LATIN AMERICA

 

Brazil to Help Bolivia Overcome Financial Crisis

Rio de Janeiro - Brazil will help Bolivia overcome the impact of the international financial crisis by increasing bilateral trade, Brazil's Foreign Minister Celso Amorim said Thursday.

In 2008, the Brazilian exports to Bolivia totaled 1.14 billion U.S. dollars, while Bolivia's exports to Brazil reached 2.85 billion dollars.

"Last year, Bolivia was the only country in Latin America with which Brazil registered a trade deficit," Amorim said. "You cannot want to have surplus with everyone; you have surplus with some, deficit with others, we do not want to change that."

The Bolivian surplus is mainly due to its natural gas exports to Brazil, which amount to 30 million cubic meters of gas per day.

However, Bolivia has been suffering a sharp fall in gas prices, which are to cause a drop in the surplus as well.

Amorim said Brazil will help accelerate textile imports from Bolivia. The decision was made in December, but has not been implemented due to bureaucracy and differences among Mercosur member countries.

But the problem will possibly be solved by the end of this month, Amorim said.

Bolivia's textile exports were recently damaged by the U.S. decision to suspend trade benefits to the country, due to an alleged lack of cooperation with the Bolivian government in fighting against cocaine trafficking.