Bolivia takes an important step toward diversifying its export markets. On May 18, it signed an agreement with China that officially opens the door to raw cowhide exports. The agreement comes at a time when the country is seeking new trade outlets to counter the declining regional demand and growing competition from synthetics. The deal, signed during the 4th CELAC-China Forum, could be a turning point for the leather sector as a whole, including those processing it.
A market with enormous potential
As reported in local news sources, the protocol between Bolivia and China authorizes the export of raw cowhide to the Chinese market, which consumes about 1.8 million tons of the material each year. Currently, Bolivian exports stand at about 22,000 tons annually, worth $12.5 million, but with access to the Asian country, these figures could increase significantly. The leather sector in China is driven by industries such as footwear, furniture and fashion, and demand continues to grow. According to Bolivian authorities, the recognition by Chinese customs authorities is the result of rigorous and coordinated technical work between the government, SENASAG and the private sector.
Toward a more robust supply chain
Opening up to the Chinese market not only expands export opportunities, but could also spur new domestic investment. The Bolivian government foresees positive spillovers throughout the production chain: improvements in storage infrastructure, enhanced logistics and, most importantly, new employment opportunities. This agreement joins the list of those already signed with China in past years, such as the one on beef in 2019, and is part of a broader strategy of consolidating bilateral relations. At a time when traditional markets are showing signs of saturation, China is confirmed as a strategic partner to support the growth and modernization of Bolivian exports.
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