What is the GSP+?
The GSP+ is a special incentive arrangement for Sustainable Development and Good Governance that supports vulnerable developing countries. Next to fulfilling the eligibility requirements of the Standard GSP, GSP+ countries are required to ratify 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance. In order to ensure effective implementation of the conventions as well as compliance with reporting obligations, the EU engages in monitoring activities with the GSP+ countries. GSP+ beneficiaries can benefit from complete duty suspensions for products across approximately 66% of all EU tariff lines.
At a glance: GSP+ beneficiaries' preferential imports to the EU
12,22 M
Population
Presidential Republic
Government
3.60%
GDP Growth
4.40%
Inflation
$ 44,01 B
GDP
Facts about the Bolivian economy
Export Products
Bolivia's exports are heavily dependent on primary commodities, like natural gas, gold, zinc ores and other mineral products as well as agricultural products like nuts, quinoa, and soybean products.
Resource Wealth
Bolivia is a resource rich economy and can benefit from a favourable climate for agricultural production and large mineral reserves. For example, Bolivia possesses the world's largest lithium reserves as well as considerable deposits of zinc, silver, lead, tin, and gold. Furthermore, Bolivia is the world’s largest producer and exporter of Brazil nuts, the second largest exporter of quinoa and also contributes significantly to the world market’s supply of soybeans.
Trade Partners
Regional trade with its neighbouring countries - Brazil and Argentina - accounts for almost 25% of Bolivia's total trade. These two countries are the most important destination for Bolivia's export products, while most of the country's imports (16%) originate from China.
Economic Structure
Bolivia's economy is based on the country's substantial resources, both mineral and natural. Bolivia has substantial petroleum and natural gas reserves and good conditions for agricultural activities including forestry and fishing. The main cash crops are Brazilian nuts and soybeans. The industrial sector remains small and mainly focusses on the processing of the mineral and agricultural products. Other industries include the manufacturing of textiles from locally grown cotton and alpaca wool as well as the manufacturing of gold jewellery.
Usage of GSP+ Preferences
Bolivia makes considerable use of the preferences granted under GSP+. More than 84% of eligible EU imports from Bolivia utilise GSP+ duties.
Trade with the EU
Bolivia's total trade with the EU amounted to € 1.403 million in 2021. With a share of almost 8,5 % in Bolivia's total trade, the EU is the fifth most important trading partner.
Bolivia and the EU (2022)
Imports from Bolivia by product section
Imports from Bolivia over time (in € m)
BOLIVIA AND THE EU’s GSP
Economic Impact
Bolivia's economy can be considered highly vulnerable and lies noticeably below the threshold of 7.4%. In 2019, Bolivia's vulnerability score stood at 0.1%. This also relates to Bolivia's rather low degree of diversification, which stood at 94.7% (2019). The minimum threshold currently stands at 75%.
7%
A relatively small share of Bolivia's current exports to the EU are eligible for tariff reductions under the GSP.
93%
Bolivia makes considerable use of the tariff reductions under GSP+. 92.8% of eligible exports make use of GSP preferences.
Preference utilisation and export diversification
Bolivia's imports to the EU
Preference Utilisation vs. total eligible imports
Bolivia's preference utilisation rate remained comparatively stable between 2013 and 2022. Overall, Bolivia makes considerable use of its preferential access to the European market. Particularly the dominant import groups - prepared foodstuffs and beverages - make considerable use of the preferential market access and more than 97% of imports in these sections use the reduced duties.
The largest product sections under the GSP+
The majority of preferential imports, almost 50%, from Bolivia under GSP+ is accounted for by prepared foodstuffs and beverages. Cereals, grains, and seeds follow with a share of about 24%. The other product categories remain rather small. This indicates that Bolivia should further aim at diversifying its exports to the EU, away from primary commodities into products with a higher value added to take full advantage of the preferences granted under GSP+. This is supported by data on the preference utilisation on individual product sections, which shows that the dominant import sections already make considerable use of the duty reductions.
SUSTAINABLE DEVELOPMENT AND MONITORING PRIORITIES
During the last decade the Plurinational State of Bolivia (Bolivia) has made important efforts in fighting poverty and improving access to education, health care, food, and housing. Nevertheless, the COVID-19 pandemic exposed structural weaknesses and the fragility of the achieved progress, notably for indigenous communities and people living in remote areas which were particularly affected in terms of access to food, medicines, and government aid.
Monitoring priorities during the reporting period 2024-2025
Human rights: strengthen the institutional framework
Civil and political rights: fight violence against vulnerable people
Strengthening the judicial system
Labour rights
Combating trafficking in person and forced labour
Climate change mitigation
Addressing the drug situation and diversion of coca to illicit drug markets
Combating corruption
For the reporting period 2024-2025, the EU has focussed its monitoring activities on eight priority areas. Bolivia continues to face serious challenges in protection of human rights and notably in addressing the high levels of gender-based violence, overcrowded and poor conditions in prisons, and still widespread child labour across various sectors of the economy.
EU-Bolivia Bilateral Development Assistance
DG INTPA
Access all info about EU-Bolivia relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/bolivia_en
Opportunities in Bolivia
- Steady economic growth and overall stability of the macroeconomic environment
- Large unexploited mineral deposits and further potential to increase efficiency of extraction and processing
- High potential for renewable energies, which until now only contribute a small share to the country's energy supply
- Monetary stability as the boliviano is pegged to the US Dollar