Bolivian leather firms may benefit from US trade agreement
The Bolivian government has commented on its talks with the US which are expected to lead to a new trade agreement between the two countries.
"We are seeing positive developments. Hopefully in the coming months we can realise the signing of this new framework agreement that establishes a relationship of respect between these two countries," Bolivian foreign minister, David Choquehuanca, said.
The US suspended an existing trade agreement with Bolivia in 2008 because it felt the country had failed in its efforts to combat drug cultivation. However, should these talks prove successful, Bolivia would benefit from lower tariffs on goods it exports to the US. Following the suspension of the previous agreement, it is believed Bolivian exporters suffered losses of as much as $60 million. According to the National Chamber of Exporters, 25,000 direct and indirect jobs were lost and 35 leather companies were forced to close. If claims Bolivian exports to the US have fallen 18% including leather and leathergoods exports, which fell 23%.
Industry experts claim the leather sector had really benefited from the previous agreement and would do again should another take effect.
