Bolivia's Demands Of Chile: What Are Their Expectations?

Chile and Bolivia have had a strained relationship since gaining independence from Spain in the 19th century. The dispute centres on the Atacama border, with Bolivia claiming access to the sea, and Chile disagreeing. Bolivia has been landlocked since losing its coastline to Chile in the War of the Pacific, and the two countries have only maintained consular relations since 1978. Bolivia's desire to regain its coastline has led to various attempts to pressure Chile, including taking the matter to the International Court of Justice in 2018. While Chile is open to discussing coastal access, it refuses to cede sovereignty. Despite the tension, the countries still have economic treaties in place to support tourism and cooperation, and trade between the two nations has not been affected by the dispute.

Bolivia wants Chile to scrap or amend the 1904 treaty

Bolivia has taken Chile to the International Court of Justice in The Hague, demanding the return of the land it lost in the War of the Pacific. Bolivia, a landlocked country since 1904, is hoping to reach the sea once again. The dispute dates back to the late 19th century when Chile went to war with the combined forces of Peru and Bolivia, resulting in Bolivia losing 400km of coastline.

The Treaty of Peace and Friendship, signed in 1904, effectively ended the conflict, with Bolivia settling for the loss of access to the sea. However, Bolivian President Evo Morales wants to scrap or amend this treaty, arguing that it was imposed on his country under duress. Bolivia's case centres on regaining sovereignty over the land it once owned before the war.

The 1904 treaty outlined Chile's compensation to Bolivia for its loss of land, including building two railway lines linking Bolivia's interior with the sea, allowing free transit through Chile without levies, and granting the right to erect customs agencies in certain ports. Despite these concessions, Bolivia has never relinquished its aspirations for direct access to the sea.

Over the years, there have been attempts to improve relations and resolve the dispute. In the 1970s, Generals Augusto Pinochet and Hugo Banzer resumed diplomatic relations and attempted to settle the territorial issue. In 1975, they met in the Bolivian border town of Charaña, where Pinochet agreed to give Bolivia a small strip of land. However, this proposal was rejected by the Peruvian President, who drafted an alternative plan for shared administration of the port of Arica. The failure of these negotiations, known as the Charaña accords, contributed to the continued strain in relations between Chile and Bolivia.

Bolivia has been actively exploring alternatives to reduce its dependence on Chilean ports, including promoting trade through Peruvian ports and utilising the Paraguay-Paraná waterway to access the Atlantic. Despite these efforts, Chilean ports remain highly competitive due to their proximity and the economic and administrative advantages they offer.

Bolivia wants access to the sea

Bolivia has been a landlocked country since the War of the Pacific in the late 19th century, when it lost its coastline to Chile. Bolivia is now suing Chile at the International Court of Justice to regain access to the sea.

The War of the Pacific began in 1879 when Bolivia's General Hilarión Daza increased taxes on the exportation of saltpeter, violating a treaty signed in 1866. When Chilean-owned saltpeter companies refused to pay, Daza expropriated the companies and sold them at auction. In response, Chile declared the border treaties null and reactivated an old claim that it had inherited a land border with Peru. Chile sent troops to Bolivia and declared war, eventually defeating Bolivia and annexing its coastline.

In 1904, a peace treaty was signed, and Bolivia officially lost access to the sea. Chile agreed to compensate Bolivia for its loss of land, granting it access to Chilean ports and agreeing to build a railway from the Chilean port of Arica to Bolivia's biggest city, La Paz. However, Bolivia has never given up on its dreams of regaining access to the ocean, and various Bolivian governments have tried to pressure Chile to return the territory.

Bolivia's current president, Evo Morales, wants to scrap or amend the 1904 treaty, arguing that it was imposed on Bolivia by force. In 2013, Morales announced his intention to take Bolivia's coastal claim to The Hague, and in 2018, Bolivia attempted to force Chile to negotiate over their mutual borders. However, the International Court of Justice ruled that Bolivia's loss of access to the sea was a closed issue and that Chile could not be forced to cede any land.

Despite the ongoing dispute, the two countries still have economic treaties in place, and trade between the two nations has not been affected. Bolivia has been developing logistical alternatives to reduce its dependence on Chilean ports, promoting greater trade through Peruvian ports, and exploring the possibility of using the Paraguay-Paraná waterway to reach the Atlantic Ocean.

Bolivia wants to reduce its dependence on Chilean ports

Bolivia has been a landlocked country since the War of the Pacific in the late 19th century, which resulted in the loss of its coastline to Chile. The two countries have had a strained relationship ever since, with Bolivia still claiming a corridor to the Pacific Ocean.

In recent years, Bolivia has been actively seeking to reduce its dependence on Chilean ports for trade. This is evidenced by the decrease in the volume of Bolivian cargo shipped through Chile, from 74.4% of exported tonnes in 2018 to 64.4% in 2020. Bolivia has been exploring alternative routes, such as increasing traffic through ports in southern Peru and utilising the Paraguay-Paraná waterway, which connects to the Atlantic Ocean via the Río de la Plata.

The political friction between the two countries, particularly over Bolivia's attempts to negotiate border discussions with Chile, has also played a role in Bolivia's desire to reduce its reliance on Chilean ports. The diplomatic tension led to the Bolivian government's interest in promoting trade through Peruvian ports, which was further incentivised by a rise in tariffs at the Chilean port of Arica, the main port of traffic for goods linked to Bolivia.

The existence of a politically and sociologically like-minded government in Peru, with a shared indigenism of the Andes, has also encouraged Bolivia to explore alternative routes, especially to the Peruvian port of Ilo. Additionally, there is a public-private partnership in place to develop the docks that provide access to the Paraguay-Paraná waterway.

Despite these efforts, the competitiveness of Chilean ports for Bolivian trade remains high due to their greater proximity and historical economic and administrative advantages. The 1904 Treaty of Peace and Friendship, which settled the loss of access to the sea for Bolivia, outlined several concessions that Chile agreed to, including the construction of railway lines linking Bolivia's interior with the sea, free transit through Chile without levies, and the right for Bolivia to erect customs agencies in certain ports. These advantages have contributed to the continued attractiveness of Chilean ports for Bolivian imports and exports.

However, Bolivia's efforts to reduce its dependence on Chilean ports have had some impact, as evidenced by the decrease in tonnage at Chilean docks and the increase in tonnage at Peruvian ports. While the dependence on Chilean ports persists, there is a recognition that promoting alternative routes, such as through Peru, will require significant efforts and investments to improve storage, dispatch, and cargo reception capacity.

Bolivia wants to settle the Atacama border dispute

The dispute centres around the borders established in the Spanish Empire, with the Atacama Desert as the northern border of the Captaincy General of Chile. Historians from both countries disagree on whether the territory of Charcas, originally part of the Viceroyalty of Peru, included access to the sea. Bolivians claim that it did, while Chileans disagree, arguing that Bolivia is landlocked and borders Peru at the Loa River.

In 1904, a peace treaty was signed, and Bolivia officially lost its coastal territory. However, various Bolivian governments have continued to pressure Chile to return the land. Bolivia's case was taken to the International Court of Justice in The Hague, but the Court ruled in favour of Chile, stating that Chile was not required to negotiate or surrender its territory.

Despite the ongoing dispute, Chile and Bolivia maintain economic treaties supporting tourism and cooperation, and trade between the two nations has not been significantly affected. However, Bolivia has been working to reduce its dependence on Chilean ports, exploring alternative routes through Peru and the Atlantic Waterway.

Bolivia wants to renegotiate water rights

Bolivia and Chile have had a long-standing dispute over water rights. This dispute centres on the Silala River, which rises in Bolivia and flows down the Andes into Chile.

Bolivia has argued that the Silala is a stream, and that its course was altered in the 19th century to benefit Chilean companies. As a result, Bolivia seeks historic compensation for the use of the stream. Chilean companies have been selling the water, and Bolivia believes that it should at least receive a share of the profits.

In contrast, Chile maintains that the Silala is an international river and, therefore, it has the right to use the water. Chile points out that the water company of the Chilean city of Antofagasta and the Chuquicamata mine, owned by the state-run miner Codelco, have had a license to use the water since the 19th century.

In recent years, the two countries reached a preliminary deal, with Chile agreeing to pay half the water's market value, amounting to $5 million per year. However, Bolivia backtracked on this deal, instead demanding compensation for the past use of the water.

The dispute over water rights is part of a broader conflict between Bolivia and Chile, which also involves access to the Pacific Ocean. Bolivia lost its coastline to Chile during the War of the Pacific in the late 19th century and has been landlocked since. Bolivia has sought to renegotiate access to the sea, including through the International Court of Justice, but these attempts have been largely unsuccessful.

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