Companies considering conducting business in Bolivia should carefully weigh the advantages and risks of potential investments and conduct extensive due diligence before committing funds. U.S. companies are also advised to make considerable efforts upfront in identifying the right partner, agent, distributor, or representative prior to entering the market. A local representative can work with U.S. companies to research market opportunities and to establish sales networks. Retaining competent Bolivian and outside legal counsel is often required to successfully navigate Bolivia’s informal business practices and bureaucracy. Please be aware that Bolivian courts do not recognize any international arbitration processes, and even Bolivian businesses struggle with adjudicating any recompense for claims. Foreign companies have historically been vulnerable to expatriation efforts from the previous ruling party, and companies are advised to obtain the latest information before investing.
Leveraging and maintaining wide personal and business networks is key to finding a good investment partner in Bolivia. Spanish is the preferred language, although some businesspeople do understand or speak some English. Santa Cruz, La Paz, and Cochabamba are the major business regions with established distribution channels for exporting. The majority of Bolivia’s population and international business activity is concentrated within these three cities.
U.S. exporters can contact the commercial unit at the U.S. Embassy in La Paz to obtain a market briefing, assistance in locating an agent, distributor, or partner, and for help arranging appointments during business trips to Bolivia at CommerceLaPaz@state.gov.
U.S. small businesses may also contact their local Department of Commerce U.S. Export Assistance Center (USEAC) for information on the exporting process or the Small Business Administration.