| | | Details | Legal sources | Procedures |
 1. Which fibers are available? |
| Cotton | Yes
| Short fiber cotton, grown in the eastern low lands.
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| Sinthetic | No
| The acrylic and polyester industries import raw materials to produce yarn
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| Camelid | Yes
| Bolivia is the first llama fiber producer and the second alpaca fiber producer in the world, from animals raised in the andean mountains.
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| Sheep | Yes
| Merino and other
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| Other |
| 2. How to invest in the Bolivian Textile/apparel sector? |
| Acquiring an existing company | Yes
| Individuals and institutions can purchase all or part of the stock of any company. Assets of any company can also be bought.
Ruled by the Commerce Code with no restrictions but the procedures for establishing any type of company.
| Art. 126 Commerce Code
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| Establishing a new company | Yes
| Foreign and national investors can establish new companies under different legal forms.
Foreign investors can have 100% ownership in bolivian companies.
| Arts. 126-143 Commerce Code.
FUNDEMPRESA
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| Acquiring stock | Yes
| Individuals and institutions can buy all or part of the stock from an existing company.
| Arts.223, 238-267 Commerce Code
Art.22 Stock Market Law
Chapter III, Arts. 151-157 Stock Market Regulation (Nº25022).
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| Joint Venture | Yes
| Joint ventures can be made between foreign and national investors, through strategic alliances and accidental companies. Must have a legal domicile or representation in the country and fullfill other requirements prescribed in the law. However a Joint Venture follows the regulations prescribed in the agreement.
| Art. 16 Investment Law (Nº1182)
Arts. 41, 44-53 S.D. Nº 22407
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| 3. Investment Opportunities in the Textile/Apparel Sector: |
| Camelid Fibers | Yes
| Population of 3 million llamas and 400.000 alpacas, to develop a fully integrated industry.
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| Cotton Harvesting | Yes
| It is possible to increase the production improving the land (irrigation) and/or the fiber (genetics) to achieve better yields.
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| Spinning | Yes
| Cotton, synthetics and fine hairs.
Competitive and reliable energy generation.
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| Knitting | Yes
| Cotton, synthetic and fine hair knitting to supply apparel companies for local and export markets.
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| Weaving | Yes
| Cotton, synthetic and fine hair knitting to supply apparel companies for local and export markets.
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| Dying | Yes
| DYEING: Potential demand for dyed fabrics and yarns for local and export markets.
Abundant water supply.
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| Finishing | Yes
| Potential demand for finishing knitted and woven fabrics for local and export markets
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| Cutting | Yes
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| Sawing | Yes
| Duty free access to major world markets, including the USA and Europe for garments.
Abundant skilled and competitive labor force.
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| Other |
| 4. Can land be bought to raise camelids? |
| | No
| Andean camelids (llamas and alpacas) are raised in the highlands of Bolivia. Land is owned by the local communities and families that have a small extension of land
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| 5. Can Camelids be bought? |
| | Yes
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| 6. Are there any restrictions for buying fiber? |
| | Yes
| Vicuña has special treatment.
Llama and Alpaca fiber can be bought freely.
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| 7. Which international trade agreements has Bolivia signed that benefit the textile/apparel sector? |
| APTDEA | Yes
| The Andean Trade Promotion and Drug Eradication Act (ATPDEA)
The Andean trade preference program provides Bolivia with duty-free access
to the U.S. market for approximately 5,600 products including apparel products.
Under the ATPDEA, apparel assembled in the Andean region from U.S. fabric or
fabric components or components knit-to-shape in the United States may enter the United States duty free in unlimited quantities. Apparel assembled from Andean regional fabric or components
knit-to-shape in the region may enter duty-free subject to a quota. This quota is set at 2 percent of total U.S. apparel imports, increasing annually in equal increments up to 5 percent. This quota is for the four andean countries benefited with this act.
| ATPDEA
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| SGP | Yes
| Under the Generalized System of Preferences (GSP) schemes of preference-giving countries, selected products originating in developing countries are granted reduced or zero tariff rates over the MFN (Most Favoured Nation) rates.
As is stated in resolution 21(ii) taken at the UNCTAD II conference in New Delhi in 1968, "the objectives of the generalized, non-reciprocal, non-discriminatory system of preferences in favour of the developing countries.
| GSP Handbooks of:
Canada
Japan
European Union
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| MERCOSUR | Yes
| Bolivia is associate member of MERCOSUR.
This agreement gives preferencial tariffs for bolivian garments.
| Mercosur ACE No 36
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| CAN | Yes
| The Andean Community is a Customs Union because the goods of its member countries circulate unimpededly throughout its territory free of duties of any sort, while imports from outside the Subregion pay a common tariff.
The Andean Community is a subregional organization endowed with an international legal status, which is made up of Bolivia, Colombia, Ecuador, Peru and Venezuela and the bodies and institutions comprising the Andean Integration System (AIS).
| Cartagena Agreement
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| Bilateral agreements | Yes
| Free Trade Agreements with Chile and Mexico
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| Other |
| 8. What does the Bolivian textile/apparel sector offer? |
| Specialty fibers | Yes
| Llama, Alpaca and Vicuña
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| Market access | Yes
| Preferential access to major markets in the world
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| Competitive labor force | Yes
| -Highly trainable workforce
-Dexterous and skilled labor
-Competitive labor costs (minimum wage US$ 60)
-Low turnover rates (less than 3%)
-Loyal employees
-Abundant human resources
-Young workforce
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| 21. Why invest in Bolivian Textile sector ? |
- Bolivia is an export platform in the heart of South America
- Abundant skilled and competitive low-cost labor
- Plenty of natural resources.
- Reliable and abundant energy supply.
- Advantage in the fine hair textile. Bolivia is one of the main Camelidae producers (llama and alpaca) in the world
- Potential to develop Andean textile fibers and apparel products
- High quality of Bolivia?s textile industry enables it to produce, manufacture and export a diversity of garments including T-shirts, shirts, slacks and underwear
- Ease of entry into major export markets
- Duty and quota free benefits for Bolivian textile and apparel products to enter the United States (APTDEA)
- Competitive lead times and airfreigth to the US. Just six hours flight time to Miami. |
Source : | |
Institution name :
| ****** ******** *****
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Website :
| www.investbolivia.org
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Contact : | |
E-mail :
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Bolivia - FAQ Textil Environmental