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Presidents of Brazil and Bolivia meet on Tuesday, Dec.5

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After having his visit to Brazil twice postponed – due to Michel Temer’s health problemas  –  the president of Bolivia, Evo Morales will received by the Brazilian President on Tuesday (Dec.5)

In the agenda, issues such as Brazil’s imports of Bolivian gas and the construction of a bioceanic rail corridor, which aims to link the Port of Santos (SP) to a terminal port in Peru, through Bolivia.

Brazil and Bolivia share an extensive common border and have a broad and diversified bilateral agenda. The visit aims to strengthen bilateral cooperation and coordination  also on issues such as the fight against transnational crime, energy, defense, border development, integration of physical infrastructure, migration and consular issues, trade and investment.

Brazil is Bolivia’s largest trading partner. It is also the main destination market for Bolivian exports (19%). In 2016, the bilateral exchange reached US $ 2.8 billion. Brazil’s exports to Bolivia are diversified and mainly made up of manufactured good

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Relations with Bolivia are a priority for Brazil, and it cover initiatives in areas such as energy cooperation, border cooperation, fight against transnational crime, as well as articulation in regional and global forums.

Brazil confers geostrategic importance on relations with Bolivia, a country with which it shares its largest border (3,423 km) and the condition of Amazonian and Plata basin countries. In addition, it is important to emphasize the strategic importance of Bolivia’s entry into Mercosur.

Energy cooperation has great importance for both countries, constituting an input to the Brazilian energy policy and source of income for Bolivia. The energy partnership was consolidated with the signing in 1958 of the “Reversal Notes of Robore” – which for the first time raised the issue of the purchase of Bolivian gas and the construction of a gas pipeline.

In 1972, with the Agreement of Industrial Cooperation and Complementation, the purchase by Brazil of Bolivian natural gas and projects aimed at the strengthening of the economy of Bolivia was established. In the late 1980s, Brazilian interest in Bolivian gas was resumed and a sense of permanence and cooperation in the energy partnership was established.

In 1999, negotiations culminated in the implementation of the Bolivia-Brazil Gas Pipeline, which has an important role in deepening bilateral relations and creating opportunities for Bolivia’s economic integration into Mercosur.

Bolivia is a country with stable macroeconomic conditions and broad potential for economic growth. The extension of its territory is approximately 1.1 million km² with a  population of about 10.8 million inhabitants. The IMF estimates that Bolivia’s Gross Domestic Product (GDP) reached US$ 35 billion in 2015.

The main axes of economic integration with Brazil are  in the energy area and regional infrastructure projects. Being geographically located in the center of South America, Bolivia is a privileged partner for the improvement of the infrastructure of regional physical integration.

Brazil is, historically, Bolivia’s main trading partner. It is the first destination of Bolivian exports, due to the sale of natural gas, and second source of imports from the country. Economic relations with Brazil have boosted Bolivian development, due to the Brazilian economic presence in the country, in terms of trade surplus, investments and remittances from immigrants.