Diplomatic Talks With US Resumed

Bolivia moved a step closer to restoring its diplomatic relationship with the US, as talks to resume full ties restarted, following the interruption caused by the Bolivian election back in December. The re-elected President Evo Morales had previously expelled the US Ambassador to Bolivia in September 2008, accusing him of trying to undermine the government. Normalisation of diplomatic ties between the two countries would be a positive sign for Bolivia, in our view, not least given the fact that the US has been the source of the majority of foreign aid to Bolivia in recent years. That said, we see little prospect of an end to the tense relationship between the two countries for the time being.

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