Reasons to Consider Bolivia:

Prospects for Rapid Growth.  

Bolivia is on the verge of a major transformation in its trade and investment climate as President Rodrigo Paz and his administration reorient the country to a pro-U.S., pro-market agenda after 20 years of weak and ideological socialist rule. Until the new administration’s reforms are fully successful, Bolivia will continue to face significant economic challenges: high public debt, declining natural gas production, and diminishing exports and imports. President Paz’s reform agenda will be aided by a supermajority of legislators from other pro-market, pro-reform parties. These legislators have pledged to support the incoming administration’s mandate for investor-friendly reforms with the legislative backing to implement them. The Paz administration has proposed greater fiscal discipline, currency adjustment, lifting fuel subsidies, reducing tariffs, and trade liberalization. If successfully implemented, these reforms may bring substantial opportunities for U.S. investment.

Bolivians like American products.  

Made in the USA generally signals quality and innovation to Bolivian consumers. Bolivians also tend to purchase U.S. products due to the status they confer. For larger purchases by local governments, U.S. products and services are viewed as reliable options due to stringent customer service standards, warranties, and maintenance plans.

Bolivia is rich in natural resources.  

Raw mining materials, natural gas, and hydrocarbons are some of Bolivia’s largest exports, and there is significant room to grow. Bolivia’s new government is likely to look to Bolivia’s natural resources to jumpstart the economy, providing opportunities for investors. Companies presently mine minerals such as zinc, silver, lead, copper, tin, antimony, and tungsten. Additionally, Bolivia boasts significant lithium deposits, which remain mostly undeveloped. Illegal and unregulated mining practices are also common, particularly in the gold sector, so origin and environmental impact should be considered before any purchase arrangement is concluded. Bolivia also holds opportunities in rare earth elements, though most deposits remain unexplored or uncertified.

Bolivia’s agricultural sector is an economic bright spot.  

Bolivia’s agricultural sector emerged as a critical economic engine over the past two decades, growing in importance as the revenue from the traditional gas sector declined. This growth, driven primarily by the development of the agro-industrial hub in the eastern lowlands (Santa Cruz and Beni), established agriculture as a vital source of foreign currency and a key contributor to GDP stability, positioning it as major driver for future inclusive and sustainable growth.

The development of the sector is fundamentally conditioned by the necessity to diversify the agro-economy and by a disproportionate market dominance of large-scale, mechanized export commodities, principally soybeans. However, growth in commodities production and exports is severely challenged by multiple factors. The primary hurdle includes recurrent and devastating climate shocks, such as prolonged droughts and wildfires leading to significant crop loss, especially in 2024. Second, macroeconomic mismanagement has led to shortages of critical inputs, such as diesel fuel for tractors and other farm machinery. Furthermore, chronic legal uncertainty regarding land tenure and persistent infrastructure and logistics issues have constrained investment and efficiency. Government regulations can contribute to development and be a major hindrance. In the case of agricultural biotechnology, an opaque regulatory process led to only two approvals of biotech-derived soybean seeds for commercial use since 2006. The incoming Paz administration, however, has signaled a willingness to approve new genetically enhanced seeds. Bolivia must also address aging infrastructure and the need for more advanced farming equipment and irrigation systems to increase productivity and yields for export growth. Moreover, for essential farm inputs, policies often prioritized domestic food security via export quotas and price controls, limiting the full export potential of commercial producers.

The most economically relevant crops are the soybean complex (soy and its byproducts), which stands as the single largest agricultural export and foreign currency generator, followed by other oilseeds like sunflower, and products such as sugar cane and increasingly, beef for export. The market performance of these commodities directly affects the national economy’s resilience and its ability to manage the ongoing fiscal and currency crises. Traditional, smaller-scale farming of products like quinoa also contributes significantly, particularly to local economies and social stability. Bolivia’s agricultural sector faces an uncertain but high-stakes future, particularly as the country navigates a new political landscape. The sector could see accelerated growth based on regulatory clarity and increased foreign investment.

In 2024, the value of U.S. agricultural product exports to Bolivia was one of the lowest in South America at $24.1 billion, primarily consumer-oriented food preparations. In contrast, Bolivia exported $103.3 million of agricultural products to the United States led by exports of quinoa and Brazil nuts. Potential areas of U.S. agricultural product export growth include U.S. livestock and genetics, and promotion of consumer-oriented products such as meat and dairy products.

Market and Trade Statistics

In 2024, Bolivia entered a technical recession as most economic sectors recorded negative growth under the previous government. According to data from the National Statistics Institute (INE), real GDP contracted by 1.1 percent, driven mainly by the sharp downturn in extractive activities (-9.2 percent), agriculture (-3.9 percent), and commerce (-1.9 percent). Construction (-0.5 percent) and the transport sector (0.0 percent) showed stagnation, reflecting weaker investment and domestic demand. Only a few areas registered modest growth, including manufacturing (+1.1 percent), electricity, water, and waste management (+2.2 percent), and hospitality services (+2.3 percent). Public administration, health, and education activities also contributed positively (+2.6 percent), partially offsetting losses in the productive sectors. Overall, the combination of falling exports, reduced fuel supplies, and persistent shortages of foreign currency weighed heavily on Bolivia’s economic performance in 2024.

According to the INE, total exports reached $9.06 billion in 2024, representing a 17 percent decrease compared to 2023. The contraction reflected weaker global demand and domestic production constraints caused by social unrest and logistic disruptions. The main export categories were manufacturing ($3.62 billion), mining ($3.15 billion), and hydrocarbons ($1.62 billion). Exports of electricity also rose sharply, increasing more than 200 percent, while agricultural exports such as chestnuts, quinoa, and bananas showed resilience despite adverse weather conditions. The top export markets in 2024 were Brazil (16.3 percent), China (14.9 percent), Japan (7.9 percent), Peru (6.6 percent), and South Korea (6.1 percent), which together accounted for more than half of Bolivia’s total exports. Key export products included natural gas, zinc and silver minerals, metallic gold, soy derivatives, urea, and sunflower oil.

From 2023 to 2024, Bolivian imports fell by 14 percent, totaling $9.9 billion. Imports were led by industrial supplies (27 percent), fuels and lubricants (29 percent), capital goods (16 percent), and consumer goods (11 percent). The decline was driven by lower domestic demand, high international freight costs, and tighter foreign-exchange availability. Major import products included refined petroleum derivatives, chemical substances, machinery, transport equipment, and metal products. Bolivia’s main import partners remained China (22 percent), Brazil (14 percent), Argentina (11 percent), Peru (10 percent), and the United States (8 percent. Overall, the country recorded a trade deficit of $845 million in 2024, as the value of imports continued to exceed exports for the second consecutive year.      

Political Environment

The United States established diplomatic relations with Bolivia in 1849 following its independence from Spain. Beginning in 2008, the previous government’s decisions to expel the U.S. ambassador, U.S. law enforcement, and development cooperation agencies strained the bilateral relationship between the United States and Bolivia and severely limiting prospects for interested investors. Despite these challenges, the United States maintained a strong and respectful relationship with the Bolivian people, continuing to advance human rights, promote entrepreneurship, and cultural and educational initiatives. During general elections in August 2025, Bolivians elected a supermajority of legislators from pro-market, pro-reform parties and sent two pro-U.S. candidates to runoff elections in October 2025. Rodrigo Paz was declared the winner of the presidential election on October 19, 2025, and inaugurated on November 8, 2025. The Paz administration has pledged to make investor-friendly reforms and market access as well as promote legal protections. The United States looks forward to a productive, mutually respectful relationship with the Bolivian government under President Rodrigo Paz as well as reestablishing full bilateral relations and increasing government-to-government cooperation.

The United States is an important trading partner for Bolivia, with about $1 billion in bilateral goods trade in 2024. The United States and Bolivia do not have a free trade agreement. U.S. exports to Bolivia include mineral oils/fuels, plastic materials, food preparations, halogenated olefins, heavy machinery, automobiles, and pharmaceuticals. The United States is Bolivia’s fifth-largest import market and eleventh-largest export market. U.S. imports from Bolivia include raw tin, tungsten, minerals, cereals, grains, and nuts.

Bolivian law generally allows foreign direct investment, though in practice the previous government has pursued protectionist policies. An investment promotion law adopted in 2014 guarantees equal treatment for national and foreign firms, but it stipulates that public investment has priority over private investment (both national and foreign). Under the law, the Bolivian government will determine which sectors require private investment. Bolivia abrogated its bilateral investment treaties with the United States and multiple other countries in 2012. From 2008 to 2016, the Bolivian government nationalized numerous companies that had been privatized in the 1990s. U.S. foreign direct investment in Bolivia has been negative since 2023. Weak judicial recourse, corruption, and unclear investment incentives have made investment in Bolivia challenging, although the Paz administration has pledged to address these concerns. The U.S.-Bolivia Air Transport Agreement from 1947 remains in force with multiple amendments. Except for 2024 when most economic sectors recorded negative growth, Bolivia has experienced positive economic growth during the last decade, but it remains one of the poorest countries in the Western Hemisphere.

Visit the State Department’s website for background on the country’s political and economic environment.