. /.RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/170
28 September 2000
(00-3930)
Council for Trade in Services Original:  Spanish
COMMUNICATION FROM BOLIVIA
Review of Article II Exemptions
Replies to Questions Posed on Bolivia's MFN Exemptions
in the Course of the Review of MFN Exemptions
The attached communication has been received from the delegation of Bolivia with the
request that it be circulated to Members of the Council for Trade in Services.
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I. REPLY TO QUESTION NO. 381 OF JAPAN (S/C/W/140/ADD.2, PAGE 7)
Question
"Does Bolivia, as an inland country, have any services, other than 'internal waterways
transport', which fall under the 'maritime transp ort services'?  Please explain the reason why
Bolivia makes an MFN exemption in the maritime transport services."
Reply
Bolivia, which is situated in the central part of South America, operates internal river and lake
traffic, as well as international river and maritime traffic to the Atlantic Ocean via theParaguay-Paraná canal.
The history of Bolivian participation in inte rnational maritime transport is linked to the
"Líneas Navieras Bolivianas" shipping company which ceased operations in 1994.  In those
circumstances Bolivia's foreign trade was freed for service by regional and extra-regional shippingcompanies, under Community agreements, particularly those of the ANDEAN Community, based on
freedom of access for freight originating in and destined to the ANDEAN subregion, under conditions
of reciprocity.
In conclusion, it should be pointed out that Bolivia does not grant special treatment to specific
communities or countries, and reiterate that the treatment must be applied under conditions of
reciprocity.
II. REPLY TO QUESTION NO. 382 OF JAPAN (S/C/W/140/ADD.2, PAGE 7)
Question
"Is this preferential treatment based on the agreements made between Andean Group
countries?  If so, please provide a list of any existing agreements with the names of the
concluding countries."S/C/W/170
Page 2
Reply
The decisions approved within the ANDEAN Community of Nations on maritime transport
are as follows:
- Decision 314:  Freedom of access to maritime freight transportation and policies for
the development of the domestic merchant navy.
- Decision 288:  Freedom of access to maritime freight transportation destined to and
from countries within the subregion.
- Resolution 422:  Regulations for the application in the Community of the principle of
reciprocity in maritime transport.
The above Community provisions do not establish principles of preferential treatment, but
mainly define an extended market with freedom of  access, under conditions of reciprocity.
III. REPLY TO QUESTION 383 OF JAPAN (S/C/W/140/ADD.2, PAGE 7)
Question
Please explain precisely what kind of measures are taken by Bolivia as preferential
treatments and which areas around Bolivia are called "coastal waters" (column 2) whereoperators can benefit from the preferential treatment."
Reply
As Bolivia has already stated, no preferential treatment applies to particular communities or
countries.  "Coastal waters" includes river or lake transport within the national territory.
IV. REPLY TO QUESTION 384 OF JAPAN ((S/C/W/140/ADD.2, PAGE 7)
Question
Please provide statistical evidence showin g that preferential treatment has actually
developed the maritime transport industry in the ANDEAN region.
Reply
First, it is reiterated that the measures adopted within the ANDEAN Community do not
establish any preferential treatment.  The application of those measures has exposed shippingcompanies in the region to full competition with their counterparts outside the region, without any
measures or actions being envisaged or adopted by governments designed to support the development
of the regional maritime transport industry.  The resulting crisis is well known and has caused the
collapse of several shipping companies in the subregion.
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