Andean Group - November 2008 (ISSN 1741-4466)

Bolivia is trying to boost its exports of manufactured goods to Venezuela. Given the recent slide in oil prices, however, there must be some doubt about Venezuela's ability to increase imports significantly in 2009.  Bolivia wants to increase its textile exports to Venezuela to US$200m. Venezuela spends about US$2bn a year on imports of textiles, shoes and clothes.
One big problem for Bolivian exporters to Venezuela is negotiating a way through Venezuela's exchange controls and getting dollars relatively quickly. Bolivia's vice president, Alvaro Garcí­a Linera, claimed that Venezuela had come up with a new system to achieve this. Venezuela would provide a revolving fund of US$30m which would be available to pay Bolivian exporters on delivery. Bolivian exporters could expect to get 50% of their total invoice paid on delivery and the rest over time.

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