Bolivia: overlooked hardwood source

one of the most favorable manufacturing and export environments in the industrialized world. In the last decade, Bolivia has adopted the lowesj tariffs in South America, established investment guarantees and given large export promotion grants which have enabled manufacturers to acquire state-of-the-art machinery and processes. The country has eliminated all export restrictions and non-tariff barriers and, because of its Most Favored Nation status with the U.S., wood products from the country may be imported duty free.

on modern equipment and an exportoriented infrastructure that would generally only be equated with a fully developed country," he says. "Most importantly, they are manufacturing their products where the natural resources are at their back door and, therefore, can make them at less cost than anybody else."

With the current recession, American companies are hesitant to expand or construct large plants. "Companies that import have less capital tied down and are able to react quickly to the market," Anderson says.

Story at a Glance

Heavily forested Bolivia has more than 90 commercial hardwood species...exports aided by absence of tariffs, availability of grants...mahogany a prime species.

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one of the largest hardwood reseryes in the world. The South American country also has the hemisphere's lowest labor costs, averaging less than ll%o of those in the U.S., making high quality exports affordable.

Straddling the Andes Mountains and stretching well into the Amazon Basin, landlocked Bolivia is home to more than 90 species of potentially commercial wood. Most commonly available is mahogany (Swietenia macrophylla). Prices on high grade mahogany are comparatively low and exports are unrestricted.

Lesser known Bolivian hardwoods have also been successfully used in the U.S. as substitutes for costlier oak, ash and walnut. Non-aromatic cedar, which resembles mahogany, is available in large quantities. Its grain and color have made it as sought after as mahogany.

The country has made a number of recent strides to affirm its position as

To further make Bolivia one of the world's most competitive sources of wood products, President George Bush in August 1991 abolished Bolivia's remaining commercial debt to the U.S. Bush's action came as an encouragement and reward for Bolivia's excellent economic performance of the previous five years. Bolivia has been one of the only Latin American countries to continually repay its debt obligations while boasting the region's lowest inflation rates and constant economic growth.

Abolition of the debt lifts $350 million in obligations, freeing additional capital for the promotion of its export industries, especially in wood products.

European countries, however, have been the ones capitalizing on Bolivia's strides by importing a wide range of products, including interior and exterior doors, cabinet doors, fumiture, furniture parts and mouldings. Currently over TOVo of the wood products exported from Bolivia are shipped to manufacturers and distributors in Europe who have found they cannot produce for themselves like quality at like prices.

"Bolivia is truly a keg of untapped potential for American companies seeking to reduce costs without compromising quality and reliability," says Chris D. Anderson, Simex Intemational, which represents in the U.S. major Bolivian wood products manufacturers.

"The country's manufacturers count

Look for more Bolivian hardwood products to be infoduced to the states. "We have to realize that some of the most impressive woodworking industries are blossoming in our backyard with access to viable new species of wood. It is a great oppornrnity that we have yet to take full advantage of," he SAVS.