venezuelan State Industrial Supplies will buy all the total production of the ATPDEA that used to be sent to the U.S.A. The Government launched the fund of $us 8 millions to grant to exporters The Bolivian president Evo Morales thanked yesterday ‘the opening of the Venezuelan Market’ to the Bolivian textiles to face the ‘blackmail’ of the USA, behind the signing of these commercial agreements. According to a report of the Ministry of Production and Microenterprises of Bolivia, the agreement allows that the Venezuelan State Industrial Supplies (Suvinca for its Spanish acronym) ‘executes the purchase of all the Bolivian exportable demand in substitution of the ATPDEA (Law of the Andean Commercial Promotion and Drug eradication)’. ‘ The USA tries to sabotage Bolivia with protectionist policies, wants to cut our exports of textiles’ the president accused, who was accompanied by the Production and Microenterprises Minister, Susana Rivero. The signed agreements include a commercial cooperation agreement between Bolivia and Venezuela and a specific mechanism of textiles export between the State organizations Promueve Bolivia and Suvinca. ‘ The country where there is more drug trafficking, Colombia, they don`t punish (….) If they persist in the obstacles ( of USA), the next to be expelled will be the DEA ( Antidrug Department of that country), not only the ambassador’ warned Morales. In September, the Bolivian Government expelled the American Ambassador Philip Goldberg in Bolivia. Evo Morales stated that the United Nations recognize that his country fights hard against the drug trafficking of the region. The negotiation of the Government of Morales in Venezuela expects to relieve the concern of Bolivian entrepreneurs after the USA decision of initiating a process to suppress Bolivia of the preferential tariffs assigned to the Andean countries for their efforts against the drug trafficking struggle. The agreements that fall within the framework of the ALBA, Bolivarian Alternative of the Americas were confirmed by Morales and his Venezuelan colleague Hugo Chavez, in the Luapa ground base, from where the Venezuelan satellite was launched. Caracas and La Paz, EFE and La Razón. Credits for Exporters The government approved a decree to create a fund of US$ 8 millions, with the objective to grant credits to the textile exporters and to cover the tariffs to sell their production to USA. The action responds to the current suspension of the benefit of zero tariffs established by the Law of the Andean Commercial Promotion and Drug eradication (ATPDEA). The Minister of Treasury, Luis Arce, and the vice minister of Exports, Huascar Ajata, announced yesterday the emission of the Decree 29766, which authorizes the finance portfolio to create a trust of US$ 8 millions, with resources of the General National Reserve. In two previous occasions, in days prior to the expiry date of the tariff preferences, the Executive had already emitted two similar decrees that established the use of the US$ 8 million to cover the tariffs facing the end of the ATPDEA. According to the governmental ABI, the resources will be managed by the Productive Development Bank (BDP for its Spanish acronym). To access the credits, the affected exporting enterprises should register in the state platform of alternative markets. The five steps 1 Register • The Enterprise has to register in the platform o for Exporters in Promueve Bolivia to be accredited before Suvinca and the Venezuelan Ministry of Trade. 2 Round table • The next step is to participate in the round table of exchange and integration to establish the agreements with the buyer, which is the Venezuelan State Suvinca. 3 Agreement • According to the Executive, they have to agree and subscribe the commercial alliances to establish the conditions of the exportable products and the funding. 4 Bond • The Ministry of Production and Microenterprise points out that the forth step is to is to deal with the bond to access the down payment of 50% of the value of the purchase. 5 Sale • According to the report of the portfolio directed by Susana Rivero, as soon as the four steps are accomplished, the enterprises can export their production to Venezuela. Points of view ‘The mechanism isn’t clear’ GARY RODRÍGUEZ. IBCE General Manager ‘The mechanics aren’t clear. There are more questions than answers, that only time will confirm if they were worthy or not. Amounts are not established. We would like to think that the sale will be free, but it doesn’t say the moment it’s going to be activated. Once more the common mistake is committed that the governments will be in charge of the trade, when private agents should be the ones doing it.. In the forum that we did in September, more than 100 voices expressed the recommendation that the governments should generate the environment so that private enterprises could do what they know how to do: invest, produce and trade according to the market’. ‘We have to see the details’ MARCOS IBERKLEID. Ametex President ‘ We tried to find the terms of the agreement, not an opinion. I heard from the absurd to the sublime. It is a theme of enormous importance to the enterprises and Bolivia. I believe that we have to make precise measurements and see where the opportunities and challenges are. We haven’t participated nor in the design neither in the signature of this. We should support the government in the attempt to find better mechanisms. The industry and the exporters need a market. I think this deserves a closer look in detail, if we could find a bigger market, fantastic. But we need to understand the details of the agreement’.