You are here
On 28 November 2023, the Brazilian Senate approved the draft Legislative Decree PDL 380/2023 to accept the Plurinational State of Bolivia as a full member state of the South American Common Market trading block (MERCOSUR). Bolivia, which had previously held an associate state status alongside Chile, Peru, and Colombia, now joins the ranks of Argentina, Uruguay, and Paraguay as a full member.
3E Review:
The final approval from the Brazilian Senate, the last parliamentary hurdle, sets the stage for Brazilian President Luiz Inácio Lula da Silva to enact the law and officially welcome Bolivia during the upcoming Summit of the Americas in Rio de Janeiro on 7 December 2023.
This historic decision follows a process that began in 2006 during Lula's first government, culminating in MERCOSUR accepting Bolivia's request in January 2007 during a summit in Rio de Janeiro. Bolivia's entry marks the second addition to the bloc since its inception after Venezuela, which was officially admitted to full membership on 31 July 2012 but faced suspension in 2017 for noncompliance.
Bolivia must now commit to gradually adopt MERCOSUR's common nomenclature, the Common External Tariff, and the Origin Regime over a maximum period of four years from the date of joining. Bolivia will also have to adapt its food code, sanitary registration, and chemical laws to comply both with the Andean Community of Nations and MERCOSUR.
During the Senate session, Senator Chico Rodrigues highlighted the importance of approving the proposal, emphasizing the expansion of trade in South America and the potential for Brazilian companies to access new markets with more affordable energy. The move signifies not only a strategic economic alliance but also a strengthening of diplomatic ties within the region.
3E Analysis
People and companies with business in Bolivia should expect important regulatory changes as Bolivia abides by all MERCOSUR regulations within the next four years.
Top