Brazil and Bolivia on July 9 signed a cooperation agreement to trade fertilizers and sodium chloride, according to a government announcement.The signings occurred during a bilateral meeting between Brazil President Luiz Inácio Lula da Silva and Bolivian President Luis Arce in Santa Cruz de la Sierra.
“These agreements aim to establish terms and conditions for exporting fertilizers and their raw materials to Brazil, focusing on strengthening the local agricultural sector,” the statement said. “The agreements also promote and implement technical and scientific cooperation through technological exchange, research, development, and innovation between the parties.”
The two presidents discussed progress in strategic areas such as agriculture, energy, and infrastructure, as well as joint actions for environmental protection and energy transition. Lula highlighted the cooperation between Brazil and Bolivia in industrial policy for the exploration and manufacturing of lithium, and stressed the importance of strengthening commercial cooperation in fertilizer production.
“What we have done here aims to improve the quality of life for the people of Bolivia and Brazil,” said Lula. “That is why we are signing these documents. It is because it is necessary to give Brazil, Bolivia, and other South American countries a chance in the 21st century to stop being treated as developing countries or third-world countries.”
In addition to facilitating trade for urea, NPK, and potash, the agreement outlines cooperation on sales contracts and marketing strategies, as well as identifying other potential clients for fertilizer. The agreement will run for five years and may be extended for the same period.
Brazil exported approximately $1.84 billion of goods to Bolivia in 2023, consisting mainly of iron bars, various food preparations, and automobiles. Agribusiness exports averaged around $350 million over the past five years and included mainly beverages, forestry products, and animal feed.
Brazil imported approximately $1.61 billion in goods from Bolivia in 2023, including natural gas, nitrogen fertilizers, and borax. The main fertilizer imports from Bolivia are urea and potash, averaging $59 million and $9.5 million, respectively, over the last three years.