US Suspends Trade Preferences For Bolivia

The Bush administration has decided to suspend duty-free treatment for Bolivian importers under the
Andean Trade Preference Act because of Bolivia’s failure to cooperate with the United States in its
effort to combat drug trafficking from Latin American countries. Bolivia currently exports $385
million worth of goods to the United States, including some $18 million worth of textiles and

Under terms of the Andean trade agreement, the United States has given duty-free treatment to
goods from Bolivia, Colombia, Ecuador and Peru, but that trade preference has been tied to
cooperation in the anti-drug effort. On October 16, President George W. Bush signed legislation
extending the Andean agreement for one year, but subsequently announced that Bolivia would be
excluded. The US trade representative said the suspension could be lifted if the Bolivian
government improves its performance in the war on drugs.

October 21, 2008