Pagina Siete reports:
Costs will rise
CADEX alert on problems upon entering Mercosur
The problems are two membership integration schemes, both have different tariffs and different customs regulations; meaning that one sign is giving up the other.
The CADEX warned at the time that there would have difficulty with the regulations and our relationship with the Andean Community in the negotiations.
The president of the CADEX, Wilfredo Rojo said that we should not give up the benefits that CAN represents for nontraditional exports and economic integration and signing trade agreements are good provided they are coordinated with public and private stakeholders and represent benefits for economic and social development of Bolivia.
Another factor to consider is that CAN exist within the protection mechanisms for domestic trade, such as the Strip Pricing and other mechanisms to minimize costs of a landlocked country. Furthermore, the preferential treatment with Bolivian products in the Andean Community market, allows greater flexibility in acquiring inputs to produce goods for export, which is not the situation in the Southern Common Market [Mercosur].
If Bolivia is added as a full member of Mercosur, the country should adopt import tariffs set out in this block, which will raise costs.
This reminds me of the crazy decision to place bonds on the market, paying more on them rather than using cheap credit from multi laterals. This government will do anything to show our “insertion” in the international arena… CAN is far better than Mercosur, this is a no brainer!