CANADA-BOLIVIA RELATIONS

Fact Sheet: General country information, political and economic data.

Beginning of Diplomatic Relations

On July 17, 1961, the Canadian Ambassador to Peru, Alfred John Pick, was accredited to Bolivia. Today, the Canadian Embassy in Peru and the Canadian Consulate in Bolivia continue to foster the expansion of political, trade, economic and investment relations between the two countries.

Key Issues

• POLITICAL INSTABILITY

  In October, 2003 following violent demonstrations and blockades which led to 70 dead and forced previous President Gonzalo Sanchez de Lozada (Goni) to resign, then Vice-President Carlos Mesa assumed the presidency. However, serious political problems persist. A number of groups and unions have been undertaking sporadic strikes, blockades or marches to pressure the government to meet their demands. These demands include opposition to coca eradication, gasoline price increases, and the FTAA.

  However, the main source of conflict is centered on the country`s hyrdrocarbon law which will determine the level of royalties and taxes to be paid by foreign investors. Bolivia has the second largest reserves of natural gas in South America; disagreements over how this wealth should be managed and distributed continue to fuel regional and political tensions.

  Canada fully supports Bolivia's constitutionally established government and in the spirit of the Inter-American Democratic Charter, urges all parties in Bolivia to pursue peaceful and democratic means to resolve their political differences.

  Canada will continue to work with Bolivia, through its official development assistance program, the OAS and with other interested countries, to strengthen Bolivia's democratic governance and ensure equitable growth.

• RECENT DEVELOPMENTS

  Fearing that the country was becoming ungovernable, on March 6, 2005, President Mesa submitted his resignation to the Bolivian Congress. However, he agreed to stay in power when a political deal with the majority in Congress appeared to have been reached, particularly on the passage of the hydrocarbons bill.

  When the roadblocks continued and the deal with Congress began falling apart, Mesa, on March 15, 2005, demanded that the Bolivian Congress approve fresh elections for August 28, 2005, or he would resign definitively. Again, a deal with Congress was reached on amending the Hydrocarbons Bill and the opposition (seeing a drop off in its popular support) insisted that holding early elections would be unconstitutional. On March 18^th, Mesa agreed that it would be irresponsible for him to resign.

  Subsequently, most of the roadblocks have been dismantled and for now the situation in Bolivia appears to be returning to normality. Yet, no doubt, the political situation in Bolivia remains potentially volatile.

Trade and Investment

International Trade Canada is responsible for positioning Canada as a world business leader and for promoting Canada as a dynamic place to do business. Visit the International Trade Canada web site for information about services for Canadian companies, non-Canadian companies, business development, and information relating to investment or trade policy.

Indigenous Relations

Learn more about the Aboriginal dimension of Canada's relations with countries in Latin America and the Caribbean.

Development Assistance

CIDA supports projects in the Americas and around the world that are eligible for Canadian aid through development cooperation initiatives.

April 2005