Acta Oeconomica Pragensia 2009, 17(4):42-61 | DOI: 10.18267/j.aop.278

Impact of the Andean Trade Promotion and Drug Eradication Act in Bolivia: Analysis of the Current Status

Shirley Consuelo Banús Vidal
Vysoká škola ekonomická v Praze, Fakulta mezinárodních vztahů (banuss@vse.cz).

Bolivian exports to the United States (US) market in 2005, without counting natural gas, constituted 22 % of the total exports, making this country the main destination market especially for the manufactured goods that Bolivia offers. The increased importance of the US market for Bolivia lies in the fact that it (the US market) represents a different profile of specialization, since the domestic Bolivian exports to the US market, in contrast to those that are made to the rest of the world, show a relatively high proportion of manufactured goods. Bolivia sends 55% of these goods with high value incorporated, as opposed to raw materials, which is a typical export for Bolivia.
The trade relations between Bolivia and the US have been fundamental especially at the level of preferential treatment. This means tariff exemptions that only apply to specific countries. This tariff preference of the US to developing countries adopted a subregional approach, as in the case of the Andean Trade Preference Act (ATPA). This act came into effect in December 1991 and was extended to August 2002, not only in the coverage of products, but it was linked with the fight against drugs through the Andean Trade Promotion and Drug Eradication Act (ATPDEA), whose effect has been extended several times and which is currently at risk of concluding definitely.
In this context, this paper takes an eminently commercial approach; both the situation and the prospects of the ATPDEA are analysed from the point of view of its impact on Bolivian exports, major companies, regions and exported products, as well as the ATPDEA's effects on employment.

Keywords: ATPDEA, Analysis of the current status, Bolivia, US
JEL classification: F14, F15

Published: August 1, 2009  Show citation

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Banús Vidal, S.C. (2009). Impact of the Andean Trade Promotion and Drug Eradication Act in Bolivia: Analysis of the Current Status. Acta Oeconomica Pragensia, 17(4), 42-61. doi: 10.18267/j.aop.278
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