RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/154 
4 October 2005  
 
(05-4132) 
Trade Policy Review Body Original: Spanish 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
BOLIVIA 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Bolivia is attached. 
 
 
Note: This report is subject to restricted circul ation and press embargo until the end of the first  
session of the meeting of the Trade Policy Review Body on Bolivia. Bolivia WT/TPR/G/154
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CONTENTS 
 
Page 
I. INTRODUCTION ................................................................................................................... ...5 
II. ECONOMIC AND INSTITUTION AL ENVIRONMENT........................................................6  
A. ECONOMIC POLICY .........................................................................................................6  
B. LEGAL AND REGULATORY STRUCTURE .........................................................................8  
C. INVESTMENT POLICY ....................................................................................................12  
III. TRADE ENVIRONMENT.......................................................................................................14  
A. EXTERNAL SECTOR ......................................................................................................14  
B. EVOLUTION OF BOLIVIAN TRADE POLICY (1999-2004)...............................................14  
C. ECONOMIC INTEGRATION AND PREFERENTIAL AGREEMENTS .....................................18  
IV. BOLIVIA AND THE WTO......................................................................................................19  
A. BOLIVIA AND THE MULTILATERAL TRADING SYSTEM ................................................19  
B. IMPLEMENTATION OF THE WTO  AGREEMENTS ...........................................................19  
C. BOLIVIA AND THE DOHA DEVELOPMENT ROUND ........................................................21  
 
 Bolivia WT/TPR/G/154
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I. INTRODUCTION 
1. Bolivia's economic policy continues to be based on the free market model.  However, in the 
past years there has been a trend towards increase d State participation in the economy.  As of the 
middle of the 1980s, State intervention in the dete rmination of prices was eliminated, the process of 
opening up the economy to capital and trade flows w as consolidated, and the control of fiscal and 
payments imbalances was rectified.  As a result of these policies, over the past six-year period, inflation has been brought down to an average of  2.84 per cent, while the Boliviano (the national 
currency) has depreciated in real terms against th e US dollar at an average annual rate of 2.48 per 
cent. 
2. The process of capitalizing strategic State en terprises begun in March 1994 (hydrocarbons, 
telecommunications, transport, a nd power generation) was accompanied by the introduction of the 
necessary economic regulation legislation and the crea tion of State regulatory and supervisory bodies 
for those sectors.  
3. The structural reforms, coupled with the opening  up to capital flows and the increase in trade 
resulted in a significant increase in foreign direct investment, which reached its peak in 1999 (12.5 per 
cent of GDP).  In the hydrocarbons industry in partic ular, this led to the discovery of vast natural gas 
reserves, as a result of which Bolivia now has the second largest proven gas reserves in South 
America after Venezuela. 
4. In keeping with this economic approach, Bolivia  does not apply restrictions to trade in goods 
and services such as permits or prior licences.  Ta x policy, which is directed towards facilitating 
foreign trade, is based on tax neutrality for the e xports sector, and since no subsidies are granted in 
favour of the productive sector, there is no discreti onary power.  At the same time, Bolivia has two 
special export regimes: the Temporary Admission for Export Promotion Regime (RITEX) and the 
Free Zone Regime, both established with a view  to promoting industrial and commercial 
development. 
5. A fundamental component of Bolivia's trade polic y is its active participation in the regional 
integration processes as reflected, inter alia , in the negotiation and conclu sion of trade agreements 
with different countries.  Among the most important  economic integration a nd free trade agreements 
are the Latin American Integration Association (LAIA) – which provided the framework for the 
conclusion of the Economic Complementarity  Agreement between Bolivia and MERCOSUR 
(ECA No. 36), the Free Trade Agreement Bolivia–Mexico (ECA No. 31), the Economic 
Complementarity Agreement between Bolivia and Chile (ECA No. 22), and the Economic 
Complementarity Agreement between Bolivia and C uba (ECA No. 47) – the Andean Community, and 
the General Integration and Ec onomic and Social Cooperation Treaty between Bolivia and Peru 
(currently undergoing ratification).  Finally, ther e are the negotiations to establish a South American 
Community of Nations. 
6. Individually or together with other countries,  chiefly from the Andean  Community, Bolivia is 
also engaged in negotiating the establishment and exte nsion of free trade agreements and in particular 
the creation in 2005, of an Andean Community–Europ ean Union joint valuation group with a view to 
subsequently initiating the negotiati on of an association agreement. 
7. It is also important to recall the process of ne gotiation of the Free Trade Area of the Americas 
(FTAA),  which is on hold at the moment owin g to the problems encountered in reconciling the 
positions of its members, particularly in  the field of agriculture.  At the 17
th meeting of the FTAA 
Trade Negotiations Committee (TNC), held in Puebla , Mexico, in February 2004, efforts were made WT/TPR/G/154  Trade Policy Review
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to develop a common and balanced set of rights and obligations applicable to all countries, including 
provisions for the nine issue areas and procedures for plurilateral negotiations  (additional disciplines 
and liberalization) as instructed by the Ministers responsible for trade of the 34 FTAA countries in the 
Miami Declaration (November 2003). 
8. In spite of the Ministers' mandate, the meeting failed and the FTAA process has been 
deadlocked ever since.  The points of discord that are preventing the FTAA negotiations from moving 
ahead concern the development of a common and balan ced set of rights and obligations applicable to 
all countries and the implementation of procedures for the development of additional disciplines and 
liberalization at the plurilateral level. 
9. Under the principle of shared responsibility in combating illicit drug trafficking, Bolivia is a 
beneficiary of United States' Andean Trade Prom otion and Drug Eradication Act (ATPDEA) and the 
European Union's Generalized System of Preferences (GSP +).  Similarly, as a developing country it benefits from the GSP schemes offered by Japan , Canada, New Zealand,  Australia, and other 
developed countries.  These tariff preferences ar e used in accordance w ith the access possibilities 
granted by the countries of destination. 
10. In order to enhance its integration and par ticipation in world trade and the Doha Round 
negotiations, particularly in the area of agricultu re, Bolivia has joined the CAIRNS Group, the G20, 
and the Informal Group on Tropical Products.  It also values and supports all efforts to increase and stimulate trade in goods and services in the convicti on that this is the best way to contribute to 
development and to the welfare of its population, it being understood that due account must be taken 
of special and differential treatment for the developing countries. 
11. As an original Member of the WTO, Bolivia is committed to the strengthening of the 
multilateral trading system, and while strictly co mplying with the commitm ents it has assumed in 
accordance with the principles and ideas on which that system is based, it believes that the 
development round should address the needs and partic ularities of all of the developing countries in 
order to reduce the asymmetries between them and the developed countries.  
12. In spite of the efforts made and the measures adopt ed it must be stressed that the fulfilment of 
the different WTO commitments has had its political , economic and social costs.  Access to the 
markets of the developed countries for agricultural, industrial and textile production continues to be 
problematic owing to restrictive policy measures such as non-tariff barriers, technical barriers, subsidies, and high tariffs, and Bolivia conti nues to stand firmly against such measures. 
II. ECONOMIC AND INSTITUTIONAL ENVIRONMENT 
A. E
CONOMIC POLICY  
13. The performance of Bolivia's economy and forei gn trade during the past two years has been 
influenced by both internal and external factors.  At home, the debate on the new Hydrocarbons Law, 
enacted in June 2005, has led to uncertainty in that  sector as well as other sectors, and this uncertainty, 
in its turn, has slowed down the economy.  Neverthe less, thanks to a favourable external context and 
to the ability of the Bolivian government and the private agro-industrial sector to take timely 
advantage of that context, exports  grew to a record level of US$2,146,000,000 in 2004.  Thus, in 2004 
the economy grew at a rate of 3.6 per cent, modera te in comparison to the average growth rate for 
Latin America of 5.5 per cent (Social and Econom ic Policies Analysis Unit (UDAPE), Economic and 
Social Report, December 2004). Bolivia WT/TPR/G/154
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14. During 2004 there were signs of economic rec overy in Bolivia.  Inflation remained under 
control, there was a current account  surplus, the tax situation improved, and the exchange rate 
remained competitive.  However, there was a declin e in deposits and portfolio value in the banking 
and non-bank sectors.  On the other hand, private financial funds and savings and loans cooperatives 
saw an average annual increase in deposits and portf olio value of 14.1 per cent and 20.4 per cent 
respectively (UDAPE, idem ). 
15. In spite of the slowdown in the financial sector, liquidities (i.e. cash assets and temporary 
investment) increased in 2004 in comparison to 2003, reflecting a considerable capacity to resist any 
runs on deposits (for US$100 deposited, US$35.3 were  immediately available) .  At the same time, 
there was an average legal reserve surplus of US$5 6.7 in 2004, or 21 per cent of the required reserve 
for that year, an indication of the solvency of the financial system. 
16. In 2003, the non-financial public sector fiscal de ficit stood at 8.12 per cent of GDP, pension 
spending accounting for the bulk of it.  In 2004, the deficit fell to 6.1 per cent of GDP, reflecting an economic expansion that can largely be attributed  to the extraction and refining of hydrocarbons 
(UDAPE, idem ). 
17. The boom in foreign sales revolved around a handful  of products:  natural gas, fuels, and 
Soya.  While certain manufactured goods (clothing and articles of wood) performed well, they only 
represent a small proportion of the exportable offer.   Tin and zinc production, stimulated by higher 
international prices, recovered some of its prominence in foreign sales. 
18. Bolivia has few products and few markets.  In  2004, 70 per cent of the total value of its 
exports were confined to a handful  of products:  natural gas, crude oil, products related to the oil 
complex (Soya), zinc, silver, and tin.  As regards th e countries of destination, some 68 per cent of the 
total value of Bolivian exports go to five countries:   Brazil, the United States, Venezuela, Peru, and 
Argentina.  On the other hand, Bolivia's share in  Latin American goods exports in 2003 was less than 
0.4 per cent, and its share in world exports was 0.02 per cent. 
19. In view of the country's potential in the hydr ocarbons sector, gas exports are one of the 
mainstays of its efforts to promote economic growth in the coming years.  To that end, the 
government is encouraging efforts to repositi on the role of the State Oil Corporation ( Yacimientos 
Petrolíferos de Bolivia  – YPFB) and the migration of contract s to the new Hydrocarbons Law, as well 
as agreements and letters of intent in order to improve complementarity in the energy sector with Argentina, Brazil, Mexico, Paraguay, Peru, Uruguay and Venezuela. 
20. At the same time, the Bolivian economy is highly dependent on external financing.  In 2004, 
the country's multilateral external debt represented 86.5  per cent of the total, while its bilateral debt 
represented 7 per cent, and its debt with the Intern ational Monetary Fund (IMF), 6.5 per cent.  In 
Bolivia's case, external resources play a key role in public investment and in reducing the fiscal 
deficit.  During the 1990s, slightly more than 50 per cent of public investment was financed by 
external loans and donations as well as funds obtained through the HIPC initiative (UDAPE, idem ). 
21. In addition to the above-mentioned problems, the difficulties facing Bolivia when it comes to 
effective participation in the world economy are a ggravated by the additional disadvantage of having 
no access to the coast.  This factor explains a certa in lack of competitiveness in comparison to other 
countries, in that it means, inter alia , higher transport and insurance costs, coupled with a dependency 
on neighbouring countries for the transit and transpor t of its goods.  Indeed, Bolivia is particularly 
concerned that the negotiations aimed at improvi ng trade facilitation rules should take account of WT/TPR/G/154  Trade Policy Review
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these difficulties and this dependency affecting its external sector, without prejudice to its demands 
for access to the ocean. 
22. The medium-term economic and social deve lopment plan approved in May 2005 by the 
Executive, known as the "Bolivia Production and So lidarity Plan", aims to build-up productive 
capacity and narrow the inequality in the distributi on of income with a view to achieving inclusive 
and equitable development. 
23. One of the plan's priority objectives is the utilization of renewable natural resources.  It also 
identifies the following sectors as having a high grow th potential:  forestry, agriculture, livestock 
breeding and fisheries, timber and non-timber industry, food and agro-industry, clothing, leather, and 
high quality jewellery.  Finally, the plan provi des for the development of mining activities on the 
basis of exports and the industrialization of mining and natural gas through in creased participation of 
the State as a strategic partner. 
24. To that end, the plan seeks to take greater advantage of the market s in which Bolivia is 
present and to open up new markets with a view to  consolidating and diversifying its current 
exportable, supply on the basis of potential demand from international markets. 
25. Bolivia's geographical location has given it an ar ticulating role and made it a strategic hub for 
regional transport (in the framework of the Initiativ e for Regional Infrastructure in South America –
IIRSA), and an energy hub for the Southern Cone.  Similarly, its rich biodiversity and ethnic and cultural resources have made the country an important tourist destination. 
26. In 2004, the Government drafte d and approved the "Bolivian Integral Strategy for the 
Struggle Against Drug Trafficking 2004-2008" based  on a series of alternative development, 
prohibition and eradication programmes, which received significant contributions from the 
international community to cut Bolivia off from th e transnational drug trafficking and the related 
crime networks. 
B. L
EGAL AND REGULATORY STRUCTURE  
27. Bolivia has a legal, regulatory and institutiona l structure that enables it to implement its 
economic and trade policy.  Its trade policy is based on Chapter III of the Constitution and on the 
Commercial Code, which sets out the relevant domest ic legal framework of regulations in detail. 
28. In 1993, significant changes were introduced in  the institutional structure of the Executive, 
involving a restructuring of ministerial roles and re sponsibilities in the trade area, and since then there 
have been additional changes. 
29. The ministries have institutional structures comprising a number of administrative divisions 
responsible for facilitating and promoting trade, prov iding advisory services, and contributing to trade 
growth.  Over the past few years, Bolivia has trie d as effectively and efficiently as possible to adapt 
its institutional and legal structures to the co mpetitive dynamics of the international economy. 
30. The Ministry of Foreign Affairs and Worship is  currently responsible, among other things, for 
coordinating Bolivia's bilateral and multilateral relations, and its participation in non-financial 
international forums, and for formulating and im plementing strategies related to its bilateral, 
multilateral and regional economic re lations with a view to ensuring its economic and commercial 
integration at the international level. Bolivia WT/TPR/G/154
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31. Pursuant to Law No. 1444, this ministry is  responsible for negotiating and concluding 
international agreements aimed at promoting the country's economy and trade and attracting 
investment so that Bolivia can take effective a dvantage of its trade and integration agreements 
(Decree No. 27732).  It is also responsible for headi ng the international trade negotiations that Bolivia 
is conducting within the various integration and schemes at the bilateral level.  Finally, in 
December 2004 it took over the Centre for the Promotion of Bolivia (C-PROBOL), an institution 
created to promote foreign trade, whose four main objectives are: 
• To contribute to improving Bolivia's business climate and image; 
• To increase and diversify international tr ade flows with emphasis on value added 
exports; 
• To promote and attract investment in the productive and services sectors; 
• To encourage strategic alliances that favour the internationalization of the business 
sector. 
32. Law No. 2446 on the Organization of the Ex ecutive (LOPE), dated 19 March 2003, and its 
regulations, approved respectively by Suprem e Decree No. 26937 of 27 March 2003 and Supreme 
Decree No. 27732 of 27 September 2004, lay down the competences and functions in the area of integration and foreign trade.  They stipulate that  matters relating to inte rnational negotiations, the 
opening up of markets, and market penetration, come under the responsibility of the Ministry of 
Foreign Trade and Worship. 
33. The Ministry of Economic Development is responsbile, inter alia , for formulating and 
implementing economic development policy, fo r promoting productivity and competitiveness 
programmes in the areas of industry, trade and micr o-enterprise, and for exports and the opening up of 
markets on the basis of the agreements and treaties concluded by the Ministry of Foreign Affairs and 
Worship. 
34. August 2003 saw the creation, in the Mini stry of Economic Development, of the Red de 
Fomento Productivo y Promoci ón de las Exportaciones - REFO (Productive Development and Export 
Promotion Network) to support the developmen t of production and competition by offering 
information and coordination services to State economic  operators and institutions .  REFO is made up 
of the C-PROBOL, the Technical Assistance Servi ce (SAT), the Bolivian Institute of Metrology 
(IBMETRO), the Single Export Window System (SIVEX)
1, the Bolivian Accreditation Body (OBA), 
the Bolivian Institute for Small Industries (IN BOPIA), the Productivity and Competitiveness Unit 
(UPC), and the National Intellectual Property Service (SENAPI). 
35. The Ministry of Finance concludes external  financing and intern ational economic and 
financial cooperation agreements , and, among other things, proposes tax and tariff policy and 
establishes the rules for government procurement. 
36. The Ministry of Rural and Agricultural Affairs (MACA) is responsible for proposing policies, 
regulations and guidelines to achie ve the level of agricultural, livestock, and fisheries production 
needed to guarantee food security for the popul ation while exporting to foreign markets. 
37. The National Service for Agricultural H ealth and Food Safety (SENASAG), as a 
decentralized agency of the MACA, administers th e specific agricultural health regime, guarantees 
food safety throughout the national territory, preserves the health status of the productive, agricultural 
and forestry assets, and promotes the sanitary improvement of plant production. 
                                                      
1 See paragraph 60 WT/TPR/G/154  Trade Policy Review
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38. The Ministry of National Defence, through the Ge neral Directorate for Maritime, River, Lake 
and Merchant Marine Interests (DGIMFLMM), regul ates maritime, river and lake transport.  Its 
efforts in this area are directed towards promo ting the sector by improving services, regulations, and 
infrastructure in keeping with current market economy conditions, thereby facilitating national and 
international trade. 
39. The regulatory framework for this sector is e ssentially set forth in, and governed by, Supreme 
Decree No. 12683 (River, Lake and Maritime Na vigation Policy), Supreme Decree No. 12684 
(Law on River, Lake and Maritime Navigati on), and Supreme Decree No. 12685 (Law on the 
Creation of the Merchant Marine), all issued on 18 July 1975. 
40. The Bolivian National Customs Administration is  responsible for checking, controlling and 
inspecting the goods passing through the country's borders, ports and airports, intervening in 
international trade for the purpose of collecting cu stoms duties, and administering customs regimes 
and transactions. 
41. The General Customs Law (Law No. 1990), promul gated in 1999, became the cornerstone for 
the successful institutional reform of the Nationa l Customs Administration, providing it with a 
modern regulatory framework based on the prin ciples of good faith, transparency, and trade 
facilitation in accordance with international trends  in that area as governed by the International 
Convention on the Simplification and Harmonizati on of Customs Procedures (Kyoto Convention), the 
different decisions of the Andean community, th e WTO agreements, and the guidelines of the World 
Customs Organization (WCO). 
42. The customs reform helped to speed up import and export clearance while reducing costs, and 
to introduce modern and automated procedures including the ASYCUDA computer system, bi-national customs offices (with Argentina in par ticular), new subsequent inspection mechanisms 
based on risk management, a unit devoted exclus ively to the suppression of smuggling (Operative 
Customs Control – COA), and improved internal c ontrols to help combat corruption within the 
institution. 
43. At the same time, there are private sector in stitutions such as the Bolivian Foreign Trade 
Institute (IBCE), a private technical consulting in stitution specializing in foreign trade and economic 
integration which works in coordination with the sectoral ministries. 
44. The following legislation has been adopted  since 1999 in the foreign trade area: 
• Supreme Decree No. 25465 of 23 July 1999, establishing regulatory provisions for 
the export tax refund; 
• Supreme Decree No. 25706 of 14 March 2000, establishing regulatory provisions for 
the Temporary Admission for Export Regime (RITEX); 
• Supreme Decree No. 26630 of 20 May 2002, am ending the regulations for the export 
tax refund; 
• Supreme Decree No. 26704 of 10 July 2002, establishing the export tax refund with 
the obligation of Tax Refund Certificates (CEDEIM); 
• Supreme Decree No. 27020 of 29 April 2003, on tax treatment for ATPDEA exports; 
• Supreme Decree No. 28125 of 16 May 2005, amending Supreme Decree 
No. DS25706 on final processing (RITEX); Bolivia WT/TPR/G/154
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• Ministerial Resolution No. 157/03 of 2 September 2003, regulating the Temporary 
Admission for Final Processing Regime– RITEX; 
• Supreme Decree No. 27267 of 2 December 2003, Am ending Supreme 
Decree No. 27020 of 29 April 2003 on the tax treatment of ATPDEA exports. 
With respect to tariff concessions, for both imports and exports, the following provisions are also in 
force: 
• Supreme Decree No. 25704 of 14 March 2000, approving the list of capital goods 
subject to the customs duty of 5% and 0%; 
• Supreme Decree No. 27167 of 15 September 2003, deferring payment of the customs 
duty of 0% on the importation of industrial plants not produced in the Andean subregion; 
• Supreme Decree No. 27347 of 31 January 2004, identifying capital goods, 
components and spare parts falling within th e scope of Article I of Supreme Decree 
No. 25704 of March 2000; 
• Law No. 2685 of 13 May 2004, on economic promotion of the city of El Alto; 
• Law No. 2809 of 27 August 2004, extending the period of exemption from payment 
of national, departmental and municipal ta xes, with the exception of personal income 
tax, to 10 years for any new manufacturing industry setting up in the department of Oruro; 
• Supreme Decree No. 27945 of 20 December 2004, regulating Law No. 2685; 
• Supreme Decree No. 28037 of 7 March 2005,  regulating the application of Law 
No. 2809; 
• Supreme Decree No. 28067 of 4 April 2005,  extending for 18 months starting on 
5 June 2005, the validity of Supreme Decree No. 27167 on the importation free of 
customs duty of industrial plants not produced in the Andean subregion. 
In the area of competition policy and intellectual pr operty rights, the regulatory framework includes: 
• Supreme Decree No. 27938 of 20 December 2004, on the organization and operation 
of SENAPI; 
• Supreme Decree No. 28152 of 17 May 2005, amending, adapting, and supplementing 
Supreme Decree No. 27938. 
Sanitary and phytosanitary legislati on and regulation of the services sectors: 
• Law No. 2066 of 11 April 2000, amending Law No. 2029 on drinking water and 
sewerage services; 
• Law No. 2074 of 14 April 2000, on the promotion and development of tourist 
actitivies; 
• Supreme Decree No. 25870 of 11 August 2000,  regulating the General Customs Law 
with respect to road transport services and auxiliary services relating to all means of 
transport. WT/TPR/G/154  Trade Policy Review
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Legislation on Free Zones: 
• Law No. 1963 of 23 March 1999,  amending Law No. 1489 of 16 April 1993; 
• Law No. 1990 of 28 July 1999, General Customs Law; 
• Supreme Decree No. 25870 of 11 August 2000,  regulating the General Customs Law; 
• Supreme Decree No. 25933 of 10 November 2000, regulating the Commericial and 
Industrial Free Zone of Cobija; 
• Law No. 2135 of 18 October 2000, exempting companies from profit tax for the 
period of validity of Law No. 1850 (Cobija Free Zone); 
• Law No. 2755 of 28 May 2004, creating a commercial and industrial free zone in the 
municipality of Sucre; 
• Supreme Decree No. 27944 of 20 December 2004, regulating the special commercial 
and industrial free zone regime; 
• Supreme Decree No. 28126 of 16 May 2005,  regulating the operation of free zones 
and warehouses as well as storage areas pr ovided abroad, facilitating and expanding 
their use. 
Legislation for the development of production and exports: 
• Supreme Decree No. 28124 of 16 May 2005, establishing regulatory framework for 
the national export development policy and the national policy on external 
integration, economic and trade promotion, and effective market access; 
• Supreme Decree No. 28127 of 17 May 2005, whose purpose is the development of 
national policy objectives and strategies w ith respect to external integration, 
economic and trade promotion, and effectiv e market access in keeping with a vision 
of diplomacy for development; 
• Supreme Decree No. 28128 of 17 May 2005, establishing the Bolivian External 
Network (REB) for the purpose of working effectively to promote the economy, trade, and investment, as well as the spread of tourism and culture, in keeping with 
the vision of diplomacy for development; 
• Supreme Decree No. 28137 of 17 May 2005, establishing a regulating framework for 
the National Strategy for the Development of the Manufacturing Industry (ENDI); 
• Supreme Decree No. 28153 of 16 May 2005, approving the National Agricultural and 
Rural Development Strategy (ENDAR); 
• Supreme Decree No. 27328 of 31 January 2004, establishing " Compro Boliviano " 
(government purchase of Bolivian products) to support domestic production through 
government purchases. 
C. I
NVESTMENT POLICY  
45. In the framework of its policy of attracting inv estment, Bolivia continues its efforts to create 
favourable conditions for private investment, bot h domestic and foreign, by guaranteeing economic, 
political and social stability.  Between 1999 and 2004  it succeeded in maintaining financial stability, 
low inflation, and a stable and ongoing tax policy.  At the same time, the system of registering, 
establishing, and operating companies in Bolivia was improved with the creation of the Business Bolivia WT/TPR/G/154
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Superintendency by Law No. 2427 of 28 November  2002 for the purpose of regulating persons and 
enterprises in the following areas: 
• Restructuring and voluntary liquidation of enterprises; 
• Defence of competition; 
• Corporate government; 
• Trade registration. 
46. In 2004, a new Hydrocarbons Law (No. 3058) was enacted.  This sectoral law regulates one 
of the most sensitive and important sectors of the national economy, and alters the relationship 
between private enterprises and the State.  Firstly , it requires enterprises to conclude new types of 
contract in order to continue their activity in the sector;  secondly, it modifies and increases the tax 
burden on companies producing hydrocarbon resour ces;  thirdly, it consolidates the State oil 
corporation (YPFB), giving it the capacity to operate along the entire production chain, from exploration to marketing;  and finally, it provid es that export prices of hydrocarbons should be fixed 
by the State. 
47. As a result of administrative decentraliza tion and the privatization and capitalization 
State-owned enterprises, begun in the second half of the 1990s, public investment has been transformed and reoriented, through new mechanisms  for establishing priorities whose results are set 
forth in Annual Operating Law Plans, towards so cial development and the economic infrastructure. 
48. The Investment Law (No. 1182), which has b een in force since September 1990, extends 
national treatment to foreign investors.  There is no discrimination by country of origin of the capital, 
no incentives to use domestic raw materials and in puts, and no incentives relating to production or 
export levels.  Under this legal framework, investme nt does not require prior authorization and is not 
subject to any limitations except those stipulated in the Law. 
49. At the same time, the Investment Law guarantees a free foreign exchange regime with no 
restrictions on the inflow and outflow of capital or  on remittances abroad of dividends, interests and 
royalties for the transfer of technology or othe r business activities, free production and marketing of 
goods and services, and freedom to set prices. 
50. Similarly, Law No. 1182 provides investors with the security of being able to resolve their 
disputes and bring them before arb itral tribunals.  It does not recognize any form of private monopoly, 
and it establishes a legal framework fo r joint investment by domestic and/or foreign investors in the 
form of joint ventures, among others.  Investment  policy is supplemented by a national regulatory 
system which promotes free competition and thus facilitates foreign direct investment (FDI). 
51. Private investment in Bolivia is currently be ing strengthened internationally by a number of 
agreements and systems, such as the Multilatera l Investment Guarantee Agency (MIGA), the 
Overseas Private Investment Corporation (OPIC), a nd the International Centre for the Settlement of 
Investment Disputes (ICSID), among others. 
52. For the purpose of creating favourable conditions to stimulate the transfer of capital and 
technology between the parties by promoting and pr otecting investment, Bolivia, during the six-year 
period under review, signed bilateral investment pr omotion and protection agreements with:  Chile 
(1999), United States (2001), Costa Rica (2002), and Paraguay (2003). WT/TPR/G/154  Trade Policy Review
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III. TRADE ENVIRONMENT 
A. EXTERNAL SECTOR  
53. Bolivia's trade policy continues to be based on the free market model adopted in 1985, which 
establishes free trade in goods and services, without any prior permit or licensing requirement except 
in cases where there may be a danger to human, animal or plant health or to the security of the State 
or the country's artistic and cultural heritage.  Li kewise, trade policy, as a rule, does not provide for 
subsidies of any kind to fav our any sector of the economy. 
54. In accordance with the principle of tax neutra lity, attempts have been made in Bolivia to 
eliminate any anti-export bias so as to place the dom estic exporter in a position similar to that of the 
competitors.  To avoid excessive fiscal expenditure a nd subsidies, policies of refunding indirect taxes 
and duties to exporters are used. 
55. International trade plays an important part in  Bolivia's growth strategy, the expansion and 
diversification of exports and the i nput of FDI being particularly impor tant for the sustainability of the 
balance of payments. 
56. The General Export Regime is regulated by La w No. 1489 of 1993, with amendments to the 
articles concerning the improvement  of tax neutrality for exports. 
57. Supreme Decree No. 25465 of 23 July 1999 estab lishes a simple and automatic mechanism 
for the refund of duties, with fractions of two pe r cent and four per cent of the FOB export value for 
products valued at less than US$3,000,000.  The met hod employed to determin e the refund of duties 
for products with values above US$3,000,000 involves th e use of technical coefficients, calculated on 
the basis of the cost struct ure of each exporting industry. 
58. In addition to the General Export Regime, ther e are two special regi mes:  the Temporary 
Admission for Final Processing Regime (RITEX) and the Free Zones Regime.  Through RITEX, enterprises can bring in raw materials and inte rmediate goods without paying customs duty or 
domestic taxes for a maximum period of 360 days, during which time they must produce and export 
the final goods;  otherwise they must pay the suspended taxes. 
59. The Free Zones Regime, based on the principl e of customs and fiscal segregation, was 
adopted to promote industrial and trade developmen t, taking advantage of the competitiveness arising 
from the low costs of some inputs, and generatin g employment and favourable conditions for local 
and foreign investment.  The free zones are admini stered by private companies which are given a 
concession for 40 years.  At the moment, seven in dustrial free zones and six commercial free zones 
are operating. 
60. In 1992, the single export window scheme (SIVEX) was created to centralize and simplify 
export formalities.  It was dissolved by Suprem e Decree No. 28143 of 16 May 2005, and its functions 
relating to certification of origin were transfe rred to the Bolivian National Chamber of Exporters 
(CANEB). 
B. E
VOLUTION OF BOLIVIAN TRADE POLICY (1999-2004) 
Performance of goods exports 
61. During the 1990s and the first years of the new ce ntury, Bolivian exports remained at a level 
of about US$1,200,000,000.  This changed in the course of 2003 and 2004, when foreign sales Bolivia WT/TPR/G/154
 Page 15 
 
 
reached a record level of US$1,676,000,000 a nd US$2,254,000,000 respectively.  Indeed, 2004 
marked an historical turning point at which the cons tant levels of the 1990s we re finally left behind. 
62. Hydrocarbon exports increased from US$75 milli on in 1999 to US$847 million in 2004, 
i.e. by US$772 million – more than tenfold in va lue.  Hydrocarbons represent the main component in 
the increase in exports achieved up to 2004. 
63. Non-traditional exports accounted for 40 per cent of the total value, reflecting the effort on 
the part of the Bolivian export sector to generate increased sales volumes in that area as a means of boosting domestic income and employment.  This change has a multiplier effect on the country's 
economy in that unlike "traditional exports", no n-traditional exports are more labour-intensive. 
64. In 2004, the value of non-traditional exports w as US$881 million (39.1% of the total), while 
traditional exports, made up of minerals and hydrocarbons, stood at US$1,302,000,000. 
Table No. 1 
Bolivia:  Goods Exports 
(US$ millions) 
Description 1999 2000 2001 2002 2003 2004a
I. Minerals and metals 397.1 424.9 340.0 346.9 369.3 455.8
II. Hydrocarbons 75.1 178.8 303.6 346.4 505.3 847.0
Non-traditional products 570.0 642.6 582.4 626.6 715.2 881.0
Total official value 1,405.3 1,475.0 1,352.6 1,374.9 1,676.5 2,254.4
Total f.o.b. value  1,051.1 1,246.1 1,284.8 1,298.7 1,597.8 2,146.0
a Preliminary. 
Source: INE 
65. The favourable external environment over the p ast three years has given rise to increased 
demand for raw materials and higher international raw material prices.  This, coupled with the 
increase in natural gas exports to Brazil and Argentin a, has helped to create a favourable climate for 
Bolivian foreign trade. 
Performance of Imports 
66. During the six-year review period, there was a downward trend in imports of goods compared 
to the previous review period, with a sli ght recovery in 2004 when their value reached 
US$1,888,000,000. 
67. The composition of Bolivian imports has remain ed unchanged over the past two decades.  It 
has continued to be clearly dominated by the pur chase of goods associated with production, both for 
the domestic market and for the export market.  During 2004, the composition of imports was as 
follows:  raw materials and intermediate products  – US$985 million (52.2% of the total);  capital 
goods – US$487 million (25.8%);  consumer goods – US$397 million (21%);  and miscellaneous – 
US$18 million (0.9%). 
68. An analysis of the data reveals Bolivia's de pendency on the external supply of raw materials 
and inputs as well as capital goo ds for the domestic industry. WT/TPR/G/154  Trade Policy Review
Page 16 
 
 
Table No. 2 
Bolivia:  Goods Imports 
(US$ millions) 
Description 1999 2000 2001 2002 2003 2004a
Consumer goods 412.5 470.8 409.5 373.7 359.2 397.3
Raw materials and intermediate products 742.7 931.6 870.0 926.1 862.2 985.2
Capital goods  918.8 606.6 418.4 524.4 457.6 487.3
Miscellaneousb  24.0 11.3 10.3 7.7 13.1 18.0
Total official  c.i.f. value 2,098.1 2,020.3 1,708.3 1,832.0 1,692.0 1,887.8
Total official c.i.f. value (balance of payments)c 1,755.1 1,829.7 1,707.7 1,774.9 1,615.9 1,844.2
a Preliminary 
b Includes personal effects c Not counting temporary imports and other adjustments 
Source:  INE. 
Evolution of the Balance of Trade in Goods 
69. In 2004, after several years of recurring deficit,  the trade balance clo sed with a surplus of 
US$296 million thanks to the increase in the volume of natural gas sales and the improvement in the prices of raw materials and inputs on the world market. 
70. The openness coefficient of the Bolivian economy, which stood at some 33 per cent at the 
beginning of the 1990s, rose to approximately 50  per cent by 2004, reflecting the increase in the 
specific weight of foreign trade in the determination of the county's GDP. 
Table No. 3 
Bolivia:  Trade balance in Goods 
(US$ millions) 
 1999 2000 2001 2002 2003 2004a
Exports  1,405.3 1,475.0 1,352.6 1,374.9 1,676.5 2,254.4
Imports 2,098.1 2,020.3 1,708.3 1,832.0 1,692.0 1,887.8
Balance -692.8 -545.3 -355.6 -457.1 -15.5 366.6
a Preliminary  
Source: INE. 
Performance of Services Exports 
71. During the six-year period, services exports rose from US$259 million in 1999 to 
US$400 million in 2004, after dropping in 2000. 
Table No. 4 
Bolivia:  Services Exports  
(US$ millions) 
  1999 2000 2001 2002a 2003a 2004a
Total Exports 259.30 223.92 235.83 256.60 363.88 399.79
1. Transportation 52.88 50.00 67.08 62.31 100.92 115.24
 1.2 Air Transport 48.69 44.30 56.84 53.49 91.55 105.69
 Passengers 34.45 29.90 41.10 40.71 74.36 85.66
 Freight 2.84 1.90 1.84 1.14 1.36 1.87
 Other 11.40 12.50 13.90 11.64 15.83 18.17
 1.3 Other Transport 4.19 5.70 10.24 8.82 9.37 9.55
Table No. 4 (cont'd)Bolivia WT/TPR/G/154
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  1999 2000 2001 2002a 2003a 2004a
2. Travel 86.91 68.40 75.70 100.45 166.45 176.73
3. Communication 40.04 35.30 31.80 24.58 26.92 33.29 
5. Insurance services 51.70 41.20 35.39 33.50 37.56 41.46 
6. Financial services  4.30 4.50 3.60 10.24 5.59 6.01 
8. Professional and technical se rvices 0.95 1.10 1.20 3.60 1.72 2.83 
9. Royalties and licence fees  1.55 1.60 1.56 1.78 1.69 1.84 
10. Other business services  4.49 4.69 4.78 7.40 7.50 7.42 
  10.2. Operational leasing 3.54 3.59 3.58 3.80 5.53 4.35 
11. Personal and cultural services  1.09 1.04 0.94 0.86 1.19 1.26 
  11.2. Other personal and cultural services  1.09 1.04 0.94 0.86 0.24 0.24 
12. Government 15.84 16.79 14.54 15.04 15.41 15.70 
a Preliminary figures  
Source: Central Bank of Bolivia – Economic Policy Advisory Office  – Foreign Affairs Unit. 
Performance of services imports  
72. Services imports rose slightly, from US$397 million in 1999 to US $595 million in 2004. 
Table No. 5 
Bolivia:  Services imports 
(US$ millions)  
 1999 2000 2001 2002a 2003a 2004a
Total imports 397.37 405.90 399.65 429.90 551.25 594.75 
1. Transportation 216.52 212.65 186.83 166.72 187.55 200.90 
  1.1. Sea Transport  153.80 145.91 119.00 113.89 102.06 101.47 
  1.2. Air Transport 57.72 60.80 62.06 46.67 81.49 95.22 
  1.3. Other Transport 5.00 5.94 5.77 6.16 4.00 4.21 
2. Travel 74.61 77.34 83.10 80.04 138.49 147.63 
  2.1. Business  17.38 17.80 20.04 26.10 44.34 47.40 
  2.2. Personal 57.23 59.54 63.06 53.94 94.15 100.23 
3. Communication 16.60 13.94 9.26 8.20 12.60 13.09 
5. Insurance Services 49.45 57.03 74.60 102.11 106.17 116.78 
6. Financial Services 2.95 3.06 2.50 2.30 2.15 1.55 
7. Computer information services 4.00 4.20 4.50 5.30 8.00 9.52 
8. Professional and Technical Se rvices 7.99 8.40 8.70 31.38 44.85 46.01 
9. Royalties and Licensing Fees   4.80 5.13 5. 28 5.70 7.99 9.68 
10. Other Business Services 4.49 4.69 4.78 7.40 7.50 7.42 
11. Personal and Cultural Services  1.92 2.09 2.12 2.25 4.45 5.28 
  11.1. Audiovisual and rela ted  1.92 2.09 2.12 1.55 3.95 4.83 
  11.2. Other personal and cultural services  0.00 0.00 0.00 0.70 0.50 0.45 
a Preliminary figures.  
Source:  Central Bank of Bolivia – Economic Policy Advisory Office  – Foreign Affairs Unit. 
Evolution of the Trade Balance in Services  
73. During the six-year review period, the trade balance in services was recurrently negative, 
particularly during the last two years. WT/TPR/G/154  Trade Policy Review
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Table No. 6 
Bolivia:  Balance of Trade in  Services  
(US$ millions) 
  1999 2000 2001 2002a2003a 2004a
Exports 259 224 236 257 364 400 
Imports 397 406 400 430 551 595 
Balance -138 -182 -164 -173 -187 -195 
a Preliminary figures. 
Source:  BCB. 
C. ECONOMIC INTEGRATION AND PREFERENTIAL AGREEMENTS  
74. Owing to its geographical location in South Amer ica, Bolivia's trade is channelled in three 
directions:  towards the Pacific Ocean to the west;  towards the River Plate basin in the south, and 
towards the Amazon basin in the north-east of its terr itory.  As a result, it participates in all of the 
integration processes taking place in the region. 
75. At the regional level, Bolivia is a member of  the Latin American Integration Association 
(LAIA), established by the Treaty of Montevideo in 1980, and in that framework it has concluded a 
series of regional and partial scope agreements.  Participation in th is regional integration scheme has 
made it possible to create, together with the othe r member countries, a broad legal and institutional 
structure which is becoming an important reference point for various bilatera l, regional, hemispheric 
and multilateral negotiations.  
76. In addition to the regional tariff preference ag reements, the market opening lists and other 
sectoral agreements, in the framework of the LAIA  Bolivia has concluded the following partial scope 
and economic complementarity agreements whic h derive from the renegotiation of existing 
agreements: 
• Economic Complementarity Agreement (ECA ) No. 22 with Chile, in force since 
6 April 1993; 
• Free Trade Agreement with Mexico (ECA) No. 31, in force since 1 January 1995, 
providing for the total elimination of duties on more than 80 per cent of the tariff 
universe; 
• Economic Complementarity Agreement (ECA) No. 36 with the States parties to 
MERCOSUR, in force since 28 February 1997, and which provides for total elimination of duties on more than 80 per cent of the tariff universe as from 1 January 2006; 
• Economic Complementarity Agreement (ECA) No. 47 with Cuba, in force since 
25 April 1997, consisting of preferential lists of products of interest to the parties. 
77. As an original signatory of the Cartagena Agreem ent, Bolivia is part of the Andean system of 
subregional integration known as the Andean Communi ty (CAN).  The objective of this integration 
process is the establishment of a common market  among Member countries based on the current, 
imperfect customs union. 
78. Apart from the economic and trade dimension, Bo livia's articulating role is particularly 
significant in the introduction of the so-called expor t corridors through the physical interconnection of 
the Atlantic and Pacific oceans across Bolivian terri tory;  indeed, it particip ates in the Initiative for 
Integration of South American Regional Infrastructure (IIRSA). Bolivia WT/TPR/G/154
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79. Similarly, the River Plate Basin Treaty, signe d in 1969, represents an important physical 
integration process for Bolivia owing to the prosp ects it offers for the development of its physical 
infrastructure, essentially in connectio n with foreign trade.  In this context, the development of the 
Paraguay- Paraná Waterway will enab le Bolivia to direct a significant and growing volume of its trade 
overseas, across the Atlantic Ocean.  The importance of the Paraguay- Paraná Waterway for Bolivian 
foreign trade is growing, in terms of both products exported and volume transported. 
80. A cooperation scheme of the utmost importance in which Bolivia is a participant is the 
Amazon Cooperation Treaty, signed in 1978.  This Treat y is designed to promote physical integration, 
environmental conservation and sustainable development. 
81. In support of its efforts in the campaign agains t drug trafficking, Bolivia has been granted 
temporary unilateral tariff preferences by the Unite d States through its ATPDEA  scheme, and benefits 
from the European Union's GSP-plus regime.  Similarl y, as a developing country Bolivia also benefits 
from GSP schemes granted by Canada, Japan, and other developed countries. 
IV. BOLIVIA AND THE WTO 
A. BOLIVIA AND THE MULTILATERAL TRADING SYSTEM  
82. Convinced that trade liberalization is a mean s of strengthening development and expanding 
and diversifying international trade, Bolivia has implemented a trade policy model involving no trade 
barriers of any kind on the assumption that the market is the best way of allocating resources more efficiently.  This enables it, as an original Member  of the WTO, to comply with that Organization's 
multilateral agreements. 
83. As mentioned earlier, the different instituti onal reforms introduced are a response to the 
international economic environment and globalization, and have enabled the country to comply with 
international trade legislation and to effectively implement its WTO commitments. 
B. I
MPLEMENTATION OF THE WTO  AGREEMENTS  
84. Responding to the major challenges involved in properly implementing its commitments 
under the WTO Agreements, Bolivia introduced a numbe r of changes and adjustments to its domestic 
legislation and its institutional framework. 
85. Following its accession to the GATT 1947, Bolivia  set up an inter-institutional mechanism, 
known as the WTO Inter-Institutional Group, to enable  it to assess and monitor compliance with its 
commitments under the multilateral agreements, and to produce the different notifications required by 
the Committees and other WTO bodies and to  develop its domestic legislation. 
86. In the framework of the Inter-Institution Group, it achieved considerable progress in obtaining 
the active involvement of the public and private sect ors and civil society, thereby contributing to a 
broader understanding of multilateral tr ade legislation.  This institutional capacity building was also 
made possible by the technical assistance provided to Bolivia as a developing country, which involved support and facilitation measures so that public officials from different entities working in 
WTO-related areas could participate in acad emic, training and qualification activities. 
87. Looking back over its compliance with its di fferent commitments under the eighth round of 
negotiations, we note that as regards the Agreement on Agriculture, Bolivia – in accordance with its WT/TPR/G/154  Trade Policy Review
Page 20 
 
 
economic policy approach – while not rejecting th e margins established in the Agreement does not 
grant subsidies or domestic support to producers in the sector. 
88. The integration of textile products into the WTO rules was achieved as stipulated in the 
Agreement.  It is important to note that at no time during the tran sition period were any quotas or non-
tariff measures applied to textile imports. 
89. Regarding non-preferential rules of origin, Bo livia does not have any special domestic 
provision.  Since the last trade policy review, no judicial decisions or generally applicable administrative provisions on rules of origin have been handed down.  Bolivia merely applies the 
preferential rules of origin provided for in the regi onal and bilateral trade agre ements concluded in the 
framework of economic and the trade integration processes. 
90. With respect to the Agreement on Import Li censing Procedures, Bolivia applies this 
mechanism only to products affecting public health or  State security, and to safeguard its artistic and 
cultural heritage. 
91. As stipulated in the Agreement on Technical Ba rriers to Trade, Bolivia created its national 
enquiry point.  The Ministry of Foreign Affairs a nd Worship is the body responsible for notifications, 
while the Vice-Ministry of Industry, Trade and Expo rts is in charge of standard-setting policy, and 
IBNORCA is responsible for developing standards and for the TBT focal point. 
92. In the safeguards area, since it has no domestic legislation, Bolivia relies on the rules laid 
down in the agreements concluded at the multilateral, subregional and bilateral levels.  Since the last 
review, Bolivia has applied no safeguard measures of any kind under the WTO. 
93. Regarding pre-shipment inspection, during 2001, the National Customs Administration 
decided to dispense with the inspection firms.  To that end, it decided to launch a transitional phase 
for the gradual termination of such services by chapte r of the Import Tariff in force.  At the same 
time, the National Customs Admini stration took over full responsibility for the determination of 
customs value for an increasing number of imports, until the contracts signed with the pre-shipment 
inspection firms expired on 30 June 2003. 
94. Thanks to the progress of the customs reform, particularly as regards staff training, 
institutional modernization, regulations, and the ad aptation of operating systems, Bolivia has been 
applying the provisions of the Agreement on Custom s Valuation since January 2002, in conformity 
with its commitments in the framework of the Co mmittee on Customs Valuation and with the General 
Customs Law itself. 
95. To comply with the requirements of the Ag reement on the Application of Sanitary and 
Phytosanitary Measures, inter alia  the submission of specific health certificates according to the 
product concerned, the National Agricultural H ealth and Food Safety Service (SENASAG) was 
created with responsibility for developing and mon itoring sanitary and phytosanitary measures and for 
preparing notifications as stipulated in the Agreement. 
96. With respect to the Agreement on Subs idies and Countervailing Measures and the 
implementation of Article VI of the GATT 1994,  Bolivian legislation sets out procedures for 
applying, after verification, the appropriate c ountervailing measures or anti-dumping duties.  This 
legislation is being brought into line with the provisions of the GATT 1994. Bolivia WT/TPR/G/154
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97. In the services area, Bolivia has based its policy on the General Agreement on Trade in 
Services (GATS), and has refrain from adopting any measures that run counter to the commitments 
assumed.  On the contrary, in sectors like teleco mmunications, it has eliminated the monopoly, and 
domestic and international operators can offer their services freely. 
98. Regarding the protection of intellectual propert y rights, Bolivian law makes provisions for the 
country's international commitments assumed in the framework of the Ag reement on Trade-Related 
aspects of Intellectual Property Rights (TRIPS) , the World Intellectual Property Organization 
(WIPO), and the Andean Community. 
C. BOLIVIA AND THE DOHA DEVELOPMENT ROUND  
99. The strengthening of the multilateral trading system must contribute to reducing the 
asymmetries in Members' levels of development so that they can participate increasingly in 
international trade.  A component of this stre ngthening process is the Work Programme approved by 
the Doha Ministerial Declaration, which establis hes specific mandates for the negotiations under the 
current round, and which was given a new impetus by General Council Decision No. 579 of 1 August 2004, the so-called "July Package" establishing priorities among topics and areas of 
negotiation. 
100. In this context, Bolivia has been partic ipating actively in the ongoing negotiations, 
particularly in the agriculture area, as a memb er of the Cairns Group and the G-20 as well as the 
Informal Group on Tropical Products.  It has done so in the conviction that the multilateral 
agricultural negotiations are the centrepiece and driv ing force of the Development Round and that the 
reform of multilateral trade rules must be conducted w ith the full participation of all of the developing 
countries, responding to their needs and specificities. 
101. In the case of Bolivia, the limited diversity of the country's production requires that it have 
quota- and tariff-free access to markets.  This sh ould largely be the case when the commitment set 
forth in the preamble to the Agreement on Agricu lture has been met, namely when the developed 
country members provide for "the fullest liberaliza tion of trade in tropical agricultural products ... and 
for products of particular importance to the di versification of production from the growing of illicit 
narcotic crops". 
102. For a developing country like Bolivia, achievi ng a substantial increase in market access for 
agricultural and non-agricultural products is a challe nge owing to the country's vulnerability and to its 
economic development situation as a la nd-locked developing country, which has meant that in spite of 
the liberalization measures it has adopted, it has not  succeeded in achieving greater participation in 
international trade. 
103. As regards the progressive liberalization of trad e and services, Bolivia has been participating 
constructively in the process by submitting propo sals and working papers together with other 
members, for example the G-24, or other deve loping countries that are seeking predictable 
opportunities for their service suppliers, particularly u nder Mode 4.  In this context, Bolivia submitted 
its initial offer in accordance with the Doha Wo rk Programme, as well as its revised offer. 
104. Annex D of the "July Package" entitled "Moda lities for Negotiations on Trade Facilitation" 
enables the developing countries to identify their n eeds and priorities and request technical assistance 
and support for capacity-building with the appropriate  special and differential treatment, both in the 
negotiating process and in the implementation of the co mmitments that are assumed.  This approach is 
particularly important for the land-lo cked developing countries like Bolivia,. WT/TPR/G/154  Trade Policy Review
Page 22 
 
 
105. In the intellectual property area Bolivia, together  with other developing country Members, has 
given priority in this Round to ensuring progr ess on the relationship between the TRIPS Agreement 
and Convention on Biological Diversity (CBD) for the protection of traditional knowledge and 
folklore.  In this respect, it also co-s ponsored proposals aimed at identifying: 
• Elements of the obligation to disclose the source and country of origin of the 
biological resources and traditional k nowledge used in an invention; 
• elements of the obligation to disclose ev idence of prior informed consent under the 
relevant national regime; 
• elements of the obligation to disclose evid ence of benefit sharing under the relevant 
national regime. 
106. With respect to the "other development issues"  indicated in the "July Package", and pursuant 
to paragraph 35 of the Doha Declaration, Bolivia believes that priority should be given to ensuring 
that the Work Programme for sma ll economies is agreed at the 6th WTO Ministerial Conference to be 
held in Hong Kong – China. 
107. Finally, although Bolivia has not individuall y brought any proceedings under the Dispute 
Settlement Understanding, it did participate as a thir d party together with the other members of the 
Andean community in the proceedings brought by India against the Eu ropean Communities in 
WT/DS246:  European Communities – Conditions for the Granting of Tariff Preferences to 
Developing Countries.  
108. In spite of its limited financial, institutiona l and human resources, Bolivia has introduced a 
number of structural reforms in order to adapt to international changes:  it remains determined to 
consolidate the free market model adopted as early as 1985, and its trade policy does not provide for the application of subsidies of any kind.  However,  there is a clear external dependency with respect 
to the purchase of raw materials and inputs, and effort s to obtain market access for products of interest 
have failed to produce concrete results.  Bolivia hopes that the ongoing multilateral negotiations and 
the Doha Development Agenda will yield measures  that enable countries with small economies to 
benefit from trade liberalization and use it as a sp ringboard for development and integration in 
international trade. 
__________