BRICS Market for Bolivia Focuses on Gas and Minerals

 In the past five years, gas and minerals have been Bolivia's main exports to Brazil, China, India, Russia, and South Africa, the founding countries of the BRICS group of emerging economies. Experts have expressed both support and opposition to Bolivia becoming a full member of this group.

The Santa Cruz Chamber of Exporters, Logistics, and Investment Promotion (Cadex) indicated that export statistics from 2017 to 2023 show a trade relationship with these five founding countries.

With Brazil, Bolivia has traded $9.867 billion in hydrocarbons, $540 million in non-traditional products, and $288 million in minerals. With China, it has traded $3.694 billion in minerals and $598 million in non-traditional products. With India, exports included $8.214 billion in minerals and $5 million in non-traditional products.

With Russia, Bolivia exported $8 million in minerals and $71 million in non-traditional products, while with South Africa, exports included $9 million in non-traditional products and $1 million in minerals.

Among other countries looking to join, only the United Arab Emirates has seen significant exports from Bolivia, totaling $3.654 billion in minerals. “Opportunities to enter large markets like China, Russia, India, and Brazil (with which we already have a relationship through Mercosur) will depend on the type of trade agreements that can be established. These should include tariff benefits and the removal of trade barriers to diversify exports to BRICS member countries,” said Cadex.

Gary Rodríguez, General Manager of the Bolivian Institute of Foreign Trade (IBCE), stated that Bolivia will always advocate for opening up to the world and connecting economically and commercially with more developed countries.

“This can open opportunities for investment and technology acquisition, as well as for exports and imports. Since its inception, the BRICS group has a strong anti-capitalist ideological bent; setting that aside, there is potential to strengthen ties with countries like Russia, China, and India for exporting minerals, food products, and wood products,” Rodríguez explained.

Specialists’ Opinions

Former Foreign Minister Karen Longaric said that BRICS is not configured as an integration scheme and has neither initiatives nor commercial objectives. The only goal some of its countries, such as Russia and China, might have is to counterbalance the G7.

“BRICS has a very small development bank directed by Dilma Rousseff. I believe Bolivia’s involvement in BRICS is a decision by the government of (Luis) Arce aimed at generating internal political impact, as it has no real resonance on the international stage,” Longaric remarked.

Gustavo Aliaga, a diplomat and congressman from Comunidad Ciudadana (CC), stated that the countries forming the BRICS group have "disparate economies," and their only concern is the international payment system.

“Bolivia is a partner country but not a member. Therefore, President (Luis Arce) should be more concerned about joining Mercosur rather than thinking about BRICS, which is very distant from us,” he added.

Meanwhile, international analyst Javier Viscarra said that BRICS is not an organization capable of providing the financial assistance Bolivia needs, as the IMF could with its stand-by agreements (SBA) or the World Bank with a stabilization plan.

“It is not like G77 membership, where Bolivia maintained a balanced global stance. Now, Bolivia has taken sides with a part of the world that includes countries with dictatorial regimes, questioned democracies, and even groups with terrorist affiliations.”