International Business

Agricultural Trade Policies in the Andean Group: Issues and by Timothy Edward Josling

By Timothy Edward Josling

Bankruptcy on Ecuador bargains a comparability with different Andean Pact nations. It argues that Ecuador is so much wanting balance and protection provided through nearby marketplace entry.

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Extra resources for Agricultural Trade Policies in the Andean Group: Issues and Options (World Bank Technical Paper)

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This poses a fundamental problem for Bolivia. It would gain in economic terms from the higher level of protection in its major export markets, but would lose by purchasing higher cost imports from the MERCOSUR countries. The problem is in part resolved by the associate membership which Bolivia has been able to negotiate with MERCOSUR, which does not impose the CET on Bolivia. In these circumstances its export sector would gain from the larger, protected market in MERCOSUR. Although it would still have to give preferential access for relatively expensive goods from that region, it would control the degree of preference by its own tariff policy.

Page 4 been kept at a competitive level since that time, exhibiting a steady depreciation over the period. Both exporting and import-competing sectors have taken advantage of this and have expanded steadily. Bolivia joined the GATT in 1989 and more recently acceded to the WTO. e. duty free) access into the markets of Colombia, Ecuador and Venezuela. It does not, however apply the newly-agreed Common External Tariff (AEC or CET) of the GRAN. Bolivia has entered into bilaterals with Chile and Peru (a lapsed member of the GRAN, still discussing re-entry into the main obligation, the Andean Free Trade Zone).

For agriculture, each of these options would have major implications. Full membership in MERCOSUR with the adoption of the CET against third-country supplies and free access for partner supplies, would place Bolivian agriculture in direct competition with production from Argentina and Brazil. Soybean farmers have already voiced their opposition to such an option, fearing that they would not be able to compete with Brazil. Cattle farmers would presumably also be adversely affected, as the degree of natural protection afforded by Bolivia's landlocked and mountainous position would not help in competition with Brazil.

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