Bolivia WT/TPR/S/154 
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II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. Since the previous review in 1999, several im portant changes have taken place in Bolivia's 
legal and institutional framework.  At the same ti me, there has been political  and social instability, 
which has had a negative impact on the economy (see also Chapter I). 
2. Bolivia's trade policy is mainly defined at the national level.  In May 2005, Bolivia adopted a 
programme of policies aimed at, inter alia , boosting Bolivia's participa tion in integration processes, 
opening up new export markets, promoting investment, and building up the alliance with the private sector.  In order to provide more effective access to foreign markets, Bolivia is also endeavouring to 
maintain and improve preferences and to make furthe r progress in trade facilitation.  It is drawing up a 
new export strategy in order to expand and divers ify the production of goods and services for export. 
3. Bolivia has been a Member of the WTO since Se ptember 1995.  It plays an active role in the 
multilateral trading system and has made a numb er of proposals in the context of the Doha 
Development Agenda.  Since the last review, Boliv ia has submitted numerous notifications to the 
WTO.  It has had recourse to the WTO dispute se ttlement mechanism (as a third party) in a dispute 
concerning trade preferences. 
4. Bolivia is a founding member of the Andean  Community.  It participates in the Latin 
American Integration Association (LAIA), under which it has signed economic complementarity agreements with Chile, Cuba, MERCOSUR and Mexico .  It is an observer at the negotiations on a 
free-trade treaty between the United States, on the one hand, and Colombia, Ecuador and Peru, on the 
other.  Bolivia has been given unilateral trade preferences by the European Union and the United 
States, inter alia .  It has also benefited from a number of technical assistance activities organized 
within the WTO framework and in other forums. 
5. Bolivia's Constitution guarantees private property, ensuring that its use is not prejudicial to 
the common interest.  In general, foreign investor s are given national treatment, except in zones close 
to Bolivia's borders (50 kilometres from the border) or zones specified in the legislation.  Bolivia 
gives foreign investors guarantees under bilateral in vestment agreements, free-trade agreements and 
commitments made under the General Agreement on Trade in Services (GAT S).  Broadening these 
commitments would give Bolivia's trade regime greater  predictability, reduce risks and costs, and thus 
help to attract foreign investment. 
(2) F
ORMULATION AND IMPLEMENTATION OF TRADE POLICY  
(i) General legal and institutional framework 
6. Since the previous review in 1999, there ha ve been several changes in Bolivia's legal 
framework.  The Bolivian Constitution was amended in 2004, but the changes did not directly affect 
trade.1 
7. Executive power is exercised jo intly by the President and the Ministers of State.  The 
President and Vice-President are elected at the same time for a non-renewable term of five years;  
they may nevertheless be re-elected after at leas t one constitutional period has elapsed.  Ministers are 
appointed by the President by decree.  Th e Constitution gives the President the power, inter alia , to 
                                                      
 1 Political Constitution of the State.  Available at:  http://www.constituyente.bo/. WT/TPR/S/154 Trade Policy Review 
Page 14 
 
 
put the budget before Congress for approval, conduct  foreign relations and negotiate international 
treaties. 
8. In Bolivia, legislative power is vested in th e National Congress, which is composed of two 
chambers.  The lower chamber, that is to say, the Chamber of Deputies, is composed of 130 members, 
and the Senate of 27 (three senators per Department).2  Both deputies and senators are elected for five 
years and may be re-elected.  Congress is presided over by the Vice-President.  The Legislature is empowered, inter alia , to approve the budget and impose taxes of any type or nature.
3  Tariffs are 
proposed by the Executive and a pproved by the Legislature. 
9. Bolivia's political and administrative structure comprises nine Departments.4  These are 
responsible, inter alia , for applying domestic legislation a nd managing their own financial resources.5 
10. The hierarchy of Bolivia's legislation is, in decreasing order, the Constitution, national laws, 
and legal instruments adopted by the Executiv e:  supreme decrees, supreme resolutions, 
multiministerial resolutions, biministerial resolu tions, ministerial resolutions, and administrative 
resolutions.6  International treaties concluded by the Pr esident and ratified by Congress become part 
of national law and may be invoked before th e Bolivian courts.  The Congress does not amend 
international agreements concluded by the Executive. 
11. The Judiciary is composed of the Supreme Cour t of Justice of the Nation, the Constitutional 
Court, the district higher courts, the courts and ju dges of first instance and other courts and judges 
defined in the law.  The Supreme Court is made up of 12 judges and its President, who are elected by 
the National Congress for a term of 10 years.  The Andean Court of Justice verifies the legality of the 
provisions of the Andean Community, nullifying them if  necessary;  this Court al so interprets the laws 
of the Andean Community in order to ensure that they are uniformly applied in the member States, 
and settles disputes.7 
12. During the period under review, political and social instability in Bolivia led to the 
resignation of two Presidents of the Republic, in October 2003 and June 2005.  The latter resignation 
occurred in the context of a complex programme that included the establishment of a Constituent  
Assembly, a referendum on regional autonom y and the exploitation of hydrocarbons.8  The general 
elections for the purpose of electing the President, the Vice-President, senators and deputies have been brought forward and are programmed for December 2005.  The convening of the Constituent 
Assembly and the referendum on autonomy are planned for the first Sunday in July 2006.  The instability has had a negative impact on Bolivia's economy (see also Chapter I).  According to the 
International Monetary Fund, there has been no growth because the reforms implemented have not 
managed to make any fundamental changes to th e nature of the State or improve the business 
environment, while political opposition to decisive stru ctural reforms and pressure by various interest 
groups have meant that Bolivia remain s fiscally and financially vulnerable.
9 
                                                      
 2 Articles 60 to 66 of the Constitution. 
 3 Article 59 of the Political Constitution of the State. 
 4 In turn, the Departments are divided into 112 provinces and 327 municipalities. 
 5 Law No. 1.654 (Administr ative Decentralization La w) of 28 July 1995. 
 6 Law No. 2.446 of 12 March 2003. 
 7 Andean Community, Andean Court of Justice.  Available at:  http://www.comunidadandina.org/ 
quienes/tribunal.htm. 
 8 Message of the President regarding his resignation from the office of President of the Republic, 
La Paz, 6 June 2005.  
9 IMF (2005b), page 17. Bolivia WT/TPR/S/154 
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13. During the review period, Bolivia has also comb ated corruption, in particular, by setting up 
the Delegación Presidencial Anticorrupción  – DPA (Presidential Anti-Corruption Delegation).10  In 
January 2004, the DPA adopted the 2004-2007 Anti-Corruption Action Plan, whose objective is to help to achieve transparency in public affairs.
11 
(ii) Trade policy formulation and objectives 
14. Since 1999, there have been some changes in the organization of trade policy formulation.  In 
2003, the Executive was reorganized pursuant to Law No. 2.446 of 12 March 2003 and its Supreme 
Regulatory Decrees No. 26.973 of 27 March 2003 a nd No. 27.230 of 31 October 2003.  Under the 
Executive's new structure, the body responsible for coordinating all economic, social and human 
development policies and, in general, for drafti ng and implementing policies is the National Economic 
and Social Policy Council (CONAPES).12  The Social and Economic Policy Analysis Unit 
(UDAPE)13 acts as the technical secretariat for the CONAPES. 
15. The Ministry of Economic Development has ta ken over many of the responsibilities of the 
former Ministry of Foreign Trade and Investment.  Through its Vice-Minister for Industry, Trade and 
Export, the Ministry of Economic Development dr aws up trade policy and drafts and implements 
investment policy.  It also establishes technical posts  related to foreign trade and trade integration, in 
cooperation with the Ministry of Foreign Affairs a nd Worship, and takes part in negotiations on trade 
agreements. 
16. The Ministry of Foreign Affairs and Worship is responsible for defining and implementing 
strategies for bilateral and multilateral economic re lations and for negotiating trade agreements, as 
well as economic and trade integrati on agreements and other instruments.  The Ministry of Finance is 
in charge of fiscal policy, including tariff policy.  In collaboration with the Ministry of Foreign 
Affairs and Worship, it negotiates regional integrat ion agreements and other preferential agreements 
that cover tariff and fiscal concessions. 
17. The National Export Council (CONEX) proposes e xport policies, programmes and strategies 
and may be consulted on legislative drafts.14  It is chaired by the Minister for Economic Development, 
and the Vice-Minister for Industry, Trade and Expo rt acts as vice-chair;  the other members are the 
Vice-Minister for Economic Relati ons and Foreign Trade, the Vice-Minister for Agriculture and 
Livestock, the Vice-Minister for Tax Policy, the President of the Bolivian National Chamber of Exporters and one exporter from the industrial sect or, one from the agricultural sector and one from 
the forestry sector, all three appointed by the Bo livian National Chamber of Exporters.  The CONEX 
may call on technicians and experts to contribute  to the debate on the elaboration of policies 
depending on the matter discussed. 
                                                     
 
 10 Presidential Decree No. 27.2 14 of 19 October 2003. 
 11 Office of the President of the Republic of Bolivia, Presidential Anti-Corruption Delegation, 
2004-2007 "Plan de Acción Anticorrupción".  Availabl e at:  http://www.anticorrupcion.gov.bo/DPAInternet/ 
Plan_de_Acción/Marc o_referencial.aspx. 
 12 The CONAPES is chaired by the President of the Republic or, in his absence, by the Minister for 
Economic Development, and it includes other ministers and vice-ministers such as the Minister for the President's Office, the Minister for Fi nance, the Minister for Sustainable Development, the Minister for Services 
and Public Works, the Minister for Mines and Hydrocarbons, Education, Health and Sport, Labour, Rural and 
Agricultural Affairs, the Minister without portfolio in ch arge of public participation and the Vice-Ministers for 
Economic Relations and Foreign Trade, Government Coordination, Public Investment and External Financing. 
In addition, other ministers or officials of various institutions can be called upon. 
 
13 The UDAPE was established by Supreme Decree No. 19.758 of 22 August 1983. 
 14 CONEX was established in 1993 pursuant to Law No. 1.489. WT/TPR/S/154 Trade Policy Review 
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18. Private sector participation in trade negotiations was placed on an official basis in May 2005;  
the Executive will convene the following private en tities for this purpose:  the Confederation of 
Bolivian Private Entrepreneurs (CEPB), the Bolivia n National Chamber of Exporters (CANEB), the 
National Chamber of Commerce (CNC), the Nationa l Chamber of Industry (CNI), and the Bolivian 
Confederation of Agriculture (CONFEAGRO).15  Moreover, when need ed, the Bolivian Foreign 
Trade Institute (IBCE) and other specialized bodies may be called on. 
19. In principle, Bolivia's trade policy is dete rmined by its participation in the Andean 
Community, but in the current state of Andean integr ation its trade policy is formulated mainly at the 
national level.  In May 2005, a number of new rul es were introduced in order to boost exports (see 
also Chapter III(3)(v)).  Bolivia has adopted a nati onal policy on external integration, economic and 
trade promotion and effective market access with a view to enhancing its participation in the 
integration processes;  strengthening Bolivia's stra tegic position within those processes in light of its 
geographical situation and its natural resources;  opening up and conquering new markets, while 
consolidating those already existing;  promoting in vestment;  encouraging integration agreements and 
action to develop the physical infrastructure;  a nd fostering the alliance with the private sector.16  In 
order to improve effective access to foreign market s, the Ministry of Foreign Affairs and Worship 
endeavours to maintain and improve preferences and facilitate trade, inter alia .17  It also decides on 
target markets, which have priority wh en programmes and action are implemented.18 
20. In May 2005, the Red Externa Boliviana  – REB (Bolivian External Network) was set up for 
the purpose of economic and trade promotion, attracting investment, tourism and culture.19  The REB 
is part of the Ministry of Foreign Affairs and Worship and is made up of  Bolivia's diplomatic 
missions and consulates. 
21. Also in May 2005, the Ministry of Economic Development was instructed to implement the 
National Export Strategy (ENEX) within 60 days.20  The ENEX's objective is to increase the 
production of goods and services fo r export, enhance productivity and quality, create the necessary 
infrastructure, diversify Bolivia's exports, a nd undertake appropriate promotion efforts (see 
Chapter III(3)(v)). 
(3) FOREIGN INVESTMENT REGIME  
22. The authorities indicate that investment policy seek s to ensure that the benefits of Bolivian 
and foreign private investment lead to a transforma tion of Bolivia's production structure.  It aims to 
ensure that foreign and Bolivian private invest ment makes a more substantial contribution to 
economic growth, job creation and poverty reduction through public in vestment in order to raise 
general standards.  Government policy also under lines the need to develop policies to complement 
foreign investment policies so as to boost Bolivia's  capital market, build its institutions and develop 
manufactures for export.21  It is also intended to foster selective promotion both in terms of location 
                                                      
 15 First circle:  border areas of geo-economic importance;  second circle:  other Andean Community 
country markets, and markets in the MERCOSUR and other LAIA countries;  and third circle:  markets in the 
United States of America, Canada, the European Union and Asia. 
 16 Supreme Decree No. 28.124 of 17 May 2005. 
 17 Supreme Decree No. 28.124 of 17 May 2005. 
 18 First circle:  border areas of geo-economic importance;  second circle:  other Andean Community 
country markets, markets in the MERCOSUR and LAIA countries;  and third circle:  markets in the United States of America, Canada, the European Union and Asia. 
 
19 Supreme Decrees No. 28.124 of 17 May 2005 and No. 28.128 of 17 May 2005. 
 20 Supreme Decree No. 28.124 of 17 May 2005. 
 21 CONAPE (2005), pages 38 and 39. Bolivia WT/TPR/S/154 
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(regions and municipalities) and in terms of sectors that do not benefit from the 
capitalization/privatization (manufactures) policies.22 
23. The Vice-Ministry of Industry, Trade and Export (VMICE), which forms part of the Ministry 
of Economic Development, is res ponsible for formulating and impl ementing policies to promote and 
boost investment.23  It also monitors compliance with the legal provisions guaranteeing private 
investment.  The Bolivian Promotion Centre, for its  part, implements the policy to promote foreign 
investment in Bolivia.  The National Economic  Policy Council (CONAPE) is responsible for 
evaluating and approving the investment policies pr oposed by the VMICE and ensuring that they are 
consistent with national social and economic development policies. 
24. Bolivia's investment regime is governed by Law No. 1.182 of 17 September 1990 (Investment 
Law), Decisions Nos. 291 and 292 of the Andean Community of Nations (see below) and various 
additional sectoral regulations which include provis ions on investment (see Chapter IV(7) and 7(ii), 
(iii) and (iv)).  The Investment Law determines the general aspects of the regime, and in particular, 
investors' guarantees and obligations, the joint venture regime and free zones.  The Constitution 
guarantees private property provided that its use is not prejudicial to the common interest (Article 22).  
The authorities indicate that, even though the Cons titution does not explain what is meant by the 
common interest, it can be inferred that Article 22 guarantees private property provided that it has 
been obtained lawfully and that its use does not violat e any law or is prejudicial to social well-being. 
25. Decision No. 291 determines the foreign investme nt regime within the framework of the 
Andean Community, while Decision No. 292 lays  down the investment regime for Andean 
multinational enterprises (EMAs), defined as those in  which 60 per cent of the capital belongs to 
investors from two or more member countries of the Andean Community.  EMAs are given national 
treatment by member countries of the Andean Community, except as regards the contracting of technology, which member countries of the Andean Community should preferably obtain from the EMAs.
24  Decision No. 291 also specifies that investors from countries that are not members of the 
Andean Community have the same rights and oblig ations as investors from member countries unless 
otherwise provided in domestic legislation. 
26. The 1990 Investment Law recognizes the same rights, responsibilities and guarantees to all 
investors and to the business or company in which they invest, without any limitations other than 
those laid down in the Law.  Th e Law provides the following guarantees: 
− Right to private property without any limitations  other than those stipulated in the Law (see 
below). 
− Free exchange regime. 
− Free inflow and outflow of capital. 
− Free convertibility of currency. 
− Freedom to contract investment insurance in Bolivia or abroad. 
− Freedom to export and import goods and services provided that they do not affect public 
health and/or State security. 
− Freedom to produce and market goods and services as well as to determine prices. 
− Right to bring disputes before arbitration tri bunals in conformity with Bolivia's Constitution 
and international rules (see below). 
                                                      
 22 CONAPE (2005), page 40. 
 23 Ministry of Economic Development, information online. Available at:  h ttp://www.desarrollo.gov.bo. 
 24 Decision No. 292, Article 23. WT/TPR/S/154 Trade Policy Review 
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− National treatment for all investors as rega rds access to incentives given by the Bolivian 
Government. 
− Freedom to transfer abroad dividends, interest and royalties relating to transfer of technology. 
27. Foreign investment in Bolivia does not require prior authorization or special registration of 
the investment. 
28. The Constitution does not allow foreigners to ow n land in Bolivia between the border and the 
first 50 kilometres inside Bolivia except in the case of national requirements.25  The latter include the 
building of pipelines for transporting hydrocarbons or their by-products, c onstruction and operations 
for generating, interconnecting, transmitting, distri buting and marketing electricity, and construction 
and operation of any facility for the transmissi on of data, signals, im ages, sound and general 
information using any means of communication.26  Foreigners may also carry out and undertake both 
mining and hydrocarbons works within the 50-kilo metre fringe under joint ventures with Bolivians, 
Bolivian-owned or State-owned enterprises (see also Chapter IV(3), (5) and (6)).27  The authorities 
indicate that there are no sectors reserved to the State. 
29. Bolivia undertook commitments under the GA TS in relation to investment (see 
Chapter IV(5)). 
30. Bolivia has several preferential agreements c ontaining investment clauses.  Within the 
Andean Community, Decisions Nos. 291 and 292 lay down the legal parameters for foreign 
investment in Bolivia (see above).  In additi on, the Economic Complementarity Agreement (ECA) 
between Bolivia and Mexico contains clauses on investment which specify, inter alia , that the parties 
are to be given national treatment and MFN treat ment and also defines mechanisms for settling 
investment-related disputes.  The ECA between  Bolivia and MERCOSUR does not contain any 
specific clauses on investment between MERCOSUR a nd Bolivia but does state that the signatories 
will consider the possibility of concluding agreemen ts in order to prevent double taxation and to 
encourage and protect reciprocal investment (see section 4 below). 
31. Bolivia has signed bilateral agreements to prom ote and protect mutual investment with the 
Netherlands (1994), Peru (1995), Argentina (1995) , Cuba (1998), Denmark (1997), Romania (1997), 
the Republic of Korea (1997), Ecuador (1997), Chile  (1999), the United States (2001) and Paraguay 
(2003).28  In 2002, Bolivia also signed an investment ag reement with Costa Rica, but this has not yet 
been ratified. 
32. Bolivia has ratified bilateral double taxati on agreements with Argentina (1997), the 
Netherlands (1992), China (1993), Peru (1993), Sweden (1994), the United Kingdom (1994), Germany (1995), France (1995) and Spain (1997).
29 Andean Community Decision No. 578 
establishes the regime on preventing double taxa tion among Andean Community member countries. 
33. Law No. 1.770 of 10 March 1997 sets out Bolivia's legal framework for dispute settlement 
and arbitration to which the parties may resort be fore bringing their disputes before the courts.  
                                                      
 25 Political Constitution of the State, Article 25. 
 26 Law No. 1.961 of 23 March 1999, Articles 1, 2 and 3. 
 27 Law No. 1.777 of 17 March 1997 (Mining Code), Article 17, and Law No. 1.689 of 30 April 1996 
(Hydrocarbons Law), Article 2. 
 28 The dates within brackets are the year in  which the agreement entered into force. 
 29 Idem.  Bolivia WT/TPR/S/154 
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Bolivia is also party to international arrangement s to protect investment, for example the Multilateral 
Investment Guarantee Agency and the Centre fo r the Settlement of Investment-Related Disputes.30 
(4) TRADE POLICY OBJECTIVES  
(i) World Trade Organization 
34. Bolivia became a signatory to the GATT on 8 September 1990.  The National Congress 
ratified the Marrakesh Agreement Establishing th e World Trade Organization on 5 July 1995 under 
Law No. 1.637 and Bolivia has been a WTO Member  since 12 September 1995.  It took part in the 
post-Uruguay Round negotiations on te lecommunications and financial services;  the commitments it 
undertook in both areas are attached to the Fourth and Fifth Protocols annexed to the GATS (see also 
Chapter IV(7)).  Bolivia has not signed the WTO pl urilateral Agreements on Trade in Civil Aircraft 
and Government Procurement and is  not an observer at either of the two Agreements;  it has not 
signed the Agreement on Information Technology either. 
35. Bolivia grants MFN treatment as a minimum to all its trading partners. 
36. Since the last review in 1999, Bolivia has subm itted a large number of notifications to the 
WTO;  however, in March 2005 some notifications still had to be made .  For example, Bolivia has not 
notified its participation in any economic integrat ion agreement, nor has it completed the list of 
questions pursuant to the decision adopted by the Customs Valuation Committee on 5 May 1981.  
Some notifications that Bolivia must submit a nnually (for example, that on agricultural export 
subsidies) and biannually (such as the notification on  quantitative restrictions) still have to be updated 
(Table AII.1). 
37. Bolivia takes an active part in the WTO.  During the Doha Development Round, it submitted 
a number of proposals, some of them jointly with  other small economies and/ or landlocked countries. 
In 2002, as a member of the Cairns Group, it hosted the 24th Ministerial Meeting of the agricultural leaders of the Cairns Group. 
38. Bolivia draws attention to the fact that landlocked developing countries are confronted by a 
unique geographical situation that imposes higher tr ansportation and transaction costs for their goods 
and services, thereby limiting their competitiveness.
31  Bolivia has therefore urged WTO Members to 
take into account the special situation of these count ries and to adopt measures (such as preferential 
access to markets for their exports) that will facilitate  their full integration in the multilateral trading 
system.32  In April 2005, Bolivia and other Member s submitted a communication on trade facilitation 
containing proposals intended to improve certain el ements in Article V of the GATT (Freedom of 
transit).33  Among the principles which Bolivia has iden tified as essential to a fruitful conclusion to 
the Doha negotiations are the inte gration of developing countries in  the multilateral trading system 
                                                      
 30 World Bank, information online.  Available at:  http://www.worldbank.org. 
 31 WTO documents WT/MIN(03)/W/23 of 14 September 2003 (Joint proposal by landlocked 
developing countries (Afghanistan, Armenia, Azerbaijan, Bhutan, Bolivia, Botswana, Burkina Faso, 
Kazakhstan, Kyrgyz Republic, Malawi , Mali, Mongolia, Paraguay, Rwanda, Swaziland, Uganda, Zambia and 
Zimbabwe) and WT/COMTD/SE/W/10 of 27 April 2004. 
 32 Ibid. 
 33 WTO documents TN/TF/W/28 and TN/TF/W/28/Add.1 of 22 April 2005 and 11 May 2005 
respectively. WT/TPR/S/154 Trade Policy Review 
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and the benefits accruing from it;  the conclusion of an acceptable and beneficial final package that 
does not exclude any sector;  and participation by all Members in the decision-making process.34 
39. Bolivia is also a joint sponsor of a proposal to amend certain provisions of the Understanding 
on Rules and Procedures Governin g the Settlement of Disputes.35  In addition, it is Bolivia's view that, 
for the Doha negotiations to be successful, greater  attention has to be paid to the development 
dimension.  It is therefore necessary to clarif y the relationship between the TRIPS Agreement and 
public health and to establish fair and equita ble rules for agricultural trade in the WTO.36 
40. Bolivia has expressed a wish to see a clear manda te on the elimination of protectionist and 
trade-distorting measures applied in agriculture inas much as agriculture is one of the most sensitive 
sectors for the majority of Bolivia's population.37  Bolivia has also requested that, as part of the 
agricultural negotiations, the WTO Members agree to  discipline the activities of governmental and 
non-governmental enterprises and marketing boards.38  Together with other WTO Members, Bolivia 
has proposed a framework for the work progr amme on small economies in the context of 
paragraph 35 of the Doha Ministerial Declaration.39 
41. Bolivia's objectives in the negotiations on servi ces include achieving progressively higher 
levels of liberalization of trade in services as a means of promoting economic growth;  securing a 
balance of rights and obligations through effective market access;  creating appropriate flexibility for 
developing country Members;  and ensuring that the needs of smaller delegations are taken into 
account.40  Bolivia underlines the need for effective a pplication of the objectives laid down in the 
Preamble and Article IV (Increasing participation of  developing countries) and Article XIX (Specific 
commitments) of the GATS.  It has therefore put forward proposals on examining the extent to which 
Article IV and Article XIX.2 (Appropriate flexibilit y for developing countries) of the GATS are being 
applied to the negotiations.41 
42. In a joint communication, Bolivia states that the liberalization of mode 4 for the supply of 
services (i.e. the movement of natural persons) would provide effective market access to service providers from developing country Members.  The communication also expresses concern at the 
                                                     
 
 34 WTO document TN/C/W/13 of 6 June 2003. 
 35 WTO document WT/GC/W/410/Rev.1 of 26 October 2001 (Communication from Bolivia, Canada, 
Chile, Colombia, Costa Rica, Ecuador, Japan, Korea, New Zealand, Norway, Peru , Switzerland, Uruguay and 
Venezuela).  
36 WTO document WT/GC/M/71 of 13 December 2001. 
 37 Ibid. 
 38 WTO documents WT/GC/M/71 an d G/AG/NG/W/104 of 13 Decem ber 2001 and 23 January 2001 
respectively.  See also WTO documents WT/MIN(03)/ST/83 and WT/MIN(01)/ST/125 of 12 September 2003 
and 12 November 2001 respectively. 
 39 WTO document WT/GC/W/468 of 12 February 2002 (Communication from Barbados, Belize, 
Bolivia, Cuba, Dominican Republic, El Salvador, Fiji, Guatemala, Honduras, Jamaica, Mauritius, Nicaragua, 
Papua New Guinea, Saint Lucia, Solomon Isla nds, Sri Lanka, and Trinidad and Tobago). 
 40 WTO document S/CSS/W/13 of 24 November 2000 (Communication from Argentina, Brazil, Cuba, 
Dominican Republic, El Salvador, Honduras, India, Indonesia, Malaysia, Mexico, Nicaragua, Pakistan, Panama, 
Paraguay, Philippines, Sri Lanka, Thailand, Uruguay, and the members of the Andean Community (Bolivia, Colombia, Ecuador, Peru and Venezuela)). 
 
41 WTO document TN/S/W/16 of 25 July 2003 – Joint Statement on the Implementation of 
Paragraph 15 of the "Guidelines and Procedures for the Negotiations on Trade in Services".  Communication by the delegations of Barbados, Bolivia, China, Colombia, Cuba, Dominican Republic, Ecuador, Egypt, Honduras, 
India, Indonesia, Jamaica, Malaysia , Nicaragua, Pakistan, Peru, Trinidad and Tobago, and Venezuela. See also 
WTO document TN/S/W/7 of 28 October 2002, from the delegations of Barbados, Bolivia, Colombia, Cuba, Ecuador, Nicaragua, Peru and Trinidad and Tobago. Bolivia WT/TPR/S/154 
 Page 21 
 
 
offers of commitments on mode 4 presente d to date by developed country Members.42  In another 
joint communication, Bolivia lays emphasis on certa in elements related to issues concerning mode 4 
in the current negotiations, including administrative procedures.43 
43. The right of WTO Members to apply measures to protect public health is important for 
Bolivia.  Consequently, together with other Memb ers, it has proposed a declaration concerning the 
TRIPS Agreement and public health.44  It has also expressed concern at the application of 
non-violation and situation complaints to the TR IPS Agreement in relation to the settlement of 
disputes.45 
44. Bolivia has not participated either as a complain ant or as a defendant in any dispute before the 
WTO.  In 2004, it did participate as a third party in  the dispute regarding the European Union's tariff 
preferences.  The Appellate Body found that the EU  had acted inconsistently with the WTO's rules by 
not establishing clear criteria to determine which co untries could be included as beneficiaries of its 
drug eradication programme and that the EU failed to demonstrate that the "Drug Arrangements are 
justified under paragraph 2(a) of the Enabling Clause".46 
(ii) Preferential trade agreements 
(a) Andean Community 
45. Bolivia is a founding member of the And ean Community, established under the 1969 
Cartagena Agreement and composed (in addition to Bolivia) of Colombia, Ecuador, Peru and 
Venezuela.  The Andean Community comprises a numb er of institutions grouped together within the 
framework of the Andean Integration System (T able AII.2).  The Andean institutions have 
supranational authority.  The highest body in th e Andean Integration System is the Presidential 
Council.  The Commission of the Andean Community is a deliberative body that adopts binding decisions, the Andean Council of Foreign Ministers is the political governing body, while the General 
Secretariat is the executive arm.  The Court of Jus tice is the Andean Community's jurisdictional body. 
46. The principal objectives of the Andean Comm unity have been the establishment of a 
free-trade area and the creation of a customs union.   In 1993, a free-trade area was set up between 
Bolivia, Colombia, Ecuador and Venezuela.
47  The customs union still has to be completed as the 
Common External Tariff (CET) was not being fully applied by the five member countries by August 2005.  In July 2005, it was decided to set up an ad hoc group for the purpose of defining common tariff policy before 2 December 2005 (see Chapter III(2)(iv)). 
47. In addition to the usual trade development ru les and mechanisms (such as rules of origin, 
technical regulations, safeguard measures, an ti-dumping mechanisms or dispute settlement 
                                                     
 
 42 WTO document TN/S/W/19 of 29 March 2004 (Communication from the delegations of Bolivia, 
Brazil, Chile, China, Colombia, Cuba, Dominican Repub lic, Ecuador, Egypt, Guat emala, India, Indonesia, 
Mexico, Nicaragua, Pakistan, Peru, Philippines and Thailand). 
 43 WTO document TN/S/W/14 of 3 July 2003 (Communication from the delegations of Argentina, 
Bolivia, Chile, China, Colombia, Dominican Republic, Egypt, Guatemala, India,  Mexico, Pakistan, Peru, 
Philippines and Thailand).  
44 WTO document IP/C/W/312 – WT/GC/W/450 of 4 October 2001 (Proposal by the African Group, 
Bangladesh, Barbados, Bolivia, Brazil, Cuba, Dominican Republic, Ecuador, Haiti, Honduras, India, Indonesia, 
Jamaica, Pakistan, Paraguay, Peru, Philippi nes, Sri Lanka, Thailand and Venezuela). 
 45 WTO document IP/C/W/385 of 4 October 2002 (Communication from Argentina, Bolivia, Brazil, 
Colombia, Cuba, Ecuador, Egypt, India, Kenya, Ma laysia, Pakistan, Peru, Sri Lanka and Venezuela). 
 46 WTO document WT/DS246/AB/R of 7 April 2004. 
 47 Peru acceded to the free-trad e area in 1997 and will become  fully integrated in 2005. WT/TPR/S/154 Trade Policy Review 
Page 22 
 
 
procedures), the Andean Community has addresse d other issues such as investment, competition 
policy, services and intellectual property rights.  In 1999, the Andean Presidential Council set the objective of establishing the Andean Common Market by 2005 at the latest.  In addition to free 
movement of goods, it is due to provide for the fr ee movement of services, capital and persons in the 
subregion.
48  In 2000, it was agreed that the general fr amework of principles and rules for the gradual 
liberalization of trade in services contained in Decision 439 (Chapter IV(7)) would be implemented 
within the specified time-limits.  Other tasks will be  to eliminate the remaining barriers to movement 
of capital, facilitate domestic regulations on the mo vement of persons, define  and apply criteria for 
macroeconomic harmonizati on and continue to harmonize trade legislation.49 
48. In 2004, the Andean Community recognized th at trade negotiations with third countries 
provided opportunities but also posed challenges for Andean integration and decided to allow member 
countries to conduct bilateral negotiations for the pur pose of concluding trade agreements with third 
countries where it was not possible to ne gotiate them at the Community level.50  When doing so, 
member countries must "preserve the Andean lega l system in the relations between the Andean 
Community Member Countries;  take into account the commercial sensitivities of the other Andean 
countries in the trade liberalization offers;  and maintain within a transparency and solidarity 
framework an adequate exchange of informa tion and consultations during the course of the 
negotiations".51 
49. In early May 2005, the economic reforms envisag ed in the programme to enhance Andean 
trade integration consisted of moving ahead with  harmonizing macroeconomic policies in accordance 
with the established convergence criteria, defini ng the common agricultural policy, pursuing the 
liberalization of services on the basis of Deci sion 510 "Adoption of the Inventory of Measures 
Restricting the Trade in Services", signed on 31 Oc tober 2001, promoting the development of energy 
and integration52 and improving the physical infrastructure. 
50. Bolivia believes it important to maintain its export markets in the Andean Community and 
hopes that the Community will require compliance with the market access commitments of its 
member countries, define a common agricultural pol icy and apply a common external tariff that does 
not imply opening up of Bolivia's export sectors.53 
51. Since 1999, Bolivia has been a defendant in th e Andean Community's Court of Justice in 
three cases regarding non-compliance with the Andean  legal system.  One complaint referred to the 
failure to renew the air transport operating permit fo r unscheduled international freight services by the 
company Cielos del Perú S.A . and the second concerned compulsory prior licences for certain 
agricultural products (Chapter III(2)(vi)).  The complain ts were filed by the General Secretariat of the 
Andean Community.  The third complaint referred to the requirement imposing methyl bromide fumigation for imports of cotton from Peru.  The au thorities indicate that, in September 2005, Bolivia 
was adopting the necessary measures to comply with th e ruling of the Court of Justice, issued on 
6 July 2005, concerning the fumigation requirement. 
                                                     
 
 48 Andean Presidential Council, Act of Cartagena of 27 May 1999. 
 49 Andean Presidential Council, Act of Lima, 9 and 10 June 2000. 
 50 Andean Community Decision 598 of 11 July 2004. 
 51 Ibid, Article 2. 
 52 The Action Plan of the Andean Community Council of Ministers for Energy, Electricity, 
Hydrocarbons and Mines was approved on 19 June 2003. 
 53 Ministry of Foreign Affairs and Worship, Notas sobre Politíca Exterior Boliviana , available at:  
http://www.rree.gov.bo/ministerio/ POLITICA%20EXTER IOR/politica.htm. Bolivia WT/TPR/S/154 
 Page 23 
 
 
(b) Latin American Integration Association (LAIA) 
52. Bolivia is a member of the Latin American Integration Association (LAIA), created in 1980 
pursuant to the Montevideo Treaty.  Within the LAIA framework, Bolivia belongs to the group of 
countries of lesser relative economic development (see Chapter III(2)(iv)(d)).  Consequently, together 
with Ecuador and Paraguay, it is  given unilateral preferences by the LAIA member countries under 
regional agreements on opening up markets signed in  1983 as part of the scheme to support countries 
of lesser relative economic development.54  The preferences granted consist of the elimination of 
customs tariffs and other restrictions applied to certain specific articles that are the subject of 
negotiations.  These preferences are, however, disappear ing little by little as they are incorporated into 
trade liberalization programmes under the "new ge neration" agreements (for example, economic 
complementarity agreements (ECAs)) or are amended as a result of such agreements.55 
53. Within the LAIA framework, Bolivia has signed a number of  partial scope agreements, 
including ECAs, with Chile, Cuba, the MERCO SUR and Mexico, and a number of agreements 
liberalizing trade in particular products. 
54. ECA No. 22 between Bolivia and Ch ile has been in effect since 1993.56  Under this 
Agreement, Chile grants preferences for 4 06 tariff lines and Bolivia for 305 lines (see 
Chapter III(2)(iv)(d)).57  The Agreement also contains provisions  on rules of origin, safeguards, unfair 
trade practices and competition, internal taxes,  investment, energy complementarity and economic 
cooperation in areas such as sanitary and phyto sanitary measures, technical regulations and 
commercial information and promotion of trade, the environment and intellectual property rights.  In 
the case of the bilateral agreement with Chile and th at with Mexico (see below), Bolivia considers it 
necessary to hold evaluation meetings in order to cr eate a mechanism that would allow the imbalances 
to be remedied.58 
55. ECA No. 47 between Bolivia and Cuba came into effect in 200159 to replace the previous 
Partial Scope Agreement No. 34 and it w as adopted in Bolivia in April 1997.60  Under this 
Agreement, Bolivia gives Cuba preferential access fo r 104 tariff lines and Cuba gives it to Bolivia for 
96 tariff lines (see Chapter III(2)(iv)(d)).61  The Agreement also contains provisions on matters such 
as rules of origin, safeguards, unfair trade prac tices, trade in services, technical regulations, 
investment, transport, trade promotion and fac ilitation, intellectual property rights and dispute 
settlement. 
56. ECA No. 36 between Bolivia and MERCOSUR concerns the creation of a free-trade area 
between Bolivia and the MERCOSUR and entered into effect in 1997.62  Its objectives include the 
                                                      
 54 In Bolivia's case, the preferences  are granted under Regional Agr eement No. 1 (namely, the Regional 
Agreement on Opening up Markets in Favour of Bolivia). 
 55 LAIA (2002). 
 56 ECA No. 22 was incorporated in Bolivia's legislation by Supreme Decree No. 23.538 of 
30 June 1993 and in Chile's legislation in 1993. 
 57 LAIA (2002). 
 58 Ministry of Foreign Affairs and Worship, Notas sobre Politíca Exterior Boliviana , available at:  
http://www.rree.gov.bo/ministerio/ POLITICA%20EXTER IOR/politica.htm. 
 59 Supreme Decree No. 26.287 of 22 August 2001. 
 60 ECA No. 47 was incorporated in Bolivia's legislation in 2001 by Supreme Decree No. 26.287 of 
22 August 2001 and in Cuba's legislation in 2000.  
61 LAIA (2002). 
 62 ECA No. 36 was incorporated in Bolivia's legislation in 1997 (by Supreme Decree No. 24.503 of 
21 February 1997 and Supreme Decree (administrative application) No. 25.651 of 14 January 2000), in Argentina's legislation in 1991, in those of Brazil and Paraguay in 1997 and in that of Uruguay in 1985. WT/TPR/S/154 Trade Policy Review 
Page 24 
 
 
creation of a free-trade area within 10 years.  The tariffs applied to a number of products will, 
however, fall to zero in 2011 or 2014 (see Chapter III(2 )(iv)(d)).  In addition, the preferences granted 
under the Partial Scope Agreement on the Liberaliza tion and Expansion of Intraregional Trade in 
Seeds and Regional Agreement No. 7 on Cooperation a nd Trade in Goods in the Cultural, Educational 
and Scientific Sectors prevail for the products cove red by these Agreements.  The ECA also contains 
provisions on the regime of origin, internal taxes,  unfair trade practices (dumping and subsidies) and 
practices restricting competition, export incentives, safeguards, dispute settlement, customs valuation, 
technical standards and regulations, sanitary and ph ytosanitary measures, complementarity and trade 
in production sectors, promotion and exchange of commercial information, services, physical 
integration, investment and double taxation, and sci entific and technological cooperation.  As regards 
trade with the MERCOSUR, it is Bolivia's intention to speed up liberalization of trade, abolish the 
quotas for exports and devise mechanisms to prevent the application of trade restrictions such as 
safeguards and phytosanitary measures.  In add ition, Bolivia considers that initiatives on the 
negotiation of a free-trade area between th e Andean Community and the MERCOSUR and 
harmonization of macroeconomic  policies should be adopted.63 
57. ECA No. 31 with Mexico has been in effect since 1995.64  It covers trade in goods and 
services, rules of origin, technical barriers to trade,  customs valuation and procedures, the agricultural 
sector and sanitary and phytosanitary measures, safeguards, unfair international trade practices, 
government procurement, investment, intellectual property, temporary entry of business persons, 
transparency and dispute settlement procedures.  There are various tariff reduction programmes and 
full liberalization is envisaged by January 2009 ( see Chapter III(2)(iv)(d)).  Nevertheless, Bolivia 
considers that action in the business sphere is extremely important as Bolivia does not enjoy full 
access to the Mexican market a nd trade initiatives are lacking.65  The authorities indicate that Bolivia 
is negotiating an action plan within the frame work of the Administrative Commission under ECA 
No. 31 with the aim of promoting trade, inv estment, tourism and economic complementarity. 
58. The Partial Scope Agreement on the Liberalizati on and Expansion of Intraregional Trade in 
Seeds (Agricultural Agreement No. 2) between Ar gentina, Bolivia, Brazil, Chile, Colombia, Cuba, 
Ecuador, Mexico, Paraguay, Peru, Uruguay and Ve nezuela came into effect in Bolivia in 1997.66  It 
gives 100 per cent tariff preferences for intraregional trade in seeds.67 
59. Until August 2005, Bolivia was engaged in inte rnal administrative procedures to give 
practical effect to the Regional Agreement on Co operation and Trade in Goods in the Cultural, 
Educational and Scientific Sectors (Regional Agre ement No. 7) between Argentina, Bolivia, Brazil, 
Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela.68  T h e  
                                                      
 63 Ministry of Foreign Affairs and Worship, Notas sobre Politíca Exterior Boliviana , available at:  
http://www.rree.gov.bo/ministerio/ POLITICA%20EXTER IOR/politica.htm. 
 64 ECA No. 31 was incorporated into Bolivia's legislation by Supreme Decree No. 23.933 of 
23 December 1994 and Note SG/No. 19/99 and into Mexico's legislation in 1994. 
 65 Ministry of Foreign Affairs and Worship, Notas sobre Politíca Exterior Boliviana , available at:  
http://www.rree.gov.bo/ministerio/ POLITICA%20EXTER IOR/politica.htm. 
 66 This Agreement was incorporated  in Bolivia's legal structure by Supreme Decree No. 24.543 of 
31 March 1997.  
67 The Agricultural Agreement was in corporated in Bolivia's legisla tion in 1997 (by Supreme Decree 
No. 24.543 of 1997), in Argentina's legislation in 1991 , in those of Brazil, Chile and Uruguay in 1993 and in 
that of Peru in 1995;  for the other countries, namely, Colombia, Cuba, Ecuador, Paraguay and Venezuela, no information is available. 
 
68 The Agreement was incorporated in  the legislation of Argentina, Brazil and Venezuela in 1989, in 
those of Colombia and Mexico in 1990 and in that of Chile in 2001.  For the other countries, namely, Cuba, Ecuador, Paraguay, Peru and Uruguay, no information is available. Bolivia WT/TPR/S/154 
 Page 25 
 
 
Agreement's objective is to create a common market  for cultural goods and services and to grant a 
100 per cent preference for the products specified.69 
(c) Unilateral regimes in force 60. Bolivia enjoys the unilateral preferences grante d by various countries (see Chapter III(3)(vi)). 
It has benefited from the current GSP of the European Communities (EC) (which will expire on 
31 December 2005), including the EC's special arrangements to combat drug production and trafficking, which, in 2004, were declared incons istent with the WTO's rules (see section (4)(i)). 
According to the relevant WTO rules, the EU has until 1 July 2005 to bring its legislation into line 
with its WTO obligations.
70  A new GSP was adopted on 27 June 2005 in Council Regulation (EC) 
No. 980/2005.  For Andean and other countries, the GSP+ came into force on 1 July 2005. 
61. Bolivia also benefits from the Andean Trad e Promotion and Drug Eradication Act (ATPDEA) 
of the United States under which a large number of Bolivia's exports enter the United States free of 
duty. 
(d) Trade agreements currently being negotiated 62. Together with other countries in Central and La tin America and the Caribbean (except Cuba), 
Bolivia is participating in the process of creating the Free Trade Area of the Americas (FTAA), 
which, at June 2005, had been suspended.  Bolivia is taking part in the negotiations together with 
other Andean Community countries. 
63. In mid-2005, Bolivia participated as an observe r in the negotiations on the Andean Free Trade 
Agreement between Colombia, Ecuador, Peru and th e United States.  On several occasions, Bolivia 
has expressed a wish to become a full participan t in the negotiations, and in this connection the 
authorities have stated that they hope to initiate bilateral negotiations on the conclusion of a free-trade 
agreement with the United St ates in the near future. 
64. Since March 2000, Bolivia, together with its  Andean Community partners, has been 
negotiating an economic complementarity agreemen t with the three Central American Common 
Market (CACM) countries, namely, Guatemala, El  Salvador and Honduras, known as the "Northern 
Triangle".  In November 2000, the two parties agreed to  exchange revised lists of products of interest 
showing the preferences sought and offered.  This exchange of lists took place in May 2001.
71  In 
September 2004, at the meeting of Ministers of the Andean Community and the Central American Integration System held in New York the coun tries belonging to the Community proposed the 
establishment of a mechanism for political dialogue  and cooperation betwee n the two integration 
blocs as a preliminary step to future negotiation of a free-trade agreement. 
65. In May 1999, the Andean Community an d Canada concluded an understanding on 
cooperation in trade and investment.  Unde r this understanding, the parties undertake, inter alia , to 
intensify and strengthen bilateral economic relations, to promote trad e liberalization and investment, 
and facilitate greater participation and linkages with  private sectors.  In August 2002, the members of 
the Andean Community and Canada agreed to initia te talks on exploring the possibility of negotiating 
                                                     
 
 69 These include products such as cinematographic films, photographic films, sound recording media, 
books, booklets and similar printed matter, newspapers and periodicals, paintings, pictures and drawings and music, printed or in manuscript. 
 
70 WTO document WT/DS246/14 of 20 September 2004. 
 71 Andean Community, Central America and the Caribbean, information online.  Available at: 
http://www. comunidadandina.org/ exterior/centro_caribe.htm. WT/TPR/S/154 Trade Policy Review 
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a free-trade agreement.  The most recent round in the discussions took place in Ottawa in May 2003.  
As at July 2005, together with the General Se cretariat of the Andean  Community, the Andean 
countries were drawing up a list for preferen tial access to be submitted to Canada. 
66. The members of the Andean Community and the European Union are seeking to conclude an 
association agreement, with a free-trade area.72  In January 2005, the joint evaluation of the Andean 
Community's regional integration process began a nd led to the establishment of a joint ad hoc 
working group.  In December 2003, the Andean Community and the European Union signed an agreement on political dialogue and cooperation cont aining provisions on cooperation in areas such as 
trade, customs, services, intellectual property, go vernment procurement a nd technical regulations. 
(5) T
RADE AGREEMENTS AND ARRANGEMENTS  
67. The technical assistance provided to Bolivia  by the WTO has focused on improving 
government officials' awareness of WTO-related is sues.  Since 1999, Bolivia has taken part in 
86 technical assistance activities, including 63 worksh ops, seminars and technical training activities at 
the regional level and nine training activities at th e national level.  These activities covered a wide 
range of WTO-related issues, including agriculture , regional trade agreements, technical barriers to 
trade, sanitary and phytosanitary measures, services,  dispute settlement, anti-dumping practices, rules 
on subsidies, government procurement and rela ted matters such as competition policy, trade 
facilitation and investment.  In February 2003, Boliv ia hosted the regional workshop on trade and the 
environment for Latin American countries. 
68. Bolivia has also benefited from trade-related technical assistance and capacity-building 
programmes provided by bilateral donors such as Canada, the European Commission and various 
member States of the EU (Belgium, Denmark, France, Germany, the Netherlands, Spain and the United Kingdom), the United States, Japan and Switzerland and multilateral bodies such as the International Development Association (IDA), the International Monetary Fund (IMF), the 
International Trade Centre (ITC), the United Nations Conference on Trade and Development 
(UNCTAD) and the United Nations Industrial De velopment Organization (UNIDO).  Assistance has 
been given on trade policy and regulations  and trade development-related issues. 
69. Trade-related assistance has also been given by a number of other international organizations 
such as the Inter-American Developm ent Bank (on matters related to official policies in support of 
productivity and competitiveness, promoting production in rural areas, improving foreign trade administration, the customs reform and moderniz ation project, the opportunities afforded to least 
developed countries by electronic trade and mode rnization of the business registration service)
73;  the 
Organization of American States, through the Inter-American Agency for Cooperation and Development (IACD);  and the World Bank (instituti onal reform projects and the programme for the 
restructuring of the banking and business sector).
74  The World Intellectual Property Organization has 
organized several workshops and national and regional seminars on issues relating to industrial 
property and technological information as a tool in support of industry, market strategies and the 
economic benefits of using geograp hical indications, intellectual pr operty and economic development, 
copyright and related rights, the use of intell ectual property mechanisms for the protection of 
traditional knowledge and folklore, and the Patent Cooperation Treaty.75 
                                                      
 72 European Commission (2005). 
 73 IDB, information online.  Available at:  http://www.iadb.org/exr/country/esp/bolivia/. 
 74 World Bank, Projects & Operations, information on line.  Available at:  h ttp://www.worldbank.com/. 
 75 WIPO, Bolivia, information online.  Available at:  http://www.wipo.int/directory/es/details.jsp? 
country_id=22.