WT/TPR/M/363 2 February 2018 (18-0740) Page: 1/44 Trade Policy Review Body 14 and 16 November 2017 TRADE POLICY REVIEW PLURINATIONAL STATE OF BOLIVIA MINUTES OF THE MEETING Chairperson: H.E. Mr Juan Carlos Gonzalez (Colombia) CONTENTS 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF THE PLURINATIONAL STATE OF BOLIVIA ........................................................................................................... 4 3 STATEMENT BY THE DISCUSSANT ................................................................................ 9 4 STATEMENTS BY MEMBERS ........................................................................................ 14 5 REPLIES BY THE REPRESENTATIVE OF THE PLURINATIONAL STATE OF BOLIVIA AND ADDITIONAL COMMENTS ......................................................................... 38 6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 43 Note: Advance written questions and additional questions by WTO Members, and the replies provided by the Plurinational State of Bolivia are reproduced in document WT/TPR/M/363/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/363 • Plurinational State of Bolivia - 2 - 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON 1.1. The fourth Trade Policy Review of the Plurinational State of Bolivia was held on 14 and 16 November 2017. The Chairperson, H.E. Mr Juan Carlos Gonzalez (Colombia), welcomed the delegation of the Plurinational State of Bolivia, headed by H.E. Mr Clarems Endara, Vice-Minister for Foreign Trade and Integration; the whole delegation; and the discussant, H.E. Mr Francisco Lima Mena (El Salvador). 1.2. The Chairperson recalled the purpose of the trade policy review mechanism and the main elements of the procedures for the meeting. The report of the Plurinational State of Bolivia was contained in document WT/TPR/G/363 and that of the WTO Secretariat in WT/TPR/S/363. 1.3. Questions had been submitted in writing before the deadline by the delegations of Canada, the European Union, Brazil, Chile, Japan, China, Mexico and the United States. The delegations of Colombia, Ecuador, Thailand and Argentina had submitted written questions after the deadline. 1.4. At the previous TPR Meeting in 2005, Members had expressed satisfaction at Bolivia's export-driven growth as well as concern at the stagnation of per capita income recorded since 1999. Furthermore, while exports were buoyant, they remained concentrated in a small number of products and markets. Members had therefore encouraged Bolivia to step up investment in infrastructure and human capital. 1.5. The Secretariat report for the present review indicated that Bolivia's real GDP grew at an average annual rate of 5% between 2006 and 2016, thanks to a favourable international environment and rising domestic demand. In particular, public investment, largely in infrastructure, had increased sharply. During that period, per capita GDP had risen from US$1,227 to US$3,100. As a result of the growth of income and the social welfare policies pursued, there had been a significant fall in the poverty and extreme poverty indices while income distribution had improved. The Secretariat report also noted that exports remained concentrated primarily in the mining and hydrocarbons sector, which accounted for about three quarters of the total in 2016. With respect to market concentration, there were signs of greater diversification, as reflected for example in Bolivia's expanding trade with Asia. 1.6. The two reports prepared for the present review pointed out that since 2006 Bolivia has pursued an economic policy based on what was known as the economic, social, communitarian and productive model (MESCP), in which the State played a vital role by steering and controlling the strategic sectors and participating directly in the economy. According to the Bolivian authorities, this model sought to redistribute income and reduce poverty by transferring resources from the strategic sectors that generated surpluses, above all mining and hydrocarbons, to other sectors that promoted income and employment. Moreover, since the implementation of this economic model, the government had been introducing measures to increase tax revenues, including expanding the tax base and creating new taxes. 1.7. At the previous trade policy review, Members had praised Bolivia for its active participation in the WTO. During the period covered by the present review, Bolivia had submitted some notifications to the WTO but still had a number of pending notifications, primarily in agriculture, import licensing, sanitary and phytosanitary measures and subsidies and countervailing measures. That was a matter of interest to Members, as reflected in several of the questions that had been submitted prior to the review. In addition, Bolivia had not yet ratified the Trade Facilitation Agreement or the amendment to the TRIPS Agreement. 1.8. With respect to the trade policy regime, at the previous review Members had encouraged Bolivia to do the following, inter alia: simplify customs procedures; reduce the difference between applied and bound tariffs; diminish informal trade; ensure that sanitary and phytosanitary measures did not create unnecessary barriers to trade; promote competition through a general competition law; and bolster protection of intellectual property rights by adopting new legislation. The Secretariat report noted that in recent years a number of steps had been taken to facilitate trade, such as through the Authorized Economic Operator Programme. Specific measures had also been taken to enhance intellectual property protection, including the promotion of the registration of trademarks of artisans and MSMEs and the zero-rating of VAT on books to discourage piracy. In addition, a competition law had been adopted in 2008 and a competition authority set up. WT/TPR/M/363 • Plurinational State of Bolivia - 3 - Intellectual property and competition issues continued to be matters of interest to Members in the current review, in the light of the questions that had been submitted. 1.9. The reports prepared for the current review indicated that Bolivia's trade policy had changed significantly since 2006. Thus, for example, under the 2009 Constitution both trade policy and industrial and production policies had to be employed in such a way as to satisfy domestic demand for goods considered essential and inputs needed for the production of strategic goods. The reports explained that in order to achieve this objective, imports could be regulated where necessary, by modifying tariffs or using quotas or prior licensing. Likewise, exports of certain products could be subject to a prior verification of the domestic market supply situation. Thus, the utilization of the various trade policy instruments depended on domestic market conditions. Several of the questions submitted by the Members for the current review sought greater clarity concerning these aspects of Bolivia's trade policy. 1.10. Since Bolivia's previous review in 2005, its investment regime had also changed considerably, as the Constitution gave the State a predominant role in the production process. Efforts had been made to create and strengthen public enterprises in strategic or social sectors as a driver of the new economic model. Some of the questions submitted by Members for the current review referred to Bolivia's investment regime, and Members would therefore certainly be interested in obtaining more information in that regard during the present review. 1.11. Lastly, in their questions in the context of the current review Members had also expressed interest in obtaining further information in such areas as: progress in the setting up of a single window for foreign trade; customs valuation; regional and preferential trade agreements; the rise in the arithmetic average of applied MFN duties; the import licensing regime; matters relating to sanitary and phytosanitary measures and technical barriers to trade; state participation in the economy; government procurement; agriculture; mining; financial services; and telecommunications. 1.12. There was undoubtedly a broad range of topics to examine in greater depth during the current review, and he therefore hoped that there would be an interesting and fruitful exchange of views. WT/TPR/M/363 • Plurinational State of Bolivia - 4 - 2 OPENING STATEMENT BY THE REPRESENTATIVE OF THE PLURINATIONAL STATE OF BOLIVIA (H.E. MR CLAREMS ENDARA) 2.1. As you know, Bolivia's last report dates from 2005. This forum, which we consider being an essential mechanism for updating knowledge of the economic and trade policies pursued by our countries in the multilateral framework, should be seen as an opportunity for sharing the results of the economic model applied by each of our countries. These models should respond to the fundamental principles of development, equity and poverty elimination in our countries; and therefore, each country will develop a model that matches its needs and focusses on the serious problems of poverty and underdevelopment. For Bolivia, I shall now spell out the details of the economic model we have been applying since 2006, which is aligned with the paradigm of "Vivir Bien" or "Living Well" to be achieved for our citizens. 2.2. Starting in 2006 and for eleven consecutive years Bolivia has implemented the economic, social, communitarian and productive Model