After discovering the Americas, Christopher Columbus left for Spain with the first ‘exported’ products. He took with him animals which until then were unknown in Europe, such as brightly coloured parrots, tapirs, plants such as tobacco and corn, as well as exotic fruits like coconuts, which soon adapted to European conditions. Gold, acquired in exchange for worthless objects, and men with copper-coloured skin were also brought back to be put on triumphant display.

 

The King of Spain was pleased and quite willing to finance another voyage to be undertaken by Columbus, who promised to bring him precious metals such as gold and silver. The King was swimming in debt and he soon received the promised riches only to see them disappear again as he paid back his creditors in England, France, Holland and Germany.

 

Since those times, European countries (now formed into a union) have not ceased to demand goods produced by Latin America. Our people provide these goods at dirt cheap prices because of our desperate situation. We Latin American countries now have to send over the merchandise ourselves to save Europeans the cost of coming to buy them.

 

On 18 August 2010, the Bolivian Institute for International Trade (Instituto Boliviano de Comercio Exterior) held the 35th Permanent Forum of Civil Society Dialogue on Production, International Trade and Integration, under the theme “European Union: A market full of opportunities”.

 

Delegates from the European Union (EU) emphasised that they represent 500 million inhabitants and a GDP of USD 16bn, providing a great opportunity for Bolivia to export and market its goods according to European requirements.

 

Europe wants to sign an agreement with the Andean Community (CAN), which comprises Venezuela, Colombia, Ecuador, Peru and Bolivia. The failure of CAN members to come to a unanimous agreement has led certain member countries to sign bilateral agreements.

 

Colombia, Peru and Ecuador began talks, but without Venezuela and Bolivia. Ecuador dropped out at one point, but recently announced that it planned to rejoin the negotiations at a later date. Although our region is not negotiating as a block, our goods are entering the EU by means of the Generalised System of Preferences (GSP), which offers reduced, unilateral tariffs for products originating from developing countries.

 

During the IBCE forum it was highlighted that the EU is the Andean Community’s second most important trading partner after the United States. Andean sales to Europe increased by over 150% in the last decade from 4 billion dollars to over 10 billion dollars. In Bolivia’s case, sales rose by only 94%.

 

In 2009, sales to the UE from Colombia and Peru were valued at over USD 4bn dollars, while Ecuador registered over 2 billion dollars worth of exports. Bolivia barely managed to reach 486 million dollars in sales.

 

There are over 2 thousand Bolivian products that can be exported to the UE. Currently no more than 250 are actually traded, which leaves a large margin of opportunity. We have not, however, entered into a bilateral trade agreement.

 

Our main exports to the UE are minerals, chestnuts, timber, leather, alcohol, quinoa and coffee. Although the trade agreements with Europe caused a crisis within the Andean Community, possibilities remain plentiful. It all depends on the actions of local traders to prevent restrictive taxes being imposed by buyers.

 

In May 2010, Spain hosted the Sixth EU- Latin American and Caribbean Summit. After the signing of free trade agreements between Colombia, Peru and the EU, the Bolivian President announced his intention to begin bilateral negotiations in order to reach satisfactory trade agreements.

 

When this takes place, it will open up Bolivia’s enormous pool of resources to conversion. The IBCE believes that there is great potential for manufactured, artisanal, agricultural, agroindustrial and mineral products, which can be traded on the huge European market.

 

 

(Translated from the Spanish by Janelle Alexander)

 

Original text published 2010-08-24.