Mercosur: Bolivia's Membership Status Explored

Bolivia is a full member of Mercosur, also known as the Southern Common Market or the Common Market of the South. Bolivia's membership was approved in 2023, and it became a full member in July 2024. Bolivia's admission to Mercosur was a lengthy process due to concerns over the strength of its democratic institutions. Bolivia joined Mercosur's other full members: Argentina, Brazil, Paraguay, and Uruguay. Venezuela was also a full member but has been suspended since 2016.

Bolivia's membership was ratified in 2023, but it was approved for full membership in 2024

Bolivia's membership in the South American trade bloc Mercosur was ratified in 2023, but it was approved for full membership in 2024. Bolivia's journey to becoming a full member of Mercosur began in 2011 when it started negotiating for full participation in the bloc. In 2012, Bolivia signed an accession protocol to become a full member, and by 2015, all Mercosur member states had signed the Protocol of Accession of Bolivia to MERCOSUR. However, Bolivia's internal ratification process was not completed until 2024, making it a full member.

Bolivia's path to full membership in Mercosur was a lengthy process due to concerns about the solidity of its democratic institutions and objections from Paraguay, which questioned the commitment to democracy in the country. The ratification of Bolivia's membership by Mercosur member states was completed in December 2023, with Brazil being the last country to do so. This left Bolivia with its internal ratification process, which was completed in July 2024, making it a full member of the trade bloc.

Bolivia's membership in Mercosur is significant as the country was previously an associate member. Mercosur, officially known as the Southern Common Market and commonly referred to as the Common Market of the South, was established in 1991 by Argentina, Brazil, Paraguay, and Uruguay. The trade bloc aims to promote free trade and the fluid movement of goods, people, and currency among its members. With Bolivia's full membership, Mercosur now comprises six sovereign member states: Argentina, Bolivia, Brazil, Paraguay, Uruguay, and Venezuela (which has been suspended since 2016).

Mercosur has experienced internal divisions and challenges in recent years, including stalled trade deals and concerns about its commitment to democracy. Bolivia's membership expansion is expected to boost regional integration and establish new markets for Brazilian companies, given Bolivia's natural gas, lithium, and strategic mineral reserves. However, critics warn that Bolivia's poor deforestation record could hinder future trade talks, particularly with the European Union.

Bolivia's poor deforestation record could hinder future EU-Mercosur talks

Bolivia is set to become a full member of the South American trade bloc Mercosur, following a decision by the Brazilian Senate to approve the country's admission. However, critics warn that Bolivia's poor deforestation record could hinder future EU-Mercosur talks. Bolivia was one of the worst offenders of primary forest clearances last year, behind only Brazil and the Democratic Republic of Congo, according to Global Forest Watch.

Deforestation rates in Bolivia have increased by 259% over the last eight years, driven primarily by agricultural expansion. In 2022, the country lost almost 596,000 hectares of forest, with the eastern department of Santa Cruz accounting for almost three-quarters of recent deforestation. The Bolivian government has encouraged the expansion of soy plantations to meet growing export demand, creating a more favourable regulatory framework and increasing soy export quotas.

The agricultural industry, which is the leading driver of deforestation in Bolivia, is centred in the politically conservative province of Santa Cruz. Forest Trends estimates that 83% of national deforestation has taken place in this region, and that 74% of national deforestation for agro-conversion purposes is illegal. Despite this, the government has only bolstered the agricultural industry, creating the Bolivia Agricultural Production Company (EBPA) to strengthen domestic food security and enhance the economy.

In addition to agriculture, Bolivia has also expanded into biodiesel production, which includes palm oil. The Bolivian Ecological Oil Industry Productive Public Company (IBAE) will facilitate the building of processing plants across the country, clearing vast swathes of Amazon Forest.

The Bolivian government has granted increasing numbers of permits to deforest land for soy production and has rarely penalised illegal deforestation. Loans from Bolivian banks are readily available to finance the expansion of soy production, and land speculation also drives deforestation.

Bolivia did not sign the Glasgow Leader's Declaration on Forests and Land Use at COP26 in 2021 and has avoided committing to deforestation targets. The country is waiting for global systemic change before it feels capable of tackling deforestation within its own borders. However, with Brazil and Colombia enacting meaningful environmental policies and effecting significant drops in deforestation, Bolivia could benefit from working closely with these nations.

Unless Bolivia takes concerted action, another 10% of its forests could be lost by 2035. With Mercosur seeking to stimulate economic development in South America and finalise a free trade agreement with the EU, Bolivia's poor deforestation record could indeed hinder future EU-Mercosur talks.

Bolivia's entry boosts regional integration and establishes new markets

Bolivia's entry into Mercosur, the South American trade bloc, is expected to boost regional integration and establish new markets. Bolivia's full membership, which was approved in November 2023, has been eight years in the making.

Mercosur, or the Southern Common Market, was established in 1991 by Argentina, Brazil, Paraguay, and Uruguay to create a common market, spur development, and bolster democracy. Bolivia, previously an associate member, became a full member in July 2024. The expansion of the bloc to include Bolivia is expected to have several economic and political benefits.

Firstly, Bolivia's entry boosts regional integration by strengthening economic and political ties within South America. Mercosur's purpose is to promote free trade and the fluid movement of goods, people, and currency among its member states. With Bolivia's membership, Mercosur now comprises a population of over 284 million people and a combined gross domestic product (GDP) of over $3 trillion, making it one of the world's largest economic blocs.

Secondly, Bolivia's entry establishes new markets for Brazilian and other Mercosur companies. Bolivia possesses significant natural resources, including natural gas, lithium, and other strategic minerals. Brazilian senators highlighted that Bolivia's entry would open up new opportunities for their companies, given these abundant reserves.

Additionally, Bolivia's membership in Mercosur is expected to enhance the bloc's global influence and negotiating power. With the inclusion of Bolivia, Mercosur now covers a larger geographic area, encompassing six of the twelve countries in South America. This expansion may provide Mercosur with greater leverage in international trade negotiations and increase its attractiveness to potential new members or trade partners.

Moreover, Bolivia's entry into Mercosur contributes to the bloc's goal of regional integration and economic development. Mercosur has experienced internal divisions and challenges in recent years, including stalled trade deals and concerns about democratic backsliding in some member states. By admitting Bolivia, Mercosur demonstrates its commitment to strengthening economic and political ties within South America and promoting regional development.

In conclusion, Bolivia's entry into Mercosur is a significant development that boosts regional integration, establishes new markets, enhances the bloc's global influence, and reinforces its dedication to economic development in South America. The benefits of Bolivia's membership are expected to be felt by both Mercosur and its newest member, as they work together to promote economic growth and cooperation in the region.

Bolivia's internal ratification process was the final step to becoming a full member

Bolivia's path to full membership of Mercosur was a lengthy one. In 2014, Uruguay ratified the agreement, and in September 2014, Argentina approved Bolivia's entry. However, due to objections from Paraguay, which was under suspension from the organization at the time, an amended protocol was agreed to in 2015. Brazil was the final Mercosur member to ratify the agreement in December 2023, leaving Bolivia's internal ratification as the last step.

Bolivia's membership in Mercosur is significant for the country and the bloc. Bolivia's President Luis Arce highlighted the expansion of regional integration and the establishment of new markets for Brazilian companies, given Bolivia's reserves of natural gas, lithium, and other strategic minerals. Bolivia's membership also comes at a time when Mercosur is seeking to finalize a free trade agreement with the European Union.

Bolivia is the second Latin American state to adhere to the constitutive treaty

The process of Bolivia's full participation in the Mercosur bloc has been ongoing since June 2011. In December 2012, Bolivian President Evo Morales signed a protocol aimed at accession to full membership in the bloc. This proposal required review and legislative approval from all Mercosur member states. In July 2015, the heads of Mercosur decided to accept Bolivia's request, and President Morales signed the Brasilia protocol. However, Bolivia's internal ratification process was still pending as of 2024, making it the second Latin American state to adhere to the constitutive treaty, after Venezuela.

Bolivia will be required to adjust its laws in accordance with Mercosur rules within four years of becoming a full member. This process includes adopting the Common External Tariff and the normative acquis of Mercosur, as well as incorporating agreements concluded with third countries or groups. The Mercosur bloc comprises a population of over 280 million people, and the combined gross domestic product of its full members exceeds US$5.7 trillion, making it the fifth-largest economy in the world.

The requirements for a country to become a full member of Mercosur include being part of the Latin American Integration Association (ALADI) and complying with the accession process outlined in Mercosur's internal regulations. The process involves submitting a written request to the Council of the Common Market, negotiating the conditions and terms of accession, and subscribing to an accession protocol. During this process, the acceding state can only exercise the right to speak at Mercosur forums and meetings.

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