Lima, Jun. 23 (ANDINA).- Bolivia's National Chamber of Exporters said Monday that large and medium-sized enterprises in the Bolivian clothing, manufacturing and jewelry sectors are planning to move to Peru amid decreasing exports due to the lack of trade openness in their country.
Bolivia lost U.S. customs benefits and it is not negotiating a Free Trade Agreement (FTA) with the European Union.
"Bolivian companies see that Peru has appropriate conditions to settle in this country and take advantage of the U.S. market through the FTA that Peru has signed," said the National Chamber of Exporters' general manager Jose Rivero.
It is worth noting that in late 2008 the United States suspended Bolivia’s trade preference under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) and on June 30, 2009 it must make a decision regarding the reinstatement of those benefits.
However, Washington’s authorities have said that Bolivia would not recover them if it does not start as soon as possible an effective struggle against drug trafficking, according to international conventions in force today.
In that sense, Rivero said that the situation in Bolivia is becoming very difficult because there is almost no possibility to extend these benefits and many of the Bolivian companies exporting to the U.S. market have already gave up subcontracting other companies and have reduced their installed capacity and have cut the number of jobs by 30 pct.
"The next step is to close the companies, we hope not to reach this situation but we do not see more options," he told Andina news agency.
Rivero added that another important market for Bolivia is the European Union, but he regretted that his country does not participate in the process of trade negotiations conducted by Peru, Colombia and Ecuador with the Europeans.
(END) CSO/JPC/AVC/LVT