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Exporters Say Fair Trade Deal Would Help Bolivians

Posted: Nate on May 13 | Business & Economy, International

Bolivian exporters said today that the exclusion of Bolivia from the Association Agreement with the European Union will mean that the exportation sector will lose a good opportunity to sell its products, even though European markets will not be entirely closed to Bolivian businesses.  According to Guillermo Poumont, president of the Chamber of Exporters of La Paz, “this is the loss of an opportunity to have an agreement for 30 or 40 years and stable conditions, an ideal environment in which to build a productive infrastructure.”

On May 19, the EU will sign a free trade agreement with Peru and Colombia and will begin the evaluation process proceeding a similar agreement with Ecuador.  That agreement will be signed the day after a summit between the EU and Latin America which will be held in Madrid, Spain.  Since 2008, the EU and the Andean Community of Nations, of which Bolivia is part, have been negotiating a commercial agreement.  The talks ultimately stalled as a result of, among other reasons, the objections of Bolivia.

According to one expert on foreign business, Julio Alvarado, the lack of a closeness with Europe is a result of the uncompromising attitude of the Bolivian government.  Mr. Alvarado said that the agreement failed because Bolivia would not except the bases of the discussion, bases which did not impede countries like Peru, Colombia, and now Ecuador from proceeding.  For Mr. Poumont, the situation was clear from the beginning when the Bolivian government entered talks having already decided to refuse negotiations on any agreements based on free trade.  Mr. Poumont also said that in his opinion, “the best place to resolve these themes is at the negotiation table and not stay outside of it.”  Mr. Poumont and other business people worry that with Bolivia left out of the new agreement, countries like Peru will be better equipped to fill contracts normally awarded to Bolivian suppliers.

The Association Agreement is replacing the previous Generalized System of Preferences (GSP), the exportation agreement that currently allows Bolivian companies to sell their products in the EU.  Proponents of the Association Agreement say that this permanent agreement is preferred over the GSP which must be renegotiated every three years.

For more in Spanish see:

http://www.laprensa.com.bo/noticias/13-05-10/noticias.php?nota=13_05_10_nego2.php

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