Drug Success Prevents U.S. Sanctions

October 2007 | Risk Summary

Bolivia has been deemed by the US to have done enough to fight the drug trade in the last year to avoid economic sanctions. The success allows Bolivia to escape a possible cut-off in aid donation from the US, which could have resulted if it had 'failed demonstrably' to meet its counter-narcotics commitments. However, with President Evo Morales intent on courting anti-US leaders such as Iranian President Mahmoud Ahmadinejad, relations between Bolivia and the US remain patchy, which could pose financial risks going forward.

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