Bolivia is a signatory to some trade agreements that aid the country’s business and economic development.
World Trade Organization
The World Trade Organization (WTO) is the largest international trade organization in the world. Bolivia has been a member of the World Trade Organization (WTO) since its inception in January 1995. The World Trade Body (WTO) is a global international organization that deals with international trade rules and regulations. The WTO’s purpose is to assist countries in improving their export and import activity to undertake more international trade.
The WTO will drastically reduce trade costs for poor countries like Bolivia. Bolivia’s international commerce activity has been aided by this rule, which has been combined with the country’s expansion.
Mercusos Trade Relations
Argentina, Brazil, Paraguay, and Uruguay created Mercosur in 1991 as a regional integration project. Mercosur eventually expanded to include Bolivia, Venezuela, Colombia, Chile, Ecuador, Peru, Guyana, and Suriname. Mercosur is a trade bloc whose goal is to create a free-trade zone among its members. The goal of forming this alliance was to encourage investment, production, and trade among the alliance’s members. Bolivia was formally admitted as a Mercosur member in July 2015.
Mercosur inhabitants enjoy the right to free movement, residence, and employment inside the bloc as well as in the five affiliated nations. Citizens continue to enjoy the benefits of free transportation of products, services, and money, as well as equality of rights, social security system harmonization, and labor legislation.
As a result, with the entrance of Mercosur, the ease of doing business in Bolivia has greatly improved. Furthermore, these countries will be able to secure preferential market access and expand their international economic reach as a result of this. The linked nations (Colombia, Chile, Ecuador, Peru, Guyana, Suriname, and Bolivia) benefit from lucrative tariff privileges, which is one of Mercosur’s main advantages. Tariffs on imports and exports are automatically waived for member countries.
The formation of this trade bloc is one of the most important factors in Latin America’s better economic growth rates.
The Andean Community of Nations
The Cartagena Agreement was signed on May 26, 1969, by five South American countries (Bolivia, Colombia, Chile, Ecuador, and Peru) to increase the standard of living of their people via economic and social integration. The Andean Community of Nations was formed as a result of the Cartagena Agreement (CAN).
The Andean Community of Nations is a regional bloc made up of these five countries that aim to establish a more complete, balanced, and developed environment through enhancing regional integration.
With the signing of the Mercosur cooperative agreement, the Andean Community gained four new members: Brazil, Paraguay, Argentina, and Uruguay. The Andean Council of Foreign Ministers granted associate status to these four Mercosur members on July 7, 2005.
Since 1993, Bolivia has had a “complementary agreement” with Chile (Acuerdo de Complementación Económica, usually referred to as ACE 22). Bolivia and Mexico have had a complementary agreement (Acuerdo de Complementación Económica or ACE 66) since 2010. Tariffs on a certain list of products are eliminated or reduced under these agreements.
Bolivia is also a signatory to the ALBA (Alternativa Bolivariana para los Pueblos de América) trade agreement, which was signed in April 2006. Member countries receive preferential treatment in various industries as a result of the agreement. In practice, little trade has been conducted under this agreement, owing in part to bureaucratic roadblocks.
Under the Generalized System of Preferences, the European Union, Japan, Switzerland, Russia, Canada, Australia, New Zealand, Norway, and the United States allow many Bolivian products to enter duty-free or at reduced rates (GSP).
