Bolivia authorizes duty-free import of wheat and flour

PeaceThe government of President Luis Arce announced on Wednesday that they have eliminated import tariffs on wheat and flour to avoid shortages of these products amid strong internal pressure from different sectors to resolve the economic crisis that is hitting Bolivia due to the lack of dollars and fuel.

The Minister of Productive Development, Néstor Huanca, mentioned that in the case of flour and corn, the import will begin on Thursday and will continue until December 31st in order to “facilitate and reduce the import prices of wheat and wheat flour and thus supply the local market.” Bolivia only produces 30 percent of the wheat consumed in the country and imports the rest. The minister did not specify where the imports will come from, but they are usually purchased from neighboring Argentina.

The tariff-free import of machines and factories for producing biodiesel was also announced, thus promoting its production.

The measures were announced by economic ministers after a ministerial meeting. The decision was taken just hours before a meeting with businessmen and producers in the country who have called for urgent measures to counter the economic crisis.

“It is an economic crisis that affects everyone and therefore solutions are urgently needed,” Jean Pierre Antelo, president of the Chamber of Industry and Commerce (CAINCO) of businessmen from the Santa Cruz region, the economic engine of Bolivia, told the media.

Huanca explained that the wheat flour produced in the country is more expensive than that of other countries, giving as an example that in Bolivia the ton would be around 450 dollars and in the United States 257, while in Argentina it would be quoted at 270. “These prices in Bolivia have never been so high, there is possibly a kind of speculation,” he explained.

The Arce government is being pressured to offer structural solutions to the fuel shortage and dollar shortage, which is affecting business owners, producers, merchants, transporters, among others, leading to street protests and blockades. The dissatisfied sectors announced a cacerolazo —a protest in which pots are banged, as a sign of hunger— promoted by various sectors for Friday.

The government has acknowledged the difficulty, but denies that there is a crisis and blames economic problems, such as the lack of dollars, on the global crisis, while on the issue of fuels, it claims that it is mainly due to a drop in gas production in recent years, following a decline in wells. It also claims that agricultural production has been affected by the climate crisis.

The Andean nation has gone from being an exporter to an importer of gas and fuel. The Arce government brought diesel from Russia last month, but the lines of trucks and cars in search of this fuel continue.

In the political arena, a sort of consensus was reached; after months of keeping the legislature bogged down, it was agreed to approve a list of candidates for judges of the highest judicial institutions. Meanwhile, the day before, the electoral body called for judicial elections on December 1. In Bolivia, the high judges of the main judicial institutions are elected.