Voluntary Report - Public distribution

**Date:** 10/9/2008

**GAIN Report Number:** BL7002

BL7002

**Bolivia**

**Exporter Guide**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Eugene Philhower

U. S. Embassy

**Prepared by:**

Cyrille Erickson, Alvaro Loza and Carlos Gonzalez

**Report Highlights:**

Primarily a hydrocarbons and raw materials exporter, Bolivia is
benefiting from sustained high prices in its exports and is currently
experiencing dynamic economic growth. As its consumers grow more
demanding they are eager to try new and more sophisticated products. The
tough economic reforms of the last decade are finally bearing fruit, and
Bolivia is achieving impressive growth in some sectors. However, the
commitment of the Evo Morales government to the free market remains an
open question.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Lima \[PE1\]

\[BL\]

**Table of Contents**

Section I. Market Overview *[Page 3 of 13]{.underline}*

Section II. Exporter Business Tips *[Page 4 of 13]{.underline}*

Section III. Market Sector Structure and Trends *[Page 6 of
13]{.underline}*

Section IV. Best High-Value Product Prospects *[Page 7 of
13]{.underline}*

Section V. Key Contacts and Further Information *[Page 10 of
13]{.underline}*

Table A. Key Trade & Demographic Information

Table B. Consumer Food & Edible Fishery Product Imports

Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products

######## SECTION I: MARKET OVERVIEW

Bolivia, one of the poorest countries in Latin America, has seen changes
in recent years impacting investment opportunities. In the aftermath of
serious political instability and social protest between 2000 and 2006,
Evo Morales -- the country's first indigenous president -- was elected
with a clear majority of the vote and a party majority in Congress.
Although serious doubts remain about the current government's commitment
to protecting foreign investment, they are most founded regarding heavy
infrastructure and equipment investments.

The 2004 recovery of mineral prices (gold/silver/zinc) has created more
wealth and better opportunities for the export of sophisticated food
products to the main urban centers. Bolivia is generally open to foreign
investment and U.S. products often enjoy competitive advantages in terms
of price, quality, reputation, and customer support. Except in limited
circumstances, markets determine prices.

Bolivia\'s 2006 gross domestic product (GDP) totaled \$9.3 billion,
growing at 4 percent in 2005 and 4.6 percent in 2006, boosted by high
international prices for Bolivian exports.  Prices and the real exchange
rate have remained stable. The overall fiscal deficit was about 2
percent of GDP in 2005 -- about half the 2004 fiscal deficit -- and the
external current account balance reached a surplus of close to 5 percent
of GDP. Parallel legislative reforms during recent governments locked in
place market-oriented policies that encouraged private investment.

Underemployment for Bolivia's workforce of nearly 4 million is also
widespread. As a result of the lack of formal employment opportunities,
nearly 65 percent of the urban workforce was self-employed in 2002.

Bolivian imports were \$2.8 billion in 2006 and the country enjoyed a
\$500 million trade surplus in the first half of 2006. The Bolivian
government has indicated that it may reverse some of its market-oriented
reforms, but at the time of this writing future government actions
remain unclear.

+---------------------------------------+----------+---------+--------+
| ####### Domestic Economy              | **2000** | *       | **     |
|                                       |          | *2005** | 2006** |
+---------------------------------------+----------+---------+--------+
| Nominal GDP (U.S. \$ billions)        | 8.4      | 9.3     | 10.3   |
+---------------------------------------+----------+---------+--------+
| Real GDP Growth (%)                   | 2.5      | 4.1     | 4,5    |
+---------------------------------------+----------+---------+--------+
| Central Government Spending (US       |          |         | 879,47 |
| millions) \*\*                        |          |         |        |
+---------------------------------------+----------+---------+--------+
| Inflation (%)                         | 5.2      | 4.6     | 4.8    |
+---------------------------------------+----------+---------+--------+
| Foreign Exchange Reserves (US\$       |          | 2.4     | 3.9    |
| billion)\*\*                          |          |         |        |
+---------------------------------------+----------+---------+--------+
| Minimum Wage (US)                     |          |         | 63     |
+---------------------------------------+----------+---------+--------+
| Imports of goods and services (% of   | 27.3     | 32.8    | 32.8   |
| GDP)\*\*                              |          |         |        |
+---------------------------------------+----------+---------+--------+
| Merchandise trade (% of GDP)\*\*      | 36.4     | 53.7    | 53.7   |
+---------------------------------------+----------+---------+--------+
| Long-term debt (DOD, current US\$     | 5.2      | 6.0     | \-     |
| billion)                              |          |         |        |
+---------------------------------------+----------+---------+--------+
| Present value of debt (% of GNI)      | \-       | 38.3    | \-     |
+---------------------------------------+----------+---------+--------+

***Source: World Bank Indicators database, April 2007***

***\*\* Bolivian National Institute of Statistics (INE)***

The United States is Bolivia's largest single investor -- accounting for
about one-third of net inflow of \$1.4 billion between 2001 and 2005 --
and its main trading partner, importing goods worth \$242 million and
exporting merchandise worth \$203 million in 2006. These figures
represent about 15 and 13 percent, respectively, of Bolivia's total
exports and imports. Brazil, Argentina, Colombia, Peru and Venezuela are
the other important trading partners. Brazil-Bolivia trade surpasses
U.S. trade if hydrocarbon exports are included.

In 2006, the United States exported \$215 million of merchandise to
Bolivia and imported \$362 million. Total food sales were estimated at
\$21 million, up from \$17.5 million in 2005 and \$18.7 million in 2004.
The import of consumer goods increased for the first time since 2002.
Bolivia's major exports to the United States are tin, gold, jewelry, and
wood products, with textiles playing an increasingly important role. Its
major imports from the United States are electronic equipment,
chemicals, vehicles, wheat, and machinery.

Agriculture accounts for roughly 15.3 percent of Bolivia's GDP. The
amount of land cultivated by modern farming techniques is increasing
rapidly in the Santa Cruz area, where weather allows for two crops a
year. Soybeans are the major cash crop, sold in the Andean Community of
Nations (CAN) market. The extraction of minerals and hydrocarbons
accounts for another 11 percent of GDP and manufacturing around 17
percent.

Bolivia signed a bilateral investment treaty (BIT) with the United
States in 2001. Investors are entitled to the better of national
treatment or most favored nation (MFN) treatment when they initiate
investment and while they maintain that investment. Bolivia also will be
benefit from the Andean Trade Promotion and Drug Eradication Act
(ATPDEA), extended for six months and six more months conditional.
Bolivia has been a MERCOSUR associate member since 1997; a member of the
Andean Community since its inception in 1969 with Colombia, Ecuador, and
Peru; has a free trade agreement with Mexico since 1994; and joined the
GATT in 1990 with ratification of its World Trade Organization (WTO)
membership in 1995.

Corruption in the public sector and in many non-governmental
institutions remains endemic. This corruption has encouraged smuggling,
which in turn has resulted in 160,000 lost job positions annually.
However, the last several governments have worked to overhaul the
Customs Service, a major victim of corruption in the public sector. The
challenge of corruption is a significant one in Bolivia, and should not
be underestimated.

Bolivia's spectacular vistas and natural attractions have not been
enough to transform the country into a major tourist destination because
of its political instability and lack of first-class accommodations.
Still, Bolivia's tourist industry has grown gradually over the past 15
years. In 2000, Bolivia attracted 306,000 tourists, compared with
254,000 in 1990. Tourist revenue peaked at US\$179 million in 1999. In
2005, 271,311 tourists came by plane compared to 241,957 in 2006, with
fewer visitors from Europe, Asia and North America.

The services industry in Bolivia remains undeveloped. Inhabiting the
poorest country in South America, Bolivians have weak purchasing power.
The retail sector suffers from weak demand and competition with a large
black market of contraband goods. U.S. companies such as McDonald's and
Domino's have pulled out of Bolivia in recent years.

The main markets for American food and beverage products are Santa Cruz,
La Paz and Cochabamba -- the main urban centers and most dynamic
economic zones -- representing about 350,000 potential consumers.

In general, although the segment of consumers able to buy imported
products is relatively small, American products remain their favorite.
They are popular due to cable TV and Internet penetration and carry a
good reputation for quality and safety. In addition, Bolivian consumers
have also shown a preference for imported goods during favorable
promotions.

####### 

####### Advantages and Challenges Facing U.S. Products in Bolivia

+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| -   Bolivia/U.S. bilateral        | -   Bolivia is a market with      |
|     investment treaty (BIT) since |     minimal penetration from      |
|     2001 with most favored nation |     global and international      |
|     (MFN) treatment.              |     brands.                       |
|                                   |                                   |
| -   Low import tariffs: generally | -   Potential American product    |
|     10%, though sometimes less    |     consumers remain relatively   |
|                                   |     small.                        |
| -   American products remain      |                                   |
|     popular and carry a good      | -   It is recommended using a     |
|     reputation for quality and    |     well-known local distributor  |
|     safety.                       |     familiar with sanitary and    |
|                                   |     phytosanitary certificate     |
| -   Strong American cable TV and  |     requirements                  |
|     Internet penetration.         |                                   |
|                                   | -   Food products retain their    |
| -   Growing food processing,      |     original labels but must have |
|     snacks and energy drinks      |     pre-approved complementary    |
|     sector.                       |     labeling in Spanish.          |
|                                   |                                   |
| -   New EXPO GOURMET in Santa     | -   Smuggling.                    |
|     Cruz to promote international |                                   |
|     food products                 | -   Significant problem of        |
|                                   |     corruption.                   |
|                                   |                                   |
|                                   | -   Rewriting of the constitution |
|                                   |     may impact the investment     |
|                                   |     climate.                      |
+-----------------------------------+-----------------------------------+

  -----------------------------------------------------------------------
  In 2007, droughts, freezes and floods severely affected the production
  of cereals and tubers. The need for imported cereals in 2007/2008 is
  estimated at 450,000 tons of wheat and a record level of 76,000 tons of
  rice. Also, the deficit of approximately 250,000 tons of potatoes,
  resulting from frost and drought in the high plains, needs to be
  covered partly by unregistered imports from Peru and Argentina and
  partly by increasing the consumption of pasta and bread from additional
  wheat and wheat flour imports.

  -----------------------------------------------------------------------

**SECTION II: EXPORTER BUSINESS TIPS**

**Import Tariffs**

Non-essential capital goods are subject to 5 percent tariff and most
other goods are subject to 10 percent tariffs. Luxury items such as
tobacco and tobacco products are subject to a specific consumption tax
(ICE) and to an additional import tax of 50 percent ad valorem. Samples
and advertising materials are generally subject to regular duty rates.

**Tax structure**

Simple and low with: 13% Value Added Tax (VAT), 3% non-deductible
Transaction Tax (IT), and Profit Taxes (IU) equivalent to 25% of the
profits paid on an annual basis.

**Selling Factors/Techniques**

Price and quality are important factors in all sales. To be effective,
advertising and sales materials must be in Spanish.

**Direct Marketing**

Direct marketing among certain institutions is fairly well established,
but information databases are generally unavailable. Commercial
information can be obtained through local chambers of commerce, local
trade associations, and the U.S. Embassy's commercial section.

IPSOS APOYO is the leading Latin American consulting firm with ten years
experience in Bolivia providing in-depth market research and analysis of
the various socio-economic divisions of the Bolivian population as well
as data collection, processing, analysis; diagnostic, situation, image
and positioning, market segmentation, ethnography; and product
validation, concept, testing, pricing, advertising, promotion audit;
client loyalty, retail and branding -- rewrite this b/c it makes no
sense. Check out their website or pick out the most relevant activities
from this list.

**Labeling and Marking Requirements**

Supreme Decree 26510 (issued in 2003) established food product labeling
requirements. Products normally retain their original labels, but they
must have complementary labeling showing the importer or distributor's
taxpayer identification number (RUC), sanitary registration number, and
ingredient translations.

**Using an Agent or Distributor**

Foreign firms typically hire local agents or distributors or establish
local subsidiaries or branches, often in one or more of the major cities
of La Paz, Santa Cruz, and Cochabamba. To register, agents must present
a letter or agreement confirming their appointment as representatives.
The document must clearly indicate the contract's validity period, the
agent's sales area (national or regional), the agreement's financial
terms, and whether the foreign firm has the right to appoint other
agents in other areas of Bolivia.

**MAJOR AGENTS/DISTRIBUTORS**

***COMPANEX (Bolivia) S.A.***

Companex S.A. is one of the major national distributors for American
products with representation in La Paz, Santa Cruz and Cochabamba.
Companex takes charge of the distribution, market visibility, marketing
and pricing of the products, specializing in processed food
(soups/dressings and other), snacks, chocolate (Mars), and pet food.

######## *D&M Distribucion & Mercadeo Ltda*

D&M is a national distributor for liquors and energy drinks dedicated to
high-end products. D&M has very successfully introduced Red Bull, an
unknown and expensive drink in Bolivia. There is an interest for
new/sophisticated liquors and drinks. D&M has experience in marketing
and distributing products nationally.

***ASSOCIATED GROCERS***

Associated Grocers is an American exporter of American products based in
Florida and specialized with the Latin American market. Many smaller
Bolivian importers order directly from its catalogue.

**Franchising**

Bolivia has no specific legislation governing franchising, but clear
rules regulate franchise operations. A foreign firm wishing to grant a
franchise must first register the brand name with Bolivia's National
Intellectual Property Service (SENAPI), after which it may grant a
franchise to a local company through an appropriate contract.

**Joint Ventures/Licensing**

Foreign and domestic corporations and/or individuals may enter into
joint venture agreements. While foreign companies are not required to
possess local legal licenses in advance, they must be able to
demonstrate legal status in their countries of origin.

**Import Requirements and Documentation**

Imports must have the following documentation:

-   document description form (Form 135)

-   invoice (unless a commercial sample under \$25 in value)

-   bill of lading (when applicable)

-   proof of insurance

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-   certificate of pre-shipment inspection (when applicable)

-   port expenditures (when applicable)

-   transportation invoice

-   packing list

-   certificate of origin (when applicable)

-   other certificates (as needed)

Goods imported from the Andean Community (Colombia, Peru, and Ecuador)
must have certificates of origin to qualify for tariff preferences.

**Tobacco and Tobacco Products**

Imports of tobacco and tobacco products must have import licenses issued
by SENASAG and the Ministry of Health.

**Livestock**

Live animal imports must have certificates of origin indicating their
state of health. Purebred livestock imported for breeding purposes must
also have pedigree certificates.

**Seeds (Treated and Non-Treated) and Plants**

All products of vegetable origin must have SENASAG certificates in
addition to phytosanitary certificates issued by agricultural
authorities in the country of origin and certified by a Bolivian
consulate. Importers must inform Bolivian customs authorities of the
arrival of seeds at least one week in advance and arrange for storage in
an adequate warehouse prior to inspection. All seeds must comply with
the quality and phytosanitary requirements of SENASAG and the National
Seed Program.

######## 

######## Air Cargo 

Air cargo shipments require airway bills instead of bills of lading.
Exporters should follow IATA or ICAO rules governing labeling and
packaging of dangerous and restricted goods and check with air carriers
for further information and appropriate forms.

**Parcel Post**

Authorized customs brokers must intervene for parcel post shipments
valued at over \$100. Individuals may receive parcel post shipments of
lesser values by filling out a customs form at a Bolivian post office.

**Prohibited and Restricted Imports**

-   Spoiled beverages and food products, or products that contain
    noxious substances.

-   Diseased animals

-   Plants, fruits, seeds, and vegetables that contain parasites and/or
    germs and plants declared harmful by the Vice Ministry of
    Agriculture

-   Merchandise with a registered trademark identical to one used in
    Bolivia

**Customs Regulations and Contact Information**

Bolivian import charges, including domestic taxes (most of which are
creditable) and fees, range from 30 to 45 percent, making effective
costs considerably higher than the stated zero to 10 percent tariffs.

Landed costs generally include the following:

-   cost, insurance, and freight (CIF): the value at the border

-   Import tariffs: a 10 percent flat rate is applied to CIF unless the
    product is classified as a capital good, which reduces the rate to
    zero or 5 percent.

-   Warehouse fees: customs warehouses are privately owned. Rates vary
    according to volume.

**Internal Revenue Service Fees**

Value-added tax (IVA) is 13.3 percent. Added customs fees bring the
effective rate to 14.94 percent, which is charged on an accumulated
base.

-   Specific Consumption Tax (ICE): the ICE is levied on luxury goods
    such as automobiles, perfumes, cosmetics, liquors, cigarettes, and
    beer.

-   Customs broker fees: the following customs broker fees are applied
    to CIF for land shipments and to CIF airport value for air cargo:

> From USD:
>
> 1 to 10,000 2.00 percent
>
> 10,001 to 20,000 1.50 percent
>
> 20,001 to 30,000 1.25 percent
>
> 30,001 to 50,000 1.00 percent
>
> 50,001 to 100,000 0.75 percent
>
> 100,001 and above 0.50 percent

-   Customs brokers also charge fees of 17.65 percent of the total bill
    to cover their own IVA tax liability.

-   Trade and industry association fees: groups such as chambers of
    commerce, industry, and construction charge fees of between 0.03 and
    0.04 percent of CIF.

-   VAT paid by the importer reduces the importer's tax liability when
    goods are resold, ultimately reducing actual costs.

# Entry and Warehousing 

Bolivia benefits from free transit arrangements covering Argentine,
Brazilian, Chilean, Paraguayan, Peruvian, and Uruguayan ports. The
Chilean port of Arica is generally considered the best port of entry.
Others include Antofagasta and Iquique (Chile); Matarani and Ilo (Peru);
Santos (Brazil); and Rosario (Argentina).

Bolivian customs officials maintain warehouses in each port and allow
storage of incoming goods for up to 90 days, with fees levied at 0.5
percent of CIF for each 30-day period or fraction thereof. Once clearing
documents are signed, goods must be removed from storage within eight
days to avoid an additional charge of 2 percent of CIF.

Imported, stored merchandise may be considered abandoned by explicit
request or by failure to claim the goods within the required 90 days. By
law, such goods are subject to public auction; proceeds (after expenses)
go to the interested party.

If importers wish to remove their merchandise after the 90-day period
but before the auction takes place, they must pay a 5 percent charge
over the customs tariff plus 2 percent of CIF. Due to the expense and
time involved in reshipment, U.S. exporters usually prefer to sell these
goods in Bolivia.

Foreign investors generally find the labor force stable, with low
turnover rates and high levels of manual dexterity. Despite
international perceptions, extensive labor unrest in the private sector
is currently uncommon, and most foreign firms enjoy positive
labor-management relations. That said, social unrest is pervasive, and
often takes the form of blockades of cities, roads, and transit points,
effectively paralyzing commerce by impeding the delivery of goods to
market. Bolivian labor law also restricts child labor and provides for
worker safety, but enforcement is often ineffective.

**Free Trade Zones**

The Bolivian government has created free trade zones (FTZs). The
National Council on Free Trade Zones (CONZOF) oversees all industrial
and commercial FTZs and authorizes operations. Free trade zones exist in
the cities of El Alto, Cochabamba, Santa Cruz, Oruro, Puerto Aguirre (on
the Brazilian border), and Desaguadero (on the Peruvian border).

A proposed FTZ in Guayaramerin in the Beni Department is not yet fully
operational. The FTZ in Cobija, meanwhile, has proven unattractive to
investors due to a lack of roads and other basic infrastructure.

# Foreign Exchange Controls 

Bolivia places no controls on foreign exchange transactions, beyond
those intended to curb money laundering. Local currency is freely
convertible for all transactions. As of July 2008, the exchange rate was
approximately Bs 7.1 per \$1. Traveler's checks, dollars, and major
currencies may be exchanged in banks, exchange houses, and major hotels.
Most automated teller machines (ATMs) in large cities offer cash
withdrawals in either Bolivian currency or U.S. dollars. Citibank offers
limited commercial services. No other U.S. banks operate in Bolivia. All
commercial banks provide regular banking services, accepting deposits
for both checking and savings accounts and offering short- and
medium-term loans. Local banks are authorized to hold U.S.
dollar-denominated time deposits.

SECTION III: MARKET SECTOR

+-----------------------------------------------------------------------+
| #######                                                               |
+-----------------------------------------------------------------------+

-   American product exports have recently been successful in Bolivia,
    especially appealing to an elite and trend-based market of teens and
    young adults. Growing Internet and American cable penetration is
    creating new needs and tastes. American products, when reasonably
    priced, have become highly competitive against local, Chilean,
    Argentinean or Brazilian products.

-   La Paz market is 150,000 and Santa Cruz is home to 250,000 people.
    Prices for American products are competitive. Air cargo from the
    U.S. can be cheaper and more reliable than ground transport from
    neighboring countries.

-   Foreign investors are accorded national treatment and foreign
    ownership of companies is virtually unrestricted in Bolivia with the
    same rights, obligations, and guaranties laws and regulations
    granted to national investors. Foreigners are granted property
    rights*. However the current government is contemplating changes
    regarding the treatment of foreign investors.* Update whether
    changes were made

-   A free exchange system is guaranteed and there are neither capital
    import nor export restrictions, including on remittance of
    dividends, interests or royalty proceedings resulting from
    technology transfer or other mercantile concepts. Goods and services
    production, trading, import and export freedom, as well as free
    price determination, is guaranteed.

-   Free currency convertibility and the faculty for any one economic
    agent to perform any form of local or foreign currency exchange is
    guaranteed. Goods and services exporters are refunded internal
    revenue taxes and liens paid when raw materials and goods are
    incorporated into export goods within the framework of tax
    neutrality.

**FOOD SERVICE SECTOR:**

In 2006, U.S.-imported total food service sales accounted for about \$21
million, a significant increase from previous years. Santa Cruz
represents 70 percent of all imports nationwide.

The niche market for U.S. exporters in this sector includes high-end
hotels in La Paz such as the Ritz Hotel
([www.hotel-ritz-bolivia.com](http://www.hotel-ritz-bolivia.com/)), The
Radisson [(www.radisson.com/lapazbo]()), and Hotel Europa
([www.hoteleuropa.com.bo](http://www.hoteleuropa.com.bo/)) and in Santa
Cruz such as Hotel Los Tajibos and Convention Center
([www.lostajiboshotel.com](http://www.lostajiboshotel.com/)), Hotel
Buganvillas, Suites and Spa
([www.hotelbuganvillas.com](http://www.hotelbuganvillas.com/)) and the
Hotels Camino Real
([www.caminoreal.com.bo](http://www.caminoreal.com.bo/)) in both La Paz
and Santa Cruz.

**FOOD RETAIL SECTOR**

One of the fastest growing sectors in Bolivia is the Food Retail Sector,
which has a predominant presence in La Paz and Santa Cruz.

Hipermaxi S.A. is a chain of 8 supermarkets based in Santa Cruz de la
Sierra and currently buys 5 percent or \$500,000 of all its imports from
the U.S. Fifty percent of its sales come from Brazil, Peru and Chile.
The demand in Santa Cruz de la Sierra for American products is very
strong due to a population which has lived or visited the U.S. and with
a higher buying power. Given the strong demand, Hipermaxi recommends
introducing new products of quality and developing a market. Hipermaxi
has three other supermarkets in La Paz, importing 4 percent of products
from the U.S.

Ketal Hipermercados is a chain of five supermarkets in La Paz currently
buying 4 percent, or \$300,000 per year, of all imports from the United
States. Ketal imports 30 percent of its sales, mostly from Chile. Ketal
has 350,000 customers per year and 14,000 per week. There is a demand
for American products but prices and volume must be low (why?). Ketal
sells 1200 different items from the United States and is looking for
variety and low volumes, recommending using an intermediary (such as
United Grocers) in order to guarantee low volumes. Best products are
energy drinks, cereals, candy/chocolates confectionary and snacks.

Gava supermarket is the oldest importer of American food and beverage
products in the country. Originally selling 100 percent American
products, the split is now 35 percent American, 15 percent European and
50 percent products of the region. Due to political instability,
inflation and reduced buying power, management had to look for cheaper
products elsewhere. However GAVA understands that its reputation was
built on the quality and reliability of American products and is
committed to representing them.

**The department of Santa Cruz**

The biggest of the nine departments of Bolivia, Santa Cruz is located in
the eastern zone of the country. The city of Santa Cruz of the Sierra,
capital of the department, has approximately 1.2 million inhabitants. It
is the most industrialized region of Bolivia and has seen major
development and economic growth. The commercial sector of the department
is one of the biggest and most dynamic of Bolivia, with significant
foreign trade, and is the principal center of consumption with the
highest revenue per capita in the country. The dynamic regional economy
has boosted the growth of the tertiary sector. In Santa Cruz, financial,
hotel, tourist, petroleum services, and transport and communications
compose the majority of this sector.

**FEXPOCRUZ** is considered the first and most important business
convention center of Bolivia, recognized internationally for its fairs
such as: AGROPECRUZ (Agricultural International Fair), ECOCRUZ
(International Fair on Sustainable Development), CONSTRUCRUZ
(Construction, Furniture and Decoration International Fair), INFOCRUZ
(Computer science and Telecommunications International Fair), EXPOCRUZ
(International Fair of Santa Cruz), and International Business Fair of
Bolivia.

**EXPOCRUZ** is the largest annual, multi-sector, international trade
fair in Bolivia and the only trade fair in Bolivia certified by the U.S.
Department of Commerce. It takes place yearly in the city of Santa Cruz,
Bolivia. Over 2000 exhibitors are expected to participate in this year's
event. The event draws 450,000 persons every year. Businessmen,
investors, government authorities, students and the general public all
meet in a favorable foreign trade environment. Four thousand commercial
meetings take place yearly, selling approximately \$78 million in goods
and services.

+-----------------------------------------------------------------------+
| #######                                                               |
+-----------------------------------------------------------------------+

**SECTION IV: BEST HIGH-VALUE PRODUCTS PROSPECTS**

Best High-Value Product Prospects are: energy drinks, snacks, chips,
Mexican/Chinese prepared food, prepared processed food, pasta sauce,
soup, cheese and dressing mix, canned food, cereals and chocolate bars.
These products are widely sold in universities and supermarkets. They
are sold as impulse buys and require good visibility and marketing.

**U.S. Exports to Bolivia\
from 2002 to 2007**\
(In thousands of dollars)

+------------------------+------+------+------+------+------+------+
| **Products**           | **V  | **V  | **V  | **V  | **V  | **V  |
|                        | alue | alue | alue | alue | alue | alue |
|                        | 20   | 20   | 20   | 20   | 20   | 20   |
|                        | 02** | 03** | 04** | 05** | 06** | 07** |
+------------------------+------+------+------+------+------+------+
| ######### Wheat        | 11   | 14   | 7    | 6    | 5    | 0    |
|                        | ,406 | ,835 | ,977 | ,083 | ,078 |      |
+------------------------+------+------+------+------+------+------+
| **Rice**               | 12   | 1    | 26   | 106  | 123  | 45   |
|                        |      | ,494 |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Soybeans**           | 34   | 90   | 71   | 32   | 38   | 0    |
+------------------------+------+------+------+------+------+------+
| **Oilseeds, food       | 99   | 6    | 93   | 11   | 43   | 0    |
| oils**                 |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Corn**               | 342  | 370  | 417  | 206  | 239  | 0    |
+------------------------+------+------+------+------+------+------+
| **Sorghum, barley,     | 476  | 0    | 0    | 0    | 0    | 0    |
| oats**                 |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Animal feeds,        | 113  | 156  | 209  | 460  | 557  | 226  |
| n.e.c.**               |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Meat, poultry,       | 33   | 28   | 294  | 30   | 134  | 0    |
| etc.**                 |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Dairy products and   | 752  | 342  | 150  | 31   | 108  | 118  |
| eggs**                 |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Fruits, frozen       | 277  | 959  | 1    | 1    | 2    |      |
| juices**               |      |      | ,410 | ,860 | ,487 |      |
+------------------------+------+------+------+------+------+------+
| **Vegetables**         | 1    | 1    | 1    | 986  | 499  | 654  |
|                        | ,096 | ,270 | ,012 |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Nuts**               | 67   | 104  | 0    | 0    | 0    | 0    |
+------------------------+------+------+------+------+------+------+
| **Bakery products**    | 339  | 1    | 1    | 952  | 1    | 610  |
|                        |      | ,027 | ,406 |      | ,049 |      |
+------------------------+------+------+------+------+------+------+
| **Other foods**        | 2    | 6    | 5    | 5    | 10   | 1    |
|                        | ,268 | ,186 | ,072 | ,666 | ,249 | 3112 |
+------------------------+------+------+------+------+------+------+
| **Wine and related     | 16   | 20   | 25   | 23   | 18   | 34   |
| products**             |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| ######                 | 0    | 0    | 335  | 526  | 179  | 196  |
| ### Fish and shellfish |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Alcoholic beverages, | 211  | 371  | 106  | 197  | 227  | 129  |
| except wine**          |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+
| **Tobacco,             | 136  | 0    | 0    | 221  | 0    | 16   |
| un-manufactured**      |      |      |      |      |      |      |
+------------------------+------+------+------+------+------+------+

*Source: FTDWebMaster, Foreign Trade Division, U.S. Census Bureau,
Washington, D.C.*

*World Trade Atlas (2007)*

All products are subject to a 10 percent tariff except for tobacco
products, which are subject to a specific consumption tax (ICE) with an
additional import tax of 50 percent ad valorem, and benefit from a 2001
bilateral investment treaty (BIT) with the United States granting better
national treatment or most favored nation (MFN) treatment. Wheat is the
main American import, followed by processed and confectionary foods,
frozen juices, fruits, bakery products and animal feeds.

+-----------------------------------------------------------------------+
| ########                                                              |
+-----------------------------------------------------------------------+

**SECTION V: KEY CONTACTS AND FURTHER INFORMATION**

If you have any questions or comments regarding this report or need
assistance exporting to Bolivia, please contact the Commercial Section
of the American Embassy of La Paz at the following address:

**U.S. Embassy La Paz, Commercial Section**

Mailing address:

U.S. Embassy in La Paz, Bolivia

Address: Avenida Arce 2780, Casilla 425\
La Paz, Bolivia\
Telephone: (591) 2-216-8000\
FAX: (591) 2-216-8111

<http://bolivia.usembassy.gov/>

**U.S. Embassy Lima, Foreign Agricultural Service (FAS)**

Mailing Address: Office of Agricultural Affairs, Unit 3785, APO AA 34031

Address: Av. La Encalada cdra. 17, Monterrico, Lima 33

Phone: (511) 434-3042

Fax: (511) 434-3043

E-mail: <Aglima@usda.gov>

http://lima.usembassy.gov/

**Useful Contacts:**

**American Chamber of Commerce of Bolivia**\
[http://www.amchambolivia.com](http://www.amchambolivia.com/)

**Bolivian-American Chamber of Commerce\
**[http://www.bolivia-us.org](http://www.bolivia-us.org/)

**Camara Nacional de Comercio\
(Bolivian National Chamber of Commerce)**

<http://www.boliviacomercio.org.bo/>

**Confederacion de Empresarios Privados de Bolivia\
(Bolivian Private Businessmen's Confederation)**

[http://www.cepb.org.bo](http://www.cepb.org.bo/)

**Bolivian Business Associations**

<http://www.boliviaweb.com/asoc.htm>

**National Association of Banks (ASOBAN)**

Asociación de Bancos Privados de Bolivia (ASOBAN)

Edificio Cámara Nacional de Comercio, Piso 15

La Paz, Bolivia

Phone: (591-2) 236-1308

Fax: (591-2) 239-1093

E-mail: [info@asoban.bo]{.underline}

[www.asoban.bo](http://www.asoban.bo/)

**National Customs Service**

Calle Av. 20 de Octubre No. 2038

Phone: (591-2) 2152901 or 215-2904

Fax: (591-2) 215-2904

**Trade Associations/Chambers of Commerce**

**Private Businessmen's Confederation**

**(Confederación de Empresarios Privados de Bolivia)**

Calle Mendez Arcos No. 117

Casilla 4239

Phone : (591-2) 242-0999

Fax : (591-2) 242-1272

E-mail : <cepbol@ceibo.entelnet.bo>

**National Chamber of Commerce (Cámara Nacional de Comercio)**

Av. Mariscal Santa Cruz No. 1392 Edificio Cámara Nacional de Comercio

Piso 1

Casilla 7

Phone: (591-2) 237-8606

Fax: (591-2) 239-1004

E-mail: [cnc@boliviacomercio.org.bo]{.underline}

[www.boliviacomercio.org.bo](http://www.boliviacomercio.org.bo/)

**National Chamber of Industry (Cámara Nacional de Industria)**

Av. Mariscal Santa Cruz 1392

Edificio Cámara Nacional de Comercio

Piso 14 -- Casilla 611

Phone: (591-2) 237-4476

Fax: (591-2) 236-2766

E-mail: [cni@entelnet.bo]{.underline}

[http://www.bolivia-industry.com](http://www.bolivia-industry.com/)

**Trade Assistance and Promotion Office**

Foreign Agricultural Service

U.S. Department of Agriculture

Phone: (202) 720-7420

**Bolivian Chamber of Hotels**

Jorge Fernandez

President

Ed, Mariscal de Ayacucho, Piso 13

La Paz -- Bolivia

(591-2) 220-1279

**The American Chamber of Commerce of Bolivia**\
Ana María Galindo\
[amgalin@N0SPAM.caoba.entelnet.bo](mailto:amgalin@caoba.entelnet.bo)^2^\
Phone: (591-2)244-3939

**The Santa Cruz Chamber of Industry, Commerce and Services**\
Luis Foianini\
[luis.foianini@N0SPAM.cainco.org.bo](mailto:luis.foianini@cainco.org.bo)^3^\
Phone: (591-3)333-4555

***IPSOS APOYO***

Luis Garay Langberg

Director

Av. Liberator 3000, San Jorge

La Paz, Bolivia

Tel: (591-2) 243-0268

Fax: (591-2) 243-4168

<lius.garay@ipsos-apoyo.com.bo>

[www.ipsos-apoyo.com.bo](http://www.ipsos-apoyo.com.bo/)

***La Paz Chamber of Advertising Agencies**:*

Cámara Paceña de Empresas de Publicidad (CAPEP)

Calle Lisímaco Gutiérrez No. 513

La Paz, Bolivia

E-mail: <capep@megalink.com>

***COMPANEX (Bolivia) S.A.***

Fernando Torrico Rojas

President

Calle Constitucion n. 370

La Paz -- Bolivia

(591-2) 2283511

<ftorrico@companex.com>

[www.companex.com](http://www.companex.com/)

######## *D&M Distribucion & Mercadeo Ltda*

Juan Trigo

General Manager

Calle Estados Unidos N. 1427

Miraflores

Tel: (591-2)222-5961

Fax: (591-2) 222-5485

<jtrigo@dym-bo.com>

[www.dym-bo.com](http://www.dym-bo.com/)

***ASSOCIATED GROCERS***

Jose Capelledes

General Manager

1141 SW 12^th^

Av. Pompano Beach, FL

Tel: (954) 876-3000

[www.agfla.com](http://www.agfla.com/)

***Bolivian Franchise Association***

Calle Yanacocha esq. Mariscal Santa Cruz

Edificio Casanovas, Piso 6, Oficina 606

La Paz, Bolivia

Phone/Fax: (591-2) 215-2094

***Aduana Nacional***

Calle Av. 20 de Octubre No. 2038

Phone: (591-2) 2152901 or 215-2904

Fax: (591-2) 215-2904

***Hipermaxi, S.A.***

Mauro Cruz B.

Buying Manager

Zona Sur -- Av. Santos Dumont

3e Anillo -- Santa Cruz -- Bolivia

<mcruz@hipermaxi.com>

[www.hipermaxi.com](http://www.hipermaxi.com/)

***Ketal Hipermercados***

Rodrigo Arce

Buying Manager

Av. Ballivian esq Calle 15

Casilla 11505

Calacoto

La Paz -- Bolivia

Tel: (591-2) 279-1122

<rarce@ketal.com.bo>

[www.ketal.com.bo](http://www.ketal.com.bo/)

***GAVA Supermercados***

Ramirez Beltran Z.

Av. Ballivian esq. Calle 10

Calacoto

Casilla 6968

La Paz -- Bolivia

Tel: (591-2) 278-6514

<gavasup@yahoo.com>

***FEXPOCRUZ**\
*Av. Roca y Coronado s/n -- Campo Ferial\
Tel. (591-3) 353-3535\
Fax : (591-3) 353-0888 • Box : 5678\
E-mail : feria@fexpocruz.com.bo\
[www.fexpocruz.com.bo](http://www.fexpocruz.com.bo/)

***Bolivian Embassy in Washington, DC**\
*<http://www.bolivia-usa.org/>^2^

***U.S. Department of Commerce**\
*<http://www.commerce.gov/>^3^

***International Trade Administration**\
*<http://www.ita.doc.gov/>^4^

***U.S. Trade Representative**\
*<http://www.ustr.gov/>^5^

***U.S. Export-Import Bank**\
*<http://www.exim.gov/>^6^

***Overseas Private Investment Corporation**\
*<http://www.opic.gov/>^7^

***U.S. Trade and Development Agency**\
*<http://www.tda.gov/>^8^

***U.S. Customs and Border Protection**\
*<http://www.customs.gov/>^9^

***U.S. Department of State Office of Commercial and Business Affairs**\
*<http://www.state.gov/e/eb/cba/>^10^

***U.S. Agency for International Development**\
*<http://www.usaid.gov/>^11^

***Government of Bolivia**\
*[http://www.bolivia.gov.bo](http://www.bolivia.gov.bo/)^12^

***Bolivian Ministry of Economic Development**\
*[http://www.desarrollo.gov.bo](http://www.desarrollo.gov.bo/)^13^

***Central Bank of Bolivia**\
*[http://www.bcb.gov.bo](http://www.bcb.gov.bo/)^14^

## 

  -----------------------------------------------------------------------
  **Appendix 1. Statistics**

  -----------------------------------------------------------------------

####### TABLE A. Key Trade & Demographic Information

+---------------------------+---------+---------+----------+---------+
| ######## Indicators       | *       | *       | **2006** | **      |
|                           | *2000** | *2005** |          | 2007e** |
+---------------------------+---------+---------+----------+---------+
| GDP (current US\$         | 8.4     | 9.3     | 10.3     | 13.2    |
| billion)                  |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| GDP growth (annual %)     | 2.5     | 4.1     | 4.5      | 4.6     |
+---------------------------+---------+---------+----------+---------+
| Per capita income (\$)    |         |         | 1,030    |         |
+---------------------------+---------+---------+----------+---------+
| Inflation, GDP deflator   | 5.2     | 4.6     | 4.8\*    | 11.7    |
| (annual %)                |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| Agriculture, value added  | 5.2     | 4.6     | \-       | 6.2     |
| (% of GDP)                |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| Population, total         | 8.3     | 9.2     | 9.3      | 9.5     |
| (millions)                |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| Urban population (%)      | \-      | 64      | \-       | 68      |
+---------------------------+---------+---------+----------+---------+
| Number of Major           | 2       | 2       | 2        | 3       |
| Metropolitan Areas        |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| Labor Force (millions)    | 4       | 4       |          | 5       |
+---------------------------+---------+---------+----------+---------+
| Percent of Females of     | 5.6     | 7       |          | 8.2     |
| Working Age (%)           |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| Unemployment (% of total  | 4.4     | 5.5     | 8.7      | 9.1     |
| labor force)              |         |         |          |         |
+---------------------------+---------+---------+----------+---------+
| Exchange Rate (\$1 = xx   | \$1=    | \$1=Bs. | \$1=     | \$1=    |
| local currency)\*         | Bs. 7.8 | 8.08    | Bs.8.03  | Bs.7.89 |
+---------------------------+---------+---------+----------+---------+

**Source: *World Bank Indicators database, April 2007***

***\*National Institute of Statistics***