As a result of Bolivia losing its chance to export to the USA under the ATPDEA agreement. This government turned to Venezuela, Argentina and Brazil.

Bolivian exports to Venezuela, mainly textiles, have been reduced this first semester of 2011 to 49% as compared with 2010. Our trade balance shows a deficit of $181.7 million dollars; far away from the surplus of $25 million dollars from last year.

The latter is attributed to the sharp fall of about 94% on our textile industry. The Venezuelan bureaucracy does not help says the general manager Gary Rodriguez from the Bolivian Foreign Trade Institute (IBCE).

Bolivia ends up selling less (or should we say “… being purchased less?”) and our diesel imports continue to grow, so there is growing deficit in the trade with Venezuela.

To make things worse, Brazil and Argentina also failed to comply with their agreements to buy 21 and nine million dollars in textiles, respectively.

Rodriguez also said that it did not matter what those presidents agreed with ours, exports are not happening and some factories are beginning to lay by some of their workers (Ametex: 200 out of 2,700 workers). Unions from those affected companies are asking the president’s help, so Venezuela continues to import our products.

http://www.lostiempos.com/diario/actualidad/economia/20110730/las-ventas-a-venezuela-caen-casi-a-la-mitad_135732_276570.html

The dollar is becoming more unstable as the US Congress shows mixed signals on how to handle their humongous debt (presidential elections over there are unfortunately clouding their economic policies). This condition will more likely hurt Bolivian exports and domestic savings which over decades had a tendency of saving in that currency.

http://www.eldeber.com.bo/2011/2011-07-30/vernotaeconomia.php?id=110729230016