RESTRICTED  
  
WT/TPR/G/363  
26 September  2017 
(17-5074) Page: 1/19 
Trade Policy Review Body  Original:  Spanish  
 
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TRADE POLICY REVIEW  
REPORT BY  
THE PLURINATIONAL STATE OF BOLIVIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the 
Plurinational State of Bolivia is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the mee ting of the Trade Policy Review Body on the Plurinational State of Bolivia.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  Contents  
1  INTRODUCTION  ................................ ................................ ................................ ...........  3 
2  ECONOMIC AND INVESTM ENT ENVIRONMENT ................................ ..............................  4 
2.1  The economic, social, communitarian and productive model (MESCP)  ................................ . 4 
2.1.1   Structural reforms  ................................ ................................ ................................ ..... 5 
2.1.2   Economic performance  ................................ ................................ ...............................  7 
2.1.3   Social outcomes  ................................ ................................ ................................ ........  9 
2.2  Comprehensive planning system for the Plurinational State of Bolivia  ................................ .. 9 
2.3  Investment policy  ................................ ................................ ................................ ....... 10 
2.4  Sectoral policies  ................................ ................................ ................................ .........  11 
2.4.1   Energy  ................................ ................................ ................................ ...................  11 
2.4.2   Hydrocarbons  ................................ ................................ ................................ ..........  12 
2.4.3   Mining  ................................ ................................ ................................ ....................  12 
2.4.4   Agriculture and livestock ................................ ................................ ...........................  12 
2.4.5   Public works  ................................ ................................ ................................ ............  13 
2.4.6   Tourism  ................................ ................................ ................................ ..................  13 
3  TRADE ENVIRONMENT  ................................ ................................ ...............................  14 
3.1  External sector  ................................ ................................ ................................ ...........  14 
3.1.1   Trade integration and preferential agreements  ................................ ............................  14 
3.1.2   Bolivia's trade with the world  ................................ ................................ ....................  14 
3.2  Trade policy  ................................ ................................ ................................ ...............  16 
3.2.1   Facilitation of external trade  ................................ ................................ ......................  16 
3.2.2   Measures to support the export sector (promotion programmes)  ................................ ... 17 
3.3  Bolivia and the WTO  ................................ ................................ ................................ ... 17 
Charts  
Chart 2.1 Economic, social, communitarian and productive model  ................................ .............  4 
Tables  
 
Table 3.1 Bolivia's trade balance with the world  ................................ ................................ .... 14 
Table 3.2 Trends in traditional and non -traditional exports  ................................ .....................  14 
Table 3.3 Leading export markets, 2016  ................................ ................................ ..............  15 
Table 3.4 Bolivia's trade balance with LAIA  ................................ ................................ ...........  15 
Table 3.5 Trends in traditional and non -traditional exports to LAIA  ................................ ..........  15 
Table 3.6 Bolivia's trade balance with the CAN  ................................ ................................ ...... 15 
Table 3.7 Trends in traditional and non -traditio nal exports to the CAN  ................................ ..... 16 
Table 3.8 Bolivia's trade balance with MERCOSUR  ................................ ................................ . 16 
Table 3.9 Trends in traditional and non -traditional exports to MERCOSUR  ................................  16 
  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  1  INTRODUCTION  
1.1.  The Plurinational State of Bolivia was founded following the adoption of the New Political 
Constitution of the State in February  2009 as drafted by a Constituent Assembly established on the 
basis of a popular vote . It is the first constitution  to be  approved by the Bolivian people in a 
referendum and it establishes a new social and political pact ; it casts off the former Republic of 
Bolivia and creates  a new State : sovereign, free, indepen dent, democratic, intercultural and  
decentralized with autonomies . Its foundations are the plurality and political, economic, legal, 
cultural and linguistic pluralism  that frame  the integrating process of forging the country 's path 
towards  "Vivir Bien" (Living Well ). 
1.2.  Pursuant to Annex  3 of the  Marrakesh Agreement, this report describes the trade policies and 
practices that Bolivia applied during the period 2006 -2016. It sets out the environment in which 
they were developed, emphasizing the political and institutional structural reforms aimed at  
strengthen ing the new vision of the Plurinational State of Bolivia.  
1.3.  Since its previous  trade policy review, starting in 2006 and for 11  consecutive years  Bolivia 
has implemented the economic, social, communitarian and productive model (MESCP ), whose 
main success has been sustained, steady economic growth . As a result there have been 
improvements in social indica tors, such as rising employment  and declining  poverty and inequality.  
1.4.  The average growth in GDP in the period 2006 -2016 was 5.0 %, greater than the 3.4 % 
recorded in the period 1995 -2005; despite a challenging external environment, in 2014, 2015 and 
2016 Bolivia experienced the fastest economic growth of all ten South  American countries . Over 
the next few years we anticipate that  the path  of sustained growth will continue against a 
background of macroeconomic stability and prudent economic management.  
1.5.  Bolivia encourages the construction and reinforcement of deeper integration anchored in  
support, cooperation and solidarity . Through its par ticipation in forums such as the Latin American 
Integration Association (LAIA), the Andean Community (CAN), the Bolivarian Alliance for the 
Peoples  of Our America – People s' Trade Agreement (ALBA -TCP) and the Southern Common 
Market (MERCOSUR) , to which it is an acceding country,  it advocates dialogue and ties of 
friendship between our peoples as a means to achieving integration that goes beyond mere trade 
and instead incorporates exchange s in the fields of knowledge, technologies, energy, food 
production, finance, communications, health, and  education, in order to build a culture of life and 
harmony with Mother Earth.  
1.6.  Over the past 11  years the State has implemented  an investment policy in all sectors of the 
economy, promoting both public investment and private national and foreign investment . It also 
recognizes, protects, respects and provides for legal certainty in respect of economic 
organizations, regardless of whether they are community -driven , State, private or cooperat ive 
social  organizations.  
1.7.  The investment policy provides legal certainty to investors through a predictable, 
development -oriented legal framework that helps to increase employment, national 
competitiveness and exports.  
1.8.  The Bolivian investment policy is reflected in the search for partners . Within the framework of  
the MESCP this process can help to develop strategic sectors as well as income - and 
employment -generating sectors . Worthy of note here is the work actively undert aken in  recent 
years in  international foreign -investment forums in order to demonstrate  the potential and the 
advantages of investing in Bolivia.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  2  ECONOMIC AND INVESTMENT ENVIRONMENT  
2.1  The economic, social, communitarian and productive model (MESCP)  
2.1.  Since 2006 and for 11  consecutive years, i n an attempt to construct a new country capable of 
recovering  sovereignty , industrializing and exploiting natural renewable and non -renewable 
resources sustainably for the Bolivian people, the Plurinational State of Boli via has  been 
imple menting and developing the economic, social, communitarian and productive model  (MESCP) . 
2.2.  The MESCP is constructed on four pillars : (i) economic growth and development based on the 
exploitation of natural resources ; (ii) appropriation of t he economic surplus by the State ; 
(iii) redistribution of the economic surplus especially among those with the fewest resources ; and 
(iv) a vision  for society , namely to eliminate poverty and reduce social inequalities.  
2.3.  Under the MESCP, the State plays an important role in steering the economy in its various 
roles – as planner, business -owner , investor, regulator, benefactor, promoter, banker, organizer, 
income -redistributor and others as may be necessary to achieve the goals established for society 
and the  economy . This is a task that involves other players such as  private business, the 
cooperative -social  economy and the community -driven  economy , which together make up the 
Plural Economy.  
2.4.  Since 2006 the Plurinational State of Bolivia has had a production -based approach because it 
is of the view that the wisest  road to reducing poverty, unemployment and inequality lies in a 
broader  production base and sound income redistribution . Accordingly , State enterprises  are split 
into three groups  related to the way that the economic model functions : (i) enterprises  that 
generate an economic surplus ; (ii) enterprises  that generate income and employment ; and 
(iii) enterprises  in cross -cutting sectors that support production infrastructure, and producti on 
services.  
2.5.  A diagram of  how the current model works shows that there are  two economic sectors : the 
surplus -generating strategic sector, comprising hydrocarbons, mining and electricity ; and the 
income - and employment -generating sector, or "industrial Bolivia " (including manufacturing and 
crafts, tourism, agricultural  development, housing, commerce and  transport services).  
Chart 2.1 Economic, social, communitarian and productive model  
 
2.6.  Through active policies the State maximizes the economic surplus and uses it to the full  by 
redistributing it across economic diversification, industrialization and poverty reduction.  
Redistributive State  
Income redistribution and 
poverty reduction  
 
Strategic 
sectors: 
generators of 
surpluses  
Income - and 
employment -generating 
sectors  
Industrialization  
Surpluses  
Conditional transfers  (Bono Juancito Pinto, 
Renta Dignidad, Bono Juana Azurduy)  
Cross -subsidies  
Social policies  
Hydrocarbons  
Mining  
Electricity  
Manufacturing and crafts, 
tourism, agricultural 
development, housing, trade, 
transport and other services  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  2.1.1   Structural reforms  
2.7.  Every  year since 2006 various economic, political and social measures have been approved 
that have become genuine historic landmarks in conso lidating the objectives of development and 
wealth -distribution.  
2.8.  The increase in the State 's economic and political strength, the establishment of public 
enterprises , and the fact that decisions  on national economic activity are made by  State bodies are 
all signs that the Plurinational State of Bolivia has recovered sovereignty over economic policy 
decisions.  
2.9.  Each year since 2006 the Ministry of the Economy and Public Finance and the Central Bank of 
Bolivia have jointly endorsed  the sovereign Fiscal -Financia l Programme for the conduct of 
short-term economic policy, replacing the Memorandums of Understanding that previous 
government administrations used to sign with the International Monetary Fund.  
2.10.   Since 2006 the new investment policy has focused chiefly on pu blic investment, the 
instrument that delivers on  the policies outlined in the Development Plans ; however it does so 
without discarding private investment  - an essential part of the production matrix . Private 
investment in Bolivia is now subject to better c onditions as a result of Law No.  516 on Investment 
Promotion and Law No.  708 on Conciliation and Arbitration, which lay down provisions governing 
the legal relations between the State and national and foreign investors and provide for complaint  
mechanisms in accordance with international standards to guarantee investments in the country.  
2.11.   Over the past 11  years inflation in Bolivia has been controlled . In response to  the adverse 
climate events that affected agricultural production in some years, as well as the speculation and 
external shocks that affected prices , the G overnment has applied  various measures to safeguard 
the food supply on the domestic market.  
2.12.   Between 2007 and 2008, the adverse climate effects caused by the "El Niño " and "La Niña " 
phenomena, and the desire to control  price speculation for products in the family shopping basket 
in order to guarantee domestic supply and safeguard food security in the country, led to the 
approval of economic measures s uch as the deferral to 0 % of import  duties on certain food 
products,  and export controls.1 
2.13.   In the domestic market, 2014 marked the start of "Fair Weight, Fair Price " farmers ' markets 
where  producer s of basic foods sell directly to consumer s. In 2007 the Food Production Support 
Company (EMAP A) was established to support agricultural production, help stabilize the market in 
agricultural products and market farmers ' produce.2 
2.14.   Beginning in 2011, implementation of the water and irrigation programmes "More 
investment for water (MIAGUA) " and "More investment for irrigation (MIRIEGO) " has sought to 
increase agricultural production and productivity in rural areas, thereby ensuring food security and 
improving the population 's living standards.  
2.15.   Additionally, Law No.  144 on the Communitarian  Agricultural  Production  Revolution  of 
26 June 2011 promotes the processing and marketing of agricultural and forestry products from 
the various players in the plural economy, with priority given to organic output in harmony and 
balance with Mother Earth.  
2.16.   Together  with the implementation of policies on monetary, fiscal, foreign exchange and 
supply matters , these production measures have contributed to maintaining price stability i n the 
national economy.  
2.17.   The MESCP emphasizes the adoption of measures that enhance the dome stic market as a 
foundation for boosting  demand for goods produced in the sector that generate s income and 
employment . The aim of the Economic and Social Development Plan 2016 -2020, whose sixth pillar 
                                                
1 Supreme Decrees Nos.  29339 of 14  November  2007, 29229 of 15  August  2007, 29460 of 
27 February  2008.  
2 Supreme Decree No.  29230 of 15  August  2007.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  is "Sovereignty over Production and Diversification ", is to build production capacity while 
diversifying and empowering the manufacturing and agro -industrial sector.  
2.18.   Similarly, since regaining control  over economic policy decisions in 2006, a new , sustainable 
public debt policy has applied as part of the Fisca l-Financial Programme which coordinates policy 
on monetary, foreign exchange, fiscal, external trade , and balance -of-payments matters in order 
to achieve economic growth targets . This policy ensures that the public investment set out in the 
Development Plans will be implemented without putting the country 's fiscal and macroeconomic 
stability at risk.  
2.19.   In addition to encouraging price and exchange -rate stability, it is the role of the Central 
Bank of Bolivia to maintain the currency 's purchasing power for the benefit of economic and social 
development.  
2.20.   The monetary policy adopted in Bolivia has intermediate quantity targets, with limits on the 
expansion of net domestic credit and targets for minimum gains or maximum losses in net 
international reserves.  
2.21.   Under the MESCP the objectives of exchange -rate policy are as follows : (i) to contribute to 
macroeconomic stability by helping to keep inflation low and stable ; (ii) to maintain a competitive 
real exchange rate over time in relation to our chief trading partn ers; and (iii) to contribute to the 
policy of B olivianization (de-dollarization) of financial assets.  
2.22.    Financial policy is part of the Law on Financial Services3 which (i)  assigns a role in the 
financial system to the State ; (ii) protects consumers of financial services ; (iii) sets out a new 
plural structure for the financial system and a social function for financial institutions ; (iv) pays 
special attention to the productive rural sector and promotes  access to social housing ; and 
(v) ensures the stabi lity and solvency of the financial system.  
2.23.   Various measures were taken in the social field to combat poverty and inequality, and to 
improve the living standards and quality of life of the Bolivian population, especially for the most 
vulnerable.  
2.24.   In 2006 the  Bono Juancito Pinto voucher programme4 was introduced as an incentive to 
enrol, attend and complete the academic year for primary -age schoolchildren in educational 
establishments run by the public sector or the Catholic Church . In 2014 the bond 's5 coverag e was 
expanded to secondary education, thus embracing all students in the school system . The bond 
comprises an annual payment of US$29 to students.  
2.25.   The universal old -age pension benefit  Renta Dignidad  (Dignity Pension Programme )6 was 
introduced in 2008 in order to provide a dignified old age for people over the age of 60 whether or 
not they have access to the contributory pensions system . The annual benefit  is US$379 for people 
who receive a contributions -based pension and US$474 for those who do not.  
2.26.   In 2009 the Bono Juana Azurduy  incentive7 was established in order to encourage full health 
checks for pregnant women, and for boys and girls who have no social insurance, in order to 
reduce levels of maternal and child mortality  and chronic malnutrition in children . The bond 
consists of  a payment of US$265 to pregnant women and children up to the age of two years.  
2.27.   The literacy programme "Yes, I can ", was created in 2006 in order to eradicate illiteracy, an 
aim that was achieved in 200 8 when Bolivia was declared free of illiteracy . As a follow -up, the 
National Post -Literacy Programme "Yes, I can go on "8 was established in 2009 to provide primary 
education to the newly literate and to everyone over 15  years of age who had dropped out of or 
had no access to education.  
                                                
3 Law No.  393 of 21  August  2013.  
4 Supreme Decree No.  28899 of 26  October  2006.  
5 Supreme Decree No.  2141 of 9 October  2014.  
6 Law No . 3791 of 28  November  2007.  
7 Supreme Decree No.  66 of 3  April 2009.  
8 Supreme Decree No.  04 of 11  February  2009.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  2.28.   The main feature of the country 's wage policy was steady increases in the National Minimum 
Wage and above -inflation increases in the basic wage for the various sectors of the economy, thus 
increasing Bolivian families ' purcha sing power . Additionally, the policy was applied in an inversely 
proportional fashion . This means that workers on lower wages received higher wage rises.  
2.29.   With regard  to pensions, in December  2010 Law No.  065 on Pensions was promulgated, 
chiefly with the aim of ensuring and facilitating access by Bolivian men and women to the 
long-term social security system . Its main benefits include a reduction  in the retirement age  and 
the creation of a solidarity pension that increases the retirement pension for worker s who earned  
low income s during their working lives.  
2.30.   In order to provide skilled but resource -poor, mainly inexperienced, professionals and young 
people wi th opportunities, the national G overnment set up the employment programmes "My First 
Decent Job (MPED )" in 2009 and the "Employment Support Programme (PAE) " in 2012 . In 2017 
the Employment Plan was approved ; it aims to provide incentives to recruit young people 
regardless of their experience , by improving the terms under which they can be employed . 
2.1.2   Econom ic performance  
2.31.   The recovery of control by the State9 of strategic businesses in the hydrocarbons, electricity, 
telecommunications, drinking water and airport services sectors brought  economic and social 
benefits for the Bolivian population.  
2.32.   In 11  years of government, public investment has become an important lever of economic 
activity, leading to a reduction in the road and production infrastructure deficit and covering the 
population 's basic needs.  
2.33.   Total investment as a percentage of GDP ros e from 14.3 % in 2005 to 20.8 % in 2016, with a 
particularly noticeable change in pattern s of public and private investment . The 
public -investment -to-GDP ratio rose from 6.1 % in 2005 to 13.0 % in 2016, with the result that for 
the second successive year, Boli via is the highest -ranking  South  America n country  for public 
investment . Meanwhile private investment rose significantly, from  US$783  million in 2005 to 
US$2,652  million in 2016, as reflected in the growth i n the entrepreneurial base 
from 64,632  businesses  in 2005 to 284,271 in 2016 (a rise of 340 %). 
2.34.   The average growth in GDP over the period 2006 -2016 was 5.0 %, higher than  the 3.4 % 
recorded between 1995 and 2005 . The peak, at 6.8 %, occurred in 2013 , while  the lowest growth 
was in 2009 (3.4 %), although in that year Bolivia still topped the growth  table among t he 
ten South  American economies  despite the challenging environment of international crisis and 
falling  international commodity prices . This situation recurred  in 2014 (5.5 %), 2015 (4.9 %) 
and 2016 (4.3 %). 
2.35.   Nominal GDP rose from US$9,574 million in 2005 to US$34,053  million in 2016 , resulting in 
a rise in per capita income from US$1,037 in 2005 to US$3,100 in 2016, allowing international 
bodies to upgrade Bolivia 's classification from "poor country " to "medium-income country ". 
2.36.   Between 2006 and 2016, Bolivian exports averaged US$8,195  million, an increase of 456 % 
on the period 1995 -2005 when the figure was US$1, 473 million . Of particular note was the growth 
in natural gas  exports  and the rise in the share of  manufacturing . Imports over the same reference 
period grew by 263 %, from an average of US$1,925  million to US$6,998  million, led by  raw 
materials and capital goods (77 % share on average), in line with the economic policies to 
strengthen the producti on base. 
2.37.   During this period,  the balance of payments current account posted an average  surplus  of 
US$617 million, in the main reflecting significant trade surpluses and the greater flow of workers ' 
remittances.  
                                                
9 To date, the international arbitration processes involved in the recovery of State control over strategic 
businesses  have resulted in favourable terms for all parties.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  2.38.   Turning to gross foreign direct investment, the implementation of the MESCP consolidated 
Bolivia 's position as an attractive destination for foreign investment : between 2006 and 2016 the 
average figure was US$1,218  million, higher than that for the period between 1995 and 2005 
(US$719 million) . Also worthy of note is the fact that in its report on foreign direct investment in 
Latin America and the Caribbean 2015, ECLAC singled out Bolivia as an attractive country for 
investment because in 2013 and 2014 it out-performed all other countries  in the region  in terms of 
profitability . 
2.39.   In 2016, net international reserves (NIR) rose to  US$10,081  million: six times higher than 
the figure of US$  1,714  million recorded in 2005 . In 2016 NIR represented  30% of GDP and 
continued to be among  the highest in the region during the period under review, reflecting the 
financial strength of the Bolivian external sector.  
2.40.   In 2005 there was a debit balance in international investment equivalent to 75 % of GDP . 
Since 2008 the balance has been in surplus  and has remained so for nine consecutive years ; in 
2016 the figure was 0.8 % of GDP.  
2.41.   Between 2006 and 2016 the exchange rate moved in line with fundamentals .10 In the first 
few years of that period the Bolivian boliv iano (Bs) appreciated moderately  in relation to the 
US dollar , and it has remained stable in recent years . The exchange rate fluctuates within a ban d 
ranging between Bs 6.85 for buying  and Bs  6.97 for selling .11 
2.42.   Exchange rate policy in Bolivia helped to con solidate the domestic market, anchor 
expectations and de-dollarize  debt in the economy, the latter being the key factor in recovering 
control of monetary policy instruments.  
2.43.   Since implementation of the MESCP in 2006, the non -financial public sector (SPNF) has been 
well balanced as a result of the diversification of revenue  sources and a higher tax take, the 
prioritizing of capital expenditure over current expenditure , and the austerity policy for spending . 
As a result there were successive fiscal surpluses,  averaging 1.8 % of GDP , until fiscal year 2013 . 
In the last three years there have been controlled deficits as a result of greater public investment.  
2.44.   The soundness of the financial system is reflected in the substantia l growth in deposits, from 
US$3,711  million in 2005 to US$22, 041 million in 2016 owing to  the significant rise in the 
population 's income . Similarly, lending  by financ ial institutions rose from US$3, 360 million in 2005 
to US$19,651  million in 2016 as a result of the buoyant economy.  
2.45.   The b olivianization12 of deposits and placements rose by 15.6 % and 7.5 % in 2005 to 84.3 % 
and 97.0 % in 2016 , respectively . The profits of the financial system rose from  US$44  million in 
2005 to US$314  million in 2016.  
2.46.   Implementation of the public debt sustainabil ity policy has left Bolivia with broad scope for 
access to greater external finance . In December  2016, the balance of external public debt as a 
percentage of GDP stood at 21.3 %, far below the level of 51.6 % recorded in 2005 and the limits 
set by internatio nal bodies.  
2.47.   Between 2006 and 2016, as a result of prudent fiscal management and positive 
macroeconomic results, the main international ratings agencies uprated their assessment of 
Bolivia 's sovereign risk to a historic high.  
2.48.   Standard & Poor 's raised its ri sk assessment for Bolivia , from a low of B  "Negative " in 2003 
to BB  "Stable " in 2016, a rating it has maintained since 2014 ; Fitch Ratings also upped its rating 
for Bolivia from B  "Stable " in 2004 to BB  "Stable " in 2016 ; and Moody 's increased its rating for the 
country from B3  "Stable " in 2003 to B a3 "Negative " in 2016.  
                                                
10 The macroeconomic fundamentals behind exchange rate movements in Bolivia are sustained 
economic growth, high levels of international reserves, and other financial buffers to cushion domestic or 
external shocks.  
11 This range relates to transactions between  financial entities and their clients.  
12 "Bolivianization" is the ratio of deposits (credits) in the national currency to total deposits (credits).  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  2.49.   The Bolivian Treasury (TGN) debt over the last ten years has been noteworthy  for 
responsible and prudent management which has reduced vulnerabilities and ensured stability and 
sustainabili ty of domestic liabilities . The balance of the TGN domestic debt in 2016 was 12.7 % of 
GDP, far below the 30.8% of GDP  recorded in 2005 . Domestic debt is now traded on more 
favourable currency terms, with long maturity dates and low interest rates.  
2.1.3   Social o utcomes  
2.50.   One of the main planks of the MESCP is to eradicate poverty through income redistribution 
and its implementation has indeed resulted in considerable reductions in moderate and extreme 
poverty throughout the country.  
2.51.   Moderate poverty fell from 60.6 % in 2005 to 39.4 % in 2016, a drop of 21.2 percentage 
points , and extreme poverty was cut by more than half, from 38.2 % in 2005 to 18.3 % in 2016 . 
The millennium goal to reduce extreme poverty to 24.1 % in 2015 was achieved early, in 2011 
(21%). It should be highlighted  that Bolivia obtain ed the greatest poverty reduction of all the 
neighbouring countries and as a result ceased to be the poorest among them, an achievement that 
was noted by various international bodies.  
2.52.   Bolivia has made significant progress in reducing income inequality . Between 2005 and 
2016, the Gini coefficient fell from 0.60 to 0.46, signifying an improvement in income distribution . 
Additionally, whereas in 2005 the income of the richest 10 % of the population was 128  times 
greater tha n the income of the poorest 10 %, in 2016 it was only 46  times greater.  
2.53.   In education, the drop -out rate for regular  basic education fell  between 2005 and 2016 . At 
primary level it dropped from 4.5 % to 2.0 %, and at secondary from 7.8 % to 4.7 %. 
2.54.   Maternal mortality, one of the main health challenges, also fell significantly . Between 2000 
and 2011, it dropped from 187 to 160  deaths per 100,000  births . Chronic malnutrition in children 
under three years of age fell from 32 % in 2003 to 18 % in 2012 , meeting the target set as one of 
the Millennium Development Goals.  
2.55.   As a result of the literacy programme, in 2008 the United Nations Educational, Scientific and 
Cultural Organization (UNESCO) declared Bolivia free of illiteracy . Illiteracy rates fell from 13.3 % 
in 2001 to 2.8 % in 2016.  
2.56.   Over the past 11  years, urban open unemployment has fallen considerabl y, from 8.1 % in 
2005 to 4.5 % in 2016, making Bolivia the country with the lowest unemployment in the region . 
This is the result of the rise in demand for labour generated by a buoyant economy, record levels 
of public investment, the opening of new businesses , and the employment programmes developed 
by the national government.  
2.57.   The Renta Dignidad  pension programme  has improved the living standards of households 
that include older ad ults, with the following results13: (i) it has raised the income of households 
that include older adults by 16.4 %; (ii) it has raised per capita income by 15.4 % compared to 
households not in receipt of the Renta Dignidad ; (iii) it has reduced the percentage  of poor 
households that include older adults by 13.5 percentage points.  
2.2  Comprehensive planning system for the Plurinational State of Bolivia  
2.58.   In 2006, the Government of the Plurinational State of Bolivia drew up and implemented the 
"National Development Pl an: A Dignified, Sovereign, Democratic and Productive Bolivia that will 
provide the foundations for  Living Well " (NDP 2006-2011) . The Plan launch ed a process of 
dismantling colonialism and neoliberalism and constructing a new society based on a 
plurination al, community -minded State . This was achieved by means of  four strategies : 
(i) a socio-communitarian  strategy ( Bolivia Digna  (Bolivia  with Dignity) ); (ii) a social power 
strategy ( Bolivia Democrática  (Democratic Bolivia) ), (iii)  an economic production strategy ( Bolivia 
                                                
13 UDAPE (2013), El Impacto de la Renta Dignidad: Política de Redistribución del Ingreso, Consumo y 
Reducción  de la Pobreza en Hogares con Personas Adultas Mayores , July.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  Productiva (Productive Bolivia) ); and (iv)  sovereign international relations ( Bolivia Soberana  
(Sovereign Bolivia) ).14 
2.59.   Later, the Patriotic Agenda  202515 continu ed the policies and strategies launched in 2006 
while consolidating the progres s made during the process of change . The Agenda builds on the 
General Economic and Social Development Plan of the Plurinational State of Bolivia  - the document  
that sets the course for the General Economic and Social Development Plan (PDES) 2016 -2020.  
2.60.   The Patriotic Agenda 2025 rests on 13 pillars, each of which represents a number of action s 
that must be achieved  in order to attain the goals of a full, inclusive, participatory State.  
2.61.   Part of  the Patriotic Agenda  2025, the PDES16 lays down the general guideli nes for the 
country 's full development towards  Bien Vivir , including the action to be taken by public, private 
and community stakeholders generally.  
2.62.   Implementation of the PDES strengthens the Plurinational  State as a leading player in the 
social, economic and political aspects of the country, providing macroeconomic stability and 
deepening the processes that are transforming the production matrix through greater 
diversification, regional energy integration,  and stronger measures to build rounded human beings 
and encourage support for different ways of life . 
2.63.   The PDES enables the vision set out in Bien Vivir  to be strengthened under plurinational 
public management and encourages the country to continue to prog ress with consolidation of the 
MESCP, which sets out the various forms of economic organization, giving the private sector a 
larger role, emphasizing small and medium -sized producers , and helping to diversify the 
production matrix.  
2.64.   Another challenge of the  PDES is to continue to strengthen a stable macroeconomic 
environment w hile striving to consolidate the conditions in which the country can become a 
regional hub for both energy integration and roads . It aims to give a significant and definitive 
boost to e conomic diversification, industrialization and the generation of higher,  sustainable, stable 
revenues from  energy, hydrocarbons, agriculture, mining and tourism.  
2.65.   Additionally, the Plan seeks to deepen progress in social policies and in the eradication of 
extreme poverty, including greater and better access to education and health care, and to make  
the human right to basic services a reality.  
2.3  Investment policy  
2.66.   Over the past 11  years Bolivia has undergone a process of deep -seated political, economic 
and social  change that has conclusively charted a new course for national life, stability and growth.  
2.67.   Pursuant to the principles set forth in the Constitution, following the recovery of Bolivian 
ownership of  strategic resources  and the completion of socially and eco nomically justified 
nationalizations in exchange for fair compensation for investors under specific rules approved by 
the Bolivian State, it is now time to implement the new approach to national and foreign 
investment in Bolivia in accordance with  the MESC P. 
2.68.   Over the past 11  years, Bolivia has boosted and enhanced its policy to attract national and 
foreign investment by ensuring economic, political and social stability . Based on the constitutional 
mandates, it has designed a new Law on Investment Promotion that lays the foundations of the 
legal and institutional framework for this strategic State objective.17 
                                                
14 Supreme Decree No.  29272 of 12  September  2007.  
15 Approved by Law No . 650 of 19  January  2015.  
16 Approved by Law No.  786 of 9  March  2016.  
17 Supreme Decree No.  2645 of 6  January  2016 establishes the Directorate -General of Investment 
Promotion and the Plural Economy, an agency of the Vice -Ministry of Strategic State Planning, with 
responsibility for coordinating and consolidating management of investment promotion by rolling out an 
institutional st ructure to promote, attract and retain FDI.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  2.69.   Gross foreign direct investment (FDI) in Bolivia rose despite the nationalization of strategic 
businesses that began in 2006 . In that year, gross FDI  was US$582  million ; in 2016 the figure had 
doubled to US$1,084  million18, the equivalent of 86 % growth.  
2.70.   Between 2006 and 2016, aim ing to  promot e national and foreign private investment and 
re-investment , and thus  increas e capital inflows in order to mainta in economic growth and improve 
the country 's social indicators, the Plurinational State of Bolivia approved specific sectoral rules as 
part of the strategic plan for sectors of production . Accordingly, the hydrocarbons, energy, mining, 
tourism, industry an d services sectors have maintained and enhanced their attractiveness to 
national and foreign private investment.  
2.71.   Law No.  516 on Investment Promotion of 4  April 201419 invites  the national and foreign 
private sector to roll out economic activities in strateg ic and non -strategic sectors by offering 
general and specific investment incentives that are consistent with the State 's role in the economy 
and the new plural economic model , in order to address the challenges currently posed by 
production and industriali zation, both of which require a continuous flow of investment associated 
with technology transfer and knowledge generation.  
2.72.   Concerned to increase and enhance its producti on base, Bolivia enacted Law No.  466 on 
Public Enterprises of 26  December  2013, which allows private capital to participat e in publi c 
enterprises by establishing mechanisms for partnership with private bodies and allowing the 
establishment of mixed State enterprises and mixed enterprises ; additionally, the regulations allow 
strategic joint investment alliances between public  and private enterprises.  
2.73.   Law No.  516 provides for the following mechanisms for investment : commercial companies, 
public enterprises , mixed  enterprises  in which the State  has a majority shareholding in strategic 
sectors , and contracts or other  instruments  for joint investment . 
2.74.   On 25  June 2015, Law No.  708 on Conciliation and Arbitration was promulgated , 
safeguarding legal certainty within the State as an alternative method  for resolving disputes 
concerning contractual and extra -contractual relations . Under this Law, the Bolivian State provides 
for a legal framework for legal relations between the State and national and foreign private 
investors and for legal relations betwe en investors in the different forms of economic organization.  
2.75.   All these rules recognize the principle of legal certainty . They also  provide that relations 
between the State and investors are subject to clear, precise, defined rules , and that those 
relation s must develop in conditions of independence, mutual respect and equity within a 
framework of State sovereignty and dignity.  
2.76.   The legal certainty that Bolivia provides is based on the Political Constitution of the State , 
which provides for a plural economy,  guarantees private property, recognizes national and foreign 
private investment and also guarantees State ownership as well as communal or collective 
ownership . Accordingly , the State responsibly  discharges its role in respect of  national or foreign 
private investment in Bolivia.  
2.4  Sectoral policies  
2.4.1   Energy  
2.77.   The Government 's energy policies had a significant impact on the electricity sector , making  
it possible in 2008 to re -organize the National Electricity Company (ENDE) and , between 2010 and 
2012, take back  control of the generation, transmission and distribution companies , and also to 
implement  measures to increase the population 's access to electricity.  
2.78.   In the medium  and long  term the industry intends  to change the energy matrix by 
prioritizing power genera tion from renewable sources (hydroelectricity, wind, sun, geothermal and 
                                                
18 Preliminary data, Central Bank of Bolivia APEC -BCB, Reporte de Balanza de Pagos y Posición de 
Inversión Internacional 2016  (compiled in accordance with BPM6).  
19 Law on Investment Promotion repealing Law No.  1182 (the former Law on Investment).  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  biomass), which will deliver significant power surpluses for export, making Bolivia the region 's 
energy hub.  
2.79.   Additionally, as part of the process to industrialize our evaporite resour ces, work is under 
way to exploit and industrialize potassium and lithium salts . In the medium and longer term, the 
plan is to construct and operate industrial plants producing potassium chloride, lithium carbonate 
and lithium batteries that will produce v alue-added  products for nationa l and international  
markets . 
2.4.2   Hydrocarbons  
2.80.   The State oil and gas company  (YPFB) has consolidated its place in the hydrocarbons sector, 
as a strategic company owned by the Bolivian State . It is involved in  the entire production  chain 
for hydrocarbons, laying down conditions, volumes and prices for the domestic market as well as 
for export and industrialization, prioritizing supply for  the domestic market , and  exporting 
surpluses.  
2.81.   As a result of industrialization and the commence ment of operations at liquid separation 
plants, Bolivia has not only become self-sufficient in liquid petroleum gas (LPG) production, but 
also began to export it  in 2013 , thereby generating higher economic returns which, when added to 
returns on exports of  natural gas, have contributed to the country 's sustainable development.  
2.82.   In order to pursue the policy of industrialization further, in 2017 an ammonia and urea plant 
will be put into production , and there are plans to construct a propylene and polypropylene plant 
to generate value -added products primari ly for export . 
2.4.3   Mining  
2.83.   The mining and metallurgy sector is one of the strategic pillars of the Plurinational State of 
Bolivia , and  since 2006  a different approach from  that of the previous economic model  has been 
taken to its development . 
2.84.   As a result of the promulgation of the new Constitution in 2009 and the Law on Mining and 
Metallurgy20, the State recovered its leading role in the management and ad ministration of mining 
and metallurgical resources, consolidating the strategic vision of the mining sector at all stages of 
the chain of production, helping to develop the sector, transforming the production matrix and 
generating surpluses for the country . The success of these policies is borne out by the powerful 
growth of the  public mining enterprises . 
2.85.   Enhancements to the smelting and refining projects in the industrialization phase made 
Bolivia one of the top ten producer countries in the world .21 In the short term, in order to generate 
value -added products derived from iron, it is planned to open a steel plant in Mutún in addition to 
the zinc smelting and refining plant , and to prospect and work seven new deposits that will 
increase the country 's mineral  reserves . This will in turn increase mining revenues and generate 
more employment.  
2.4.4   Agriculture and livestock  
2.86.   The agriculture and livestock development sector seeks to ensure food security and 
sovereignty through diversified, organic  production with extens ive opportunities to expand in line 
with existing potential in harmony with Mother Earth . To that end, over the last 11  years, 
mechanisms for distribution and access have been introduced under policies to encourage fairness 
in land tenure . These have resul ted in the development of sectoral production and diversification, 
higher incomes for producers and the generation of surpluses, further boosting production 
capacities . 
2.87.   Aware that it is essential to increase the area of agricultural and livestock productio n in 
order to achieve substantial improve ments in  the supply of food and to export value -added food, 
                                                
20 Law No.  535 on Mining and Metallurgy of 28  May 2014.  
21 World Metal Statistics and U.S.G.S Mineral Commodity Summaries.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  the implementation of the PDES  will see by 2020 an expansion of  activity in this sector within a 
framework of more integrated  production systems that safeguard the regenerative ability of the 
environment and  the natural world . 
2.88.   The Government will continue its capacity -building  efforts for producers in the plural 
economy, especially small farmers, and to expand its own capacity to  support the sector through  
oversight  and regulation activities  and the provision of financial and non -financial services.  
2.4.5   Public works  
2.89.   One of the priorities in this sector is national integration through various modes of transport 
appropriate to the featu res of Bolivian territory, whether in the form of road, river, air or rail 
transport . Over the past 11  years the State has backed  substantial public investment, especially in 
the three road integration corridors : (i) integration to the north (Pando –Beni), (ii) east-west 
integration (Cochabamba -La Paz -Oruro -Santa Cruz) ; and (iii)  integration to the south 
(Chuquisaca -Potosí –Tarija) . The sums involved between 2006 and 2014 amounted to  
US$3 ,255 million ( for 2,494.5  km), significantly higher than the period 2001 -2005 when they 
totalled  US$639 ( for 885 km). 
2.90.   In communications, the launch of the Túpac Katari Satellite on 20  December  2013 and its 
subsequent entry into operation on 1  April 2014 brought Bolivia into the space age . This event is 
making it possible to ex pand coverage of telecom munications services and close  the gaps in digital 
technology, IT an d communication s in the rural areas of the country.  
2.91.   By 2020, significant strides should have been made in integrating the country by various 
means : road, rail, air and river, creating favourable conditions that will drive development of 
production, regional management of the country and population flows between the various 
regions.  
2.92.   Rail transport will again have a strategic place within that framework , given the importance 
that Bolivia attaches to the construction of the Bi -oceanic Integration Rail Corridor and the ensuing  
benefits it would deliver  as a major  route for regional integration.  
2.4.6   Tourism  
2.93.   The country has found an unrivalled opportunity to proj ect its image as a tourist  destination 
through organizing and hosting international events  through the Dakar Rally, whose impact has 
generated over US$397  million in the four years since the competition began passing  through 
Bolivian territory (2014 -2017),  benefitting the communities and regions concerned  and generating 
over 15,430  jobs. 
2.94.   In order to increase the contribution made by tourism to socio -economic development and 
improve the quality of life of the country 's most vulnerable social groups the "Tour ism 
Revitalization" National Community Tourism Programme (PNTC)  has invested US$19.5  million in 
the following areas : Madidi/Pampas, the Yungas, Lake Titicaca, Sajama and Uyuni/Eduardo 
Abaroa  Reserve, raising  foreign -exchange  earnings  from US$502  million in 2011 to US$711  million 
in 2016.  
2.95.   The chief future challenges facing the sector lie in better exploitation of the country 's 
tourism potential, in order to boost  the sector 's contribution  to the economy in general, and 
particularly  to generating and invigorating local employment . The PDES therefore pays special 
attention to increasing the flow of international tourism into the country , without neglecting 
tourism promotion on the domestic market,  especially  community tourism.  
2.96.   Future  activities will thus focus on  the promot ion of  tourism on international and national 
markets, project ing an image of  the country as a highly attractive base for national and 
international tourism, though international advertising  campaigns in international new spapers . The 
goal is to  expan d hotel capacity and coverage of  basic services in prime regions for tourism, 
including the construction of State -owned and joint -venture hotels ; promote  tourism to recognized 
cultural, historic and natural heritage sites ; and encourage more community tourism, among other 
aspects.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  3  TRADE ENVIRONMENT  
3.1  External sector  
3.1.1   Trade integration and preferential agreements  
3.1.  Bolivian trade policy aims to achieve complementarity and reciprocity in trade.  
3.2.  Bolivia currently participates  in the most significant processes of political and economic 
integration in the region . It is a member of the Community of Latin America and Caribbean States 
(ECLAC), the Union of South American Nations (UNASUR), the Latin American Integration 
Association (LAIA), the Andean Community (CAN), the Bolivarian Alliance for the Peoples of Our 
America - Peoples ' Trade Agreement (ALBA -TCP) and is in the process of accession to the Southern 
Common Market (MERCOSUR).  
3.3.  It has signed four economic complementarity agreem ents ( ACEs): ACE No.  22 with Chile, 
ACE No. 36 with MERCOSUR, ACE No.  47 with Cuba and ACE No.  66 with Mexico . The CAN acts as 
the framework for trade relations with Peru, Colombia, and Ecuador . Bolivia has also signed a 
People s' Trade Agreement for Produc tive Economic Complementarity with Venezuela , and has a 
schedule of products that enjoy reciprocal preference with Panama.  
3.4.  ECAs are also under negotiation with El  Salvador, Panama and Guatemala, with a view to 
strengthen ing trade integration with Central  America.  
3.5.  Bolivia supports ECLAC 's initiative to generate a regional tariff preference across all the 
Community 's members, to be coordinated through the LAIA.  
3.6.  Bolivia enjoys trade preferences under the Generalized Systems of Preferences (GSP) 
with countries outside the region such as New  Zealand, the European Union, Switzerland, 
the Russian  Federation, Norway, Belarus, Japan, Canada and the United States.  
3.7.  It has also signed trade and economic cooperation agreements with the Russian  Federation, 
Belarus and Viet Nam ; these are aimed at  establish ing intergovernmental cooperation and 
information exchange in production sectors of mutual interest.  
3.1.2   Bolivia 's trade with the world  
3.8.  Bolivia 's trade with the world has grown significantly since 2006.  
Table 3.1 Bolivia 's trade balance with the world  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Exportsb 4,232  4,890  7,058  5,486  7,052  9,215  11,991  12,372  13,034  8,912  7,228  
Imports  2,926  3,588  5,100  4,577  5,604  7,936  8,590  9,699  10,674  9,766  8,515  
Trade balance  1,306  1,302  1,958  909 1,448  1,280  3,401  2,673  2,360  -855 -1,287  
a Preliminary . 
b Includes re -exports and personal effects.  
Source:  Author, using data from the National Institute of Statistics (INE) . 
3.9.  As a result of the favourable external environment over the period 2006 -2014 the country 
was able to triple the value of its exports compared to 2005 -2006. Despite the  fall in the last 
two years following the drop in  international prices, exports are still high.  
Table 3.2 Trend s in traditional and non -traditional exports  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Non-traditional  967 1,137  1,443  1,417  1,550  1,549  2,160  2,493  2,291  1,842  1,826  
Traditional  3,122  3,685  5,490  3,983  5,416  7,597  9,654  9,759  10,608  6,883  5,270  
a Preliminary . 
Source:  Author, using data from the INE. WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  3.10.   The main non -traditional exports are from the soy complex, followed by ethyl alcohol, 
jewellery, quinoa, banana, beans, chia and others . The main traditional exports include natural gas 
and minerals such as zinc, silver, tin, gold, lead,  and copper.  
3.11.   The leading destinations for Bolivian exports are countries in the region followed by 
the  United States and the European Union . The share of non -traditional exports to the latter 
two destinations is worthy of note.  
Table 3.3 Leading export markets, 2016a 
(US$ million)  
Country  (US$million)  Share  
Brazil  1,368  19% 
United States  965 14% 
Argentina  808 11% 
Colombia  621 9% 
China  479 7% 
Japan  417 6% 
Korea, Republic of  386 5% 
Peru 341 5% 
Belgium  324 5% 
United  Arab Emirates  200 3% 
Australia  140 2% 
Remainder  1,048  15% 
Total  7,096  100%  
a Preliminary . 
Source:  Author, using data from the INE. 
Table 3.4 Bolivia 's trade balance with LAIA  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Exportsb 2,773  3,032  4,556  3,236  4,235  5,512  7,773  8,457  8,118  5,175  3,449  
Imports  1,689  2,018  2,933  2,563  3,044  4,178  4,541  4,444  4,598  4,453  3,904  
Trade balance  1,084  1,013  1,623  673 1,191  1,334  3,232  4,013  3,520  723 -455 
a Preliminary . 
b Includes re -exports and personal effects.  
Source:  Author, using data from the INE. 
Table 3.5 Trend s in traditional and non -traditional exports to LAIA  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Non-traditional  579 704 979 988 1,041  1,023  1,530  1,689  1,546  1,178  1,198  
Traditional  2,115  2,296  3,491  2,202  3,134  4,446  6,149  6,720  6,496  3,927  2,180  
a Preliminary . 
Source:  Author, using data from the INE. 
Table 3.6 Bolivia 's trade balance with the CAN  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Exportsb 422 412 525 623 699 821 1,292  1,463  1,314  1,007  1,054  
Imports  264 311 487 439 524 695 755 823 879 845 828 
Trade balance  159 101 38 184 174 127 537 640 435 162 226 
a Preliminary . 
b Includes re -exports and personal effects.  
Source:  Author, using data from the INE. WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  Table 3.7 Trend s in traditional and non -traditional exports to the CAN 
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Non-traditional  273 317 409 521 498 528 967 1,243  1,184  939 988 
Traditional  132 87 96 94 189 282 295 208 101 43 48 
a Preliminary . 
Source:  Author, using data from the INE. 
Table 3.8 Bolivia 's trade balance with MERCOSUR  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Exportsb 2,216  2,459  3,876  2,442  3,361  4,430  6,165  6,775  6,619  4,045  2,274  
Imports  1,127  1,408  1,973  1,772  2,105  2,973  3,157  2,759  2,970  2,877  2,495  
Trade balance  1,089  1,052  1,903  670 1,256  1,457  3,008  4,017  3,649  1,168  -222 
a Preliminary . 
b Includes re -exports and personal effects.  
Source:  Author, using data from the INE. 
Table 3.9 Trend s in traditional and non -traditional exports to MERCOSUR  
(US$ million ) 
Description  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015a 2016a 
Non-traditional  259 325 490 387 452 406 441 322 254 152 127 
Traditional  1,904  2,119  3,333  2,027  2,876  4,002  5,676  6,425  6,328  3,858  2,105  
a Preliminary . 
Source:  Author, using data from the INE. 
3.2  Trade policy  
3.12.   As part of its trade policy, Bolivia has implemented various mechanisms to facilitate and 
promote trade.  
3.2.1   Facilitation of external trade  
3.13.   Under the Bolivia n customs regime22, goods can be  cleared  at the border on their means 
and/or units of transport within a maximum period of 24 hours ; the result of this expedited 
process for homogenous, easily identified goods is that between April  2015 and May  2017 on 
average 57 % of goods were cleared in less than four hours, chiefly imports of iron, cement and 
products of the milling industry.  
3.14.   There is also a  prior clearance system  under which  the goods may be declared  prior to their 
arrival on the customs territory ; once the import declaration has been accepted, customs duties 
are paid ; the declaration remains  subject to selective or random checks at the border customs 
post when the goods are presented . This procedure  helps to save time and storage costs.  
3.15.   The authorized economic operator  (AEO)  programme aims to strengthen the re lationship 
between customs and the private sector in the aim of facilitating external trade . It has been in 
place since 20  March  2015, in the form of simplified customs procedures, for external trade 
operators, customs brokers  and/or international carriers . 
3.16.   The Single Customs Modernization System (SCMS ), incorporating electronic/digital 
signatures, paperless procedures, electronic notifications, automated processes etc.,  helps to 
facilitate procedures performed by external trade operators and national customs officers . 
                                                
22 Supreme Decree No.  2295 of 18  March  2015, as amended and supplemented by Supreme Decree 
No. 2357 of  13 May 2015.  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  3.2.2   Measures to support the export sector (promotion programmes)  
3.17.   Export promotion activity  takes the form of  support measures, especially for micro, small 
and medium -sized exporters, through participation in world fairs, organization of fairs, 
international exhibitions and trade missions to external markets , in order to foster  and promote 
export growth and diver sification  for higher -value -added  products . 
3.18.   This activity directly benefits micro, small and medium -sized export businesses  or potential 
exporters whose economic activities are in  priority  areas . 
3.19.   Under the temporary admission for inward processing (RITEX) procedure, raw materials and 
intermediate goods can be imported temporarily with suspension of payment of customs duty 
(VAT, ICE, GA)23 in order to undergo a production process to alter, develop or assemble them into 
a final good for export.  
3.20.   Raw materials a nd intermediate goods are granted temporary admission by customs for a 
maximum, non-extendable period of 360 calendar days counted from the date of the declaration of 
temporary admission . It should be noted that businesses are included in the RITEX  scheme for an 
indefinite period . 
3.21.   The free zones regime has been in force in Bolivia since 1987 and there are currently 
six such zones where industrial activities involving goods and services are performed under special 
taxation, customs and external trade rules.  
3.22.   Under  the rules, the goods that enter the free zones are not subject to payment of : GA, IVA, 
ICE, IEHD and IT . However, both concessionaires and users of free zones are subject to IUE . The 
free zones are as follows:  
 Industrial La  Paz – in the city of El  Alto. 
 Industrial Winner – in the city of Santa Cruz de la Sierra.  
 Industrial Puerto Suarez – in the municipality of Puerto Suarez.  
 Industrial Patacamaya – in the municipality of Patacamaya.  
 Industrial Oruro – Patacamaya Oruro.  
 Commercial and Industrial Cobij a (ZOFRACOBIJA) – in the department of Pando.  
3.23.   The key objectives of industrial free zones are to contribute to and increase national 
productivity by generating greater value -added, and productive, sustainable employm ent, 
prioritizing attraction of  national  and foreign investment in order to develop highly productive 
industrial processes that combine  safety , technology, care for the environment and good business 
practices.  
3.24.   Bolivia is an active member of the World Organi sation for Animal Health (OIE), the Codex 
Alimentarius , and the International Plant Protection Convention (IPPC) . It holds the following 
certifications : certificate as a country "free of foot -and-mouth disease ", "rinderpest free status ", 
certificate as a country free of African horse sickness, and certificate as free of Peste des petits 
ruminants  (PPR) . 
3.3  Bolivia and the WTO  
3.25.   Since 2006 Bolivia has participated at the WTO from the perspective of the MESCP and  the 
"Bien Vivir " (Living Well) paradigm, allowing it to take a constructive but critical a pproach to the 
multilateral trading system in order to achieve a fairer, balanced system that takes account of the 
different  development levels and encourages  complementary trade among  Members.  
3.26.   Bolivia considers th at the multilateral rules governing international trade are tools that help 
to improve countries ' economies by expanding and diversifying trade of developing and least 
developed countries while reducing poverty and social exclusion through a rules -based multilateral 
system that makes for pre dictability in world trade . Bolivia therefore firmly believes  that 
                                                
23 Value -added tax (VAT), specific consumption tax (ICE), customs duty (GA), special tax on 
hydrocarbons and hydrocarbon derivatives (IEHD), transaction tax (IT) and corporate profits tax (IUE).  WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  development should  always be the focus of the WTO's work and accordingly attache s high 
importance to inclusiveness , the rule of consensus and the search for compromise among  
Members.  
3.27.   The ME SCP is consistent with the international trade rules because it provides incentives for 
every aspect of complementary trade and is consistent with advancing and supporting the 
completion of the Doha Development Agenda (DDA) while seeking to achieve sustain able 
development in harmony with Mother Earth and Living Well . Therefore Bolivia is of the view that 
any WTO initiative should take the DDA as a benchmark and comply with  the flexibilities afforded 
to developing countries whether as individual Members or a s groups such as the Group of Small, 
Vulnerable Economies.  
3.28.   Progress is being made towards ratification of the Agreement on Trade Facilitation and the 
amendment to the Protocol to the TRIPS Agreement . 
3.29.   At the WTO , Bolivia participates in the G-20, the G -33, the Group of Small, Vulnerable 
Economies (SVE), and other similar groups.  
3.30.   The G -20 is seeking the elimination of trade -distorting domestic support and export 
subsidies and is requesting better access to markets, especially those of developed countries.  
3.31.   As part of the G -33 we aim to defend countries ' rights to retain discretion  to implement 
public policies that ensure food security and sovereignty, rural development and the well -being of 
small farmers and their families.  
3.32.   The aim of the Group of Small, Vulner able Economies is to negotiate the Members ' 
development policy  space within the multilateral trading system.  
3.33.   In view of Bolivia 's enormous potential as an agricultural exporter, there is an increasingly 
pressing need for significant reform of world trade in agriculture . The Uruguay Round produced 
rather  unbalanced results in favour of developed countries that maintain a highly distorted 
agricultural trading environment . That is why in the agricultural negotiations, in line with the Doha 
Development Declara tion (DDD), Bolivia supports the proposals that promote special and 
differenti al treatment (S&D) for developing countries and aim to make it effective in practice.  
3.34.   In view of the conditions in our country, Bolivia is encouraging the opening of new markets,  
provided that that very process does not require LDCs and small, vulnerable economies to make 
linear cuts in tariffs, given that S&D should also be part of the negotiations . We emphasize,  
however , that until Bolivia can overcome the existing asymmetries, it will not undertake further 
market access commitments.  
3.35.   Bolivia supports all initiatives that will allow the forthcoming Ministerial meetings of the WTO 
to consolidate the implementation of most -favoured -nation (MFN) liberalization for tropical 
products i n view of the fact that this is a key aspect of the Doha Development Round (DDR).  
3.36.   For non -agricultural products (NAMA), the negotiations must take full account of the 
provisions of paragraph  16 of the DDD, including compliance with the principle of less th an full 
reciprocity . They must also  take fully into account the special needs and interests of developing 
and least  developed countries in expect ation of  commitments to greater openness on the part of 
developed countries in conformity with the agreement in  paragraph  24 of the Hong  Kong 
Ministerial Declaration of 2005.  
3.37.   In this field we seek to achieve flexibilities for developing countries to promote public 
policies that will drive industrial development in the various priority sectors named in the 
PDES  2016-2020.  
3.38.   Bolivia acknowledges the multilateral negotiations on trade in services and does not support 
initiatives that seek to advance plurilateral commitments which could in the long term be required 
of all WTO Members ; Bolivia is also against including rules in the agreements under negotiation 
that would prevent the domestic regulation of  some sectors . Bolivia is of the view that basic WT/TPR/G/363 • Plurinational State of Bolivia  
 
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  services should not be measured against commercial criteria because they are human rights and 
cannot be the subject of private business or of liberalization rules that lead to privatization.  
3.39.   Turning to intellectual property, in accordance with the Constitution, Bolivia does not 
support any proposal in the multilateral arena that moves toward the patentability of life ; Bolivia is 
also of the view that international agreements related to that topic should be in harmony with 
nature, safeguard  biodiversity and prohibit forms of private appropriation for the exclusive use and 
exploitation of plants, an imals, micro -organisms and any living matter . To that end , in the period 
under review  Bolivia submitted two communications to revise Article  27.3(b) of the Agreement on 
Trade -Related Intellectual Property Rights (TRIPS).  
3.40.   Bolivia considers that no negotiati ons should commence on other areas until there are 
outcomes on development and the imbalances emerging from the outcomes of the Uruguay Round 
have been remedied . While distortions in world trade persist, it would be wholly unfair to ask 
developing countrie s, especially the small economies, to undertake new market access 
commitments or tariff reductions . Accordingly, S&D should be a key aspect of any existing or 
future WTO agreement ; and that treatment should not be based only on time-frames  but on the 
acqui sition of the capa city to implement those agreements.  
3.41.   Bolivia encourages  and supports initiatives aimed at improving the WTO decision -making 
process to make it more democratic, transparent and participatory , because  it considers  that it is 
of the utmost im portance for the Organization to have Member -led processes in which  
fundamental decisions are taken by all and not just by one group of countries.  
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