Presidents Lula, Luis Arce meet to strengthen Brazil-Bolivia cooperation

President Luiz Inácio Lula da Silva and Bolivian President Luis Arce held a bilateral meeting on Tuesday (July 9) in Santa Cruz de la Sierra, followed by an expanded meeting with authorities from both countries. On the occasion, progress was made on strategic bilateral issues, such as agriculture, energy and infrastructure, as well as joint actions aimed at protecting the environment and energy transition.

It is time to work, to develop projects. What generates funding is the quality of the projects, not the other way around" – Luiz Inácio Lula da Silva, President of the Republic

Lula highlighted Brazil and Bolivia’s industrial policy cooperation for the exploration and manufacture of lithium and stressed the importance of joint development, with the strengthening of commercial cooperation, especially in the production of fertilizers.

The president expressed his satisfaction with Bolivia's full membership of Mercosur and said it is important for the Bolivian people to learn the strategic importance of the country's entrance into the bloc. He also highlighted Brazil and Bolivia’s cooperation on energy transition initiatives, highlighting the potential for natural gas, wind energy and ethanol production.

Lula said it was essential for the countries to work closely together on border issues, stressing that the Brazilian Federal Police is part of joint efforts against organized crime.

The Brazilian leader also expressed his satisfaction with the progress made in the bilateral trade, logistics and production agendas, which are considered strategic, declaring that Brazil and Bolivia’s relationship is beginning a new era of good projects to encourage mutual growth.

"It is time to work, to develop projects. What generates funding is the quality of the projects, not the other way around," summarized the Brazilian president.

ARCE – On the Bolivian side, Luis Arce highlighted his close relationship with President Lula and praised the fluidity and frequency of the contacts between them. This was the first time the Brazilian president visited the country in his third term, although it is already the fifth meeting between the two. Arce was in Brazil for President Lula's inauguration (January 2023), the Summit of South American Presidents (May 2023), the Amazon Summit in Belém-Pará (August 2023) and the Mercosur Summit in Rio de Janeiro in December last year. The Bolivian president also welcomed the perspective of cooperation in fertilizer production and mining, agricultural mechanization and building stronger logistical routes between the two countries.

LOGISTICS – Brazil's Minister of Agriculture and Livestock, Carlos Fávaro, highlighted the main  points discussed at the meeting, such as plans for a logistical connection across the Pacific, which is important for agribusiness exports, as well as  fertilizer production. Such infrastructure may reduce transport costs and time. In addition, the Brazilian Minister of Planning and Budget, Simone Tebet, emphasized the importance of partnerships for bridges and waterways and customs reinforcement on the borders with Bolivia. Of the five logistical routes of the New PAC, 3 and 4 involve Bolivia. They shorten the route for trade using Pacific ports. Tebet discussed the partnerships with multilateral banks to finance the works, which will result in a significant reduction in transportation costs and time.

ELECTRICITY– The Brazilian Minister of Mines and Energy, Alexandre Silveira, stressed that Bolivia is very important for South America’s energy security and the expansion of Brazilian investments in Bolivia. He highlighted the abundant production of potassium and urea, which are essential for fertilizer production. In the field of hydroelectric power, the minister spoke about plans to increase the potential of the Jirau plant by 377MW. According to him, negotiations are also at a good stage regarding the production and transportation of gas (including that produced in Argentina).

NATURAL GAS – Bolivia supplies two thirds of Brazil's natural gas imports. The product makes up 86% of Bolivia's exports to Brazil. The president of Petrobras, Magda Chambriard, praised Petrobras' 28 years of cooperation with Bolivia in this area. According to her, new production areas are in the environmental licensing phase and could start operating next year. The increased supply of gas to Brazil means lower prices for consumers.

ENVIRONMENT – Brazil's Minister for the Environment and Climate Change, Marina Silva, recalled that both countries are holders of natural resources and partners in the creation of a new low-carbon economy focused on human development. Silva pointed out that Brazil cooperated to train firefighters against forest fires and deforestation and recalled that the increase in fires is also affecting Bolivian forests. According to the minister, the increase in hotspots this year has been much higher than in previous years. She highlighted the various interagency task forces and the importance of periodic meetings with Bolivians, the next one being in Corumbá.

Marina Silva also highlighted the concerted positions between the two nations at the next United Nations Conference on Biodiversity, COP 16, which will take place between October 21 and November 1 this year in the Colombian city of Cali; and at the United Nations Conference on Climate Change, COP 30, in Belém, in 2025. The minister also spoke about the importance of creative environmental financing mechanisms, with an eye on human development and indigenous peoples.

BILATERAL TRADE – In 2023, the trade flow between Brazil and Bolivia totaled USD 3.31 billion, with a surplus of USD 278 million for Brazil. Bolivia was the 35th main destination for exports and the 30th country of origin for Brazilian imports. Brazil was the main destination for Bolivian exports and the second country of origin for its imports. The main products exported by Brazil to Bolivia were steel (iron and steel, bars, angles and profiles - 6.1% of the total) and passenger cars (3.8%). The main products imported by Brazil from Bolivia were natural gas (86%) and fertilizers or chemical fertilizers (4.8%).