Bolivia suspends oil exports to Peru due to price hikes

Published 2024년 12월 16일

Tridge summary

Bolivian President Luis Arce has temporarily halted the export of refined soybean oil to Peru due to a severe price surge within Bolivia, where the cost has risen by 60% leading to widespread affectation among families. This measure is aimed at mitigating the impact of speculation and safeguarding the economy for Bolivian households, who are already grappling with an economic crisis marked by a scarcity of essential goods like beef, rice, and fuel, exacerbated by smuggling activities to neighboring countries. Despite the potential minor impact on Peru's market, which relies heavily on Bolivian imports for its edible oil needs, the decision underscores the broader challenges Bolivia faces in ensuring the availability and accessibility of essential goods for its population.

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Original content

President Luis Arce decreed the temporary suspension of refined soybean oil exports to Peru due to the rise in prices in the domestic market of Bolivia. The shortage of the product has generated a 60% increase in prices, affecting families in the highland country. In Peru, almost a third of the edible oil consumed is imported, and more than half of this supply comes from Bolivia, according to data from the Ministry of Agrarian Development and Irrigation (Midagri). However, experts say that the measure will not significantly affect the Peruvian market, because the trade opening allows the import of oil without tariffs, which facilitates the entry of products from countries such as Brazil and Argentina. CRISIS IN BOLIVIA Bolivia also faces a shortage of products such as beef, rice and fuel, a situation attributed to smuggling to neighboring countries such as Peru, Argentina and Brazil. Faced with this, the government has deployed more ...

Source: Panamericana