Bridges Trade BioRes • Volume 9 • Number 1 • 23rd January 2009

Bolivian Restrictions on Polluting Car Imports Upheld

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The Government of Chile’s efforts to reverse a decree by Bolivian president Evo Morales to ban imports of used vehicles more than 5 years old have ended in failure. The Bolivian ban aims to stem the steady cross-border stream of mainly Japanese used cars arriving in the Chilean ports of Arica and Iquique.

Rigid emissions and safety standards in Japan often makes the cost of owning older cars prohibitively high. As a result, Latin America has become a popular destination for cheap vehicles deemed unfit to drive in many other countries.

Prior to the 3 December decree, there were no restrictions on used vehicle imports. La Paz asserts that the surge of sub-standard used car imports in recent years has created a higher demand for fuel in the country and that the associated increases in greenhouse gas emissions pose health and safety risks to the population. The new restriction also extends to the vehicles that use diesel oil as fuel and whose engine capacity is less than or equal to 4,000 cubic centimetres and vehicles using liquefied petroleum gas (LPG) as fuel.

While the Chilean diplomatic mission failed to achieve its objective, Bolivia has agreed to expedite the customs procedures an undetermined number of cars that were in the process of being imported when the new rules were made effective.
Carlos Furche, Chile’s Director of Foreign Trade, conceded that Bolivia has a right to protect its citizens, but hinted that the move was protectionist in nature. However, Bolivia’s finance minister emphasised that the decision is rooted in need to keep ‘junk cars’ out of the country in order to improve urban traffic problems and reduce pollution and fuel use.
Bolivian used car importers, who will be directly affected by the new measure, have held demonstrations opposing the measure. Opposition has also been heard from related sectors, such as auto mechanics and many businesses that have been established to convert right-hand-drive Japanese vehicles to left-hand-drive. While some opponents are calling on the government to fully eliminate the ban, others say a gradual and flexible introduction would have allowed business sectors directly affected to better adapt.
Chilean officials estimate that ban will cost the country 15 thousand jobs and suggest that several small and medium sized businesses would be negatively affected.
Bolivian authorities say that they are already facing obstacles in enforcing the ban due to a flood of falsified documents being used by used car importers.

ICTSD Reporting; CINPE Reporting; “Bolivia no atenderá el pedido de Chile sobre los vehículos usados,” RED ERBOL, 4 January 2009; “Chile retira observaciones sobre autos usados a Bolivia: medios,” REUTERS, 13 January 2009; “Decreto Supremo 29836,” DERECHOTECA, 3 December 2009; “Por zona Franca Denuncian ingreso de vehículos de importadores pakistaníes,” FM BOLIVIA, 19 January 2009; “Import ban aims to halt Bolivia’s used car flood,” INTERNATIONAL HERALD TRIBUNE, 18 December 2009.